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.

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

-1.9%

VGR

0.9%

US Tobacco

1.0%

US Market


1 Year Return

-9.5%

VGR

-30.6%

US Tobacco

6.7%

US Market

Return vs Industry: VGR exceeded the US Tobacco industry which returned -30.6% over the past year.

Return vs Market: VGR underperformed the US Market which returned 6.7% over the past year.


Share holder returns

VGRIndustryMarket
7 Day-1.9%0.9%1.0%
30 Day-13.5%1.1%-1.8%
90 Day20.6%-14.3%-1.8%
1 Year4.8%-9.5%-26.0%-30.6%9.1%6.7%
3 Year-13.6%-36.2%-20.4%-31.1%46.1%36.6%
5 Year3.2%-33.9%15.1%-7.9%66.9%48.6%

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

Undervalued: VGR ($11.19) is trading below our estimate of fair value ($31.96)

Significantly Undervalued: VGR is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: VGR is poor value based on its PE Ratio (20.6x) compared to the Tobacco industry average (12.3x).

PE vs Market: VGR is poor value based on its PE Ratio (20.6x) compared to the US market (17.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

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 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

Earnings vs Savings Rate: VGR's earnings are forecast to decline over the next 3 years (-13.2% per year).

Earnings vs Market: VGR's earnings are forecast to decline over the next 3 years (-13.2% per year).

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

Revenue vs Market: VGR's revenue (17.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: VGR's revenue (17.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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?

5.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VGR's earnings have grown by 5.5% 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 (-0.9%) over the past year, making it difficult to compare to the Tobacco industry average (6.7%).


Return on Equity

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


Return on Assets

ROA vs Industry: VGR has a higher Return on Assets than the Tobacco industry average last year.


Return on Capital Employed

ROCE Improving: VGR has improved its Return on Capital Employed over the past 3 years.


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%).

Interest Coverage: VGR's interest payments on its debt are not well covered by EBIT (1.4x 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?

13.62%

Current Dividend Yield


Dividend Yield vs Market

company13.6%marketbottom25%1.5%markettop25%3.8%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: VGR's dividend (13.62%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: VGR's dividend (13.62%) is in the top 25% of dividend payers in the US market (3.77%)

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 (276.4%), 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

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

18.5yrs

Average management tenure


CEO

Howard Lorber (70yo)

13.8yrs

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 ($USD8.44M) is about average for companies of similar size in the US market ($USD4.08M).

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


Management Age and Tenure

18.5yrs

Average Tenure

61.5yo

Average Age

Experienced Management: VGR's management team is seasoned and experienced (18.5 years average tenure).


Board Age and Tenure

15.6yrs

Average Tenure

71.5yo

Average Age

Experienced Board: VGR's board of directors are seasoned and experienced ( 15.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$4,712,00011 Dec 18
Bennett LeBow
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares420,000
Max PriceUS$11.31
SellUS$7,786,51205 Dec 18
Frost Group, LLC
EntityCompany
Shares657,562.5
Max PriceUS$12.01
SellUS$1,247,00030 Nov 18
Bennett LeBow
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares105,000
Max PriceUS$11.88
SellUS$9,944,68030 Nov 18
Frost Group, LLC
EntityCompany
Shares803,250
Max PriceUS$12.61
SellUS$6,108,91927 Nov 18
Frost Group, LLC
EntityCompany
Shares472,589.25
Max PriceUS$13.10
SellUS$1,946,00022 Nov 18
Bennett LeBow
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares147,000
Max PriceUS$13.24
SellUS$3,586,35022 Nov 18
Bennett LeBow
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares273,000
Max PriceUS$13.26
SellUS$1,421,00021 Nov 18
Frost Gamma Investments Trust
EntityCompany
Shares105,000
Max PriceUS$13.53
SellUS$644,91121 Nov 18
Frost Group, LLC
EntityCompany
Shares47,889.45
Max PriceUS$13.47
SellUS$9,925,99915 Nov 18
Howard Lorber
EntityIndividual
Role
Chief Executive Officer
President
Shares735,000
Max PriceUS$13.50

Ownership Breakdown


Management Team

  • Howard Lorber (70yo)

    President

    • Tenure: 13.8yrs
    • Compensation: US$8.44m
  • Marc Bell (58yo)

    Senior VP

    • Tenure: 25.4yrs
    • Compensation: US$1.40m
  • Richard Lampen (65yo)

    Executive Vice President

    • Tenure: 23.3yrs
    • Compensation: US$1.67m
  • James Kirkland (53yo)

    Senior VP

    • Tenure: 13.5yrs
    • Compensation: US$1.02m

Board Members

  • Howard Lorber (70yo)

    President

    • Tenure: 13.8yrs
    • Compensation: US$8.44m
  • Bennett LeBow (81yo)

    Independent Chairman of the Board

    • Tenure: 33yrs
    • Compensation: US$122.22k
  • Jean Sharpe (72yo)

    Director

    • Tenure: 21.4yrs
    • Compensation: US$88.84k
  • Hank Beinstein (76yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$103.89k
  • Paul Carlucci (71yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$135.71k
  • Ron Bernstein (66yo)

    Director

    • Tenure: 15.6yrs
    • Compensation: US$2.18m
  • Barry Watkins (54yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$120.97k
  • Stanley Arkin (81yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: US$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$1.654b
  • 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

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 Analysis2019/10/14 01:24
End of Day Share Price2019/10/11 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.

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