Vornado Realty (VNO) AI Stock Analysis

• Market Cap: $8.22B
• Dividend Yield: 1.89%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.36
• Revenue Growth: 1.38%
• EPS Growth: 4370.96%
• Country: US
• Employees: 2,996
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 3.70
• Shares Outstanding: 192,040,530
• 10 Day Avg. Volume: 988,292
• 30 Day Avg. Volume: 1,367,405
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 9.01
• Enterprise Value/Gross Profit: 16.36
• Enterprise Value/Ebitda: 9.19
• 1Y Price Target: $41.00
• Price Target Upside: 4.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 61 Neutral
• Price Target: $41.00 ▲(4.67% Upside)

Vornado Realty's overall stock score reflects a mix of strong earnings call results and valuation, offset by weaker financial performance and technical indicators. The company's improved leasing activity and financial position are significant positives, but challenges in revenue and cash flow growth, along with bearish technical signals, temper the outlook.

Positive Factors

Leasing Activity

Strong leasing activity, especially in key markets, indicates robust demand for Vornado's properties, enhancing revenue stability and growth potential.

Financial Position

Improved financial metrics and strong liquidity position Vornado well for future investments and operational resilience, supporting long-term growth.

Occupancy Rates

Rising occupancy rates in key markets like New York City strengthen Vornado's revenue base and demonstrate effective property management.

Negative Factors

Revenue Growth

Declining revenue growth suggests challenges in maintaining or expanding market share, which could impact long-term profitability and competitiveness.

Cash Flow Challenges

Declining free cash flow growth may limit Vornado's ability to reinvest in its properties and pursue new opportunities, affecting future growth.

Retail Segment Issues

The decline in retail occupancy highlights vulnerabilities in Vornado's retail segment, potentially affecting overall revenue and diversification.

Vornado Realty Business Overview & Revenue Model

Company Description

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. In 2012, Vornado commemorated 50 years on the NYSE.

How the Company Makes Money

Vornado Realty Trust generates revenue primarily through rental income from its properties, which includes office buildings, retail spaces, and logistics facilities. The company leases space to tenants under long-term leases, providing a steady stream of income. Additional revenue streams include property management fees, development fees from new projects, and ancillary income from services provided to tenants. Vornado also engages in joint ventures and partnerships, allowing for shared investment in larger projects, which can enhance profitability. The company's strategic focus on high-demand urban areas and its ability to attract and retain tenants in its properties are critical factors contributing to its earnings.

Vornado Realty Financial Statement Overview

Summary

Vornado Realty's financial performance is mixed. While profitability and return on equity have improved, the company faces challenges with declining revenue and cash flow growth. High leverage remains a concern, though it has slightly decreased.

Income Statement

Vornado Realty's income statement shows mixed results. The TTM data indicates a strong net profit margin of 48.49%, a significant improvement from previous periods, suggesting enhanced profitability. However, the revenue growth rate is negative, indicating a decline in revenue over the past year. The gross profit margin is stable at 55.10%, but the EBIT margin has fluctuated significantly, reflecting volatility in operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.28 in the TTM, which is an improvement from previous years but still indicates significant leverage. The return on equity has improved to 16.02%, showing better returns for shareholders. The equity ratio stands at 39.02%, suggesting a moderate level of financial stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 44.19% in the TTM, indicating potential cash flow challenges. The operating cash flow to net income ratio is 0.34, which is relatively low, suggesting that not all net income is translating into cash flow. However, the free cash flow to net income ratio is 1.0, indicating that the company is generating sufficient free cash flow relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.80B	1.79B	1.81B	1.80B	1.59B	1.53B
Gross Profit	994.07M	859.89M	906.00M	926.08M	791.89M	738.88M
EBITDA	1.77B	880.61M	845.61M	423.31M	792.48M	228.26M
Net Income	874.82M	70.39M	105.49M	-382.61M	176.00M	-461.85M
Balance Sheet
Total Assets	15.61B	16.00B	16.19B	16.49B	17.27B	16.22B
Cash, Cash Equivalents and Short-Term Investments	1.20B	733.95M	997.00M	1.36B	1.76B	1.62B
Total Debt	7.81B	8.99B	8.98B	9.13B	8.99B	7.80B
Total Liabilities	8.59B	9.83B	9.84B	9.98B	10.06B	8.67B
Stockholders Equity	6.09B	5.16B	5.51B	5.84B	6.24B	6.53B
Cash Flow
Free Cash Flow	311.56M	537.72M	648.15M	795.94M	758.81M	29.19M
Operating Cash Flow	311.56M	537.72M	648.15M	798.94M	761.81M	424.24M
Investing Cash Flow	-290.26M	-597.37M	-128.79M	-906.86M	-532.35M	-87.80M
Financing Cash Flow	-1.38B	-252.32M	-278.94M	-801.27M	-29.48M	-213.20M

Vornado Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNO, the sentiment is Negative. The current price of 39.17 is below the 20-day moving average (MA) of 39.81, below the 50-day MA of 39.76, and above the 200-day MA of 38.89, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 39.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VNO.

Vornado Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRC	―	$4.88B	22.19	4.06%	5.24%	2.26%	10.15%
CUZ	―	$4.47B	72.07	1.30%	4.79%	13.07%	-4.94%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HIW	―	$3.21B	25.39	5.39%	6.75%	-2.16%	-16.41%
VNO	―	$8.22B	9.75	14.93%	1.89%	1.38%	4370.96%
BXP	―	$12.91B	3,746.46	0.07%	4.88%	3.24%	-97.73%
SLG	―	$3.93B	―	0.63%	5.83%	7.66%	―

Vornado Realty Corporate Events

Vornado Realty Trust Reports Strong Q2 2025 Earnings

Vornado Realty Trust is a fully integrated equity real estate investment trust primarily engaged in the ownership and management of commercial real estate, with a significant presence in New York City. The company is known for its extensive portfolio of office and retail properties in prime locations.

Vornado Realty Trust’s Earnings Call Highlights Robust Growth

Vornado Realty Trust’s recent earnings call paints a picture of robust financial health and strategic growth, particularly in the Penn District, despite facing some challenges. The sentiment expressed during the call was largely positive, highlighting strong leasing activity and financial performance that overshadowed concerns about retail occupancy and litigation risks.