VERIS RESIDENTIAL INC (VRE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VRE - US5544891048 - REIT
15.06 USD
+0.01 (+0.07%)
15.06 USD
0 (0%)
VRE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. There are concerns on the financial health of VRE while its profitability can be described as average. While showing a medium growth rate, VRE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year VRE was profitable.
In the past year VRE had a positive cash flow from operations.
VRE had negative earnings in each of the past 5 years.
In the past 5 years VRE always reported a positive cash flow from operatings.
1.2 Ratios
VRE has a Return On Assets of 2.26%. This is comparable to the rest of the industry: VRE outperforms 50.00% of its industry peers.
Looking at the Return On Equity, with a value of 5.45%, VRE is in line with its industry, outperforming 50.00% of the companies in the same industry.
With a Return On Invested Capital value of 1.33%, VRE is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for VRE is in line with the industry average of 2.59%.
The 3 year average ROIC (0.71%) for VRE is below the current ROIC(1.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 5.45% | ||
| ROIC | 1.33% |
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
With a Profit Margin value of 22.09%, VRE perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
The Operating Margin of VRE (16.11%) is worse than 65.00% of its industry peers.
In the last couple of years the Operating Margin of VRE has grown nicely.
Looking at the Gross Margin, with a value of 59.66%, VRE is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Gross Margin of VRE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.11% | ||
| PM (TTM) | 22.09% | ||
| GM | 59.66% |
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.
The number of shares outstanding for VRE has been increased compared to 1 year ago.
The number of shares outstanding for VRE has been increased compared to 5 years ago.
Compared to 1 year ago, VRE has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.05, we must say that VRE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.05, VRE is doing worse than 95.00% of the companies in the same industry.
The Debt to FCF ratio of VRE is 56.74, which is on the high side as it means it would take VRE, 56.74 years of fcf income to pay off all of its debts.
VRE has a Debt to FCF ratio of 56.74. This is comparable to the rest of the industry: VRE outperforms 55.00% of its industry peers.
A Debt/Equity ratio of 1.24 is on the high side and indicates that VRE has dependencies on debt financing.
The Debt to Equity ratio of VRE (1.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 56.74 | ||
| Altman-Z | -0.05 |
ROIC/WACC0.21
WACC6.47%
2.3 Liquidity
VRE has a Current Ratio of 0.60. 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 Current ratio of 0.60 is in line compared to the rest of the industry. VRE outperforms 60.00% of its industry peers.
VRE has a Quick Ratio of 0.60. 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 Quick ratio of VRE (0.60) is better than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
VRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 247.06%, which is quite impressive.
VRE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.37%.
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)247.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)3.37%
Revenue growth 3Y-5.71%
Revenue growth 5Y-5.37%
Sales Q2Q%7.72%
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 12.16% on average per year.
VRE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.65% yearly.
EPS Next Y62.12%
EPS Next 2Y13.34%
EPS Next 3Y12.16%
EPS Next 5YN/A
Revenue Next Year9.47%
Revenue Next 2Y3.6%
Revenue Next 3Y3.8%
Revenue Next 5Y5.65%
3.3 Evolution
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 60.24, the valuation of VRE can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of VRE is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.31, VRE is valued quite expensively.
VRE is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.24 | ||
| Fwd PE | N/A |
4.2 Price Multiples
VRE's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. VRE is more expensive than 90.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRE indicates a somewhat cheap valuation: VRE is cheaper than 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.69 | ||
| EV/EBITDA | 21.46 |
4.3 Compensation for Growth
VRE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VRE's earnings are expected to grow with 12.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)N/A
EPS Next 2Y13.34%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
VRE has a Yearly Dividend Yield of 2.13%.
Compared to an average industry Dividend Yield of 7.26, VRE's dividend is way lower than its industry peers. On top of this 95.00% of the companies listed in the same industry pay a better dividend than VRE!
Compared to an average S&P500 Dividend Yield of 2.40, VRE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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 pays out 50.71% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP50.71%
EPS Next 2Y13.34%
EPS Next 3Y12.16%
15.06
+0.01 (+0.07%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.04%
Inst Owner ChangeN/A
Ins Owners6.14%
Ins Owner Change5.55%
Market Cap1.41B
Revenue(TTM)285.21M
Net Income(TTM)62.99M
Analysts76
Price Target18.11 (20.25%)
Short Float %5.18%
Short Ratio5.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend0.26
Dividend Growth(5Y)-25.53%
DP50.71%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)315.47%
Min EPS beat(2)150.13%
Max EPS beat(2)480.81%
EPS beat(4)3
Avg EPS beat(4)157.32%
Min EPS beat(4)-28.71%
Max EPS beat(4)480.81%
EPS beat(8)6
Avg EPS beat(8)107.56%
EPS beat(12)7
Avg EPS beat(12)48.81%
EPS beat(16)8
Avg EPS beat(16)24.83%
Revenue beat(2)1
Avg Revenue beat(2)3.35%
Min Revenue beat(2)-0.42%
Max Revenue beat(2)7.12%
Revenue beat(4)2
Avg Revenue beat(4)1.21%
Min Revenue beat(4)-2%
Max Revenue beat(4)7.12%
Revenue beat(8)4
Avg Revenue beat(8)0.03%
Revenue beat(12)6
Avg Revenue beat(12)-2.02%
Revenue beat(16)10
Avg Revenue beat(16)0.22%
PT rev (1m)-1.39%
PT rev (3m)-1.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.57%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-4.25%
Revenue NQ rev (3m)-4.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.24 | ||
| Fwd PE | N/A | ||
| P/S | 4.93 | ||
| P/FCF | 55.69 | ||
| P/OCF | 22.56 | ||
| P/B | 1.22 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 21.46 |
EPS(TTM)0.25
EY1.66%
EPS(NY)-0.17
Fwd EYN/A
FCF(TTM)0.27
FCFY1.8%
OCF(TTM)0.67
OCFY4.43%
SpS3.05
BVpS12.38
TBVpS12.28
PEG (NY)0.97
PEG (5Y)N/A
Graham Number8.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 5.45% | ||
| ROCE | 1.69% | ||
| ROIC | 1.33% | ||
| ROICexc | 1.34% | ||
| ROICexgc | 1.34% | ||
| OM | 16.11% | ||
| PM (TTM) | 22.09% | ||
| GM | 59.66% | ||
| FCFM | 8.86% |
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
ROICexgc growth 3Y77.03%
ROICexgc 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-Score7
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 56.74 | ||
| Debt/EBITDA | 10.87 | ||
| Cap/Depr | 43.15% | ||
| Cap/Sales | 13.01% | ||
| Interest Coverage | 0.57 | ||
| Cash Conversion | 47.27% | ||
| Profit Quality | 40.1% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | -0.05 |
F-Score7
WACC6.47%
ROIC/WACC0.21
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)247.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
EPS Next Y62.12%
EPS Next 2Y13.34%
EPS Next 3Y12.16%
EPS Next 5YN/A
Revenue 1Y (TTM)3.37%
Revenue growth 3Y-5.71%
Revenue growth 5Y-5.37%
Sales Q2Q%7.72%
Revenue Next Year9.47%
Revenue Next 2Y3.6%
Revenue Next 3Y3.8%
Revenue Next 5Y5.65%
EBIT growth 1Y27.52%
EBIT growth 3Y55.27%
EBIT growth 5Y20.87%
EBIT Next Year255.69%
EBIT Next 3Y54.81%
EBIT Next 5YN/A
FCF growth 1Y739.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y104.17%
OCF growth 3Y-2.29%
OCF growth 5Y-16.87%
VERIS RESIDENTIAL INC / VRE FAQ
Can you provide the ChartMill fundamental rating for VERIS RESIDENTIAL INC?
ChartMill assigns a fundamental rating of 3 / 10 to VRE.
Can you provide the valuation status for VERIS RESIDENTIAL INC?
ChartMill assigns a valuation rating of 2 / 10 to VERIS RESIDENTIAL INC (VRE). This can be considered as Overvalued.
What is the profitability of VRE stock?
VERIS RESIDENTIAL INC (VRE) has a profitability rating of 4 / 10.
How financially healthy is VERIS RESIDENTIAL INC?
The financial health rating of VERIS RESIDENTIAL INC (VRE) is 2 / 10.
What is the earnings growth outlook for VERIS RESIDENTIAL INC?
The Earnings per Share (EPS) of VERIS RESIDENTIAL INC (VRE) is expected to grow by 62.12% in the next year.