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 valued expensive and it does not seem to be growing.
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.
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 in line compared to the rest of the industry. VNO outperforms 40.77% of its industry peers.
VNO's Return On Equity of 0.16% is in line compared to the rest of the industry. VNO outperforms 41.54% of its industry peers.
VNO's Return On Invested Capital of 1.33% is on the low side compared to the rest of the industry. VNO is outperformed by 80.77% of its industry peers.
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 3.17%.
| 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 perfoms like the industry average, outperforming 40.77% of the companies in the same industry.
In the last couple of years the Profit Margin of VNO has declined.
The Operating Margin of VNO (14.05%) is worse than 66.92% of its industry peers.
In the last couple of years the Operating Margin of VNO has declined.
VNO has a Gross Margin of 48.10%. This is in the lower half of the industry: VNO underperforms 79.23% of its industry peers.
VNO's Gross Margin has declined in the last couple of years.
| 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.
VNO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.21, we must say that VNO is in the distress zone and 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.
VNO has a Debt to FCF ratio of 114.31. This is comparable to the rest of the industry: VNO outperforms 53.08% of its industry peers.
VNO has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.60, VNO is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 114.31 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.2
WACC6.55%
2.3 Liquidity
A Current Ratio of 1.33 indicates that VNO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.33, VNO is in the better half of the industry, outperforming 60.77% of the companies in the same industry.
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.
The Quick ratio of VNO (1.33) is better than 62.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The earnings per share for VNO have decreased strongly by -84.62% in the last year.
The earnings per share for VNO have been decreasing by -57.97% on average. This is quite bad
VNO shows a decrease in Revenue. In the last year, the revenue decreased by -1.30%.
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
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 4.02% 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 Year3.52%
Revenue Next 2Y4.26%
Revenue Next 3Y4.71%
Revenue Next 5Y4.02%
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
Based on the Price/Earnings ratio of 931.00, the valuation of VNO can be described as expensive.
70.00% of the companies in the same industry are cheaper than VNO, based on the Price/Earnings ratio.
VNO is valuated expensively when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
VNO is valuated quite expensively with a Price/Forward Earnings ratio of 1053.47.
VNO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of VNO to the average of the S&P500 Index (20.86), we can say VNO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 931 | ||
| Fwd PE | 1053.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNO is valued more expensive than 83.08% of the companies in the same industry.
VNO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 99.13 | ||
| 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
VNO has a Yearly Dividend Yield of 2.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 16.33, VNO's dividend is way lower than its industry peers. On top of this 86.92% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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
2455.77% of the earnings are spent on dividend by VNO. This is not a sustainable payout ratio.
DP2455.77%
EPS Next 2Y20.49%
EPS Next 3Y143.72%
37.24
+1.24 (+3.44%)
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%
Ins Owners6.31%
Ins Owner Change0%
Market Cap7.15B
Analysts51.43
Price Target40.03 (7.49%)
Short Float %4.92%
Short Ratio5.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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)-1.26%
PT rev (3m)2.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)507.4%
EPS NY rev (1m)0%
EPS NY rev (3m)122.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 931 | ||
| Fwd PE | 1053.47 | ||
| P/S | 4 | ||
| P/FCF | 99.13 | ||
| P/OCF | 13.29 | ||
| P/B | 1.39 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 20.01 |
EPS(TTM)0.04
EY0.11%
EPS(NY)0.04
Fwd EY0.09%
FCF(TTM)0.38
FCFY1.01%
OCF(TTM)2.8
OCFY7.52%
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
WACC6.55%
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 Year3.52%
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%