Realty Income Corp

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O : NYSE : Financial
$61.75 -0.32 | -0.52%
Today's Range: 61.71 - 62.1
Avg. Daily Volume: 1947300.0
04/21/17 - 4:02 PM ET

Financial Analysis


REALTY INCOME CORP's gross profit margin for the fourth quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.60% from the same quarter last year.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)287.84263.67
EBITDA ($mil)0.00.0
EBIT ($mil)135.41130.69
Net Income ($mil)92.4482.94


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)13.6744.47
Total Assets ($mil)13152.8711865.87
Total Debt ($mil)5844.624846.19
Equity ($mil)6766.86531.6


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin51.7554.48
EBITDA Margin0.00.0
Operating Margin47.0449.56
Sales Turnover0.080.09
Return on Assets2.392.39
Return on Equity4.263.92
Debt Q4 FY16 Q4 FY15
Current Ratio0.00.0
Debt/Capital0.460.43
Interest Expense49.0652.11
Interest Coverage2.762.51


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)260.17250.42
Div / share0.610.57
EPS0.330.31
Book value / share26.0126.08
Institutional Own % n/a n/a
Avg Daily Volume1941148.01890363.0

Valuation


BUY. REALTY INCOME CORP's P/E ratio indicates a discount compared to an average of 56.87 for the Equity Real Estate Investment Trusts REITs industry and a significant premium compared to the S&P 500 average of 24.92. For additional comparison, its price-to-book ratio of 2.39 indicates a discount versus the S&P 500 average of 2.99 and a discount versus the industry average of 3.77. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
O 55.42 Peers 56.87   O 20.08 Peers 18.71

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
O 47.38 Peers 89.27   O 6.27 Peers 4.18

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

O is trading at a significant discount to its peers.

 

Premium. 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 trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
O 2.39 Peers 3.77   O 2.75 Peers 34.22

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
O 14.64 Peers 8.18   O 7.80 Peers 10.96

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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