This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Realty Income Corp
O : NYSE : Financial
$42.88 0.04 | 0.11%
Today's Range: 42.83 - 43.20
Avg. Daily Volume: 1,501,500
09/17/14 - 10:01 AM ET

Financial Analysis


REALTY INCOME CORP's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

During the same period, stockholders' equity ("net worth") has increased by 14.97% from the same quarter last year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY14 Q2 FY13
Net Sales ($mil)228.65186.44
EBITDA ($mil)0.00.0
EBIT ($mil)113.5492.41
Net Income ($mil)61.956.44


Balance Sheet Q2 FY14 Q2 FY13
Cash & Equiv. ($mil)14.1937.02
Total Assets ($mil)10812.49415.53
Total Debt ($mil)4593.214048.11
Equity ($mil)5835.75075.63


Profitability Q2 FY14 Q2 FY13
Gross Profit Margin49.6649.56
EBITDA Margin0.00.0
Operating Margin49.6649.56
Sales Turnover0.080.07
Return on Assets2.172.18
Return on Equity2.872.16
Debt Q2 FY14 Q2 FY13
Current Ratio0.00.0
Debt/Capital0.440.44
Interest Expense52.8439.37
Interest Coverage2.152.35


Share Data Q2 FY14 Q2 FY13
Shares outstanding (mil)222.62196.27
Div / share0.550.54
EPS0.230.21
Book value / share26.2125.86
Institutional Own % n/a n/a
Avg Daily Volume1530109.02284255.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 183.67 for the Real Estate Investment Trusts (REITs) industry and a significant premium compared to the S&P 500 average of 19.69. For additional comparison, its price-to-book ratio of 1.62 indicates a discount versus the S&P 500 average of 2.72 and a discount versus the industry average of 3.05. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, REALTY INCOME CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
O 53.13 Peers 183.67   O 15.66 Peers 19.91

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

O is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

O is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
O 42.93 Peers 52.00   O 1.80 Peers 4.12

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

O is trading at a discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

O trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
O 1.62 Peers 3.05   O 19.40 Peers 172.59

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

O is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, O is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
O 10.78 Peers 7.78   O 41.26 Peers 37.35

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

O is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

O has a sales growth rate that exceeds its peers.

 

 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV

Latest Stock Upgrades/Downgrades

Brokerage Partners


Top Rated Stocks Top Rated Funds Top Rated ETFs