VERIS RESIDENTIAL INC (VRE) Stock Fundamental Analysis
NYSE:VRE - New York Stock Exchange, Inc. - US5544891048 - REIT - Currency: USD
VRE gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 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.
VRE had a positive operating cash flow in the past year.
VRE had negative earnings in each of the past 5 years.
Each year in the past 5 years VRE had a positive operating cash flow.
1.2 Ratios
VRE has a worse Return On Assets (-1.01%) than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of -2.77%, VRE is doing worse than 75.00% of the companies in the same industry.
The Return On Invested Capital of VRE (1.10%) is worse than 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.
In the last couple of years the Operating Margin of VRE has grown nicely.
VRE has a better Gross Margin (59.78%) than 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VRE is destroying value.
Compared to 1 year ago, VRE has more shares outstanding
The number of shares outstanding for VRE has been increased compared to 5 years ago.
The debt/assets ratio for VRE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.14, we must say that VRE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VRE (-0.14) is worse than 95.00% of its industry peers.
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.
VRE has a Debt to FCF ratio (69.56) which is in line with its industry peers.
VRE has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external 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 | -0.14 |
ROIC/WACC0.16
WACC6.67%
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.
With a Current ratio value of 0.64, VRE perfoms like the industry average, outperforming 60.00% of the companies in the same 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.
Looking at the Quick ratio, with a value of 0.64, VRE is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
VRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 73.00%, which is quite impressive.
The Revenue for VRE has decreased by -21.81% in the past year. This is quite bad
VRE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.37% yearly.
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
VRE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.28% yearly.
VRE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.65% yearly.
EPS Next Y-22.04%
EPS Next 2Y14.26%
EPS Next 3Y23.28%
EPS Next 5YN/A
Revenue Next Year5.74%
Revenue Next 2Y4.81%
Revenue Next 3Y5.25%
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
The Price/Earnings Ratio is negative for VRE. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for VRE. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRE is valued expensively inside the industry as 85.00% of the companies are valued cheaper.
VRE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.76 | ||
| EV/EBITDA | 24.26 |
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 2Y14.26%
EPS Next 3Y23.28%
5. Dividend
5.1 Amount
VRE has a Yearly Dividend Yield of 2.17%.
Compared to an average industry Dividend Yield of 4.70, 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 2.35, VRE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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-90.25%
EPS Next 2Y14.26%
EPS Next 3Y23.28%
14.32
-0.19 (-1.31%)
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 Change25.94%
Market Cap1.34B
Analysts76
Price Target19.42 (35.61%)
Short Float %3.12%
Short Ratio4.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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)-3.79%
EPS NQ rev (1m)-30%
EPS NQ rev (3m)-30%
EPS NY rev (1m)-5.45%
EPS NY rev (3m)-9.43%
Revenue NQ rev (1m)2.04%
Revenue NQ rev (3m)2.27%
Revenue NY rev (1m)1.81%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 4.92 | ||
| P/FCF | 55.76 | ||
| P/OCF | 26.83 | ||
| P/B | 1.24 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 24.26 |
EPS(TTM)-0.27
EYN/A
EPS(NY)-0.17
Fwd EYN/A
FCF(TTM)0.26
FCFY1.79%
OCF(TTM)0.53
OCFY3.73%
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 | -0.14 |
F-Score5
WACC6.67%
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-22.04%
EPS Next 2Y14.26%
EPS Next 3Y23.28%
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 Year5.74%
Revenue Next 2Y4.81%
Revenue Next 3Y5.25%
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%