NYSE:VNO

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Solid track record second-rate dividend payer.


Similar Companies

Share Price & News

How has Vornado Realty Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

VNO

0.1%

US REITs

3.4%

US Market


1 Year Return

-7.9%

VNO

18.7%

US REITs

5.4%

US Market

Return vs Industry: VNO underperformed the US REITs industry which returned 18.7% over the past year.

Return vs Market: VNO underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

VNOIndustryMarket
7 Day0.8%0.1%3.4%
30 Day-1.5%1.7%-1.0%
90 Day-3.2%4.7%-0.4%
1 Year-4.2%-7.9%24.0%18.7%7.7%5.4%
3 Year-10.1%-34.5%33.6%16.6%46.2%36.8%
5 Year-6.2%-41.1%63.6%29.1%65.6%47.5%

Price Volatility Vs. Market

How volatile is Vornado Realty Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

4.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: VNO ($62.95) is trading above our estimate of fair value ($52.65)

Significantly Undervalued: VNO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VNO is good value based on its PE Ratio (4.2x) compared to the REITs industry average (35.4x).

PE vs Market: VNO is good value based on its PE Ratio (4.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: VNO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

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


Next Steps

Future Growth

How is Vornado Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-95.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VNO's earnings are forecast to decline over the next 3 years (-95.9% per year).

Earnings vs Market: VNO's earnings are forecast to decline over the next 3 years (-95.9% per year).

High Growth Earnings: VNO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: VNO's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: VNO's revenue is forecast to decline over the next 3 years (-0.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

37.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VNO has become profitable over the past 5 years, growing earnings by 37.1% per year.

Accelerating Growth: VNO's earnings growth over the past year (1977.1%) exceeds its 5-year average (37.1% per year).

Earnings vs Industry: VNO earnings growth over the past year (1977.1%) exceeded the REITs industry 17%.


Return on Equity

High ROE: VNO's Return on Equity (37.4%) is considered high.


Return on Assets

ROA vs Industry: VNO has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Vornado Realty Trust'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: VNO has a high level of physical assets or inventory.

Debt Coverage by Assets: VNO's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

4.19%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.5%markettop25%3.8%industryaverage3.7%forecastin3Years4.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VNO's dividend (4.19%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: VNO's dividend (4.19%) is in the top 25% of dividend payers in the US market (3.77%)

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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.7%), VNO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Steve Roth (77yo)

6.5yrs

Tenure

US$11,599,270

Compensation

Mr. Steven Roth, also known as Steve, has been the Chairman of the Board and Chief Executive Officer at Vornado Realty Trust General Partner of Vornado Realty L.P. since May 1989 and April 15, 2013 respect ...


CEO Compensation Analysis

Compensation vs. Market: Steve's total compensation ($USD11.60M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

6.5yrs

Average Tenure

67yo

Average Age

Experienced Management: VNO's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

22.8yrs

Average Tenure

72yo

Average Age

Experienced Board: VNO's board of directors are seasoned and experienced ( 22.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Joe Macnow (73yo)

    Executive VP

    • Tenure: 2.7yrs
    • Compensation: US$4.46m
  • David Greenbaum (67yo)

    Vice Chairman

    • Tenure: 22.5yrs
    • Compensation: US$5.97m
  • Steve Roth (77yo)

    Chairman of the Board & CEO

    • Tenure: 6.5yrs
    • Compensation: US$11.60m
  • Robert Entin

    Chief Information Officer & Executive VP

    • Tenure: 14.1yrs
  • Cathy Creswell

    Director of Investor Relations

    • Tenure: 0yrs
  • Michael Franco (50yo)

    President

    • Tenure: 0.5yrs
    • Compensation: US$5.35m
  • Matthew Iocco (48yo)

    Executive VP & Chief Accounting Officer

    • Tenure: 7.4yrs
  • Alan Reagan

    Vice President of Development

    • Tenure: 0yrs
  • Craig Stern

    Executive Vice President of Tax & Compliance

    • Tenure: 3.2yrs
  • Eileen Costello

    Vice President of Marketing

    • Tenure: 0yrs

Board Members

  • Bill Helman (61yo)

    Independent Trustee

    • Tenure: 0.8yrs
  • David Mandelbaum (83yo)

    Independent Trustee

    • Tenure: 40.8yrs
    • Compensation: US$228.77k
  • Russ Wight (79yo)

    Independent Trustee

    • Tenure: 40.8yrs
    • Compensation: US$228.77k
  • Steve Roth (77yo)

    Chairman of the Board & CEO

    • Tenure: 6.5yrs
    • Compensation: US$11.60m
  • Mike Fascitelli (62yo)

    • Tenure: 22.8yrs
    • Compensation: US$223.77k
  • Richard West (81yo)

    Independent Trustee

    • Tenure: 37.8yrs
    • Compensation: US$278.77k
  • Mandakini Puri (59yo)

    Independent Trustee

    • Tenure: 2.8yrs
    • Compensation: US$248.77k
  • Candace Beinecke (72yo)

    Lead Trustee

    • Tenure: 3.6yrs
    • Compensation: US$328.77k
  • Dan Tisch (68yo)

    Independent Trustee

    • Tenure: 7.8yrs
    • Compensation: US$253.77k

Company Information

Vornado Realty Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vornado Realty Trust
  • Ticker: VNO
  • Exchange: NYSE
  • Founded:
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: US$12.958b
  • Market Cap: US$12.012b
  • Shares outstanding: 204.19m
  • Website: https://www.vno.com

Number of Employees


Location

  • Vornado Realty Trust
  • 888 Seventh Avenue
  • New York
  • New York
  • 10019
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VNONYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
VO7DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
0LR2LSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968
VNO.PRLNYSE (New York Stock Exchange)PFD SER L 5.40%USUSDJan 2013
VNOR.POTCPK (Pink Sheets LLC)PFD CONV SER AUSUSDOct 2013
VNO.PRMNYSE (New York Stock Exchange)5.25% CUM PFD MUSUSDDec 2017

Biography

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 sustainab ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:44
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.