VORNADO REALTY TRUST (VNO) Stock Fundamental Analysis
NYSE:VNO - New York Stock Exchange, Inc. - US9290421091 - REIT - Currency: USD
Taking everything into account, VNO scores 2 out of 10 in our fundamental rating. VNO was compared to 130 industry peers in the Diversified REITs industry. Both the profitability and financial health of VNO have multiple concerns. VNO is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
VNO had positive earnings in the past year.
VNO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: VNO reported negative net income in multiple years.
VNO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VNO's Return On Assets of 0.05% is on the low side compared to the rest of the industry. VNO is outperformed by 60.00% of its industry peers.
Looking at the Return On Equity, with a value of 0.16%, VNO is in line with its industry, outperforming 41.54% of the companies in the same industry.
With a Return On Invested Capital value of 1.33%, VNO is not doing good in the industry: 80.77% of the companies in the same industry are doing better.
VNO had an Average Return On Invested Capital over the past 3 years of 1.48%. This is in line with the industry average of 3.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.05% | ||
| ROE | 0.16% | ||
| ROIC | 1.33% |
ROA(3y)-0.72%
ROA(5y)-0.74%
ROE(3y)-2.02%
ROE(5y)-1.95%
ROIC(3y)1.48%
ROIC(5y)1.27%
1.3 Margins
With a Profit Margin value of 0.46%, VNO is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of VNO has declined.
VNO has a Operating Margin of 14.05%. This is in the lower half of the industry: VNO underperforms 66.92% of its industry peers.
In the last couple of years the Operating Margin of VNO has declined.
VNO's Gross Margin of 48.10% is on the low side compared to the rest of the industry. VNO is outperformed by 79.23% of its industry peers.
In the last couple of years the Gross Margin of VNO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.05% | ||
| PM (TTM) | 0.46% | ||
| GM | 48.1% |
OM growth 3Y-1.7%
OM growth 5Y-7.8%
PM growth 3Y-58.25%
PM growth 5Y-68.97%
GM growth 3Y-1.17%
GM growth 5Y-1.66%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VNO is destroying value.
The number of shares outstanding for VNO has been increased compared to 1 year ago.
Compared to 5 years ago, VNO has about the same amount of shares outstanding.
Compared to 1 year ago, VNO has a worse debt to assets ratio.
2.2 Solvency
VNO has an Altman-Z score of 0.21. This is a bad value and indicates that VNO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VNO (0.21) is worse than 66.15% of its industry peers.
VNO has a debt to FCF ratio of 114.31. This is a negative value and a sign of low solvency as VNO would need 114.31 years to pay back of all of its debts.
The Debt to FCF ratio of VNO (114.31) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.60 is on the high side and indicates that VNO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.60, VNO is doing worse than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 114.31 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.2
WACC6.53%
2.3 Liquidity
A Current Ratio of 1.33 indicates that VNO should not have too much problems paying its short term obligations.
VNO's Current ratio of 1.33 is in line compared to the rest of the industry. VNO outperforms 60.00% of its industry peers.
VNO has a Quick Ratio of 1.33. This is a normal value and indicates that VNO is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.33, VNO is doing good in the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
VNO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -84.62%.
VNO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -57.97% yearly.
The Revenue has decreased by -1.30% in the past year.
The Revenue has been decreasing by -1.47% on average over the past years.
EPS 1Y (TTM)-84.62%
EPS 3Y-58.75%
EPS 5Y-57.97%
EPS Q2Q%-75%
Revenue 1Y (TTM)-1.3%
Revenue growth 3Y4%
Revenue growth 5Y-1.47%
Sales Q2Q%3.6%
3.2 Future
Based on estimates for the next years, VNO will show a very strong growth in Earnings Per Share. The EPS will grow by 64.01% on average per year.
Based on estimates for the next years, VNO will show a small growth in Revenue. The Revenue will grow by 4.02% on average per year.
EPS Next Y-11.62%
EPS Next 2Y20.49%
EPS Next 3Y143.72%
EPS Next 5Y64.01%
Revenue Next Year3.57%
Revenue Next 2Y4.26%
Revenue Next 3Y4.71%
Revenue Next 5Y4.02%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
VNO is valuated quite expensively with a Price/Earnings ratio of 887.25.
VNO's Price/Earnings ratio is a bit more expensive when compared to the industry. VNO is more expensive than 67.69% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.92, VNO is valued quite expensively.
VNO is valuated quite expensively with a Price/Forward Earnings ratio of 1003.96.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VNO is on the same level as its industry peers.
VNO is valuated expensively when we compare the Price/Forward Earnings ratio to 21.65, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 887.25 | ||
| Fwd PE | 1003.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNO is valued expensively inside the industry as 83.08% of the companies are valued cheaper.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VNO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 94.47 | ||
| EV/EBITDA | 19.87 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VNO's earnings are expected to grow with 143.72% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.49%
EPS Next 3Y143.72%
5. Dividend
5.1 Amount
VNO has a Yearly Dividend Yield of 2.14%.
With a Dividend Yield of 2.14, VNO pays less dividend than the industry average, which is at 16.86. 86.92% of the companies listed in the same industry pay a better dividend than VNO!
Compared to an average S&P500 Dividend Yield of 2.51, VNO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
5.2 History
The dividend of VNO decreases each year by -18.14%.
VNO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-18.14%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VNO pays out 2455.77% of its income as dividend. This is not a sustainable payout ratio.
DP2455.77%
EPS Next 2Y20.49%
EPS Next 3Y143.72%
35.49
+0.57 (+1.63%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.85%
Inst Owner Change0.07%
Ins Owners6.31%
Ins Owner Change0%
Market Cap6.81B
Analysts51.43
Price Target41.23 (16.17%)
Short Float %6.33%
Short Ratio8.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend1.07
Dividend Growth(5Y)-18.14%
DP2455.77%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)60.4%
Min EPS beat(2)0.99%
Max EPS beat(2)119.8%
EPS beat(4)4
Avg EPS beat(4)108.07%
Min EPS beat(4)0.99%
Max EPS beat(4)269.73%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-2.02%
Max Revenue beat(2)1.3%
Revenue beat(4)2
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-3.87%
Max Revenue beat(4)1.49%
Revenue beat(8)3
Avg Revenue beat(8)-0.55%
Revenue beat(12)7
Avg Revenue beat(12)32.6%
Revenue beat(16)8
Avg Revenue beat(16)24.61%
PT rev (1m)1.68%
PT rev (3m)5.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)507.4%
EPS NY rev (1m)-41.67%
EPS NY rev (3m)122.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 887.25 | ||
| Fwd PE | 1003.96 | ||
| P/S | 3.81 | ||
| P/FCF | 94.47 | ||
| P/OCF | 12.67 | ||
| P/B | 1.32 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 19.87 |
EPS(TTM)0.04
EY0.11%
EPS(NY)0.04
Fwd EY0.1%
FCF(TTM)0.38
FCFY1.06%
OCF(TTM)2.8
OCFY7.89%
SpS9.31
BVpS26.87
TBVpS26.26
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.05% | ||
| ROE | 0.16% | ||
| ROCE | 1.69% | ||
| ROIC | 1.33% | ||
| ROICexc | 1.4% | ||
| ROICexgc | 1.45% | ||
| OM | 14.05% | ||
| PM (TTM) | 0.46% | ||
| GM | 48.1% | ||
| FCFM | 4.03% |
ROA(3y)-0.72%
ROA(5y)-0.74%
ROE(3y)-2.02%
ROE(5y)-1.95%
ROIC(3y)1.48%
ROIC(5y)1.27%
ROICexc(3y)1.57%
ROICexc(5y)1.37%
ROICexgc(3y)1.63%
ROICexgc(5y)1.42%
ROCE(3y)1.87%
ROCE(5y)1.61%
ROICexcg growth 3Y2.74%
ROICexcg growth 5Y-7.36%
ROICexc growth 3Y3.14%
ROICexc growth 5Y-7.55%
OM growth 3Y-1.7%
OM growth 5Y-7.8%
PM growth 3Y-58.25%
PM growth 5Y-68.97%
GM growth 3Y-1.17%
GM growth 5Y-1.66%
F-Score3
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 114.31 | ||
| Debt/EBITDA | 11.44 | ||
| Cap/Depr | 99.19% | ||
| Cap/Sales | 26.05% | ||
| Interest Coverage | 0.78 | ||
| Cash Conversion | 74.62% | ||
| Profit Quality | 871.42% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 0.21 |
F-Score3
WACC6.53%
ROIC/WACC0.2
Cap/Depr(3y)148.23%
Cap/Depr(5y)165.12%
Cap/Sales(3y)40.05%
Cap/Sales(5y)44.81%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-84.62%
EPS 3Y-58.75%
EPS 5Y-57.97%
EPS Q2Q%-75%
EPS Next Y-11.62%
EPS Next 2Y20.49%
EPS Next 3Y143.72%
EPS Next 5Y64.01%
Revenue 1Y (TTM)-1.3%
Revenue growth 3Y4%
Revenue growth 5Y-1.47%
Sales Q2Q%3.6%
Revenue Next Year3.57%
Revenue Next 2Y4.26%
Revenue Next 3Y4.71%
Revenue Next 5Y4.02%
EBIT growth 1Y-15.32%
EBIT growth 3Y2.23%
EBIT growth 5Y-9.15%
EBIT Next Year190.01%
EBIT Next 3Y45.51%
EBIT Next 5Y25.68%
FCF growth 1Y148.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-17.04%
OCF growth 3Y-10.96%
OCF growth 5Y-4.09%