NYSE:VGR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Proven 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.1%

VGR

-2.1%

US Tobacco

2.2%

US Market


1 Year Return

-8.7%

VGR

-10.4%

US Tobacco

16.2%

US Market

Return vs Industry: VGR exceeded the US Tobacco industry which returned -12.5% over the past year.

Return vs Market: VGR underperformed the US Market which returned 15.9% over the past year.


Shareholder returns

VGRIndustryMarket
7 Day5.1%-2.1%2.2%
30 Day-5.7%5.7%4.9%
90 Day-12.1%16.3%17.8%
1 Year0.3%-8.7%-2.6%-10.4%18.7%16.2%
3 Year-32.9%-50.9%-22.9%-35.9%41.1%32.0%
5 Year-26.5%-53.3%-3.2%-25.2%74.5%55.7%

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 ($9.12) is trading below our estimate of fair value ($41.65)

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 (17.4x) compared to the XX Tobacco industry average (13x).

PE vs Market: VGR is good value based on its PE Ratio (17.4x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: VGR is poor value based on its PEG Ratio (1.3x)


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?

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VGR's forecast earnings growth (13.6% per year) is above the savings rate (2.2%).

Earnings vs Market: VGR's earnings (13.6% per year) are forecast to grow slower than the US market (22.4% per year).

High Growth Earnings: VGR's earnings are forecast to grow, but not significantly.

Revenue vs Market: VGR's revenue (15.8% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: VGR's revenue (15.8% 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?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VGR has a large one-off loss of $80.6M impacting its March 31 2020 financial results.

Growing Profit Margin: VGR's current net profit margins (5.2%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: VGR's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: VGR's earnings growth over the past year (30.5%) exceeds its 5-year average (8.7% per year).

Earnings vs Industry: VGR earnings growth over the past year (30.5%) exceeded the Tobacco industry 3.1%.


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 (13.7%).

Interest Coverage: VGR's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

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

8.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VGR's dividend (8.77%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: VGR's dividend (8.77%) is in the top 25% of dividend payers in the US market (4.54%)


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 (260%), 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?

14.5yrs

Average management tenure


CEO

Howard Lorber (71 yo)

14.58yrs

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 ($USD11.68M) is above average for companies of similar size in the US market ($USD4.62M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Howard Lorber
President14.58yrsUS$11.68m2.54%
$ 35.2m
James Kirkland
Senior VP14.33yrsUS$1.27m0.14%
$ 1.9m
Marc Bell
Senior VP26.25yrsUS$1.48m0.081%
$ 1.1m
Richard Lampen
Executive Vice President24.08yrsUS$2.00m0.25%
$ 3.4m
David Ballard
Senior VP of Enterprise Efficiency & Chief Technology Officer0.083yrno datano data
Nicholas Anson
President & COO of Liggett Group LLC and Liggett Vector Brands LLC0.58yrno datano data

14.5yrs

Average Tenure

62.5yo

Average Age

Experienced Management: VGR's management team is seasoned and experienced (14.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Howard Lorber
President14.58yrsUS$11.68m2.54%
$ 35.2m
Bennett LeBow
Independent Chairman of the Board33.83yrsUS$217.22k3.72%
$ 51.5m
Jean Sharpe
Independent Director22.25yrsUS$182.33k0.098%
$ 1.3m
Henry Beinstein
Independent Director16.42yrsUS$182.89k0.094%
$ 1.3m
Paul Carlucci
Independent Director2.42yrsUS$179.39k0.0093%
$ 128.1k
Ronald Bernstein
Director16.42yrsUS$2.63m0.054%
$ 747.0k
Barry Watkins
Independent Director2.42yrsUS$155.50k0.0093%
$ 128.1k
Stanley Arkin
Independent Director8.75yrsUS$166.41k0.030%
$ 421.0k

16.4yrs

Average Tenure

72.5yo

Average Age

Experienced Board: VGR's board of directors are seasoned and experienced ( 16.4 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 3.4%.


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$1.384b
  • Shares outstanding: 153.08m
  • 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 100 combination ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 23:54
End of Day Share Price2020/08/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.