VORNADO REALTY TRUST (VNO) Stock Fundamental Analysis
NYSE:VNO - New York Stock Exchange, Inc. - US9290421091 - REIT - Currency: USD
Taking everything into account, VNO scores 3 out of 10 in our fundamental rating. VNO was compared to 129 industry peers in the Diversified REITs industry. Both the profitability and financial health of VNO have multiple concerns. While showing a medium growth rate, VNO is valued expensive at the moment.
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.
Each year in the past 5 years VNO had a positive operating cash flow.
1.2 Ratios
VNO has a Return On Assets (0.67%) which is in line with its industry peers.
VNO's Return On Equity of 1.96% is in line compared to the rest of the industry. VNO outperforms 53.49% of its industry peers.
VNO has a Return On Invested Capital of 1.50%. This is in the lower half of the industry: VNO underperforms 78.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VNO is in line with the industry average of 3.15%.
The 3 year average ROIC (1.48%) for VNO is below the current ROIC(1.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 1.96% | ||
| ROIC | 1.5% |
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
The Profit Margin of VNO (5.75%) is comparable to the rest of the industry.
VNO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.19%, VNO is doing worse than 65.89% of the companies in the same industry.
In the last couple of years the Operating Margin of VNO has declined.
VNO has a worse Gross Margin (48.90%) than 79.07% of its industry peers.
VNO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.19% | ||
| PM (TTM) | 5.75% | ||
| GM | 48.9% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VNO is destroying value.
The number of shares outstanding for VNO has been increased compared to 1 year ago.
VNO has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for VNO is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.24, we must say that VNO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.24, VNO is not doing good in the industry: 63.57% of the companies in the same industry are doing better.
The Debt to FCF ratio of VNO is 57.24, which is on the high side as it means it would take VNO, 57.24 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 57.24, VNO is doing good in the industry, outperforming 64.34% of the companies in the same industry.
A Debt/Equity ratio of 1.47 is on the high side and indicates that VNO has dependencies on debt financing.
VNO's Debt to Equity ratio of 1.47 is in line compared to the rest of the industry. VNO outperforms 42.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 57.24 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.23
WACC6.63%
2.3 Liquidity
A Current Ratio of 1.20 indicates that VNO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.20, VNO perfoms like the industry average, outperforming 59.69% of the companies in the same industry.
A Quick Ratio of 1.20 indicates that VNO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, VNO is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
VNO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 260.00%, which is quite impressive.
The earnings per share for VNO have been decreasing by -57.97% on average. This is quite bad
VNO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.63%.
Measured over the past years, VNO shows a decrease in Revenue. The Revenue has been decreasing by -1.47% on average per year.
EPS 1Y (TTM)260%
EPS 3Y-58.75%
EPS 5Y-57.97%
EPS Q2Q%1360%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y4%
Revenue growth 5Y-1.47%
Sales Q2Q%5.78%
3.2 Future
VNO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 64.01% yearly.
The Revenue is expected to grow by 4.02% on average over the next years.
EPS Next Y-11.62%
EPS Next 2Y20.49%
EPS Next 3Y143.72%
EPS Next 5Y64.01%
Revenue Next Year3.57%
Revenue Next 2Y4.34%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 51.51, VNO can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as VNO.
When comparing the Price/Earnings ratio of VNO to the average of the S&P500 Index (25.82), we can say VNO is valued expensively.
The Price/Forward Earnings ratio is 638.66, which means the current valuation is very expensive for VNO.
VNO's Price/Forward Earnings is on the same level as the industry average.
VNO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.51 | ||
| Fwd PE | 638.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNO is valued more expensive than 82.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VNO is valued a bit cheaper than 61.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.3 | ||
| EV/EBITDA | 19.09 |
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 1.99%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.99, VNO pays less dividend than the industry average, which is at 6.61. 85.27% of the companies listed in the same industry pay a better dividend than VNO!
VNO's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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.
Dividend Growth(5Y)-18.14%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VNO pays out 195.11% of its income as dividend. This is not a sustainable payout ratio.
DP195.11%
EPS Next 2Y20.49%
EPS Next 3Y143.72%
37.09
-0.08 (-0.22%)
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 Change-0.52%
Ins Owners6.31%
Ins Owner Change0.71%
Market Cap7.12B
Analysts51.43
Price Target40.03 (7.93%)
Short Float %4.99%
Short Ratio5.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend1.07
Dividend Growth(5Y)-18.14%
DP195.11%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)180.02%
Min EPS beat(2)119.8%
Max EPS beat(2)240.24%
EPS beat(4)4
Avg EPS beat(4)157.69%
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)2
Avg Revenue beat(2)1.19%
Min Revenue beat(2)1.08%
Max Revenue beat(2)1.3%
Revenue beat(4)3
Avg Revenue beat(4)0.46%
Min Revenue beat(4)-2.02%
Max Revenue beat(4)1.49%
Revenue beat(8)4
Avg Revenue beat(8)-0.14%
Revenue beat(12)7
Avg Revenue beat(12)32.49%
Revenue beat(16)9
Avg Revenue beat(16)24.85%
PT rev (1m)-2.89%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.55%
EPS NY rev (1m)0%
EPS NY rev (3m)175%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.51 | ||
| Fwd PE | 638.66 | ||
| P/S | 3.93 | ||
| P/FCF | 52.3 | ||
| P/OCF | 12.75 | ||
| P/B | 1.34 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 19.09 |
EPS(TTM)0.72
EY1.94%
EPS(NY)0.06
Fwd EY0.16%
FCF(TTM)0.71
FCFY1.91%
OCF(TTM)2.91
OCFY7.84%
SpS9.44
BVpS27.68
TBVpS27.08
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 1.96% | ||
| ROCE | 1.9% | ||
| ROIC | 1.5% | ||
| ROICexc | 1.56% | ||
| ROICexgc | 1.62% | ||
| OM | 15.19% | ||
| PM (TTM) | 5.75% | ||
| GM | 48.9% | ||
| FCFM | 7.51% |
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-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 57.24 | ||
| Debt/EBITDA | 10.36 | ||
| Cap/Depr | 88.56% | ||
| Cap/Sales | 23.29% | ||
| Interest Coverage | 0.82 | ||
| Cash Conversion | 74.24% | ||
| Profit Quality | 130.71% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 0.24 |
F-Score6
WACC6.63%
ROIC/WACC0.23
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)260%
EPS 3Y-58.75%
EPS 5Y-57.97%
EPS Q2Q%1360%
EPS Next Y-11.62%
EPS Next 2Y20.49%
EPS Next 3Y143.72%
EPS Next 5Y64.01%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y4%
Revenue growth 5Y-1.47%
Sales Q2Q%5.78%
Revenue Next Year3.57%
Revenue Next 2Y4.34%
Revenue Next 3Y4.71%
Revenue Next 5Y4.02%
EBIT growth 1Y-5.22%
EBIT growth 3Y2.23%
EBIT growth 5Y-9.15%
EBIT Next Year190.01%
EBIT Next 3Y45.51%
EBIT Next 5Y25.68%
FCF growth 1Y201.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-22.44%
OCF growth 3Y-10.96%
OCF growth 5Y-4.09%