REALTY INCOME CORP's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.13% from the same quarter last year.
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|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||253.86||228.65|
|Net Income ($mil)||66.09||61.9|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||26.82||14.19|
|Total Assets ($mil)||11728.31||10812.4|
|Total Debt ($mil)||5310.08||4593.21|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||48.05||49.66|
|Return on Assets||2.42||2.17|
|Return on Equity||4.27||2.89|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||234.86||222.62|
|Div / share||0.57||0.55|
|Book value / share||25.38||26.21|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1737213.0||2444795.0|
BUY. REALTY INCOME CORP's P/E ratio indicates a discount compared to an average of 47.25 for the Real Estate Investment Trusts (REITs) industry and a significant premium compared to the S&P 500 average of 19.38. For additional comparison, its price-to-book ratio of 1.87 indicates a discount versus the S&P 500 average of 2.58 and a discount versus the industry average of 3.31. 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.
|O 43.05||Peers 47.25||O 16.80||Peers 18.10|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
O is trading at a valuation on par with 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.
|O 44.88||Peers 40.87||O NM||Peers 5.41|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
O is trading at a premium to its peers.
Neutral. 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's negative PEG ratio makes this valuation measure meaningless.
|O 1.87||Peers 3.31||O 35.80||Peers 267.42|
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.
|O 11.30||Peers 7.65||O 13.30||Peers 18.02|
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.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
O significantly trails its peers on the basis of sales growth
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