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Market Cap

US$2.1b

Last Updated

2021/05/12 23:27 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Solid track record 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 +/- 5% a week.

Volatility Over Time: VGR's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.3%

VGR

2.0%

US Tobacco

-2.8%

US Market


1 Year Return

18.7%

VGR

37.6%

US Tobacco

49.4%

US Market

Return vs Industry: VGR underperformed the US Tobacco industry which returned 41% over the past year.

Return vs Market: VGR underperformed the US Market which returned 48.6% over the past year.


Shareholder returns

VGRIndustryMarket
7 Day3.3%2.0%-2.8%
30 Day-5.7%-1.7%-2.3%
90 Day-1.0%-6.4%-1.3%
1 Year26.7%18.7%48.8%37.6%51.8%49.4%
3 Year6.0%-21.9%12.9%-8.5%57.5%47.6%
5 Year24.8%-20.5%6.0%-20.3%121.7%97.1%

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

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 ($13.61) is trading below our estimate of fair value ($35.14)

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 (16.4x) compared to the Global Tobacco industry average (15.2x).

PE vs Market: VGR is good value based on its PE Ratio (16.4x) compared to the US market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VGR's PEG Ratio to determine if it is good value.


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.


Future Growth

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

15.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if VGR's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if VGR's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VGR's revenue (15% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: VGR's revenue (15% 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


Past Performance

How has Vector Group performed over the past 5 years?

10.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VGR has high quality earnings.

Growing Profit Margin: VGR's current net profit margins (7.6%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: VGR's earnings have grown by 10.6% per year over the past 5 years.

Accelerating Growth: VGR's earnings growth over the past year (63.3%) exceeds its 5-year average (10.6% per year).

Earnings vs Industry: VGR earnings growth over the past year (63.3%) exceeded the Tobacco industry 2.6%.


Return on Equity

High ROE: VGR's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


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 (16.3%).

Interest Coverage: VGR's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

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

5.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VGR's dividend (5.88%) is higher than the bottom 25% of dividend payers in the US market (1.25%).

High Dividend: VGR's dividend (5.88%) is in the top 25% of dividend payers in the US market (3.43%)


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 (96.7%), 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?

1.3yrs

Average management tenure


CEO

Howard Lorber (71 yo)

15.33yrs

Tenure

US$15,765,253

Compensation

Mr. Jacob J. Bistricer, also Known as JJ, serves as Chief Operating Officer at Clipper Realty Inc. Mr. Bistricer has been an officer of Clipper Equity since 2006. Since 2006, he served as Chief Operating O...


CEO Compensation Analysis

Compensation vs Market: Howard's total compensation ($USD15.77M) is above average for companies of similar size in the US market ($USD3.78M).

Compensation vs Earnings: Howard's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: VGR's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: VGR's board of directors are considered experienced (9.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: VGR insiders have only sold shares 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 4.1%.


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$2.133b
  • Shares outstanding: 154.19m
  • Website: https://www.vectorgroupltd.com

Number of Employees


Location

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

Listings


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/12 23:27
End of Day Share Price2021/05/12 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.