Realty Income Corporation (NYSE: O) shares currently have a dividend yield of 4.90%. Realty Income Corporation engages in the acquisition and ownership of commercial retail real estate properties in the United States. The company leases its retail properties primarily to regional and national retail chain store operators. The company has a P/E ratio of 51.67. Currently there are 4 analysts that rate Realty Income Corporation a buy, no analysts rate it a sell, and 5 rate it a hold. The average volume for Realty Income Corporation has been 1,997,400 shares per day over the past 30 days. Realty Income Corporation has a market cap of $8.0 billion and is part of the real estate industry. Shares are up 9.5% year to date as of the close of trading on Tuesday. TheStreet Ratings rates Realty Income Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- O's revenue growth has slightly outpaced the industry average of 16.4%. Since the same quarter one year prior, revenues rose by 16.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Net operating cash flow has increased to $117.94 million or 18.28% when compared to the same quarter last year. Despite an increase in cash flow, REALTY INCOME CORP's cash flow growth rate is still lower than the industry average growth rate of 32.95%.
- The gross profit margin for REALTY INCOME CORP is rather high; currently it is at 56.20%. Regardless of O's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, O's net profit margin of 29.98% compares favorably to the industry average.
- REALTY INCOME CORP's earnings per share declined by 24.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, REALTY INCOME CORP reported lower earnings of $0.76 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($1.06 versus $0.76).
- You can view the full Realty Income Corporation Ratings Report.
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