NYSE:VGR

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Solid track record average dividend payer.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

VGR

1.6%

US Tobacco

-1.1%

US Market


1 Year Return

13.6%

VGR

-11.4%

US Tobacco

17.9%

US Market

Return vs Industry: VGR exceeded the US Tobacco industry which returned -11.4% over the past year.

Return vs Market: VGR underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

VGRIndustryMarket
7 Day0.7%1.6%-1.1%
30 Day1.7%-8.6%1.4%
90 Day4.4%-6.8%6.9%
1 Year30.5%13.6%-5.5%-11.4%20.3%17.9%
3 Year-6.3%-31.8%-27.7%-37.9%47.8%38.3%
5 Year17.9%-25.4%3.0%-18.2%71.9%53.0%

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 ($13.47) is trading below our estimate of fair value ($35.01)

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 (19.1x) compared to the Tobacco industry average (14.4x).

PE vs Market: VGR is poor value based on its PE Ratio (19.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: VGR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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?

-18.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VGR's earnings are forecast to decline over the next 3 years (-18% per year).

Earnings vs Market: VGR's earnings are forecast to decline over the next 3 years (-18% per year).

High Growth Earnings: VGR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: VGR's revenue (17.1% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: VGR's revenue (17.1% 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?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VGR has high quality earnings.

Growing Profit Margin: VGR's current net profit margins (7.1%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: VGR's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: VGR's earnings growth over the past year (41.8%) exceeds its 5-year average (6.4% per year).

Earnings vs Industry: VGR earnings growth over the past year (41.8%) exceeded the Tobacco industry 2.3%.


Return on Equity

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


Return on Assets


Return on Capital Employed


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 (11.8%).

Interest Coverage: VGR's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet

Inventory Level: VGR has a high level of physical assets or inventory.

Debt Coverage by Assets: VGR 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?

11.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VGR's dividend (11.31%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: VGR's dividend (11.31%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: VGR's dividends per share have been stable in the past 10 years.

Growing Dividend: VGR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (214.8%), 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?

18.8yrs

Average management tenure


CEO

Howard Lorber (70yo)

14.1yrs

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

Compensation vs Market: Howard's total compensation ($USD8.44M) is above average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Howard's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Howard Lorber
President14.1yrsUS$8.44m2.34% $46.5m
James Kirkland
Senior VP13.8yrsUS$1.02m0.11% $2.1m
Marc Bell
Senior VP25.8yrsUS$1.40m0.061% $1.2m
Richard Lampen
Executive Vice President23.6yrsUS$1.67m0.19% $3.7m

18.8yrs

Average Tenure

61.5yo

Average Age

Experienced Management: VGR's management team is seasoned and experienced (18.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Howard Lorber
President14.1yrsUS$8.44m2.34% $46.5m
Bennett LeBow
Independent Chairman of the Board33.3yrsUS$122.22k4.26% $84.9m
Jean Sharpe
Director21.8yrsUS$88.84k0.10% $2.0m
Henry Beinstein
Independent Director15.9yrsUS$103.89k0.097% $1.9m
Paul Carlucci
Independent Director1.9yrsUS$135.71k0.0096% $190.9k
Ronald Bernstein
Director15.9yrsUS$2.18m0.056% $1.1m
Barry Watkins
Independent Director1.9yrsUS$120.97k0.0096% $190.9k
Stanley Arkin
Independent Director8.3yrsUS$69.81k0.032% $627.3k

15.9yrs

Average Tenure

71.5yo

Average Age

Experienced Board: VGR's board of directors are seasoned and experienced ( 15.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$1.991b
  • Shares outstanding: 147.79m
  • Website: https://www.vectorgroupltd.com

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
VGRBRSE (Berne Stock Exchange)YesCommon StockCHCHFOct 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 combinations under the Pyramid, EAGLE 20’s, Grand Prix, Liggett Select, Eve, and USA brand names, as well as various partner and private label brands. It also offers e-cigarettes. In addition, the company provides residential real estate brokerage, relocation, and real estate sales and marketing services, as well as title and settlement services to real estate buyers and financial institutions; manages cooperatives, condominiums, and apartments; invests in, acquires, and owns real estate properties or projects; and engages in land development activities. Further, it operates elliman.com, a Website that enables consumers to search properties and access market information, as well as offers building and neighborhood guides, and other interactive content. Vector Group Ltd. markets and sells its cigarettes to wholesalers and distributors of tobacco and convenience products, as well as grocery, drug, and convenience store chains. The company was formerly known as Brooke Group Ltd. and changed its name to Vector Group Ltd. in May 2000. Vector Group Ltd. was founded in 1873 and is based in Miami, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:29
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
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.