VORNADO REALTY TRUST (VNO) Stock Fundamental Analysis
NYSE:VNO - New York Stock Exchange, Inc. - US9290421091 - REIT - Currency: USD
Overall VNO gets a fundamental rating of 3 out of 10. We evaluated VNO against 130 industry peers in the Diversified REITs industry. VNO may be in some trouble as it scores bad on both profitability and health. VNO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
VNO had positive earnings in the past year.
In the past year VNO had a positive cash flow from operations.
In multiple years VNO reported negative net income over the last 5 years.
VNO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VNO has a Return On Assets of 0.67%. This is comparable to the rest of the industry: VNO outperforms 50.77% of its industry peers.
VNO has a Return On Equity (1.96%) which is comparable to the rest of the industry.
VNO has a Return On Invested Capital of 1.50%. This is in the lower half of the industry: VNO underperforms 77.69% 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
With a Profit Margin value of 5.75%, VNO perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
VNO's Profit Margin has declined in the last couple of years.
VNO has a worse Operating Margin (15.19%) than 66.15% of its industry peers.
VNO's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 48.90%, VNO is not doing good in the industry: 79.23% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of VNO has declined.
| 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
VNO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
VNO has a worse debt/assets ratio than last year.
2.2 Solvency
VNO has an Altman-Z score of 0.24. This is a bad value and indicates that VNO is not financially healthy and even has some risk of bankruptcy.
VNO's Altman-Z score of 0.24 is on the low side compared to the rest of the industry. VNO is outperformed by 65.38% of its industry peers.
VNO has a debt to FCF ratio of 57.24. This is a negative value and a sign of low solvency as VNO would need 57.24 years to pay back of all of its debts.
VNO's Debt to FCF ratio of 57.24 is fine compared to the rest of the industry. VNO outperforms 63.85% of its industry peers.
A Debt/Equity ratio of 1.47 is on the high side and indicates that VNO has dependencies on debt financing.
VNO has a Debt to Equity ratio of 1.47. This is comparable to the rest of the industry: VNO outperforms 40.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 57.24 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.23
WACC6.44%
2.3 Liquidity
A Current Ratio of 1.20 indicates that VNO should not have too much problems paying its short term obligations.
The Current ratio of VNO (1.20) is comparable to the rest of the industry.
A Quick Ratio of 1.20 indicates that VNO should not have too much problems paying its short term obligations.
VNO has a Quick ratio of 1.20. This is comparable to the rest of the industry: VNO outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 275.00% over the past year.
VNO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -57.97% yearly.
Looking at the last year, VNO shows a decrease in Revenue. The Revenue has decreased by -1.30% in the last year.
The Revenue has been decreasing by -1.47% on average over the past years.
EPS 1Y (TTM)275%
EPS 3Y-58.75%
EPS 5Y-57.97%
EPS Q2Q%211.11%
Revenue 1Y (TTM)-1.3%
Revenue growth 3Y4%
Revenue growth 5Y-1.47%
Sales Q2Q%-1.96%
3.2 Future
The Earnings Per Share is expected to grow by 64.01% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.54% on average over the next years.
EPS Next Y878.44%
EPS Next 2Y23.09%
EPS Next 3Y143.72%
EPS Next 5Y64.01%
Revenue Next Year3.41%
Revenue Next 2Y4.1%
Revenue Next 3Y4.33%
Revenue Next 5Y4.54%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 41.98 indicates a quite expensive valuation of VNO.
The rest of the industry has a similar Price/Earnings ratio as VNO.
VNO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.99.
With a Price/Forward Earnings ratio of 623.43, VNO can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, VNO is valued a bit more expensive than 60.77% of the companies in the same industry.
VNO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 36.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.98 | ||
| Fwd PE | 623.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VNO indicates a rather expensive valuation: VNO more expensive than 80.77% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VNO indicates a somewhat cheap valuation: VNO is cheaper than 62.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.27 | ||
| EV/EBITDA | 19.07 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VNO's earnings are expected to grow with 143.72% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y23.09%
EPS Next 3Y143.72%
5. Dividend
5.1 Amount
VNO has a Yearly Dividend Yield of 1.91%.
With a Dividend Yield of 1.91, VNO pays less dividend than the industry average, which is at 6.85. 86.15% of the companies listed in the same industry pay a better dividend than VNO!
VNO's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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
195.11% of the earnings are spent on dividend by VNO. This is not a sustainable payout ratio.
DP195.11%
EPS Next 2Y23.09%
EPS Next 3Y143.72%
37.78
+0.7 (+1.89%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.03%
Inst Owner Change0.09%
Ins Owners6.5%
Ins Owner Change0.43%
Market Cap7.25B
Analysts51.43
Price Target40.03 (5.96%)
Short Float %5.64%
Short Ratio6.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend1.07
Dividend Growth(5Y)-18.14%
DP195.11%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)126.02%
Min EPS beat(2)119.8%
Max EPS beat(2)132.23%
EPS beat(4)4
Avg EPS beat(4)130.69%
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)-0.42%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)252.94%
EPS NY rev (1m)0%
EPS NY rev (3m)1007.14%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.98 | ||
| Fwd PE | 623.43 | ||
| P/S | 4 | ||
| P/FCF | 53.27 | ||
| P/OCF | 12.99 | ||
| P/B | 1.36 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 19.07 |
EPS(TTM)0.9
EY2.38%
EPS(NY)0.06
Fwd EY0.16%
FCF(TTM)0.71
FCFY1.88%
OCF(TTM)2.91
OCFY7.7%
SpS9.44
BVpS27.68
TBVpS27.08
PEG (NY)0.05
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
WACC6.44%
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)275%
EPS 3Y-58.75%
EPS 5Y-57.97%
EPS Q2Q%211.11%
EPS Next Y878.44%
EPS Next 2Y23.09%
EPS Next 3Y143.72%
EPS Next 5Y64.01%
Revenue 1Y (TTM)-1.3%
Revenue growth 3Y4%
Revenue growth 5Y-1.47%
Sales Q2Q%-1.96%
Revenue Next Year3.41%
Revenue Next 2Y4.1%
Revenue Next 3Y4.33%
Revenue Next 5Y4.54%
EBIT growth 1Y-5.22%
EBIT growth 3Y2.23%
EBIT growth 5Y-9.15%
EBIT Next Year206.97%
EBIT Next 3Y46.28%
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%