Vector Group
Market Cap
US$1.7b
Last Updated
2020/11/27 00:00 UTC
Data Sources
Company Financials +
Executive Summary
Vector Group Ltd., through its subsidiaries, manufactures and sells cigarettes in the United States. More Details
Rewards
Risk Analysis
+ 2 more risks
Snowflake Analysis
Reasonable growth potential and fair value.
Similar Companies
Share Price & News
How has Vector Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VGR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: VGR's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
0.7%
VGR
0.8%
US Tobacco
2.1%
US Market
1 Year Return
-14.8%
VGR
-18.3%
US Tobacco
19.8%
US Market
Return vs Industry: VGR exceeded the US Tobacco industry which returned -18.3% over the past year.
Return vs Market: VGR underperformed the US Market which returned 19.7% over the past year.
Shareholder returns
| VGR | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.7% | 0.8% | 2.1% |
| 30 Day | 12.0% | 8.7% | 8.1% |
| 90 Day | 10.7% | -7.5% | 6.0% |
| 1 Year | -7.4%-14.8% | -11.1%-18.3% | 22.5%19.8% |
| 3 Year | -23.7%-44.3% | -26.9%-39.7% | 46.5%36.8% |
| 5 Year | -13.8%-45.4% | -7.3%-29.0% | 96.9%75.3% |
Long-Term 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
1 week ago | Simply Wall St
What Does Vector Group Ltd.'s (NYSE:VGR) Share Price Indicate?3 weeks ago | Simply Wall St
What Does Vector Group's (NYSE:VGR) CEO Pay Reveal?1 month ago | Simply Wall St
Vector Group Ltd. (NYSE:VGR) Is Yielding 7.9% - But Is It A Buy?Valuation
Is Vector Group undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VGR ($11.37) is trading below our estimate of fair value ($58.51)
Significantly Below Fair Value: VGR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VGR is poor value based on its PE Ratio (24.9x) compared to the XX Tobacco industry average (11.9x).
PE vs Market: VGR is poor value based on its PE Ratio (24.9x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: VGR is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: VGR has negative assets, so we can't compare its PB Ratio to the US Tobacco industry average.
Next Steps
Future Growth
How is Vector Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
46.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VGR's forecast earnings growth (46.6% per year) is above the savings rate (2.2%).
Earnings vs Market: VGR's earnings (46.6% per year) are forecast to grow faster than the US market (22% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: VGR's revenue (16.8% per year) is forecast to grow faster than the US market (10.2% per year).
High Growth Revenue: VGR's revenue (16.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if VGR's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Vector Group performed over the past 5 years?
6.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VGR has a large one-off loss of $76.3M impacting its September 30 2020 financial results.
Growing Profit Margin: VGR's current net profit margins (4.8%) are lower than last year (7.1%).
Past Earnings Growth Analysis
Earnings Trend: VGR's earnings have grown by 6.9% per year over the past 5 years.
Accelerating Growth: VGR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: VGR had negative earnings growth (-34.2%) over the past year, making it difficult to compare to the Tobacco industry average (-2.7%).
Return on Equity
High ROE: VGR's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Next Steps
Financial Health
How is Vector Group's financial position?
Financial Position Analysis
Short Term Liabilities: VGR has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: VGR has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: VGR has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: VGR's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: VGR's debt is not well covered by operating cash flow (17.6%).
Interest Coverage: VGR's interest payments on its debt are not well covered by EBIT (2.3x coverage).
Balance Sheet
Next Steps
Dividend
What is Vector Group current dividend yield, its reliability and sustainability?
7.04%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VGR's dividend (7.04%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: VGR's dividend (7.04%) is in the top 25% of dividend payers in the US market (4.05%)
Stability and Growth of Payments
Stable Dividend: VGR's dividend payments have been volatile in the past 10 years.
Growing Dividend: VGR's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (218.9%), VGR's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.7yrs
Average management tenure
CEO
Howard Lorber (71 yo)
14.83yrs
Tenure
US$11,675,471
Compensation
Mr. Howard M. Lorber has been the Chief Executive Officer and President of Vector Group Ltd. since January 2006 and January 2001 respectively. Mr. Lorber has been Chief Executive Officer New Valley LLC sin...
CEO Compensation Analysis
Compensation vs Market: Howard's total compensation ($USD11.68M) is above average for companies of similar size in the US market ($USD4.15M).
Compensation vs Earnings: Howard's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 14.83yrs | US$11.68m | 2.54% $ 44.2m | |
| Senior VP | 14.58yrs | US$1.27m | 0.15% $ 2.6m | |
| Senior VP | 26.5yrs | US$1.48m | 0.081% $ 1.4m | |
| Executive Vice President | 24.33yrs | US$2.00m | 0.28% $ 4.9m | |
| Senior VP of Enterprise Efficiency & Chief Technology Officer | 0.33yr | no data | no data | |
| VP of Enterprise Innovation & MD of New Valley Ventures LLC | 0.83yr | no data | no data | |
| President & COO of Liggett Group LLC and Liggett Vector Brands LLC | 0.83yr | no data | no data | |
| Controller | 0.83yr | no data | no data |
7.7yrs
Average Tenure
66yo
Average Age
Experienced Management: VGR's management team is seasoned and experienced (7.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 14.83yrs | US$11.68m | 2.54% $ 44.2m | |
| Independent Chairman of the Board | 34.08yrs | US$217.22k | 2.38% $ 41.6m | |
| Independent Director | 22.5yrs | US$182.33k | 0.097% $ 1.7m | |
| Independent Director | 16.67yrs | US$182.89k | 0.094% $ 1.6m | |
| Independent Director | 2.67yrs | US$179.39k | 0.0092% $ 161.2k | |
| Director | 16.67yrs | US$2.63m | 0.054% $ 939.4k | |
| Independent Director | 2.67yrs | US$155.50k | 0.0092% $ 161.2k | |
| Independent Director | 9yrs | US$166.41k | 0.030% $ 529.5k |
16.7yrs
Average Tenure
72.5yo
Average Age
Experienced Board: VGR's board of directors are seasoned and experienced ( 16.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: VGR insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.7%.
Top Shareholders
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$1.743b
- Shares outstanding: 153.29m
- Website: https://www.vectorgroupltd.com
Number of Employees
Location
- Vector Group Ltd.
- 4400 Biscayne Boulevard
- Miami
- Florida
- 33137
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VGR | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Oct 1987 |
| VGR | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 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 100 combination...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/27 00:00 |
| End of Day Share Price | 2020/11/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.