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O

Realty IncomeNYSE:O Stock Report

Market Cap

US$25.6b

7D

-2.9%

1Y

6.5%

Updated

27 Sep, 2021

Data

Company Financials +
O fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health0/6
Dividends6/6

O Overview

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

Realty Income Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Realty Income
Historical stock prices
Current Share PriceUS$65.68
52 Week HighUS$57.00
52 Week LowUS$72.75
Beta0.74
1 Month Change-8.20%
3 Month Change-3.34%
1 Year Change6.50%
3 Year Change16.04%
5 Year Change0.46%
Change since IPO721.00%

Recent News & Updates

Sep 03

Why You Should Not Buy Realty Income

The net lease business model inherently mitigates risk while offering growth potential. Realty Income survived the pandemic and left in stronger shape. The stock is currently yielding 3.9% and finds itself near the low end of its historic yield. I explain why this is a poor time to buy Realty Income.

Aug 30
Realty Income Corporation (NYSE:O) Looks Undervalued and is Yet to Recoup 2020 Losses

Realty Income Corporation (NYSE:O) Looks Undervalued and is Yet to Recoup 2020 Losses

Realty Income Corporation (NYSE:O) is easily one of the most popular monthly dividend payers around. Providing for an excellent record of growing monthly payments, this stock is yet to recoup its 2020 losses. In this article, we will review Realty Income's intrinsic value through a Discounted Cash Flow (DCF) model.

Shareholder Returns

OUS REITsUS Market
7D-2.9%-0.9%0.1%
1Y6.5%34.7%35.3%

Return vs Industry: O underperformed the US REITs industry which returned 34.7% over the past year.

Return vs Market: O underperformed the US Market which returned 35.3% over the past year.

Price Volatility

Is O's price volatile compared to industry and market?
O volatility
O Beta0.74
Industry Beta0.83
Market Beta1

Stable Share Price: O is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: O's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1969209Sumit Royhttps://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 CapUS$25.61b
Earnings (TTM)US$361.25m
Revenue (TTM)US$1.73b

70.9x

P/E Ratio

14.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
O income statement (TTM)
RevenueUS$1.73b
Cost of RevenueUS$112.78m
Gross ProfitUS$1.62b
ExpensesUS$1.26b
EarningsUS$361.25m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.93
Gross Margin93.48%
Net Profit Margin20.88%
Debt/Equity Ratio77.7%

How did O perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

88%

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 DateSep 30 2021
Dividend Pay DateOct 15 2021
Days until Ex dividend2 days
Days until Dividend pay date17 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: O ($65.68) is trading below our estimate of fair value ($146.31)

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 (70.9x) compared to the US REITs industry average (50.1x).

PE vs Market: O is poor value based on its PE Ratio (70.9x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: O is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: O is overvalued based on its PB Ratio (2.2x) compared to the US REITs industry average (2x).


Future Growth

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

17.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: O's forecast earnings growth (17.3% per year) is above the savings rate (2%).

Earnings vs Market: O's earnings (17.3% per year) are forecast to grow faster than the US market (15% per year).

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

Revenue vs Market: O's revenue (11.3% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: O's revenue (11.3% 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 (5.2%).


Past Performance

How has Realty Income performed over the past 5 years?

8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: O has a large one-off loss of $148.9M impacting its June 30 2021 financial results.

Growing Profit Margin: O's current net profit margins (20.9%) are lower than last year (30.3%).


Past Earnings Growth Analysis

Earnings Trend: O's earnings have grown by 8.6% per year over the past 5 years.

Accelerating Growth: O's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: O had negative earnings growth (-25.5%) over the past year, making it difficult to compare to the REITs industry average (3.9%).


Return on Equity

High ROE: O's Return on Equity (3.1%) is considered low.


Financial Health

How is Realty Income's financial position?


Financial Position Analysis

Short Term Liabilities: O's short term assets ($868.5M) do not cover its short term liabilities ($927.1M).

Long Term Liabilities: O's short term assets ($868.5M) do not cover its long term liabilities ($9.2B).


Debt to Equity History and Analysis

Debt Level: O's debt to equity ratio (77.7%) is considered high.

Reducing Debt: O's debt to equity ratio has increased from 72.6% to 77.7% over the past 5 years.

Debt Coverage: O's debt is not well covered by operating cash flow (12.8%).

Interest Coverage: O's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Dividend

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

4.31%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 28 2021Ex Dividend DateSep 30 2021Dividend Pay DateOct 15 202115 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: O's dividend (4.31%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: O's dividend (4.31%) is in the top 25% of dividend payers in the US market (3.6%)


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 (87.5%), O's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: O's dividends in 3 years are forecast to be covered by earnings (73.9% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Sumit Roy (51 yo)

2.92yrs

Tenure

US$7,787,647

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 ($USD7.79M) is below average for companies of similar size in the US market ($USD11.36M).

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


Leadership Team

Experienced Management: O's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: O's board of directors are considered experienced (9.6 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 12.8%.


Top Shareholders

Company Information

Realty Income Corporation's 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$25.606b
  • Market Cap: US$25.575b
  • Shares outstanding: 389.85m
  • Website: https://www.realtyincome.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 22:57
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.