Is Realty Income Stock a Good Investment?

Realty Income Investment Advice

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To provide specific investment advice or recommendations on Realty Income stock, we recommend investors consider the following general factors when evaluating Realty Income. This will help you to make an informed decision on whether to include Realty Income in one of your diversified portfolios:
  • Examine Realty Income's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Realty Income's leadership team and their track record. Good management can help Realty Income navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Retail REITs space and any emerging trends that could impact Realty Income's business and its evolving consumer preferences.
  • Compare Realty Income's performance and market position to its competitors. Analyze how Realty Income is positioned in terms of product offerings, innovation, and market share.
  • Check if Realty Income pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Realty Income's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Realty Income stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Realty Income is a good investment.
 
Sell
 
Buy
Strong Buy
Macroaxis provides unbiased recommendation on Realty Income that should be used to complement current analysts and expert consensus on Realty Income. Our trade recommendations engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Realty Income is not overpriced, please check all Realty Income fundamentals, including its shares owned by insiders, cash and equivalents, target price, as well as the relationship between the price to sales and book value per share . Given that Realty Income has a price to earning of 65.51 X, we recommend you to check out Realty Income market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Market Performance

GoodDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Barely shadows the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine Realty Income Stock

Researching Realty Income's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 79.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.39. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Realty Income last dividend was issued on the 1st of November 2024. The entity had 1032:1000 split on the 15th of November 2021.
To determine if Realty Income is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Realty Income's research are outlined below:
Over 79.0% of the company shares are owned by institutional investors
On 13th of September 2024 Realty Income paid $ 0.263 per share dividend to its current shareholders
Latest headline from seekingalpha.com: Realty Income snaps 6-day losing streak as retail REITs bounce back to green

Realty Income Quarterly Gross Profit

642.61 Million

Realty Income uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Realty Income. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Realty Income's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
20th of February 2024
Upcoming Quarterly Report
View
1st of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
20th of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View
Earnings surprises can significantly impact Realty Income's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Realty Income's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2017-02-22
2016-12-310.30.330.0310 
2016-04-26
2016-03-310.280.25-0.0310 
2015-04-29
2015-03-310.240.270.0312 
2014-10-29
2014-09-300.230.260.0313 
2011-02-10
2010-12-310.260.290.0311 
2009-10-28
2009-09-300.230.260.0313 
2009-07-29
2009-06-300.230.260.0313 
2009-02-11
2008-12-310.240.270.0312 

Know Realty Income's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Realty Income is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Realty Income backward and forwards among themselves. Realty Income's institutional investor refers to the entity that pools money to purchase Realty Income's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Dimensional Fund Advisors, Inc.2024-06-30
11.7 M
Jpmorgan Chase & Co2024-06-30
9.5 M
Northern Trust Corp2024-06-30
9.3 M
Charles Schwab Investment Management Inc2024-06-30
9.3 M
Apg Investments Us Inc2024-06-30
8.7 M
Cbre Investment Management Listed Real Assets Llc2024-06-30
6.4 M
Bank Of New York Mellon Corp2024-06-30
6.1 M
Centersquare Investment Management Llc2024-06-30
5.8 M
Fmr Inc2024-06-30
5.5 M
Vanguard Group Inc2024-06-30
138.5 M
Blackrock Inc2024-06-30
83.3 M
Note, although Realty Income's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Realty Income's market capitalization trends

The company currently falls under 'Large-Cap' category with a current capitalization of 53.83 B.

Market Cap

36.67 Billion

Realty Income's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.02  0.02 
Return On Capital Employed 0.03  0.03 
Return On Assets 0.02  0.01 
Return On Equity 0.03  0.03 
The company has Profit Margin of 0.18 %, which indicates that it operates at a low-profit margin and even a small decline in sales will erase profits resulting in a net loss, or a negative margin. This is way below average. Similarly, it shows Operating Margin of 0.44 %, which implies that for every $100 of sales, it generated an operating income of $0.44.
Determining Realty Income's profitability involves analyzing its financial statements and using various financial metrics to determine if Realty Income is a good buy. For example, gross profit margin measures Realty Income's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Realty Income's profitability and make more informed investment decisions.

Evaluate Realty Income's management efficiency

Realty Income has return on total asset of 0.0211 % which means that for every 100 dollars spent on assets, it generated a profit of $0.0211. This is way below average. Similarly, it shows a return on equity (ROE) of 0.0242 %, implying that it made 0.0242 on every $100 invested by shareholders. Realty Income's management efficiency ratios could be used to measure how well Realty Income manages its routine affairs as well as how well it operates its assets and liabilities. As of the 11th of October 2024, Return On Tangible Assets is likely to drop to 0.02. In addition to that, Return On Capital Employed is likely to drop to 0.03. At this time, Realty Income's Intangibles To Total Assets are very stable compared to the past year. As of the 11th of October 2024, Fixed Asset Turnover is likely to grow to 3.29, while Non Currrent Assets Other are likely to drop about 99.6 M.
Last ReportedProjected for Next Year
Book Value Per Share 47.82  50.21 
Tangible Book Value Per Share 35.18  36.94 
Enterprise Value Over EBITDA 16.69  12.43 
Price Book Value Ratio 1.21  1.26 
Enterprise Value Multiple 16.69  12.43 
Price Fair Value 1.21  1.26 
Enterprise Value52.3 B54.9 B
The analysis of Realty Income's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Realty Income's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Realty Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield
0.0512
Forward Dividend Yield
0.0512
Forward Dividend Rate
3.16
Beta
0.993

Basic technical analysis of Realty Stock

As of the 11th of October 2024, Realty Income holds the Risk Adjusted Performance of 0.2131, semi deviation of 0.3965, and Coefficient Of Variation of 387.15. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Realty Income, as well as the relationship between them.

Realty Income's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Realty Income insiders, such as employees or executives, is commonly permitted as long as it does not rely on Realty Income's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Realty Income insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Realty Income's Outstanding Corporate Bonds

Realty Income issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Realty Income uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Realty bonds can be classified according to their maturity, which is the date when Realty Income has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Realty Income's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Realty Income's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Realty Income's intraday indicators

Realty Income intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Realty Income stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Realty Income Corporate Filings

30th of September 2024
Other Reports
ViewVerify
F4
13th of September 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
8K
4th of September 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
27th of August 2024
Other Reports
ViewVerify
Realty Income time-series forecasting models is one of many Realty Income's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Realty Income's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Realty Stock media impact

Far too much social signal, news, headlines, and media speculation about Realty Income that are available to investors today. That information is available publicly through Realty media outlets and privately through word of mouth or via Realty internal channels. However, regardless of the origin, that massive amount of Realty data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Realty Income news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Realty Income relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Realty Income's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Realty Income alpha.

Realty Income Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Realty Income can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Realty Income Historical Investor Sentiment

Investor biases related to Realty Income's public news can be used to forecast risks associated with an investment in Realty. The trend in average sentiment can be used to explain how an investor holding Realty can time the market purely based on public headlines and social activities around Realty Income. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Realty Income's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Realty Income and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Realty Income news discussions. The higher the estimate score, the more favorable the investor's outlook on Realty Income.

Realty Income Corporate Directors

Reginald GilyardIndependent DirectorProfile
Priya HuskinsIndependent DirectorProfile
Gerardo LopezIndependent DirectorProfile
Ronald MerrimanIndependent DirectorProfile
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Realty Income. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons.
To learn how to invest in Realty Stock, please use our How to Invest in Realty Income guide.
You can also try the Stocks Directory module to find actively traded stocks across global markets.
Is Retail REITs space 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.
Dividend Share
3.088
Earnings Share
1.08
Revenue Per Share
6.01
Quarterly Revenue Growth
0.316
Return On Assets
0.0211
The market value of Realty Income 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.
In summary, please note that there is a difference between Realty Income's value and its price, as these two are different measures arrived at by various 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.