Realty Income Corporation (NYSE: O) shares currently have a dividend yield of 4.40%. 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 57.30. The average volume for Realty Income Corporation has been 1,837,000 shares per day over the past 30 days. Realty Income Corporation has a market cap of $8.8 billion and is part of the real estate industry. Shares are up 23.1% year to date as of the close of trading on Thursday. 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 sub par growth in net income. 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.
- Compared to its closing price of one year ago, O's share price has jumped by 26.31%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, O should continue to move higher despite the fact that it has already enjoyed a very nice gain 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 38.58%.
- 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 ($0.99 versus $0.76).
- You can view the full Realty Income Corporation Ratings Report.
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