VERIS RESIDENTIAL INC (VRE) Stock Fundamental Analysis
USA - NYSE:VRE - US5544891048 - REIT
14.92 USD
+0.22 (+1.5%)
14.92 USD
0 (0%)
Overall VRE gets a fundamental rating of 3 out of 10. We evaluated VRE against 20 industry peers in the Residential REITs industry. While VRE is still in line with the averages on profitability rating, there are concerns on its financial health. VRE is valued expensive and it does not seem to be growing.
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.
In the past 5 years VRE always reported negative net income.
In the past 5 years VRE always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.26%, VRE perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
VRE has a Return On Equity (5.45%) which is comparable to the rest of the industry.
The Return On Invested Capital of VRE (1.33%) is worse than 65.00% 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 2.61%.
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
VRE's Profit Margin of 22.09% is fine compared to the rest of the industry. VRE outperforms 65.00% of its industry peers.
VRE has a worse Operating Margin (16.11%) 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 (59.66%) 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 | 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
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 -0.06, we must say that VRE is in the distress zone and has some risk of bankruptcy.
VRE's Altman-Z score of -0.06 is on the low side compared to the rest of the industry. VRE is outperformed by 95.00% of its industry peers.
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 (56.74) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.24 is on the high side and indicates that VRE has dependencies on debt financing.
VRE has a Debt to Equity ratio (1.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 56.74 | ||
| Altman-Z | -0.06 |
ROIC/WACC0.21
WACC6.47%
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 has a Quick ratio of 0.60. This is comparable 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 247.06% over the past year.
Looking at the last year, VRE shows a small growth in Revenue. The Revenue has grown by 3.37% in the last year.
The Revenue has been decreasing by -5.37% on average over the past years.
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
VRE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.51% yearly.
Based on estimates for the next years, VRE will show a small growth in Revenue. The Revenue will grow by 5.65% on average per year.
EPS Next Y62.12%
EPS Next 2Y11.47%
EPS Next 3Y7.51%
EPS Next 5YN/A
Revenue Next Year9.47%
Revenue Next 2Y5.32%
Revenue Next 3Y3.88%
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
A Price/Earnings ratio of 59.68 indicates a quite expensive valuation of VRE.
VRE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.13, VRE is valued quite expensively.
The Forward Price/Earnings Ratio is negative for VRE. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.68 | ||
| 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.
Based on the Price/Free Cash Flow ratio, VRE is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.17 | ||
| EV/EBITDA | 21.21 |
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.
PEG (NY)0.96
PEG (5Y)N/A
EPS Next 2Y11.47%
EPS Next 3Y7.51%
5. Dividend
5.1 Amount
VRE has a Yearly Dividend Yield of 2.20%.
Compared to an average industry Dividend Yield of 7.38, 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 2.39, VRE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
The dividend of VRE decreases each year by -25.53%.
VRE has been paying a dividend for at least 10 years, so it has a reliable track record.
VRE has decreased its dividend 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 2Y11.47%
EPS Next 3Y7.51%
14.92
+0.22 (+1.5%)
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 Cap1.39B
Revenue(TTM)285.21M
Net Income(TTM)62.99M
Analysts76
Price Target18.11 (21.38%)
Short Float %5.38%
Short Ratio5.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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)2
Avg Revenue beat(2)3.69%
Min Revenue beat(2)0.26%
Max Revenue beat(2)7.12%
Revenue beat(4)3
Avg Revenue beat(4)1.38%
Min Revenue beat(4)-2%
Max Revenue beat(4)7.12%
Revenue beat(8)5
Avg Revenue beat(8)0.11%
Revenue beat(12)7
Avg Revenue beat(12)-1.96%
Revenue beat(16)11
Avg Revenue beat(16)0.26%
PT rev (1m)-1.39%
PT rev (3m)-6.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.57%
EPS NY rev (1m)0%
EPS NY rev (3m)68.97%
Revenue NQ rev (1m)-4.28%
Revenue NQ rev (3m)-4.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.68 | ||
| Fwd PE | N/A | ||
| P/S | 4.89 | ||
| P/FCF | 55.17 | ||
| P/OCF | 22.35 | ||
| P/B | 1.2 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 21.21 |
EPS(TTM)0.25
EY1.68%
EPS(NY)-0.18
Fwd EYN/A
FCF(TTM)0.27
FCFY1.81%
OCF(TTM)0.67
OCFY4.47%
SpS3.05
BVpS12.38
TBVpS12.28
PEG (NY)0.96
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 | -0.06 |
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 2Y11.47%
EPS Next 3Y7.51%
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 2Y5.32%
Revenue Next 3Y3.88%
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.