Realty Income (O) Stock Analysis
Here is a fundamental analysis of Realty Income (O), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: O | Industry group median |
|---|---|---|
| 1-Year Return | 14.25% | 15.97% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: O | Industry group median |
|---|---|---|
| 1-Year Volatility | 16.24% | 22.81% |
| Beta | 0.72 | 0.97 |
Company Profile
Realty Income (O) is a REIT, a distribution-oriented structure — read its payout ratio and P/E alongside FFO (funds from operations) rather than at face value.
| Profile Item | O |
|---|---|
| Name | Realty Income Corporation |
| Country/Region | United States |
| GICS Sector | Real Estate |
| GICS Industry Group | Equity Real Estate Investment Trusts (REITs) |
| GICS Industry | Retail REITs |
| GICS Sub-Industry | Retail REITs |
| Market Capitalization | 58.49 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | October 18, 1994 |
| Security Type | REIT |
Valuation
Price-to-Earnings Ratio (TTM)
P/E ratio is not assessed for Realty Income (O) in Equity Real Estate Investment Trusts (REITs): depreciation can depress accounting earnings in this industry, so price-to-FFO is the more relevant valuation yardstick.
Price-to-Sales Ratio (TTM)
Realty Income (O) trades at 9.86 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
O
Equity Real Estate Investment Trusts (REITs) industry group
9.86
Group distribution
- Max
- 15.01
- O
- 9.86
- Q3
- 8.66
- Median
- 6.65
- Q1
- 3.87
- Min
- 0.60
Largest peers
- PLD
- 14.87
- WELL
- 12.85
- SPG
- 12.52
- EQIX
- 10.93
- DLR
- 10.44
- O
- 9.86
- AMT
- 8.06
Price-to-Book Ratio (MRQ)
Realty Income (O) trades at 1.49 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.
O
Equity Real Estate Investment Trusts (REITs) industry group
1.49
Group distribution
- Max
- 4.20
- Q3
- 2.66
- Median
- 1.74
- O
- 1.49
- Q1
- 1.16
- Min
- 0.33
Largest peers
- AMT
- 24.76
- SPG
- 14.74
- EQIX
- 7.28
- WELL
- 3.54
- DLR
- 2.84
- PLD
- 2.59
- O
- 1.49
Valuation at a Glance
| Metric | Current stock: O | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | -- | -- |
| Price-to-Sales Ratio (TTM) | 9.86 | 6.65 |
| Price-to-Book Ratio (MRQ) | 1.49 | 1.74 |
| Free Cash Flow Yield | -- | -- |
Profitability
Return on Equity (TTM)
Realty Income (O) posts ROE of 2.83%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
O
Equity Real Estate Investment Trusts (REITs) industry group
2.83%
Group distribution
- Max
- 21.85%
- Q3
- 9.82%
- Median
- 5.84%
- O
- 2.83%
- Q1
- 1.39%
- Min
- -9.66%
Largest peers
- SPG
- 113.59%
- AMT
- 29.95%
- EQIX
- 10.06%
- PLD
- 6.84%
- DLR
- 5.69%
- WELL
- 3.67%
- O
- 2.83%
Net Profit Margin (TTM)
net margin is set aside for Realty Income (O) in Equity Real Estate Investment Trusts (REITs): heavy depreciation can make net income a poor proxy for cash profitability, so FFO-based measures usually carry the read.
Operating Profit Margin (TTM)
operating margin is set aside for Realty Income (O) in Equity Real Estate Investment Trusts (REITs): the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.
Profitability at a Glance
| Metric | Current stock: O | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 2.83% | 5.84% |
| Return on Assets (TTM) | 2.31% | 2.39% |
| Net Profit Margin (TTM) | -- | -- |
| Operating Profit Margin (TTM) | -- | -- |
| Gross Profit Margin (TTM) | -- | -- |
Financial Strength
Current Ratio (MRQ)
Realty Income (O) has current ratio of 2.06, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.
O
Equity Real Estate Investment Trusts (REITs) industry group
2.06
Group distribution
- Max
- 4.00
- O
- 2.06
- Q3
- 1.92
- Median
- 1.04
- Q1
- 0.47
- Min
- 0.08
Largest peers
- O
- 2.06
- WELL
- 1.65
- DLR
- 1.23
- EQIX
- 1.18
- PLD
- 0.53
- AMT
- 0.30
- SPG
- 0.20
Debt-to-Equity Ratio (MRQ)
Realty Income (O) has debt-to-equity ratio of 0.73, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.
O
Equity Real Estate Investment Trusts (REITs) industry group
0.73
Group distribution
- Max
- 2.63
- Q3
- 1.55
- Median
- 1.04
- Q1
- 0.75
- O
- 0.73
- Min
- 0.19
Largest peers
- SPG
- 4.57
- AMT
- 4.45
- EQIX
- 1.63
- DLR
- 0.77
- O
- 0.73
- PLD
- 0.61
- WELL
- 0.44
Financial Strength at a Glance
| Metric | Current stock: O | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 2.06 | 1.04 |
| Debt-to-Equity Ratio (MRQ) | 0.73 | 1.04 |
| Net Debt / EBITDA | 5.72 | 5.99 |
Dividends
Dividend Yield (TTM)
Realty Income (O) has dividend yield of 5.18%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
O
Equity Real Estate Investment Trusts (REITs) industry group
5.18%
Group distribution
- Max
- 8.05%
- Q3
- 5.81%
- O
- 5.18%
- Median
- 4.33%
- Q1
- 3.39%
- Min
- 0.00%
Largest peers
- O
- 5.18%
- SPG
- 4.02%
- AMT
- 3.73%
- PLD
- 2.88%
- DLR
- 2.65%
- EQIX
- 1.87%
- WELL
- 1.38%
Dividend Payout Ratio (TTM)
payout ratio is not assessed for Realty Income (O) in Equity Real Estate Investment Trusts (REITs): distributions in this industry are better read against FFO or cash-flow measures than accounting earnings.
Dividends at a Glance
| Metric | Current stock: O | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 5.18% | 4.33% |
| Dividend Payout Ratio (TTM) | -- | -- |