VORNADO REALTY TRUST (VNO) Stock Fundamental Analysis
NYSE:VNO - New York Stock Exchange, Inc. - US9290421091 - REIT - Currency: USD
VNO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. Both the profitability and financial health of VNO have multiple concerns. VNO is quite expensive at the moment. 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.
In the past 5 years VNO always reported a positive cash flow from operatings.
1.2 Ratios
VNO has a Return On Assets of 0.67%. This is comparable to the rest of the industry: VNO outperforms 51.16% of its industry peers.
VNO has a Return On Equity of 1.96%. This is comparable to the rest of the industry: VNO outperforms 52.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.50%, VNO is doing worse than 77.52% 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 3.15%.
The last Return On Invested Capital (1.50%) for VNO is above the 3 year average (1.48%), which is a sign of increasing profitability.
| 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
VNO has a Profit Margin (5.75%) which is in line with its industry peers.
In the last couple of years the Profit Margin of VNO has declined.
The Operating Margin of VNO (15.19%) is worse than 65.89% 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: 79.07% of the companies in the same industry are doing better.
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
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.
VNO has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, VNO has a worse debt to assets ratio.
2.2 Solvency
VNO has an Altman-Z score of 0.28. This is a bad value and indicates that VNO is not financially healthy and even has some risk of bankruptcy.
VNO has a Altman-Z score of 0.28. This is in the lower half of the industry: VNO underperforms 64.34% of its industry peers.
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.
VNO has a Debt to FCF ratio of 57.24. This is in the better half of the industry: VNO outperforms 63.57% of its industry peers.
VNO has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
VNO has a Debt to Equity ratio of 1.47. This is comparable to the rest of the industry: VNO outperforms 40.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 57.24 | ||
| Altman-Z | 0.28 |
ROIC/WACC0.19
WACC7.79%
2.3 Liquidity
VNO has a Current Ratio of 1.20. 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 Current ratio value of 1.20, VNO perfoms like the industry average, outperforming 58.14% 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 line with its industry, outperforming 58.91% 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 160.00%, which is quite impressive.
VNO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -57.97% yearly.
VNO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.63%.
The Revenue has been decreasing by -1.47% on average over the past years.
EPS 1Y (TTM)160%
EPS 3Y-58.75%
EPS 5Y-57.97%
EPS Q2Q%960%
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 4.54% 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 Year3.69%
Revenue Next 2Y4.48%
Revenue Next 3Y4.62%
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.
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
The Price/Earnings ratio is 77.85, which means the current valuation is very expensive for VNO.
VNO's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.32, VNO is valued quite expensively.
A Price/Forward Earnings ratio of 697.03 indicates a quite expensive valuation of VNO.
VNO's Price/Forward Earnings is on the same level as the industry average.
VNO is valuated expensively when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77.85 | ||
| Fwd PE | 697.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNO is valued more expensive than 85.27% of the companies in the same industry.
61.24% of the companies in the same industry are more expensive than VNO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.08 | ||
| EV/EBITDA | 20.01 |
4.3 Compensation for Growth
VNO's earnings are expected to grow with 143.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.49%
EPS Next 3Y143.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.63%, VNO is a good candidate for dividend investing.
VNO's Dividend Yield is a higher than the industry average which is at 6.77.
Compared to an average S&P500 Dividend Yield of 2.40, VNO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.63% |
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.
VNO has decreased its dividend recently.
Dividend Growth(5Y)-18.14%
Div Incr Years1
Div Non Decr Years1
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%
40.48
-0.27 (-0.66%)
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 Change-0.77%
Ins Owners6.5%
Ins Owner Change0.43%
Market Cap7.77B
Analysts51.43
Price Target40.12 (-0.89%)
Short Float %4.78%
Short Ratio6.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.63% |
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)0.21%
PT rev (3m)-1.05%
EPS NQ rev (1m)252.94%
EPS NQ rev (3m)252.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-41.67%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77.85 | ||
| Fwd PE | 697.03 | ||
| P/S | 4.29 | ||
| P/FCF | 57.08 | ||
| P/OCF | 13.92 | ||
| P/B | 1.46 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 20.01 |
EPS(TTM)0.52
EY1.28%
EPS(NY)0.06
Fwd EY0.14%
FCF(TTM)0.71
FCFY1.75%
OCF(TTM)2.91
OCFY7.18%
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 | 0.28 |
F-Score6
WACC7.79%
ROIC/WACC0.19
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)160%
EPS 3Y-58.75%
EPS 5Y-57.97%
EPS Q2Q%960%
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 Year3.69%
Revenue Next 2Y4.48%
Revenue Next 3Y4.62%
Revenue Next 5Y4.54%
EBIT growth 1Y-5.22%
EBIT growth 3Y2.23%
EBIT growth 5Y-9.15%
EBIT Next Year198.85%
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%