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

1.2%

NYSE:O

1.0%

US REITs

0.2%

US Market


1 Year Return

24.2%

NYSE:O

9.1%

US REITs

-0.7%

US Market

O outperformed the REITs industry which returned 9.1% over the past year.

O outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

OIndustryMarket
7 Day1.2%1.0%0.2%
30 Day6.1%3.6%-2.7%
90 Day2.9%3.0%1.6%
1 Year29.4%24.2%14.0%9.1%1.6%-0.7%
3 Year24.2%9.0%24.2%8.0%40.0%30.9%
5 Year102.5%62.5%58.6%24.8%53.8%36.8%

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 based on future cash flows and its price relative to the stock market?

21%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Realty Income's share price is below the future cash flow value, and at a moderate discount (> 20%).

Realty Income's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Realty Income is overvalued based on earnings compared to the US REITs industry average.

Realty Income is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Realty Income is poor value based on expected growth next year.


Price Based on Value of Assets

Realty Income is overvalued based on assets compared to the US REITs industry average.


Next Steps

Future Growth

How is Realty Income expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Realty Income's revenue is expected to grow by 8.6% yearly, however this is not considered high growth (20% yearly).

Realty Income's earnings are expected to grow by 9% yearly, however this is not considered high growth (20% yearly).

Realty Income's revenue growth is expected to exceed the United States of America market average.

Realty Income's earnings growth is positive but not above the United States of America market average.

Realty Income's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Realty Income is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Realty Income's year on year earnings growth rate has been positive over the past 5 years.

Realty Income's 1-year earnings growth exceeds its 5-year average (18.8% vs 12.7%)

Realty Income's earnings growth has exceeded the US REITs industry average in the past year (18.8% vs 16.9%).


Return on Equity

Realty Income has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Realty Income used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Realty Income's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Realty Income's financial position?


Financial Position Analysis

Realty Income is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Realty Income's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Realty Income's level of debt (80%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (78.5% vs 80% today).

Debt is not well covered by operating cash flow (13.4%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0x debt.


Next Steps

Dividend

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

3.88%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Realty Income's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Realty Income's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (416.7x coverage).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Sumit Roy (49yo)

0.8yrs

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

Sumit's remuneration is lower than average for companies of similar size in United States of America.

Sumit's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

1.3yrs

Average Tenure

50.5yo

Average Age

The average tenure for the Realty Income management team is less than 2 years, this suggests a new team.


Board Age and Tenure

7.5yrs

Average Tenure

60yo

Average Age

The tenure for the Realty Income board of directors is about average.


Insider Trading

Realty Income individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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
SellUS$527,04028 Aug 18
A. Chapman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares9,000
Max PriceUS$58.56

Ownership Breakdown


Management Team

  • Mike Pfeiffer (58yo)

    Chief Administrative Officer

    • Tenure: 0.5yrs
    • Compensation: US$2.35m
  • Paul Meurer (53yo)

    Executive VP

    • Tenure: 18.6yrs
    • Compensation: US$3.08m
  • Mark Hagan (52yo)

    Executive VP & Chief Investment Officer

    • Tenure: 1.3yrs
    • Compensation: US$2.06m
  • Benjamin Fox (39yo)

    Executive VP of Asset Management & Real Estate Operations

    • Tenure: 6.6yrs
  • Sumit Roy (49yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$7.01m
  • Jonathan Pong

    Senior VP and Head of Capital Markets & Investor Relations

    • Tenure: 0.0yrs
  • Shannon Kehle

    Senior Vice President of Human Resources

    • Tenure: 5.6yrs
  • Neil Abraham (47yo)

    Executive VP & Chief Strategy Officer

    • Tenure: 1.3yrs
    • Compensation: US$1.93m
  • Teresa Glenn

    Associate VP

    • Tenure: 0.0yrs
  • Andrew Crum

    Senior Associate of Corporate Strategy

    • Tenure: 0.0yrs

Board Members

  • Mike McKee (73yo)

    Non-Executive Chairman of the Board

    • Tenure: 7.5yrs
    • Compensation: US$276.64k
  • Kathleen Allen (73yo)

    Director

    • Tenure: 19.5yrs
    • Compensation: US$241.64k
  • Gerry Lopez (60yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: US$231.48k
  • A. Chapman (72yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: US$231.64k
  • Ronald Merriman (74yo)

    Director

    • Tenure: 14.1yrs
    • Compensation: US$256.64k
  • Priya Huskins (47yo)

    Director

    • Tenure: 11.7yrs
    • Compensation: US$256.64k
  • Greg McLaughlin (59yo)

    Director

    • Tenure: 12.2yrs
    • Compensation: US$241.64k
  • Sumit Roy (49yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$7.01m
  • Reggie Gilyard (55yo)

    Director

    • Tenure: 1.1yrs
    • 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$23.111b
  • Market Cap: US$23.119b
  • 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 Analysis2019/08/21 23:41
End of Day Share Price2019/08/21 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.