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Vornado Realty Trust
VNO : NYSE : Financial
$111.05 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 915,000
11/26/14 - 4:00 PM ET

Financial Analysis


VORNADO REALTY TRUST's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not.

During the same period, stockholders' equity ("net worth") has decreased by 7.22% from the same quarter last year.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)677.01648.87
EBITDA ($mil)0.00.0
EBIT ($mil)226.7214.73
Net Income ($mil)151.52103.37


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)1843.991193.3
Total Assets ($mil)21000.5220275.32
Total Debt ($mil)11153.3410001.33
Equity ($mil)6516.517024.22


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin33.4933.09
EBITDA Margin0.00.0
Operating Margin33.4933.09
Sales Turnover0.120.14
Return on Assets1.343.01
Return on Equity0.242.9
Debt Q3 FY14 Q3 FY13
Current Ratio0.00.0
Debt/Capital0.630.59
Interest Expense131.46130.21
Interest Coverage1.721.65


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)187.74187.05
Div / share0.730.73
EPS0.40.33
Book value / share34.7137.55
Institutional Own % n/a n/a
Avg Daily Volume877532.0752214.0

Valuation


BUY. VORNADO REALTY TRUST's P/E ratio indicates a significant premium compared to an average of 100.36 for the Real Estate Investment Trusts (REITs) industry and a significant premium compared to the S&P 500 average of 19.91. To use another comparison, its price-to-book ratio of 3.14 indicates a premium versus the S&P 500 average of 2.75 and a discount versus the industry average of 3.46. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. The valuation analysis reveals that, VORNADO REALTY TRUST seems to be trading at a premium 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
VNO 1558.29 Peers 100.36   VNO 18.97 Peers 22.47

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

VNO is trading at a significant premium 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.

VNO 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
VNO 48.05 Peers 47.82   VNO NM Peers 3.09

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

VNO 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.

VNO's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
VNO 3.14 Peers 3.46   VNO -93.40 Peers 201.34

Average. 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.

VNO is trading at a valuation on par with its peers.

 

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

However, VNO 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
VNO 8.16 Peers 7.84   VNO -10.76 Peers 32.87

Average. 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.

VNO is trading at a valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

VNO significantly trails its peers on the basis of sales growth

 

 

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