Overall VNO gets a fundamental rating of 5 out of 10. We evaluated VNO against 124 industry peers in the Diversified REITs industry. VNO has an average financial health and profitability rating. VNO has a correct valuation and a medium growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year VNO was profitable.
In the past year VNO had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VNO reported negative net income in multiple years.
In the past 5 years VNO always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 5.36%, VNO belongs to the top of the industry, outperforming 95.97% of the companies in the same industry.
The Return On Equity of VNO (13.90%) is better than 91.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.44%, VNO is doing worse than 76.61% of the companies in the same industry.
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 3.05%.

		Industry Rank	Sector Rank
ROA	5.36%
ROE	13.9%
ROIC	1.44%

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

VNO has a Profit Margin of 46.48%. This is amongst the best in the industry. VNO outperforms 96.77% of its industry peers.
In the last couple of years the Profit Margin of VNO has declined.
With a Operating Margin value of 14.75%, VNO is not doing good in the industry: 65.32% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of VNO has declined.
Looking at the Gross Margin, with a value of 49.19%, VNO is doing worse than 75.81% of the companies in the same industry.
VNO's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	14.75%
PM (TTM)	46.48%
GM	49.19%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

VNO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VNO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for VNO remains at a similar level compared to 5 years ago.
VNO has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.31, we must say that VNO is in the distress zone and has some risk of bankruptcy.
VNO has a worse Altman-Z score (0.31) than 62.90% of its industry peers.
VNO has a debt to FCF ratio of 11.23. This is a negative value and a sign of low solvency as VNO would need 11.23 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 11.23, VNO belongs to the best of the industry, outperforming 89.52% of the companies in the same industry.
A Debt/Equity ratio of 1.18 is on the high side and indicates that VNO has dependencies on debt financing.
With a Debt to Equity ratio value of 1.18, VNO perfoms like the industry average, outperforming 55.65% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	1.18
Debt/FCF	11.23
Altman-Z	0.31

ROIC/WACC0.23

WACC6.17%

2.3 Liquidity

VNO has a Current Ratio of 1.67. This is a normal value and indicates that VNO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.67, VNO is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
VNO has a Quick Ratio of 1.67. 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 1.67, VNO is doing good in the industry, outperforming 79.03% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.67
Quick Ratio	1.67

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 5900.00% over the past year.
Measured over the past years, VNO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -57.97% on average per year.
VNO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.41%.
VNO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.47% yearly.

EPS 1Y (TTM)5900%

EPS 3Y-58.75%

EPS 5Y-57.97%

EPS Q2Q%160%

Revenue 1Y (TTM)2.41%

Revenue growth 3Y4%

Revenue growth 5Y-1.47%

Sales Q2Q%2.36%

3.2 Future

The Earnings Per Share is expected to grow by 68.63% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.98% on average over the next years.

EPS Next Y10606%

EPS Next 2Y-58.27%

EPS Next 3Y8.08%

EPS Next 5Y68.63%

Revenue Next Year-0.56%

Revenue Next 2Y0.64%

Revenue Next 3Y1.79%

Revenue Next 5Y2.98%

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 7.59, the valuation of VNO can be described as very cheap.
VNO's Price/Earnings ratio is rather cheap when compared to the industry. VNO is cheaper than 95.16% of the companies in the same industry.
VNO is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for VNO. No positive earnings are expected for the next year.

		Industry Rank	Sector Rank
PE	7.59
Fwd PE	N/A

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as VNO.
Based on the Price/Free Cash Flow ratio, VNO is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	9.57
EV/EBITDA	16.41

4.3 Compensation for Growth

VNO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

PEG (NY)0

PEG (5Y)N/A

EPS Next 2Y-58.27%

EPS Next 3Y8.08%

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5. Dividend

5.1 Amount

VNO has a Yearly Dividend Yield of 7.45%, which is a nice return.
Compared to an average industry Dividend Yield of 6.98, VNO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.83, VNO pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	7.45%

5.2 History

The dividend of VNO decreases each year by -18.14%.
VNO has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of VNO decreased recently.

Dividend Growth(5Y)-18.14%

Div Incr Years1

Div Non Decr Years1

5.3 Sustainability

VNO pays out 24.09% of its income as dividend. This is a sustainable payout ratio.

DP24.09%

EPS Next 2Y-58.27%

EPS Next 3Y8.08%

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VORNADO REALTY TRUST / VNO FAQ

What is the ChartMill fundamental rating of VORNADO REALTY TRUST (VNO) stock?

ChartMill assigns a fundamental rating of 5 / 10 to VNO.

What is the valuation status for VNO stock?

ChartMill assigns a valuation rating of 5 / 10 to VORNADO REALTY TRUST (VNO). This can be considered as Fairly Valued.

Can you provide the profitability details for VORNADO REALTY TRUST?

VORNADO REALTY TRUST (VNO) has a profitability rating of 4 / 10.

What are the PE and PB ratios of VORNADO REALTY TRUST (VNO) stock?

The Price/Earnings (PE) ratio for VORNADO REALTY TRUST (VNO) is 7.59 and the Price/Book (PB) ratio is 1.01.

What is the earnings growth outlook for VORNADO REALTY TRUST?

The Earnings per Share (EPS) of VORNADO REALTY TRUST (VNO) is expected to grow by 10606% in the next year.