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Vector Group

NYSE:VGR
Snowflake Description

Average dividend payer and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VGR
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

Vector Group Ltd., through its subsidiaries, manufactures and sells cigarettes in the United States. The last earnings update was 67 days ago. More info.


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VGR Share Price and Events
7 Day Returns
4.2%
NYSE:VGR
0.9%
US Tobacco
1.1%
US Market
1 Year Returns
-43.9%
NYSE:VGR
-12.7%
US Tobacco
4.7%
US Market
VGR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Vector Group (VGR) 4.2% -1.9% -9.6% -43.9% -49.6% -40.4%
US Tobacco 0.9% -2.5% -11.5% -12.7% -27.3% 17.5%
US Market 1.1% 4.3% 2.9% 4.7% 37.7% 43.6%
1 Year Return vs Industry and Market
  • VGR underperformed the Tobacco industry which returned -12.7% over the past year.
  • VGR underperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
VGR
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Vector Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Vector Group.

NYSE:VGR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:VGR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Tobacco Unlevered Beta Simply Wall St/ S&P Global 0.34
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.344 (1 + (1- 21%) (114.97%))
0.77
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:VGR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Vector Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:VGR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2020 150.90 Est @ 8.87% 140.38
2021 161.51 Est @ 7.03% 139.76
2022 170.78 Est @ 5.74% 137.48
2023 179.04 Est @ 4.84% 134.07
2024 186.56 Est @ 4.2% 129.97
2025 193.58 Est @ 3.76% 125.45
2026 200.27 Est @ 3.45% 120.73
2027 206.75 Est @ 3.24% 115.94
2028 213.12 Est @ 3.08% 111.18
2029 219.47 Est @ 2.98% 106.51
Present value of next 10 years cash flows $1,261.46
NYSE:VGR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $219.47 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$4,728.63
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,728.63 ÷ (1 + 7.5%)10
$2,294.73
NYSE:VGR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,261.46 + $2,294.73
$3,556.18
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,556.18 / 140.96
$25.23
NYSE:VGR Discount to Share Price
Calculation Result
Value per share (USD) From above. $25.23
Current discount Discount to share price of $9.74
= -1 x ($9.74 - $25.23) / $25.23
61.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Vector Group is available for.
Intrinsic value
>50%
Share price is $9.74 vs Future cash flow value of $25.23
Current Discount Checks
For Vector Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Vector Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Vector Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:VGR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.42
NYSE:VGR Share Price ** NYSE (2019-07-16) in USD $9.74
Global Tobacco Industry PE Ratio Median Figure of 12 Publicly-Listed Tobacco Companies 13.54x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 17.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Vector Group.

NYSE:VGR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:VGR Share Price ÷ EPS (both in USD)

= 9.74 ÷ 0.42

23.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Vector Group's expected growth come at a high price?
Raw Data
NYSE:VGR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
-5.8%per year
Global Tobacco Industry PEG Ratio Median Figure of 7 Publicly-Listed Tobacco Companies 1.52x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

NYSE:VGR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.18x ÷ -5.8%

-3.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What value do investors place on Vector Group's assets?
Raw Data
NYSE:VGR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $-4.19
NYSE:VGR Share Price * NYSE (2019-07-16) in USD $9.74
United States of America Tobacco Industry PB Ratio Median Figure of 8 Publicly-Listed Tobacco Companies 5.04x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NYSE:VGR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:VGR Share Price ÷ Book Value per Share (both in USD)

= 9.74 ÷ -4.19

-2.32x

* Primary Listing of Vector Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vector Group has negative assets, we can't compare the value of its assets to the US Tobacco industry average.
X
Value checks
We assess Vector Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Tobacco industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Tobacco industry average (and greater than 0)? (1 check)
  5. Vector Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-5.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Vector Group expected to grow at an attractive rate?
  • 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%.
Growth vs Market Checks
  • 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 revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:VGR Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:VGR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts -5.8%
NYSE:VGR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 17.1%
United States of America Tobacco Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
Global Tobacco Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:VGR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:VGR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 1,953 53 1
2019-12-31 1,905 56 1
NYSE:VGR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,401 161 59
2018-12-31 1,400 182 51
2018-09-30 1,392 135 73
2018-06-30 1,366 136 80
2018-03-31 1,357 144 90
2017-12-31 1,347 132 79
2017-09-30 1,321 183 42
2017-06-30 1,306 136 47
2017-03-31 1,281 130 44
2016-12-31 1,265 98 69
2016-09-30 1,274 126 72
2016-06-30 1,268 139 62

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Vector Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Vector Group's revenue is expected to grow by 17.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:VGR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Vector Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:VGR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.34 0.34 0.34 1.00
2019-12-31 0.37 0.37 0.37 1.00
NYSE:VGR Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.42
2018-12-31 0.37
2018-09-30 0.52
2018-06-30 0.58
2018-03-31 0.64
2017-12-31 0.56
2017-09-30 0.30
2017-06-30 0.34
2017-03-31 0.32
2016-12-31 0.50
2016-09-30 0.53
2016-06-30 0.45

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Vector Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Vector Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Vector Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Vector Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Vector Group's growth in the last year to its industry (Tobacco).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
Vector Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Vector Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:VGR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,400.55 58.60 355.43
2018-12-31 1,400.43 51.09 349.39
2018-09-30 1,391.69 72.98 336.16
2018-06-30 1,365.96 80.47 332.64
2018-03-31 1,357.24 89.65 328.97
2017-12-31 1,346.92 78.50 326.34
2017-09-30 1,320.87 41.89 315.39
2017-06-30 1,306.24 46.55 317.57
2017-03-31 1,280.86 44.47 318.68
2016-12-31 1,264.97 68.89 313.96
2016-09-30 1,274.17 72.03 310.03
2016-06-30 1,268.25 61.71 302.98
2016-03-31 1,244.10 55.56 297.06
2015-12-31 1,217.55 57.45 293.23
2015-09-30 1,206.76 60.96 302.75
2015-06-30 1,174.15 63.31 294.05
2015-03-31 1,163.81 53.92 279.60
2014-12-31 1,145.23 35.83 269.40
2014-09-30 1,032.47 87.58 220.39
2014-06-30 884.07 36.57 181.38
2014-03-31 730.78 42.06 143.12
2013-12-31 623.22 36.28 104.28
2013-09-30 585.86 -8.90 106.68
2013-06-30 576.10 45.31 100.51
2013-03-31 578.10 36.02 98.76
2012-12-31 587.51 30.01 108.27
2012-09-30 579.61 21.49 93.18

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • Vector Group used its assets more efficiently than the Global Tobacco industry average last year based on Return on Assets.
  • Vector Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Vector Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Tobacco industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Vector Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Vector Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Vector Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Vector Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Vector Group Company Filings, last reported 3 months ago.

NYSE:VGR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 -590.10 1,429.03 447.29
2018-12-31 -547.37 1,642.83 716.15
2018-09-30 -472.45 1,293.13 499.39
2018-06-30 -428.72 1,267.66 467.64
2018-03-31 -394.22 1,241.90 420.80
2017-12-31 -331.76 1,228.06 451.84
2017-09-30 -318.17 1,184.34 550.71
2017-06-30 -284.52 1,179.82 556.63
2017-03-31 -264.27 1,154.77 506.92
2016-12-31 -253.27 1,172.45 550.43
2016-09-30 -198.60 1,137.71 621.53
2016-06-30 -175.44 1,127.35 635.59
2016-03-31 -153.86 890.48 361.75
2015-12-31 -122.16 865.03 422.34
2015-09-30 -56.83 887.65 534.72
2015-06-30 -1.67 879.07 580.90
2015-03-31 26.35 889.00 623.38
2014-12-31 -20.68 913.35 595.47
2014-09-30 -7.87 958.27 714.30
2014-06-30 -31.11 995.48 744.19
2014-03-31 -12.58 823.62 562.31
2013-12-31 -21.61 692.34 407.00
2013-09-30 -192.58 671.09 406.03
2013-06-30 -129.50 672.26 415.85
2013-03-31 -108.30 645.62 434.34
2012-12-31 -79.25 623.72 475.84
2012-09-30 -102.95 530.64 282.45
  • 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 (11.3%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Vector Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Vector Group has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
16.43%
Current annual income from Vector Group dividends.
If you bought $2,000 of Vector Group shares you are expected to receive $329 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Vector Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.42%).
  • Vector Group's dividend is above the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:VGR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Global Tobacco Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:VGR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31
NYSE:VGR Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-28 1.600 16.535
2019-03-05 1.600 15.608
2018-11-28 1.600 14.751
2018-11-09 1.520 11.053
2018-11-07 1.520 10.838
2018-08-29 1.524 11.032
2018-05-29 1.524 8.767
2018-03-05 1.524 8.032
2017-11-29 1.524 7.458
2017-11-08 1.448 6.927
2017-11-07 1.448 7.262
2017-08-30 1.451 7.390
2017-05-31 1.451 7.510
2017-03-07 1.451 7.601
2016-12-06 1.451 7.142
2016-11-09 1.379 7.222
2016-11-03 1.379 7.240
2016-08-31 1.382 7.211
2016-06-01 1.382 7.254
2016-03-02 1.382 7.326
2015-12-01 1.382 6.905
2015-11-09 1.313 6.205
2015-11-02 1.313 6.435
2015-09-02 1.316 6.546
2015-06-03 1.316 6.704
2015-03-04 1.316 7.238
2014-12-01 1.316 7.254
2014-10-31 1.251 7.001
2014-10-29 1.251 6.939
2014-09-02 1.254 6.968
2014-05-28 1.254 7.553
2014-03-10 1.254 7.686
2013-12-02 1.254 9.114
2013-10-30 1.191 9.333
2013-09-04 1.194 9.423
2013-05-31 1.194 9.766
2013-02-28 1.194 10.001
2012-11-28 1.194 10.325
2012-10-31 1.134 9.504
2012-09-04 1.137 9.179
2012-07-31 1.137 9.421
2012-05-31 1.137 9.425
2012-05-03 1.137 9.569
2012-03-05 1.137 9.096
2012-02-24 1.137 8.784
2012-02-23 1.137 8.677
2011-11-28 1.137 9.007
2011-11-03 1.080 8.705
2011-09-01 1.083 8.702
2011-08-04 1.083 8.801
2011-06-08 1.083 8.900
2011-05-05 1.083 8.565
2011-03-07 1.083 9.201
2011-02-25 1.083 9.549
2011-02-24 1.083 9.464
2010-12-07 1.083 9.469
2010-11-05 1.029 8.262
2010-11-04 1.029 8.013
2010-09-02 1.031 8.133
2010-08-05 1.031 8.418
2010-06-08 1.031 9.111
2010-05-06 1.031 10.022
2010-03-09 1.031 10.130
2010-03-01 1.031 10.704
2009-12-07 1.031 11.271
2009-11-09 0.980 10.681
2009-09-08 0.982 10.010
2009-08-10 0.982 10.257
2009-06-03 0.982 10.946
2009-05-11 0.982 10.923
2009-03-09 0.982 11.959
2009-03-02 0.982 13.700
2008-12-05 0.982 11.643
2008-11-10 0.933 10.500
2008-09-04 0.936 9.084
2008-08-11 0.936 8.614

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Vector Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.3x 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.
X
Income/ dividend checks
We assess Vector Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Vector Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Vector Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Howard Lorber
COMPENSATION $8,441,627
AGE 70
TENURE AS CEO 13.5 years
CEO Bio

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 since December 2005 and its President & Chief Operating Officer since November 1994. He has been a Consultant of Hallman & Lorber Associates Inc. since January 2005. He has more than 25 years of experience serving on the board of a restaurant and real estate company. He has managerial experience. He joined Vector Group in 1994 and was actively involved in the management of all of Vector's assets. He served as the Chief Operating Officer and President at Vector Group Ltd. since January 2001 until December 2005. He served as the President and Chief Operating Officer of New Valley Corporation from November 1994 to December 2005. He also served as Chief Operating Officer of VGR Holding, Inc. from January 2001 to January 1, 2007 and served as its President since January 2001. He served at PLM Equipment Growth Fund and Miami Subs Corporation. He served as Chief Operating Officer of Vector Group Ltd. from January 2001 to January 1, 2006. He served as the Chief Executive Officer of Nathan's Famous, Inc. from November 1993 to December 2006. He has been the Executive Chairman of the Board at Nathan's Famous, Inc. since January 01, 2007. He serves as the Chairman of Open Acquisition Corp. and Prudential Douglas Elliman Real Estate Inc. He has been Executive Chairman at Douglas Elliman Realty, LLC since March, 2019 and was its Chairman of the Board until March, 2019. Mr. Lorber serves as Chairman of Douglas Elliman, LLC. Mr. Lorber served as the Chairman of Hallman & Lorber Associates Inc., from 1975 to December 2004. He served as Chairman of the Board of Morgans Hotel Group Co. from May 2015 to November 30, 2016 and as its Independent Director from March 15, 2015 to November 30, 2016. He served as the Chairman of Board of Directors of Ladenburg Thalmann Financial Services Inc., a subsidiary of New Valley Corp. from May 2001 to July 14, 2006. He served as the Chairman of the Board of Nathan's Famous, Inc. from 1990 to December 2006. He has been the Vice Chairman at Ladenburg Thalmann Financial Services Inc. since July 14, 2006. He has been an Independent Director of United Capital Corp. since May 1991. He serves as a Director of Clipper Realty Inc., since July 2015 and Open Acquisition Corp. He has been a Director of SP Acquisition Holdings, Inc. since June 2007, New Valley LLC since January 1991, Vector Group Ltd. since January 2001, Nathan's Famous, Inc. since 1987, PLM International, Inc., since January 1999 and Ladenburg Thalmann Financial Services Inc. since 2001. In 2017, Mr. Lorber was appointed as Chairman of the United States Holocaust Memorial Museum. He serves as a Trustee of Long Island University and Babson College. He has been a registered representative of Aegis Capital Corp., since 1984. He served as a Director of VGR Holding Inc. since January 2001; Alpine Lace Brands, Inc., since September 1993; Prime Hospitality Corp., from May 1994 to November 2004; Borders Group, Inc., since May 21, 2010 and New Valley Corp., since November 1991. Mr. Lorber holds a Bachelors of Arts, a Master’s of Science Degree in Taxation and an Honorary Doctorate from Long Island University.

CEO Compensation
  • Howard's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Howard's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Vector Group management team in years:

18.3
Average Tenure
61.5
Average Age
  • The average tenure for the Vector Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Howard Lorber

TITLE
President
COMPENSATION
$8M
AGE
70
TENURE
13.5 yrs

James Kirkland

TITLE
Senior VP
COMPENSATION
$1M
AGE
53
TENURE
13.3 yrs

Marc Bell

TITLE
Senior VP
COMPENSATION
$1M
AGE
58
TENURE
25.2 yrs

Richard Lampen

TITLE
Executive Vice President
COMPENSATION
$2M
AGE
65
TENURE
23 yrs
Board of Directors Tenure

Average tenure and age of the Vector Group board of directors in years:

15.3
Average Tenure
71.5
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.
Board of Directors

Bennett LeBow

TITLE
Chairman of the Board
COMPENSATION
$122K
AGE
81
TENURE
32.8 yrs

Howard Lorber

TITLE
President
COMPENSATION
$8M
AGE
70
TENURE
18.5 yrs

Stanley Arkin

TITLE
Director
COMPENSATION
$70K
AGE
81

Jean Sharpe

TITLE
Director
COMPENSATION
$89K
AGE
72
TENURE
21.2 yrs

Hank Beinstein

TITLE
Director
COMPENSATION
$104K
AGE
76
TENURE
15.3 yrs

Ron Bernstein

TITLE
Director
COMPENSATION
$2M
AGE
66
TENURE
15.3 yrs

Paul Carlucci

TITLE
Independent Director
COMPENSATION
$136K
AGE
71
TENURE
1.3 yrs

Barry Watkins

TITLE
Independent Director
COMPENSATION
$121K
AGE
54
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Dec 18 Sell Bennett LeBow Individual 06. Dec 18 07. Dec 18 -400,000 $11.88 $-4,712,000
05. Dec 18 Sell Frost Group, LLC Company 30. Nov 18 04. Dec 18 -626,250 $12.61 $-7,786,513
30. Nov 18 Sell Frost Group, LLC Company 27. Nov 18 29. Nov 18 -765,000 $13.24 $-9,944,680
30. Nov 18 Sell Bennett LeBow Individual 28. Nov 18 28. Nov 18 -100,000 $12.47 $-1,247,000
27. Nov 18 Sell Frost Group, LLC Company 21. Nov 18 26. Nov 18 -450,085 $13.76 $-6,108,920
22. Nov 18 Sell Bennett LeBow Individual 20. Nov 18 20. Nov 18 -140,000 $13.90 $-1,946,000
22. Nov 18 Sell Bennett LeBow Individual 19. Nov 18 21. Nov 18 -260,000 $13.92 $-3,586,350
21. Nov 18 Sell Frost Gamma Investments Trust Company 16. Nov 18 16. Nov 18 -100,000 $14.21 $-1,421,000
21. Nov 18 Sell Frost Group, LLC Company 19. Nov 18 19. Nov 18 -45,609 $14.14 $-644,911
15. Nov 18 Sell Howard Lorber Individual 13. Nov 18 13. Nov 18 -700,000 $14.18 $-9,926,000
X
Management checks
We assess Vector Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Vector Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

We Think Vector Group (NYSE:VGR) In Taking Some Risk With Its Debt

Check out our latest analysis for Vector Group How Much Debt Does Vector Group Carry? … NYSE:VGR Historical Debt, July 3rd 2019 A Look At Vector Group's Liabilities We can see from the most recent balance sheet that Vector Group had liabilities of US$302.6m falling due within a year, and liabilities of US$1.72b due beyond that. … Since Vector Group does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time.

Simply Wall St -

Did You Manage To Avoid Vector Group's (NYSE:VGR) 47% Share Price Drop?

(NYSE:VGR) shareholders, since the share price is down 47% in the last three years, falling well short of the market return of around 46%. … Although the share price is down over three years, Vector Group actually managed to grow EPS by 1.1% per year in that time. … We note that for Vector Group the TSR over the last 3 years was -30%, which is better than the share price return mentioned above.

Simply Wall St -

Why Vector Group Ltd.'s (NYSE:VGR) High P/E Ratio Isn't Necessarily A Bad Thing

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll show how you can use Vector Group Ltd.'s (NYSE:VGR) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Are Insiders Selling Vector Group Ltd. (NYSE:VGR) Stock?

So shareholders might well want to know whether insiders have been buying or selling shares in Vector Group Ltd. … Vector Group Insider Transactions Over The Last Year. … Over the last year we saw more insider selling of Vector Group shares, than buying

Simply Wall St -

Is Now An Opportune Moment To Examine Vector Group Ltd. (NYSE:VGR)?

As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value? … Is there still an opportunity here to buy. … Let’s examine Vector Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

Did You Manage To Avoid Vector Group's 44% Share Price Drop?

(NYSE:VGR) shareholders, since the share price is down 44% in the last three years, falling well short of the market return of around 50%. … The more recent news is of little comfort, with the share price down 41% in a year. … During the three years that the share price fell, Vector Group's earnings per share (EPS) dropped by 4.2% each year.

Simply Wall St -

Vector Group Ltd. (NYSE:VGR) Earns Among The Best Returns In Its Industry

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Does Vector Group Ltd. (NYSE:VGR) Have A Particularly Volatile Share Price?

Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Don't Sell Vector Group Ltd. (NYSE:VGR) Before You Read This

We'll show how you can use Vector Group Ltd.'s (NYSE:VGR) P/E ratio to inform your assessment of the investment opportunity. … Vector Group has a P/E ratio of 20.16, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Did Vector Group Ltd. (NYSE:VGR) Insiders Sell Shares?

So we'll take a look at whether insiders have been buying or selling shares in Vector Group Ltd. … Vector Group Insider Transactions Over The Last Year. … Over the last year we saw more insider selling of Vector Group shares, than buying.

Simply Wall St -

Company Info

Description

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.

Details
Name: Vector Group Ltd.
VGR
Exchange: NYSE
Founded: 1873
$1,372,941,293
140,959,065
Website: http://www.vectorgroupltd.com
Address: Vector Group Ltd.
4400 Biscayne Boulevard,
Miami,
Florida, 33137,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE VGR Common Stock New York Stock Exchange US USD 08. Oct 1987
DB VGR Common Stock Deutsche Boerse AG DE EUR 08. Oct 1987
Number of employees
Current staff
Staff numbers
1,555
Vector Group employees.
Industry
Tobacco
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 23:44
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/05/08
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.