VERIS RESIDENTIAL INC (VRE) Stock Fundamental Analysis
USA - NYSE:VRE - US5544891048 - REIT
15.9 USD
-0.24 (-1.49%)
15.9 USD
0 (0%)
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 has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
VRE had a positive operating cash flow in the past year.
In the past 5 years VRE always reported negative net income.
Each year in the past 5 years VRE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.70%, VRE is doing worse than 65.00% of the companies in the same industry.
VRE has a worse Return On Equity (-2.02%) than 65.00% of its industry peers.
VRE's Return On Invested Capital of 1.16% 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 2.59%.
The 3 year average ROIC (0.71%) for VRE is below the current ROIC(1.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.7% | ||
| ROE | -2.02% | ||
| ROIC | 1.16% |
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
Looking at the Operating Margin, with a value of 16.12%, VRE is doing worse than 65.00% of the companies in the same industry.
VRE's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 60.67%, VRE is doing good in the industry, outperforming 70.00% of the companies in the same industry.
VRE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.12% | ||
| PM (TTM) | N/A | ||
| GM | 60.67% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VRE is destroying value.
The number of shares outstanding for VRE has been increased compared to 1 year ago.
Compared to 5 years ago, VRE has more shares outstanding
The debt/assets ratio for VRE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.10, we must say that VRE is in the distress zone and has some risk of bankruptcy.
VRE has a worse Altman-Z score (-0.10) than 95.00% of its industry peers.
The Debt to FCF ratio of VRE is 55.72, which is on the high side as it means it would take VRE, 55.72 years of fcf income to pay off all of its debts.
VRE has a Debt to FCF ratio of 55.72. This is comparable to the rest of the industry: VRE outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 1.64 is on the high side and indicates that VRE has dependencies on debt financing.
With a Debt to Equity ratio value of 1.64, 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 | 1.64 | ||
| Debt/FCF | 55.72 | ||
| Altman-Z | -0.1 |
ROIC/WACC0.17
WACC6.71%
2.3 Liquidity
A Current Ratio of 0.60 indicates that VRE may have some problems paying its short term obligations.
VRE has a Current ratio (0.60) which is in line with 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.
VRE's Quick ratio of 0.60 is in line compared to the rest of the industry. VRE outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 92.54% over the past year.
Looking at the last year, VRE shows a small growth in Revenue. The Revenue has grown by 0.26% in the last year.
The Revenue has been decreasing by -5.37% on average over the past years.
EPS 1Y (TTM)92.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%733.33%
Revenue 1Y (TTM)0.26%
Revenue growth 3Y-5.71%
Revenue growth 5Y-5.37%
Sales Q2Q%12.53%
3.2 Future
Based on estimates for the next years, VRE will show a very strong growth in Earnings Per Share. The EPS will grow by 23.28% on average per year.
The Revenue is expected to grow by 5.65% on average over the next years.
EPS Next Y62.12%
EPS Next 2Y18.78%
EPS Next 3Y23.28%
EPS Next 5YN/A
Revenue Next Year9.62%
Revenue Next 2Y5.52%
Revenue Next 3Y5.25%
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
The Price/Earnings Ratio is negative for VRE. In the last year negative earnings were reported.
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
VRE's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. VRE is more expensive than 85.00% 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 | 46.38 | ||
| EV/EBITDA | 24.84 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VRE's earnings are expected to grow with 23.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.78%
EPS Next 3Y23.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.98%, VRE has a reasonable but not impressive dividend return.
With a Dividend Yield of 1.98, VRE pays less dividend than the industry average, which is at 4.68. 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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
The earnings of VRE are negative and hence is the payout ratio. VRE will probably not be able to sustain this dividend level.
DP-136.18%
EPS Next 2Y18.78%
EPS Next 3Y23.28%
15.9
-0.24 (-1.49%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.34%
Inst Owner ChangeN/A
Ins Owners6.14%
Ins Owner Change3.39%
Market Cap1.49B
Analysts76
Price Target18.36 (15.47%)
Short Float %4.39%
Short Ratio6.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Yearly Dividend0.26
Dividend Growth(5Y)-25.53%
DP-136.18%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)253.93%
Min EPS beat(2)27.05%
Max EPS beat(2)480.81%
EPS beat(4)2
Avg EPS beat(4)117.28%
Min EPS beat(4)-28.71%
Max EPS beat(4)480.81%
EPS beat(8)5
Avg EPS beat(8)39.41%
EPS beat(12)6
Avg EPS beat(12)5.17%
EPS beat(16)7
Avg EPS beat(16)11.82%
Revenue beat(2)1
Avg Revenue beat(2)2.56%
Min Revenue beat(2)-2%
Max Revenue beat(2)7.12%
Revenue beat(4)3
Avg Revenue beat(4)1.82%
Min Revenue beat(4)-2%
Max Revenue beat(4)7.12%
Revenue beat(8)5
Avg Revenue beat(8)0.29%
Revenue beat(12)7
Avg Revenue beat(12)-0.87%
Revenue beat(16)11
Avg Revenue beat(16)0.5%
PT rev (1m)0%
PT rev (3m)-5.47%
EPS NQ rev (1m)33.33%
EPS NQ rev (3m)27.27%
EPS NY rev (1m)68.97%
EPS NY rev (3m)67.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.33%
Revenue NY rev (1m)1.8%
Revenue NY rev (3m)5.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 5.31 | ||
| P/FCF | 46.38 | ||
| P/OCF | 23.66 | ||
| P/B | 1.37 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 24.84 |
EPS(TTM)-0.05
EYN/A
EPS(NY)-0.14
Fwd EYN/A
FCF(TTM)0.34
FCFY2.16%
OCF(TTM)0.67
OCFY4.23%
SpS3
BVpS11.63
TBVpS11.52
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.7% | ||
| ROE | -2.02% | ||
| ROCE | 1.47% | ||
| ROIC | 1.16% | ||
| ROICexc | 1.17% | ||
| ROICexgc | 1.17% | ||
| OM | 16.12% | ||
| PM (TTM) | N/A | ||
| GM | 60.67% | ||
| FCFM | 11.44% |
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 | 1.64 | ||
| Debt/FCF | 55.72 | ||
| Debt/EBITDA | 13.6 | ||
| Cap/Depr | 35.73% | ||
| Cap/Sales | 10.98% | ||
| Interest Coverage | 0.56 | ||
| Cash Conversion | 47.85% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | -0.1 |
F-Score5
WACC6.71%
ROIC/WACC0.17
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)92.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%733.33%
EPS Next Y62.12%
EPS Next 2Y18.78%
EPS Next 3Y23.28%
EPS Next 5YN/A
Revenue 1Y (TTM)0.26%
Revenue growth 3Y-5.71%
Revenue growth 5Y-5.37%
Sales Q2Q%12.53%
Revenue Next Year9.62%
Revenue Next 2Y5.52%
Revenue Next 3Y5.25%
Revenue Next 5Y5.65%
EBIT growth 1Y90.34%
EBIT growth 3Y55.27%
EBIT growth 5Y20.87%
EBIT Next Year256.52%
EBIT Next 3Y49.02%
EBIT Next 5YN/A
FCF growth 1Y124.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y39.15%
OCF growth 3Y-2.29%
OCF growth 5Y-16.87%