NYSE:O

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with acceptable 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


Market Performance


7 Day Return

0.4%

O

0.1%

US REITs

2.3%

US Market


1 Year Return

35.4%

O

19.1%

US REITs

5.6%

US Market

Return vs Industry: O exceeded the US REITs industry which returned 19.1% over the past year.

Return vs Market: O exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

OIndustryMarket
7 Day0.4%0.1%2.3%
30 Day6.3%0.8%-1.0%
90 Day12.1%5.3%-0.7%
1 Year40.9%35.4%24.4%19.1%7.9%5.6%
3 Year43.3%25.7%33.7%16.6%45.6%36.3%
5 Year118.3%75.6%63.2%28.8%65.8%47.6%

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?

22.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: O ($78.6) is trading below our estimate of fair value ($100.73)

Significantly Undervalued: O is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: O is poor value based on its PE Ratio (60.6x) compared to the REITs industry average (35.3x).

PE vs Market: O is poor value based on its PE Ratio (60.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: O is overvalued based on its PB Ratio (2.8x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Realty Income forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: O's forecast earnings growth (11.2% per year) is above the savings rate (2.7%).

Earnings vs Market: O's earnings (11.2% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: O's revenue (11.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: O's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: O's Return on Equity is forecast to be low in 3 years time (4.9%).


Next Steps

Past Performance

How has Realty Income performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: O's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: O's earnings growth over the past year (18.8%) exceeds its 5-year average (12.7% per year).

Earnings vs Industry: O earnings growth over the past year (18.8%) exceeded the REITs industry 17%.


Return on Equity

High ROE: O's Return on Equity (4.4%) is considered low.


Return on Assets

ROA vs Industry: O's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: O's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Realty Income's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: O has a high level of physical assets or inventory.

Debt Coverage by Assets: O's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: O's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if O has a sufficient allowance for bad loans.

Low Risk Liabilities: O reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if O has an acceptable proportion of non-loan assets held.

Low Risk Deposits: O has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if O has an appropriate level of bad loans.


Next Steps

Dividend

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

3.46%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.5%markettop25%3.8%industryaverage3.7%forecastin3Years3.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: O's dividend (3.46%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: O's dividend (3.46%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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 (84.5%), O's payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Sumit Roy (49yo)

1yrs

Tenure

US$7,010,019

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.4yrs

Average Tenure

50.5yo

Average Age

Experienced Management: O's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

7.7yrs

Average Tenure

60yo

Average Age

Experienced Board: O's board of directors are considered experienced (7.7 years average tenure).


Insider Trading

Insider Buying: O insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$753,30011 Sep 19
Paul Meurer
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares10,000
Max PriceUS$75.33
SellUS$600,72009 Sep 19
A. Chapman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares8,000
Max PriceUS$75.09
SellUS$227,43009 Sep 19
Gregory McLaughlin
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$75.81
SellUS$756,18929 May 19
Michael Pfeiffer
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares10,829
Max PriceUS$69.83
SellUS$186,01228 May 19
Benjamin Fox
EntityIndividual
Role
Senior Key Executive
Executive VP of Asset Management & Real Estate Operations
Shares2,631
Max PriceUS$70.70
SellUS$424,32028 May 19
Ronald Merriman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares6,000
Max PriceUS$70.72

Ownership Breakdown


Management Team

  • Mike Pfeiffer (58yo)

    Chief Administrative Officer

    • Tenure: 0.7yrs
    • Compensation: US$2.35m
  • Paul Meurer (53yo)

    Executive VP

    • Tenure: 18.8yrs
    • Compensation: US$3.08m
  • Mark Hagan (52yo)

    Executive VP & Chief Investment Officer

    • Tenure: 1.4yrs
    • Compensation: US$2.06m
  • Benjamin Fox (39yo)

    Executive VP of Asset Management & Real Estate Operations

    • Tenure: 6.8yrs
  • Sumit Roy (49yo)

    President

    • Tenure: 1yrs
    • Compensation: US$7.01m
  • Jonathan Pong

    Senior VP and Head of Capital Markets & Investor Relations

    • Tenure: 0yrs
  • Shannon Kehle

    Senior Vice President of Human Resources

    • Tenure: 5.8yrs
  • Janeen Drakulich

    Senior Vice President of Development

    • Tenure: 0.8yrs
  • Neil Abraham (47yo)

    Executive VP & Chief Strategy Officer

    • Tenure: 1.4yrs
    • Compensation: US$1.93m
  • Teresa Glenn

    Associate VP

    • Tenure: 0yrs

Board Members

  • Mike McKee (73yo)

    Non-Executive Chairman of the Board

    • Tenure: 7.7yrs
    • Compensation: US$276.64k
  • Kathleen Allen (73yo)

    Director

    • Tenure: 19.7yrs
    • Compensation: US$241.64k
  • Gerry Lopez (60yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$231.48k
  • A. Chapman (72yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: US$231.64k
  • Ronald Merriman (74yo)

    Director

    • Tenure: 14.3yrs
    • Compensation: US$256.64k
  • Priya Huskins (47yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$256.64k
  • Greg McLaughlin (59yo)

    Director

    • Tenure: 12.3yrs
    • Compensation: US$241.64k
  • Sumit Roy (49yo)

    President

    • Tenure: 1yrs
    • Compensation: US$7.01m
  • Reggie Gilyard (55yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$231.48k

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$24.883b
  • Market Cap: US$25.013b
  • Shares outstanding: 318.69m
  • 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 sup ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:48
End of Day Share Price2019/10/16 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.