NYSE:VNO
$63.14
(2/9 3:29PM)
+0.4%
| Open | $63.64 |
Mkt Cap | $11.3 Billion |
| High | $64.05 |
52Wk High | $73.96 |
| Low | $61.98 |
52Wk Low | $26.57 |
| Volume | 1.9 Million |
Avg Vol 10D | 2.3 Million |
Ockham's Rating/Recommendation Summary
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VNO Revenue
As a value investing shop, we are interested in seeing how VNO's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 5.42x and the low end of the range at 2.90x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for VNO of 4.21x is somewhat above its historical average. As such, the current Price to Sales ratio suggests a neutral share price forecast. In order for us to become more positive about VNO we would need to see a drop in the Price to Sales ratio of 1% given current sales per share levels in order to return to its historical weighted average.
VNO Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of VNO, Ockham views their current Cash Earnings as significantly above its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from VNO. For example, VNO's Cash Earnings ratio per share has fluctuated between 27.86 and 46.76 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where VNO is with respect to prior business periods.
So what does this tell us about VNO in particular? Basically, we would value the current level of Cash Earnings per share (which is at 207.32) as significantly overvalued. Just by looking at the last closing price of VNO, which was $64.27, we can see that compared to the historical high Price to Cash Earnings levels we calculated, the market has already rewarded VNO with a higher stock price. So basically, we don't view this level of Cash Earnings or stock price as compatible with a long term value at this point. Just remember, that does not mean that VNO may not have other merits with which to find a good investment opportunity, it just means that we would prefer to see either an increase in Cash Earnings or a decrease in stock price before we would become bullish on this metric.
VNO Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for VNO to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.
The estimated annual dividend for VNO is $2.60 producing a current dividend yield of 4.05%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from VNO against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from VNO over previous years was 12.53% while the lowest dividend yield was 2.53%. With that range in mind, VNO’s current dividend yield is a full 46.22% below its median dividend yield historically. This is a negative from our perspective.
Fox Business: Get Plugged into VNO News Regarding The CEO
Vornado Realty Trust's CEO is obivously vital to his company, so we believe any news covering him is worth knowing for investors.
Crossing their fingers, hoping the properties sell and only one, montauk beach house. >> brian: chairman and ceo of VORNADO realty. And the group that had the commission donated to the >> and sotheby's is the realtor on the upper east side house and what's interesting is you know, there's obviously these auctions happening right now where madoff's boats are going to be >> brian: how many boats? >> no, there's the one luxury yacht and the three vessels that are fishing boats. They're very high end fishing boats, everywhere between 20 and
“… 's interesting is you know, there's obviously these auctions happening right now where madoff's boats are going to be >> brian: how many boats? >> no, there's the one luxury yacht and the three vessels that are fishing boats. They're very high end fishing boats, everywhere between 20 and …”
Vornado Realty Trust (VNO) Discussed on Fox Business's The Opening Bell on Fox Business
Vornado Realty Trust is in the news. Find out how this impacts VNO trading on Ockham Research.
Alexis: what kind of companies? How would we dip our toe in the water if we don't know a lot about commercial real estate? >> well, let's think about one company that we even for our companies, VORNADO. We think it's one of the best real estate companies around. Great properties primarily manhattan and washington d.C., great long-term leases and diversity of clients. Over a long period of time delivered great returns for now, because everybody's scared of commercial real estate nobody wants to own any of the crappier companies or junkier companies as well as VORNADO. We can buy at a value position we haven't seen in over decade and cash on hand to buy up other properties that go into bankruptcy or forced sellers and individual investor and a lot of our clients are individual investors and you can own a business like that at the prices they are today at three to five years or perhaps forever and that's the type of business we look for and the investor can benefit from compounding the benefit from the expertise of the management team at VORNADO more so than buying commercial real estate on their own per se. Alexis: other than commercial what else do you like right now? What else is beaten down and there's ripe for opportunity? >> you know, I think the health care sector, you know, certainly with the government plans to, you know, quote, unquote, to overhaul the health care sector people don't know what's going to happen.
“… around. Great properties primarily manhattan and washington d.C., great long-term leases and diversity of clients. Over a long period of time delivered great returns for now, because everybody's scared of commercial real estate nobody wants to own any of the crappier companies or junkier companies as well as VORNADO. We can buy at a value position we haven't seen in over decade and cash on hand to buy up other properties that go into bankruptcy or forced sellers and individual investor and a lot of our clients are individual investors and you can own a business like that at the prices they are today at three to five years or perhaps forever and that's the type of business we look for and the investor can benefit from compounding the benefit from the expertise of the management team at VORNADO more so than buying commercial real estate on their own per se. Alexis: other than commercial what else do you like right now? What else is beaten down and there's ripe for opportunity? >> you know, I think the health care sector, you know, certainly with the government plans to, you know, quote, unquote, to overhaul the health care sector people don't know what's going to happen. …”
Vornado Realty Trust (VNO) Discussed on CNBC's Mad Money
Vornado Realty Trust is in the news. Find out how this impacts VNO trading on Ockham Research.
And i've got a lot of questions. So let's hear from hossein fateh, he's president and ceo of dupont fabros. Mr. Fateh, welcome to "mad money." >> well, thank you, jim. >> all right, sir. A lot of my real estate investment trusts that I follow, including brandywine and federal realty as well as VORNADO, and boston properties, mr. Zuckerman, were able to do equity offerings before they had to tamper with their dividend or do anything. You knew obviously that things were getting tough. How come you were not able to issue equity when it was time to >> well, we certainly can issue right now we choose not to because we don't want to dilute ourselves. Management here is very much aligned with the shareholders in that we have about 40% of the equity held with insiders. So we don't want to dilute ourselves at this point, but we get calls at least, you know, once a week from bankers wanting to raise eblth forquities for us. We're going to be leasing our space in a very rapid fashion, up we'll be putting on a little more debt. We only need another $150 million of debt to add two more facilities, or to restart two of our facilities, which will add ebidta.
“… randywine and federal realty as well as VORNADO, and boston properties, mr. Zuckerman, were able to do equity offerings before they had to tamper with their dividend or do anything. You knew obviously that things were getting tough. How come you were not able to issue equity when it was time to >> well, we certainly can issue right now we choose not to because we don't want to dilute ourselves. Management here is very much aligned with the shareholders in that we have about 40% of the equity held with insiders. So we don't want to dilute ourselves at this point, but we get calls at least, you know, once a week from bankers wanting to raise eblth forquities for us. We're going to be leasing our space in a very rapid fashion, up we'll be putting on a little more debt. We only need another $150 million of debt to add two more facilities, or to restart two of our facilities, which will add ebidta. …”
Vornado Realty Trust (VNO) Discussed on CNBC's Street Signs
Vornado Realty Trust is in the news. Find out how this impacts VNO trading on Ockham Research.
Or two down the road, I can't see the need for anymore footage to be built. >> that is why his firm has no buildings under construction for the first time in 15 years. Boston, VORNADO and brookfield are all trading higher. As we go to the closing bell, gold is at $1009. Thanks for watching. Time for "the closing bell" with maria. >> federal reserve chairman ben bernanke says the recession probably over technically, but the economy will feel weak for some time to come. The government hopes to begin distribution of a new swine flu vaccine now it has been approved
“… ld is at $1009. Thanks for watching. Time for "the closing bell" with maria. >> federal reserve chairman ben bernanke says the recession probably over technically, but the economy will feel weak for some time to come. The government hopes to begin distribution of a new swine flu vaccine now it has been approved …”
Vornado Realty Trust (VNO) Discussed on Fox Business's Happy Hour
Vornado Realty Trust is in the news. Find out how this impacts VNO trading on Ockham Research.
Homework. >> if you look at them there was 16, $17 billion issued by traded reits in the new york stock exchange over that is a lot. How much went into buying new real estate? Very little. With exception of companies like VORNADO which is building up fund to buy new a lot of these aren't. Like ours and lot of companies in the traded and non-traded public reit space are taking capital and selectively buying great assets at unbelievable cody: once aren't doing me remind me again of bailed out banks which are stacking up balance sheets and not making loans. As I noted from five to 10% in blink of an eye, I thought if we bailed out bear stearns and general motors it won't
“… to buy new a lot of these aren't. Like ours and lot of companies in the traded and non-traded public reit space are taking capital and selectively buying great assets at unbelievable cody: once aren't doing me remind me again of bailed out banks which are stacking up balance sheets and not making loans. As I noted from five to 10% in blink of an eye, I thought if we bailed out bear stearns and general motors it won't …”
Vornado Realty Trust (VNO) Discussed on Fox Business's Fox Business
Vornado Realty Trust is in the news. Find out how this impacts VNO trading on Ockham Research.
>> we have some breaking news here, our partners at the wall street journal reporting VORNADO realtor trust is planning raising between 550 million and 6 million dollars. Accomplished through a bond sale that would qualify for the one
“… >> we have some breaking news here, our partners at the wall street journal reporting VORNADO realtor trust is planning raising between 550 million and 6 million dollars. Accomplished through a bond sale that would qualify for the one …”
Vornado Realty Trust (VNO) Discussed on Fox Business's Countdown to the Closing Bell
Vornado Realty Trust is in the news. Find out how this impacts VNO trading on Ockham Research.
>> cheryl: look at the stocks we're watching. VORNADO REALTY TRUST is seeking to raise $1 billion. This is a private equity fund. The stock is down 5%. Still at 41.51. Look at aetna. They're getting a shot in the
“… >> cheryl: look at the stocks we're watching. VORNADO REALTY TRUST is seeking to raise $1 billion. This is a private equity fund. The stock is down 5%. Still at 41.51. Look at aetna. They're getting a shot in the …”
Vornado Realty Trust (VNO) Discussed on Fox Business's Fox Business
Vornado Realty Trust is in the news. Find out how this impacts VNO trading on Ockham Research.
Realty truck won filing for filene's basement. It's $61.4 million bid. Syms and VORNADO bid has 23 leases, distribution center, inventory and trade name. It's a famous department store with the incredible bridal sale.
“… Realty truck won filing for filene's basement. It's $61.4 million bid. Syms and VORNADO bid has 23 leases, distribution center, inventory and trade name. It's a famous department store with the incredible bridal sale. …”
Vornado Realty Trust (VNO) Discussed on Fox Business's Fox Business
Vornado Realty Trust is in the news. Find out how this impacts VNO trading on Ockham Research.
With the 58 billion dollar conversion of preferred shares and other names have been down all day long and in particular, this is a reit. We'll continue to watch a lot of the reits, VORNADO, some simon property group and maybe on the next round I can show you a whole board and see how they're faring, that reit in particular down 10% and also keep an eye on some of the upgrades that we've seen, comerica, u.S. Steel has
“… you a whole board and see how they're faring, that reit in particular down 10% and also keep an eye on some of the upgrades that we've seen, comerica, u.S. Steel has …”
Vornado Realty Trust (VNO) Discussed on Fox Business's The Opening Bell on Fox Business
Vornado Realty Trust is in the news. Find out how this impacts VNO trading on Ockham Research.
Management firm having the fifth straight quarterly loss, slashing the dividend down to three pennies a share, down from 24 cents and revenue down by almost half as well. Shares falling 9% and VORNADO, the real estate investment trust reporting funds from operations, higher than expected by wall street. Revenue beat the street as well. Shares off slightly for the real estate investment trust, connell, back to you. Connell: all right, robert, let
“… operations, higher than expected by wall street. Revenue beat the street as well. Shares off slightly for the real estate investment trust, connell, back to you. Connell: all right, robert, let …”