Realty Income (NYSE:O) - Share price, News & Analysis

O fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	2/6
Financial Health	1/6
Dividends	5/6

O Stock Overview

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

Rewards

Trading at 55.9% below our estimate of its fair value

Earnings are forecast to grow 16.51% per year

Earnings have grown 7% per year over the past 5 years

Risk Analysis

Interest payments are not well covered by earnings

Shareholders have been substantially diluted in the past year

Dividend of 4.28% is not well covered by earnings

Large one-off items impacting financial results

Realty Income Competitors

Kimco Realty

NYSE:KIM

US$14.1b

Regency Centers

NasdaqGS:REG

US$11.5b

Federal Realty Investment Trust

NYSE:FRT

US$8.9b

National Retail Properties

NYSE:NNN

US$7.7b

Price History & Performance

Summary of all time highs, changes and price drops for Realty Income
Historical stock prices
Current Share Price	US$69.18
52 Week High	US$75.40
52 Week Low	US$62.74
Beta	0.75
1 Month Change	-4.91%
3 Month Change	5.23%
1 Year Change	0.087%
3 Year Change	0.55%
5 Year Change	25.94%
Change since IPO	764.75%

Recent News & Updates

May 24

Realty Income Corp.: A Great REIT To Consider

Realty Income Corporation has seen a lot of growth recently, and that trend is likely to continue this year. With a vast portfolio of high-quality assets, the company should definitely be on the radar of investors. Though not exactly cheap, the company is likely to be an attractive prospect for long-term holders.

May 13

Is Realty Income Stock A Buy, Sell, Or Hold After Recent Earnings?

Realty Income is yielding 4.7%. The company delivered strong double-digit growth in the latest quarter, powered by its acquisition of Vereit. That strong growth is expected to continue at least through this year. With a steady business model and low leverage, Realty Income offers one of the safer high yield opportunities in the market today.

Shareholder Returns

	O	US REITs	US Market
7D	2.4%	3.0%	1.0%
1Y	0.09%	-0.9%	-15.1%

Return vs Industry: O exceeded the US REITs industry which returned -1.3% over the past year.

Return vs Market: O exceeded the US Market which returned -13.2% over the past year.

Price Volatility

Is O's price volatile compared to industry and market?
O volatility
O Average Weekly Movement	3.3%
REITs Industry Average Movement	4.4%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: O is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: O's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1969	369	Sumit Roy	https://www.realtyincome.com

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 our commercial clients. To date, the company has declared 608 consecutive common stock monthly dividends throughout its 52-year operating history and increased the dividend 109 times since Realty Income's public listing in 1994 (NYSE: O).

Realty Income Fundamentals Summary

How do Realty Income's earnings and revenue compare to its market cap?
O fundamental statistics
Market Cap	US$41.65b
Earnings (TTM)	US$462.89m
Revenue (TTM)	US$2.45b

89.9x

P/E Ratio

17.0x

P/S Ratio

Is O overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
O income statement (TTM)
Revenue	US$2.45b
Cost of Revenue	US$157.45m
Gross Profit	US$2.29b
Other Expenses	US$1.83b
Earnings	US$462.89m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.77
Gross Margin	93.57%
Net Profit Margin	18.91%
Debt/Equity Ratio	62.4%

How did O perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

86%

Payout Ratio

Does O pay a reliable dividends?

See O dividend history and benchmarks

When do you need to buy O by to receive an upcoming dividend?
Realty Income dividend dates
Ex Dividend Date	May 31 2022
Dividend Pay Date	Jun 15 2022
Days until Ex dividend	5 days
Days until Dividend pay date	20 days

Does O pay a reliable dividends?

See O dividend history and benchmarks

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: O ($69.18) is trading below our estimate of fair value ($157.05)

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 Price-To-Earnings Ratio (89.9x) compared to the US REITs industry average (32.3x).

PE vs Market: O is poor value based on its Price-To-Earnings Ratio (89.9x) compared to the US market (14.9x).

Price to Earnings Growth Ratio

PEG Ratio: O is poor value based on its PEG Ratio (5.4x)

Price to Book Ratio

PB vs Industry: O's Price-To-Book Ratio (1.6x) is in line with the US REITs industry average.

Future Growth

How is Realty Income forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

16.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: O's forecast earnings growth (16.5% per year) is above the savings rate (1.9%).

Earnings vs Market: O's earnings (16.5% per year) are forecast to grow faster than the US market (12.1% per year).

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

Revenue vs Market: O's revenue (13.2% per year) is forecast to grow faster than the US market (7.7% per year).

High Growth Revenue: O's revenue (13.2% 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 (4%).

Past Performance

How has Realty Income performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

7.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: O has a large one-off loss of $208.5M impacting its March 31 2022 financial results.

Growing Profit Margin: O's current net profit margins (18.9%) are lower than last year (20.6%).

Past Earnings Growth Analysis

Earnings Trend: O's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: O's earnings growth over the past year (34.3%) exceeds its 5-year average (7% per year).

Earnings vs Industry: O earnings growth over the past year (34.3%) underperformed the REITs industry 69.5%.

Return on Equity

High ROE: O's Return on Equity (1.8%) is considered low.

Financial Health

How is Realty Income's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: O's short term assets ($1.4B) do not cover its short term liabilities ($1.6B).

Long Term Liabilities: O's short term assets ($1.4B) do not cover its long term liabilities ($16.9B).

Debt to Equity History and Analysis

Debt Level: O's net debt to equity ratio (61.8%) is considered high.

Reducing Debt: O's debt to equity ratio has reduced from 72.8% to 62.4% over the past 5 years.

Debt Coverage: O's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: O's interest payments on its debt are not well covered by EBIT (3x coverage).

Balance Sheet

Dividend

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

Dividend Score

6/6

Dividend Score 6/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.28%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: O's dividend (4.28%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: O's dividend (4.28%) is in the top 25% of dividend payers in the US market (4.06%)

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.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (85.5%), O's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (113.7%), O's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

5.3yrs

Average management tenure

CEO

Sumit Roy (51 yo)

6.5yrs

Tenure

US$12,861,011

Compensation

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

CEO Compensation Analysis

Compensation vs Market: Sumit's total compensation ($USD12.86M) is about average for companies of similar size in the US market ($USD13.26M).

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

Leadership Team

Experienced Management: O's management team is seasoned and experienced (5.3 years average tenure).

Board Members

Experienced Board: O's board of directors are considered experienced (3.8 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 substantially diluted in the past year, with total shares outstanding growing by 61%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31