VERIS RESIDENTIAL INC (VRE)
US5544891048 - REIT
Taking everything into account, VRE scores 3 out of 10 in our fundamental rating. VRE was compared to 21 industry peers in the Residential REITs industry. VRE scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. VRE has a expensive valuation and it also scores bad on growth.
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 reported 4 times 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 -3.60%, VRE is doing worse than 90.48% of the companies in the same industry.
VRE's Return On Equity of -10.22% is on the low side compared to the rest of the industry. VRE is outperformed by 85.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.65%, VRE is doing worse than 85.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VRE is below the industry average of 2.57%.
The 3 year average ROIC (0.40%) for VRE is below the current ROIC(0.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.6% | ||
| ROE | -10.22% | ||
| ROIC | 0.65% |
ROA(3y)-2.57%
ROA(5y)-1.46%
ROE(3y)-8.11%
ROE(5y)-4.62%
ROIC(3y)0.4%
ROIC(5y)N/A
1.3 Margins
VRE's Operating Margin of 7.44% is on the low side compared to the rest of the industry. VRE is outperformed by 85.71% of its industry peers.
In the last couple of years the Operating Margin of VRE has declined.
Looking at the Gross Margin, with a value of 56.19%, VRE is doing worse than 61.90% 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 | 7.44% | ||
| PM (TTM) | N/A | ||
| GM | 56.19% |
OM growth 3YN/A
OM growth 5Y-11.47%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.97%
GM growth 5Y-0.52%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VRE is destroying value.
VRE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for VRE has been increased compared to 5 years ago.
VRE has a worse debt/assets ratio than last year.
2.2 Solvency
VRE has an Altman-Z score of -0.04. This is a bad value and indicates that VRE is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.04, VRE is not doing good in the industry: 95.24% of the companies in the same industry are doing better.
The Debt to FCF ratio of VRE is 65.13, which is on the high side as it means it would take VRE, 65.13 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 65.13, VRE perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
A Debt/Equity ratio of 1.64 is on the high side and indicates that VRE has dependencies on debt financing.
VRE has a worse Debt to Equity ratio (1.64) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 65.13 | ||
| Altman-Z | -0.04 |
ROIC/WACC0.1
WACC6.37%
2.3 Liquidity
VRE has a Current Ratio of 2.19. This indicates that VRE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.19, VRE belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
A Quick Ratio of 2.19 indicates that VRE has no problem at all paying its short term obligations.
The Quick ratio of VRE (2.19) is better than 95.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
VRE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.49%.
VRE shows a small growth in Revenue. In the last year, the Revenue has grown by 7.06%.
The Revenue has been decreasing by -5.52% on average over the past years.
EPS 1Y (TTM)-6.49%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q151.85%
Revenue 1Y (TTM)7.06%
Revenue growth 3Y-3.09%
Revenue growth 5Y-5.52%
Revenue growth Q2Q0.62%
3.2 Future
The Earnings Per Share is expected to grow by 19.64% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.11% on average over the next years.
EPS Next Y78.65%
EPS Next 2Y34.27%
EPS Next 3Y19.64%
EPS Next 5YN/A
Revenue Next Year3.02%
Revenue Next 2Y3.63%
Revenue Next 3Y3.48%
Revenue Next 5Y4.11%
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.
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
VRE's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. VRE is more expensive than 85.71% of the companies in the same industry.
VRE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.15 | ||
| EV/EBITDA | 27.62 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VRE's earnings are expected to grow with 19.64% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y34.27%
EPS Next 3Y19.64%
5. Dividend
5.1 Amount
VRE has a Yearly Dividend Yield of 1.53%.
With a Dividend Yield of 1.53, VRE pays less dividend than the industry average, which is at 4.24. 90.48% of the companies listed in the same industry pay a better dividend than VRE!
VRE's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
The dividend of VRE decreases each year by -44.31%.
VRE has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-44.31%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VRE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-9.04%
EPS Next 2Y34.27%
EPS Next 3Y19.64%
VERIS RESIDENTIAL INC
NYSE:VRE (5/17/2024, 7:04:00 PM)
After market: 15.8 +0.08 (+0.51%)15.72
+0.02 (+0.13%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.6% | ||
| ROE | -10.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.44% | ||
| PM (TTM) | N/A | ||
| GM | 56.19% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.19 | ||
| Quick Ratio | 2.19 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-6.49%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y78.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.06%
Revenue growth 3Y-3.09%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y