VERIS RESIDENTIAL INC (VRE) Stock Fundamental Analysis
NYSE:VRE - New York Stock Exchange, Inc. - US5544891048 - REIT - Currency: USD
We assign a fundamental rating of 2 out of 10 to VRE. VRE was compared to 20 industry peers in the Residential REITs industry. Both the profitability and financial health of VRE have multiple concerns. VRE is valued expensive and it does not seem to be growing.
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.
VRE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -0.70%, VRE is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
VRE has a worse Return On Equity (-2.02%) than 65.00% of its industry peers.
With a Return On Invested Capital value of 1.16%, VRE is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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 last Return On Invested Capital (1.16%) for VRE is above the 3 year average (0.71%), which is a sign of increasing profitability.
| 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
The Operating Margin of VRE (16.12%) is worse than 65.00% of its industry peers.
VRE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 60.67%, VRE is in the better half of 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.
VRE has more shares outstanding than it did 5 years ago.
VRE has a better debt/assets ratio than last year.
2.2 Solvency
VRE has an Altman-Z score of -0.15. This is a bad value and indicates that VRE is not financially healthy and even has some risk of bankruptcy.
VRE's Altman-Z score of -0.15 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 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.
With a Debt to FCF ratio value of 55.72, VRE perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
VRE has a Debt/Equity ratio of 1.64. This is a high value indicating a heavy dependency on external financing.
VRE has a worse Debt to Equity ratio (1.64) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 55.72 | ||
| Altman-Z | -0.15 |
ROIC/WACC0.18
WACC6.64%
2.3 Liquidity
A Current Ratio of 0.60 indicates that VRE may have some problems paying its short term obligations.
The Current ratio of VRE (0.60) is comparable to the rest of the industry.
A Quick Ratio of 0.60 indicates that VRE may have some problems paying its short term obligations.
The Quick ratio of VRE (0.60) is comparable to the rest of the industry.
| 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 92.54%, which is quite impressive.
Looking at the last year, VRE shows a small growth in Revenue. The Revenue has grown by 0.26% in the last year.
VRE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.37% yearly.
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
The Earnings Per Share is expected to grow by 23.28% on average over the next years. This is a very strong growth
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 Y-22.04%
EPS Next 2Y14.26%
EPS Next 3Y23.28%
EPS Next 5YN/A
Revenue Next Year7.69%
Revenue Next 2Y5.61%
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
VRE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRE indicates a rather expensive valuation: VRE more expensive than 85.00% of the companies listed 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 | 41.51 | ||
| EV/EBITDA | 23.57 |
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 2.27%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.82, 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!
VRE's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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
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 2Y14.26%
EPS Next 3Y23.28%
14.23
+0.11 (+0.78%)
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 Change26.42%
Market Cap1.33B
Analysts76
Price Target18.36 (29.02%)
Short Float %4.24%
Short Ratio6.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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)-5.47%
PT rev (3m)-5.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.45%
Revenue NQ rev (1m)4.62%
Revenue NQ rev (3m)7.8%
Revenue NY rev (1m)1.84%
Revenue NY rev (3m)4.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 4.75 | ||
| P/FCF | 41.51 | ||
| P/OCF | 21.18 | ||
| P/B | 1.22 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 23.57 |
EPS(TTM)-0.05
EYN/A
EPS(NY)-0.17
Fwd EYN/A
FCF(TTM)0.34
FCFY2.41%
OCF(TTM)0.67
OCFY4.72%
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 | -0.15 |
F-Score5
WACC6.64%
ROIC/WACC0.18
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 Y-22.04%
EPS Next 2Y14.26%
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 Year7.69%
Revenue Next 2Y5.61%
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%