NYSE:VGR

Stock Analysis Report

Executive Summary

Vector Group Ltd., through its subsidiaries, manufactures and sells cigarettes in the United States.

Snowflake

Fundamentals

Average dividend payer with acceptable track record.

Risks

  • Vector Group is covered by less than 3 analysts.

Share Price & News

How has Vector Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.9%

NYSE:VGR

0.7%

US Tobacco

-1.0%

US Market


1 Year Return

-26.4%

NYSE:VGR

-23.4%

US Tobacco

-0.4%

US Market

VGR underperformed the Tobacco industry which returned -24.8% over the past year.

VGR underperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

VGRIndustryMarket
7 Day3.9%0.7%-1.0%
30 Day21.5%-6.5%-3.3%
90 Day22.6%-11.3%0.4%
1 Year-15.1%-26.4%-18.8%-23.4%1.8%-0.4%
3 Year-16.9%-37.8%-18.9%-29.2%39.4%30.4%
5 Year-1.2%-35.7%35.0%8.8%54.2%37.1%

Price Volatility Vs. Market

How volatile is Vector Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vector Group undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Vector Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Vector Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Vector Group is overvalued based on earnings compared to the Global Tobacco industry average.

Vector Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Vector Group earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Vector Group has negative assets, we can't compare the value of its assets to the US Tobacco industry average.


Next Steps

Future Growth

How is Vector Group expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

-13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Vector Group's revenue is expected to grow by 17.2% yearly, however this is not considered high growth (20% yearly).

Vector Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Vector Group's revenue growth is expected to exceed the United States of America market average.

Vector Group's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Vector Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Vector Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Vector Group performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Vector Group's year on year earnings growth rate has been positive over the past 5 years.

Vector Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Vector Group's 1-year earnings growth is negative, it can't be compared to the Global Tobacco industry average.


Return on Equity

It is difficult to establish if Vector Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

Vector Group used its assets more efficiently than the Global Tobacco industry average last year based on Return on Assets.


Return on Capital Employed

Vector Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Vector Group's financial position?


Financial Position Analysis

Vector Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Vector Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Vector Group has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Vector Group's debt level has increased considering it has negative shareholder equity.

Debt is not well covered by operating cash flow (11%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.4x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Vector Group has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Vector Group's current dividend yield, its reliability and sustainability?

13.66%

Current Dividend Yield


Dividend Yield and Payments Analysis

Vector Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.5%).

Vector Group's dividend is above the markets top 25% of dividend payers in United States of America (3.9%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Vector Group's salary, the management and board of directors tenure and is there insider trading?

18.3yrs

Average management tenure


CEO

Howard Lorber (70yo)

13.6yrs

Tenure

US$8,441,627

Compensation

Mr. Howard M. Lorber has been the Chief Executive Officer and President of Vector Group Ltd. since January 2006 and January 2001 respectively. Mr. Lorber has been Chief Executive Officer New Valley LLC sin ...


CEO Compensation Analysis

Howard's remuneration is higher than average for companies of similar size in United States of America.

Howard's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

18.3yrs

Average Tenure

61.5yo

Average Age

The average tenure for the Vector Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

15.4yrs

Average Tenure

71.5yo

Average Age

The average tenure for the Vector Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$4,712,00011 Dec 18
Bennett LeBow
EntityIndividual
Role
Chairman of the Board
Shares400,000
Max PriceUS$11.88
SellUS$7,786,51305 Dec 18
Frost Group, LLC
EntityCompany
Shares626,250
Max PriceUS$12.61
SellUS$1,247,00030 Nov 18
Bennett LeBow
EntityIndividual
Role
Chairman of the Board
Shares100,000
Max PriceUS$12.47
SellUS$9,944,68030 Nov 18
Frost Group, LLC
EntityCompany
Shares765,000
Max PriceUS$13.24
SellUS$6,108,92027 Nov 18
Frost Group, LLC
EntityCompany
Shares450,085
Max PriceUS$13.76
SellUS$1,946,00022 Nov 18
Bennett LeBow
EntityIndividual
Role
Chairman of the Board
Shares140,000
Max PriceUS$13.90
SellUS$3,586,35022 Nov 18
Bennett LeBow
EntityIndividual
Role
Chairman of the Board
Shares260,000
Max PriceUS$13.92
SellUS$1,421,00021 Nov 18
Frost Gamma Investments Trust
EntityCompany
Shares100,000
Max PriceUS$14.21
SellUS$644,91121 Nov 18
Frost Group, LLC
EntityCompany
Shares45,609
Max PriceUS$14.14
SellUS$9,926,00015 Nov 18
Howard Lorber
EntityIndividual
Role
President
Member of the Board of Directors
Shares700,000
Max PriceUS$14.18

Ownership Breakdown


Management Team

  • Howard Lorber (70yo)

    President

    • Tenure: 13.6yrs
    • Compensation: $8.44m
  • Marc Bell (58yo)

    Senior VP

    • Tenure: 25.3yrs
    • Compensation: $1.40m
  • Richard Lampen (65yo)

    Executive Vice President

    • Tenure: 23.1yrs
    • Compensation: $1.67m
  • James Kirkland (53yo)

    Senior VP

    • Tenure: 13.3yrs
    • Compensation: $1.02m

Board Members

  • Howard Lorber (70yo)

    President

    • Tenure: 18.6yrs
    • Compensation: $8.44m
  • Bennett LeBow (81yo)

    Chairman of the Board

    • Tenure: 32.8yrs
    • Compensation: $122.22k
  • Jean Sharpe (72yo)

    Director

    • Tenure: 21.3yrs
    • Compensation: $88.84k
  • Hank Beinstein (76yo)

    Director

    • Tenure: 15.4yrs
    • Compensation: $103.89k
  • Paul Carlucci (71yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: $135.71k
  • Ron Bernstein (66yo)

    Director

    • Tenure: 15.4yrs
    • Compensation: $2.18m
  • Barry Watkins (54yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: $120.97k
  • Stanley Arkin (81yo)

    Director

    • Compensation: $69.81k

Company Information

Vector Group Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vector Group Ltd.
  • Ticker: VGR
  • Exchange: NYSE
  • Founded: 1873
  • Industry: tobacco
  • Sector: food, beverage & tobacco
  • Market Cap: US$1.648b
  • Shares outstanding: 140.75m
  • Website: Click here

Number of Employees


Location

  • Vector Group Ltd.
  • 4400 Biscayne Boulevard
  • Miami
  • Florida
  • 33137
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VGRNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1987
VGRDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1987

Biography

Vector Group Ltd., through its subsidiaries, manufactures and sells cigarettes in the United States. It operates in two segments, Tobacco and Real Estate. The company produces cigarettes in 109 combination ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/16 23:45
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.