Rating Change #7
Vornado Realty Trust
has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
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Highlights from the ratings report include:
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- VNO, with its decline in revenue, underperformed when compared the industry average of 18.6%. Since the same quarter one year prior, revenues slightly dropped by 8.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for VORNADO REALTY TRUST is currently lower than what is desirable, coming in at 26.70%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.80% significantly trails the industry average.
- Net operating cash flow has significantly decreased to -$43.24 million or 167.62% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Vornado Realty Trust is a privately owned real estate investment trust. The trust engages in investment, ownership, and management of commercial real estate. It invests in the real estate markets of United States. The trust primarily invests in office, industrial and retail properties. The company has a P/E ratio of 50.7, above the average real estate industry P/E ratio of 41.6 and above the S&P 500 P/E ratio of 17.7. Vornado has a market cap of $15.06 billion and is part of the
industry. Shares are up 4.5% year to date as of the close of trading on Tuesday.
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