Realty Income Book Value Per Share vs. Return On Equity

O Stock  USD 54.10  0.33  0.61%   
Based on the measurements of profitability obtained from Realty Income's financial statements, Realty Income's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Realty Income's ability to earn profits and add value for shareholders. At this time, Realty Income's Operating Cash Flow Sales Ratio is very stable compared to the past year. As of the 29th of March 2024, Days Of Sales Outstanding is likely to grow to 243.69, while Price To Sales Ratio is likely to drop 7.70. At this time, Realty Income's Non Operating Income Net Other is very stable compared to the past year. As of the 29th of March 2024, Interest Income is likely to grow to about 77.1 M, while Total Other Income Expense Net is likely to drop (58.6 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin1.050.9223
Fairly Up
Very volatile
Net Profit Margin0.20.2139
Notably Down
Slightly volatile
Operating Profit Margin0.640.4229
Way Up
Slightly volatile
Pretax Profit Margin0.360.2277
Way Up
Slightly volatile
Return On Assets0.01430.0151
Notably Down
Slightly volatile
Return On Equity0.02520.0265
Notably Down
Slightly volatile
For Realty Income profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Realty Income to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Realty Income Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Realty Income's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Realty Income Corp over time as well as its relative position and ranking within its peers.
  
Check out Your Equity Center.
Is Realty Income's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Realty Income. If investors know Realty will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Realty Income listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.16)
Dividend Share
3.059
Earnings Share
1.26
Revenue Per Share
5.896
Quarterly Revenue Growth
0.214
The market value of Realty me Corp is measured differently than its book value, which is the value of Realty that is recorded on the company's balance sheet. Investors also form their own opinion of Realty Income's value that differs from its market value or its book value, called intrinsic value, which is Realty Income's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Realty Income's market value can be influenced by many factors that don't directly affect Realty Income's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Realty Income's value and its price as these two are different measures arrived at by different means. Investors typically determine if Realty Income is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Realty Income's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Realty me Corp Return On Equity vs. Book Value Per Share Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Realty Income's current stock value. Our valuation model uses many indicators to compare Realty Income value to that of its competitors to determine the firm's financial worth.
Realty Income Corp is considered to be number one stock in book value per share category among related companies. It is considered to be number one stock in return on equity category among related companies . The ratio of Book Value Per Share to Return On Equity for Realty Income Corp is about  1,547 . At this time, Realty Income's Return On Equity is very stable compared to the past year.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Realty Income by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Realty Income's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Realty Income's earnings, one of the primary drivers of an investment's value.

Realty Return On Equity vs. Book Value Per Share

Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.

Realty Income

Book Value per Share

 = 

Common Equity

Average Shares

 = 
43.78 X
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Realty Income

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0283
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Realty Return On Equity Comparison

Realty Income is currently under evaluation in return on equity category among related companies.

Realty Income Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Realty Income, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Realty Income will eventually generate negative long term returns. The profitability progress is the general direction of Realty Income's change in net profit over the period of time. It can combine multiple indicators of Realty Income, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income73.9 M77.6 M
Operating Income1.7 B1.8 B
Net Income876.9 M920.8 M
Income Tax Expense52 M54.6 M
Income Before Tax928.9 M975.4 M
Total Other Income Expense Net-55.8 M-58.6 M
Net Income Applicable To Common Shares999.8 MB
Net Income From Continuing Ops876.9 M442.1 M
Net Interest Income-737.6 M-700.7 M
Non Operating Income Net Other146.5 M153.8 M
Interest Income73.5 M77.1 M
Change To Netincome134.4 M141.1 M
Net Income Per E B T 0.94  1.13 

Realty Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Realty Income. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Realty Income position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Realty Income's important profitability drivers and their relationship over time.

Use Realty Income in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Realty Income position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Realty Income will appreciate offsetting losses from the drop in the long position's value.

Realty Income Pair Trading

Realty Income Corp Pair Trading Analysis

The ability to find closely correlated positions to Realty Income could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Realty Income when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Realty Income - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Realty Income Corp to buy it.
The correlation of Realty Income is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Realty Income moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Realty me Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Realty Income can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Realty Income position

In addition to having Realty Income in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Consumer Discretionary ETFs Thematic Idea Now

Consumer Discretionary ETFs
Consumer Discretionary ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Consumer Discretionary ETFs theme has 29 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Consumer Discretionary ETFs Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Realty me Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Realty Income's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Realty Income Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Realty Income Corp Stock:
Check out Your Equity Center.
You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

Complementary Tools for Realty Stock analysis

When running Realty Income's price analysis, check to measure Realty Income's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Realty Income is operating at the current time. Most of Realty Income's value examination focuses on studying past and present price action to predict the probability of Realty Income's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Realty Income's price. Additionally, you may evaluate how the addition of Realty Income to your portfolios can decrease your overall portfolio volatility.
Equity Valuation
Check real value of public entities based on technical and fundamental data
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Money Managers
Screen money managers from public funds and ETFs managed around the world
Global Correlations
Find global opportunities by holding instruments from different markets
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
To fully project Realty Income's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Realty me Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Realty Income's income statement, its balance sheet, and the statement of cash flows.
Potential Realty Income investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Realty Income investors may work on each financial statement separately, they are all related. The changes in Realty Income's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Realty Income's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.