NYSE:O

Stock Analysis Report

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Executive Summary

Realty Income, The Monthly Dividend Company, is an S&P 500 company dedicated to providing stockholders with dependable monthly income.


Snowflake Analysis

6 star dividend payer with solid track record.


Similar Companies

Share Price & News

How has Realty Income's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: O's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.6%

O

2.8%

US REITs

1.6%

US Market


1 Year Return

-12.7%

O

-10.0%

US REITs

4.8%

US Market

Return vs Industry: O underperformed the US REITs industry which returned -10% over the past year.

Return vs Market: O underperformed the US Market which returned 4.8% over the past year.


Shareholder returns

OIndustryMarket
7 Day4.6%2.8%1.6%
30 Day1.6%0.4%2.3%
90 Day40.1%23.4%29.5%
1 Year-9.1%-12.7%-6.3%-10.0%7.1%4.8%
3 Year27.3%11.7%16.9%2.6%37.1%28.1%
5 Year63.4%31.8%44.6%14.9%67.2%48.6%

Price Volatility Vs. Market

How volatile is Realty Income's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Realty Income undervalued compared to its fair value and its price relative to the market?

36.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: O ($61.1) is trading below our estimate of fair value ($97.27)

Significantly Below Fair Value: O is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: O is poor value based on its PE Ratio (41.9x) compared to the REITs industry average (28.1x).

PE vs Market: O is poor value based on its PE Ratio (41.9x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: O is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: O is overvalued based on its PB Ratio (2x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is Realty Income forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: O's forecast earnings growth (9.1% per year) is above the savings rate (2.2%).

Earnings vs Market: O's earnings (9.1% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: O's revenue (8.6% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: O's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: O's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Realty Income performed over the past 5 years?

12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: O has high quality earnings.

Growing Profit Margin: O's current net profit margins (30.4%) are higher than last year (28.7%).


Past Earnings Growth Analysis

Earnings Trend: O's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: O's earnings growth over the past year (20.7%) exceeds its 5-year average (12.4% per year).

Earnings vs Industry: O earnings growth over the past year (20.7%) exceeded the REITs industry 5.3%.


Return on Equity

High ROE: O's Return on Equity (4.5%) is considered low.


Next Steps

Financial Health

How is Realty Income's financial position?


Financial Position Analysis

Short Term Liabilities: O's short term assets ($468.1M) do not cover its short term liabilities ($527.7M).

Long Term Liabilities: O's short term assets ($468.1M) do not cover its long term liabilities ($7.9B).


Debt to Equity History and Analysis

Debt Level: O's debt to equity ratio (72.8%) is considered high.

Reducing Debt: O's debt to equity ratio has reduced from 88.5% to 72.8% over the past 5 years.

Debt Coverage: O's debt is not well covered by operating cash flow (14.8%).

Interest Coverage: O's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Realty Income current dividend yield, its reliability and sustainability?

4.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: O's dividend (4.59%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: O's dividend (4.59%) is in the top 25% of dividend payers in the US market (4.51%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.3%), O's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: O's dividends in 3 years are forecast to be thoroughly covered by earnings (0.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Sumit Roy (50yo)

1.75yrs

Tenure

US$7,514,361

Compensation

Mr. Sumit Roy serves as President since November 2015 and has been Chief Executive Officer and Director at Realty Income Corporation since October 16, 2018. Mr. Roy served as the Chief Operating Officer of ...


CEO Compensation Analysis

Compensation vs Market: Sumit's total compensation ($USD7.51M) is below average for companies of similar size in the US market ($USD11.50M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sumit Roy
President1.75yrsUS$7.51m0.033% $7.0m
Mark Hagan
Executive VP & Chief Investment Officer2.17yrsUS$2.06m0.0031% $655.5k
Michael Pfeiffer
Chief Administrative Officer1.42yrsUS$2.63m0.0057% $1.2m
Neil Abraham
Executive VP & Chief Strategy Officer2.17yrsUS$2.26m0.0074% $1.6m
Sean Nugent
Senior VP0.50yrno data0.0033% $695.5k
Teresa Glenn
Associate VPno datano datano data
Shannon Kehle
Senior Vice President of Human Resources6.5yrsno datano data
Ross Edwards
Senior Vice President of Leasing & Real Estate Operationsno datano datano data
Scott Kohnen
Senior Vice President of Researchno datano datano data
Janeen Drakulich
Senior Vice President of Development1.5yrsno datano data

1.8yrs

Average Tenure

50yo

Average Age

Experienced Management: O's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Sumit Roy
President1.75yrsUS$7.51m0.033% $7.0m
Michael McKee
Non-Executive Chairman of the Board & Lead Independent Director8.42yrsUS$382.78k0.045% $9.4m
Kathleen Allen
Independent Director20.42yrsUS$301.04k0.025% $5.3m
Gerardo Lopez
Independent Director2yrsUS$301.04k0.0035% $733.3k
A. Chapman
Independent Director8.42yrsUS$301.04k0.0055% $1.1m
Ronald Merriman
Independent Director15yrsUS$326.04k0.0064% $1.4m
Priya Huskins
Independent Director12.58yrsUS$326.04k0.0091% $1.9m
Gregory McLaughlin
Independent Director13.08yrsUS$311.04k0.0064% $1.3m
Christie Kelly
Independent Director0.67yrUS$314.81k0.0023% $489.6k
Reginald Gilyard
Independent Director2yrsUS$305.63k0.0035% $733.3k

8.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: O's board of directors are considered experienced (8.4 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 been diluted in the past year, with total shares outstanding growing by 9.1%.


Top Shareholders

Company Information

Realty Income Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Realty Income Corporation
  • Ticker: O
  • Exchange: NYSE
  • Founded: 1969
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$21.011b
  • Market Cap: US$20.983b
  • Shares outstanding: 343.88m
  • Website: https://www.realtyincome.com

Number of Employees


Location

  • Realty Income Corporation
  • 11995 El Camino Real
  • San Diego
  • California
  • 92130
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ONYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1994
RY6DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1994
0KUELSE (London Stock Exchange)YesCommon StockGBUSDOct 1994

Biography

Realty Income, The Monthly Dividend Company, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with commercial tenants. To date, the company has declared 598 consecutive common stock monthly dividends throughout its 51-year operating history and increased the dividend 106 times since Realty Income's public listing in 1994 (NYSE: O). The company is a member of the S&P 500 Dividend Aristocrats index. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 23:53
End of Day Share Price2020/07/02 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.