VERIS RESIDENTIAL INC (VRE) Stock Fundamental Analysis
NYSE:VRE - New York Stock Exchange, Inc. - US5544891048 - REIT - Currency: USD
We assign a fundamental rating of 2 out of 10 to VRE. VRE was compared to 20 industry peers in the Residential REITs industry. VRE may be in some trouble as it scores bad on both profitability and health. VRE does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
VRE had negative earnings in the past year.
In the past year VRE had a positive cash flow from operations.
In the past 5 years VRE always reported negative net income.
VRE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VRE has a worse Return On Assets (-1.01%) than 75.00% of its industry peers.
VRE's Return On Equity of -2.77% is on the low side compared to the rest of the industry. VRE is outperformed by 75.00% of its industry peers.
VRE's Return On Invested Capital of 1.10% is on the low side compared to the rest of the industry. VRE is outperformed by 75.00% of its industry peers.
VRE had an Average Return On Invested Capital over the past 3 years of 0.71%. This is in line with the industry average of 2.62%.
The 3 year average ROIC (0.71%) for VRE is below the current ROIC(1.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.01% | ||
| ROE | -2.77% | ||
| ROIC | 1.1% |
ROA(3y)-1.9%
ROA(5y)-1.94%
ROE(3y)-5.53%
ROE(5y)-6.19%
ROIC(3y)0.71%
ROIC(5y)N/A
1.3 Margins
The Operating Margin of VRE (14.86%) is worse than 65.00% of its industry peers.
VRE's Operating Margin has improved in the last couple of years.
VRE's Gross Margin of 59.78% is fine compared to the rest of the industry. VRE outperforms 65.00% of its industry peers.
VRE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.86% | ||
| PM (TTM) | N/A | ||
| GM | 59.78% |
OM growth 3Y64.68%
OM growth 5Y27.73%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.48%
GM growth 5Y0.25%
2. Health
2.1 Basic Checks
VRE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VRE has more shares outstanding than it did 1 year ago.
VRE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VRE has been reduced compared to a year ago.
2.2 Solvency
VRE has an Altman-Z score of -0.13. This is a bad value and indicates that VRE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.13, VRE is doing worse than 95.00% of the companies in the same industry.
The Debt to FCF ratio of VRE is 69.56, which is on the high side as it means it would take VRE, 69.56 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 69.56, VRE perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
A Debt/Equity ratio of 1.54 is on the high side and indicates that VRE has dependencies on debt financing.
With a Debt to Equity ratio value of 1.54, VRE is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 69.56 | ||
| Altman-Z | -0.13 |
ROIC/WACC0.16
WACC6.72%
2.3 Liquidity
VRE has a Current Ratio of 0.64. This is a bad value and indicates that VRE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of VRE (0.64) is comparable to the rest of the industry.
VRE has a Quick Ratio of 0.64. This is a bad value and indicates that VRE is not financially healthy enough and could expect problems in meeting its short term obligations.
VRE's Quick ratio of 0.64 is fine compared to the rest of the industry. VRE outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 73.00% over the past year.
The Revenue for VRE has decreased by -21.81% in the past year. This is quite bad
Measured over the past years, VRE shows a decrease in Revenue. The Revenue has been decreasing by -5.37% on average per year.
EPS 1Y (TTM)73%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-75%
Revenue 1Y (TTM)-21.81%
Revenue growth 3Y-5.71%
Revenue growth 5Y-5.37%
Sales Q2Q%0.62%
3.2 Future
Based on estimates for the next years, VRE will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.45% on average per year.
The Revenue is expected to grow by 5.65% on average over the next years.
EPS Next Y-15.73%
EPS Next 2Y11.47%
EPS Next 3Y16.45%
EPS Next 5YN/A
Revenue Next Year3.86%
Revenue Next 2Y3.44%
Revenue Next 3Y2.92%
Revenue Next 5Y5.65%
3.3 Evolution
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
VRE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year VRE is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
85.00% of the companies in the same industry are cheaper than VRE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.37 | ||
| EV/EBITDA | 24.54 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VRE's earnings are expected to grow with 16.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.47%
EPS Next 3Y16.45%
5. Dividend
5.1 Amount
VRE has a Yearly Dividend Yield of 2.09%.
With a Dividend Yield of 2.09, VRE pays less dividend than the industry average, which is at 4.54. 95.00% of the companies listed in the same industry pay a better dividend than VRE!
VRE's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
5.2 History
The dividend of VRE decreases each year by -25.53%.
VRE has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of VRE decreased recently.
Dividend Growth(5Y)-25.53%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VRE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-90.25%
EPS Next 2Y11.47%
EPS Next 3Y16.45%
14.99
+0.11 (+0.74%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.51%
Inst Owner ChangeN/A
Ins Owners6.18%
Ins Owner Change27.28%
Market Cap1.40B
Analysts76
Price Target19.42 (29.55%)
Short Float %3.2%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
Yearly Dividend0.26
Dividend Growth(5Y)-25.53%
DP-90.25%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.83%
Min EPS beat(2)-28.71%
Max EPS beat(2)27.05%
EPS beat(4)2
Avg EPS beat(4)33.5%
Min EPS beat(4)-28.71%
Max EPS beat(4)145.7%
EPS beat(8)4
Avg EPS beat(8)-36.75%
EPS beat(12)6
Avg EPS beat(12)-10.7%
EPS beat(16)7
Avg EPS beat(16)-17.56%
Revenue beat(2)1
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-2%
Max Revenue beat(2)0.14%
Revenue beat(4)2
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-2%
Max Revenue beat(4)2.01%
Revenue beat(8)5
Avg Revenue beat(8)-0.53%
Revenue beat(12)7
Avg Revenue beat(12)-1.23%
Revenue beat(16)11
Avg Revenue beat(16)0.08%
PT rev (1m)0%
PT rev (3m)-2.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)1.79%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0.91%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 5.15 | ||
| P/FCF | 58.37 | ||
| P/OCF | 28.08 | ||
| P/B | 1.29 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 24.54 |
EPS(TTM)-0.27
EYN/A
EPS(NY)-0.18
Fwd EYN/A
FCF(TTM)0.26
FCFY1.71%
OCF(TTM)0.53
OCFY3.56%
SpS2.91
BVpS11.58
TBVpS11.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.01% | ||
| ROE | -2.77% | ||
| ROCE | 1.39% | ||
| ROIC | 1.1% | ||
| ROICexc | 1.1% | ||
| ROICexgc | 1.11% | ||
| OM | 14.86% | ||
| PM (TTM) | N/A | ||
| GM | 59.78% | ||
| FCFM | 8.83% |
ROA(3y)-1.9%
ROA(5y)-1.94%
ROE(3y)-5.53%
ROE(5y)-6.19%
ROIC(3y)0.71%
ROIC(5y)N/A
ROICexc(3y)0.71%
ROICexc(5y)N/A
ROICexgc(3y)0.71%
ROICexgc(5y)N/A
ROCE(3y)0.89%
ROCE(5y)N/A
ROICexcg growth 3Y77.03%
ROICexcg growth 5Y34.35%
ROICexc growth 3Y77.41%
ROICexc growth 5Y34.74%
OM growth 3Y64.68%
OM growth 5Y27.73%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.48%
GM growth 5Y0.25%
F-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 69.56 | ||
| Debt/EBITDA | 13.42 | ||
| Cap/Depr | 30.81% | ||
| Cap/Sales | 9.52% | ||
| Interest Coverage | 0.52 | ||
| Cash Conversion | 40.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | -0.13 |
F-Score5
WACC6.72%
ROIC/WACC0.16
Cap/Depr(3y)93.67%
Cap/Depr(5y)183.38%
Cap/Sales(3y)29.65%
Cap/Sales(5y)64.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)73%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-75%
EPS Next Y-15.73%
EPS Next 2Y11.47%
EPS Next 3Y16.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-21.81%
Revenue growth 3Y-5.71%
Revenue growth 5Y-5.37%
Sales Q2Q%0.62%
Revenue Next Year3.86%
Revenue Next 2Y3.44%
Revenue Next 3Y2.92%
Revenue Next 5Y5.65%
EBIT growth 1Y56.2%
EBIT growth 3Y55.27%
EBIT growth 5Y20.87%
EBIT Next Year237.06%
EBIT Next 3Y49.02%
EBIT Next 5YN/A
FCF growth 1Y114.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.87%
OCF growth 3Y-2.29%
OCF growth 5Y-16.87%