Now trading at a price of $62.04, Realty Income has moved -3.1% so far today.
Realty Income returned gains of 13.8% last year, with its stock price reaching a high of $67.94 and a low of $54.38. Over the same period, the stock underperformed the S&P 500 index by -16.2%. The company's 50-day average price was $63.62. Realty Income Corporation, an S&P 500 company, is real estate partner to the world's leading companies. Based in San Diego, CA, the Large-Cap Real Estate company has 544 full time employees. Realty Income has offered a 5.0% dividend yield over the last 12 months.
The Firm Has a Highly Leveraged Balance Sheet:
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,647 | $2,080 | $3,344 | $4,079 | $5,271 | $5,749 |
| Operating Margins | 25% | 19% | 27% | 23% | 18% | 20% |
| Net Margins | 24% | 17% | 26% | 21% | 16% | 18% |
| Net Income (M) | $395 | $359 | $869 | $872 | $861 | $1,059 |
| Net Interest Expense (M) | $309 | $324 | $465 | $730 | $970 | $1,072 |
| Depreciation & Amort. (M) | $677 | $898 | $1,670 | $1,895 | $2,396 | $2,524 |
| Diluted Shares (M) | 345 | 415 | 612 | 693 | 864 | 908 |
| Earnings Per Share | $1.14 | $0.87 | $1.42 | $1.26 | $0.98 | $1.17 |
| EPS Growth | n/a | -23.68% | 63.22% | -11.27% | -22.22% | 19.39% |
| Avg. Price | $52.53 | $59.73 | $64.45 | $57.42 | $53.1 | $63.45 |
| P/E Ratio | 45.68 | 68.66 | 45.39 | 45.57 | 54.18 | 54.23 |
| Free Cash Flow (M) | $1,107 | $1,303 | $2,468 | $2,890 | $3,452 | $3,863 |
| CAPEX (M) | $9 | $19 | $96 | $69 | $121 | $132 |
| EV / EBITDA | 23.17 | 26.97 | 20.27 | 20.41 | 21.11 | 22.52 |
| Total Debt (M) | $8,517 | $12,749 | $14,528 | $19,934 | $25,016 | $26,734 |
| Net Debt / EBITDA | 7.07 | 9.68 | 5.55 | 6.98 | 7.38 | 7.15 |
Realty Income has rapidly growing revenues and increasing reinvestment in the business, generally positive cash flows, and positive EPS growth. However, the firm suffers from weak operating margins with a stable trend and a highly leveraged balance sheet.
a Lower P/B Ratio Than Its Sector Average but Priced Beyond Its Margin of Safety:
Realty Income has a trailing twelve month P/E ratio of 54.4, compared to an average of 27.31 for the Real Estate sector. Based on its EPS guidance of $1.82, the company has a forward P/E ratio of 35.0. The 6.9% compound average growth rate of Realty Income's historical and projected earnings per share yields a PEG ratio of 7.88. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Realty Income in terms of its equity because its P/B ratio is 1.47 while the sector average is 1.94. The company's shares are currently trading 83.5% below their Graham number.
Analysts Give Realty Income an Average Rating of Hold:
The 20 analysts following Realty Income have set target prices ranging from $61.5 to $75.0 per share, for an average of $68.5 with a hold rating.
Realty Income has an average amount of shares sold short because 3.8% of the company's shares are sold short. Institutions own 80.1% of the company's shares, and the insider ownership rate stands at 0.12%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 16% stake in the company is worth $9,331,764,543.
