VERIS RESIDENTIAL INC (VRE) Stock Fundamental Analysis
USA - NYSE:VRE - US5544891048 - REIT
14.9 USD
-0.14 (-0.93%)
14.9 USD
0 (0%)
VRE gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. Both the profitability and financial health of VRE have multiple concerns. 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.
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
VRE has a worse Return On Assets (-0.70%) than 65.00% of its industry peers.
Looking at the Return On Equity, with a value of -2.02%, VRE is doing worse than 65.00% of the companies in the same industry.
VRE has a Return On Invested Capital of 1.16%. This is in the lower half of the industry: VRE underperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRE is in line with the industry average of 2.59%.
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.
VRE has a better Gross Margin (60.67%) than 70.00% of its industry peers.
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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
VRE has a better debt/assets ratio than last year.
2.2 Solvency
VRE has an Altman-Z score of -0.13. This is a bad value and indicates that VRE is not financially healthy and even has some risk of bankruptcy.
VRE has a worse Altman-Z score (-0.13) 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.
The Debt to FCF ratio of VRE (55.72) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.64 is on the high side and indicates that VRE has dependencies on debt financing.
The Debt to Equity ratio of VRE (1.64) is worse than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 55.72 | ||
| Altman-Z | -0.13 |
ROIC/WACC0.18
WACC6.58%
2.3 Liquidity
VRE has a Current 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.
Looking at the Current ratio, with a value of 0.60, VRE is in line with its industry, outperforming 50.00% of the companies in the same 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.
VRE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.26%.
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
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
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
Based on the Enterprise Value to EBITDA ratio, VRE is valued 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 | 43.46 | ||
| EV/EBITDA | 24.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.47%
EPS Next 3Y7.51%
5. Dividend
5.1 Amount
VRE has a Yearly Dividend Yield of 2.13%.
With a Dividend Yield of 2.13, VRE pays less dividend than the industry average, which is at 6.34. 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 2.44, VRE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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.
The dividend of VRE decreased recently.
Dividend Growth(5Y)-25.53%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VRE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-136.18%
EPS Next 2Y11.47%
EPS Next 3Y7.51%
14.9
-0.14 (-0.93%)
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 Change6.19%
Market Cap1.39B
Analysts76
Price Target18.36 (23.22%)
Short Float %4.76%
Short Ratio5.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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)0%
EPS NQ rev (3m)33.33%
EPS NY rev (1m)0%
EPS NY rev (3m)68.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.61%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)3.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 4.97 | ||
| P/FCF | 43.46 | ||
| P/OCF | 22.18 | ||
| P/B | 1.28 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 24.13 |
EPS(TTM)-0.05
EYN/A
EPS(NY)-0.18
Fwd EYN/A
FCF(TTM)0.34
FCFY2.3%
OCF(TTM)0.67
OCFY4.51%
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 | -0.13 |
F-Score5
WACC6.58%
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 Y62.12%
EPS Next 2Y11.47%
EPS Next 3Y7.51%
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 Year9.47%
Revenue Next 2Y5.32%
Revenue Next 3Y3.88%
Revenue Next 5Y5.65%
EBIT growth 1Y90.34%
EBIT growth 3Y55.27%
EBIT growth 5Y20.87%
EBIT Next Year255.69%
EBIT Next 3Y54.81%
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%