Vornado Realty Trust (NYSE:VNO) - Share price, News & Analysis

VNO fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	1/6
Financial Health	2/6
Dividends	4/6

VNO Stock Overview

Vornado’s portfolio is concentrated in the nation’s key market — New York City — along with the premier asset in both Chicago and San Francisco.

Rewards

Trading at 55.7% below our estimate of its fair value

Earnings are forecast to grow 3.22% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Large one-off items impacting financial results

Significant insider selling over the past 3 months

Vornado Realty Trust Competitors

Alexandria Real Estate Equities

NYSE:ARE

US$26.2b

Boston Properties

NYSE:BXP

US$18.5b

Kilroy Realty

NYSE:KRC

US$7.0b

Douglas Emmett

NYSE:DEI

US$5.7b

Price History & Performance

Summary of all time highs, changes and price drops for Vornado Realty Trust
Historical stock prices
Current Share Price	US$33.90
52 Week High	US$50.91
52 Week Low	US$32.48
Beta	1.21
1 Month Change	-17.30%
3 Month Change	-18.96%
1 Year Change	-25.77%
3 Year Change	-49.67%
5 Year Change	-63.21%
Change since IPO	350.00%

Recent News & Updates

May 24

Vornado Realty Trust: Over 6% Dividend Yield On Premier NYC Properties

Vornado Realty Trust owns a portfolio of premier real estate assets in New York City, the most populous city in the country. The company's interests are located in highly trafficked districts, such as Times Square. While NYC faces challenges, its resilience in the face of adversity is unmatched. Shares in VNO are currently trading at similar levels as in 2020, a period marked with significant societal restrictions, especially in NYC. For investors seeking to add quality properties to their REIT portfolios, VNO is one name with upside potential and an attractive dividend yield of more than 6%.

Shareholder Returns

	VNO	US REITs	US Market
7D	-5.0%	-0.7%	-4.0%
1Y	-25.8%	-1.3%	-13.2%

Return vs Industry: VNO underperformed the US REITs industry which returned -2.1% over the past year.

Return vs Market: VNO underperformed the US Market which returned -12.3% over the past year.

Price Volatility

Is VNO's price volatile compared to industry and market?
VNO volatility
VNO Average Weekly Movement	4.3%
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: VNO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: VNO's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	3,224	Steve Roth	https://www.vno.com

Vornado’s portfolio is concentrated in the nation’s key market — New York City — along with the premier asset in both Chicago and San Francisco. Vornado is also the real estate industry leader in sustainability policy. The company owns and manages over 23 million square feet of LEED certified buildings and received the Energy Star Partner of the Year Award, Sustained Excellence 2019.

Vornado Realty Trust Fundamentals Summary

How do Vornado Realty Trust's earnings and revenue compare to its market cap?
VNO fundamental statistics
Market Cap	US$6.94b
Earnings (TTM)	US$123.45m
Revenue (TTM)	US$1.77b

52.7x

P/E Ratio

3.7x

P/S Ratio

Is VNO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
VNO income statement (TTM)
Revenue	US$1.77b
Cost of Revenue	US$823.03m
Gross Profit	US$948.92m
Other Expenses	US$825.47m
Earnings	US$123.45m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 01, 2022

Earnings per share (EPS)	0.64
Gross Margin	53.55%
Net Profit Margin	6.97%
Debt/Equity Ratio	120.7%

How did VNO perform over the long term?

See historical performance and comparison

Dividends

6.3%

Current Dividend Yield

78%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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: VNO ($33.9) is trading below our estimate of fair value ($76.57)

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

Price To Earnings Ratio

PE vs Industry: VNO is poor value based on its Price-To-Earnings Ratio (52.7x) compared to the US REITs industry average (32.4x).

PE vs Market: VNO is poor value based on its Price-To-Earnings Ratio (52.7x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: VNO is poor value based on its PEG Ratio (16.4x)

Price to Book Ratio

PB vs Industry: VNO is good value based on its Price-To-Book Ratio (1.3x) compared to the US REITs industry average (1.6x).

Future Growth

How is Vornado Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

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

3.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: VNO's forecast earnings growth (3.2% per year) is above the savings rate (1.9%).

Earnings vs Market: VNO's earnings (3.2% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: VNO's revenue (5% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: VNO's revenue (5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: VNO's Return on Equity is forecast to be low in 3 years time (2.2%).

Past Performance

How has Vornado Realty Trust performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

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

-8.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VNO has a large one-off gain of $40.5M impacting its March 31 2022 financial results.

Growing Profit Margin: VNO became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: VNO's earnings have declined by 8.8% per year over the past 5 years.

Accelerating Growth: VNO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VNO has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (69.5%).

Return on Equity

High ROE: VNO's Return on Equity (3.3%) is considered low.

Financial Health

How is Vornado Realty Trust's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

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

Financial Position Analysis

Short Term Liabilities: VNO's short term assets ($2.0B) exceed its short term liabilities ($541.8M).

Long Term Liabilities: VNO's short term assets ($2.0B) do not cover its long term liabilities ($9.8B).

Debt to Equity History and Analysis

Debt Level: VNO's net debt to equity ratio (106.3%) is considered high.

Reducing Debt: VNO's debt to equity ratio has reduced from 120.9% to 120.7% over the past 5 years.

Debt Coverage: VNO's debt is not well covered by operating cash flow (8.2%).

Interest Coverage: VNO's interest payments on its debt are not well covered by EBIT (2x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

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

6.25%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: VNO's dividend (6.25%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: VNO's dividend (6.25%) is in the top 25% of dividend payers in the US market (4.05%)

Stability and Growth of Payments

Stable Dividend: VNO's dividend payments have been volatile in the past 10 years.

Growing Dividend: VNO's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (77.6%), VNO's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (61.2%), VNO's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

3.1yrs

Average management tenure

CEO

Steve Roth (79 yo)

9.08yrs

Tenure

US$9,763,351

Compensation

Mr. Steven Roth, also known as Steve, has been the Chairman Emeritus at JBG SMITH Properties since May 13, 2021. He has been the Chairman of the Board and Chief Executive Officer at Vornado Realty Trust, G...

CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD9.76M) is about average for companies of similar size in the US market ($USD8.23M).

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

Leadership Team

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

Board Members

Experienced Board: VNO's board of directors are seasoned and experienced ( 12.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31