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Realty Income Corporation
O : NYSE : Financial

$44.68 0.41 | 0.93%
Today's Range: 43.71 - 45.00
Avg. Daily Volume: 1,795,400
06/18/13 - 4:01 PM ET

Financial Analysis


REALTY INCOME CORP's gross profit margin for the first quarter of its fiscal year 2013 has decreased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry.

At the same time, stockholders' equity ("net worth") has greatly increased by 108.63% from the same quarter last year.



Income Statement Q1 FY13 Q1 FY12
Net Sales ($mil)171.7112.31
EBITDA ($mil)0.00.0
EBIT ($mil)86.566.4
Net Income ($mil)71.839.26


Balance Sheet Q1 FY13 Q1 FY12
Cash & Equiv. ($mil)41.517.43
Total Assets ($mil)8763.64398.43
Total Debt ($mil)3400.741849.88
Equity ($mil)5134.342460.94


Profitability Q1 FY13 Q1 FY12
Gross Profit Margin50.3859.13
EBITDA Margin0.00.0
Operating Margin50.3859.13
Sales Turnover0.060.1
Return on Assets2.183.64
Return on Equity1.914.82
Debt Q1 FY13 Q1 FY12
Current Ratio0.00.0
Debt/Capital0.40.43
Interest Expense41.729.1
Interest Coverage2.072.28


Share Data Q1 FY13 Q1 FY12
Shares outstanding (mil)196.23133.4
Div / share0.540.44
EPS0.130.18
Book value / share26.1718.45
Institutional Own % n/a n/a
Avg Daily Volume1788615.01915693.0

Valuation


BUY. REALTY INCOME CORP's P/E ratio indicates a discount compared to an average of 70.80 for the Real Estate Investment Trusts (REITs) industry and a significant premium compared to the S&P 500 average of 18.91. For additional comparison, its price-to-book ratio of 1.69 indicates a discount versus the S&P 500 average of 2.42 and a discount versus the industry average of 2.90. 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 63.00 Peers 70.80   O 18.72 Peers 19.60

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

O is trading at a discount to its peers.

 

Average. 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 valuation on par 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 45.46 Peers 53.02   O 0.97 Peers 4.67

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 significant 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 1.69 Peers 2.90   O -21.35 Peers 66.44

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 16.24 Peers 7.78   O 25.14 Peers 21.89

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.

 

 

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