Vornado Realty Trust (VNO, Financial) has recently experienced a notable uptick in its stock performance. With a current market capitalization of $5.32 billion, the company's shares are trading at $27.97. Over the past week, VNO has seen a significant 14.92% gain, and over the past three months, the stock has climbed by 10.41%. This recent surge contrasts with the company's previous valuation status, where it was considered a possible value trap. However, the current GF Value of $39.02 suggests that VNO is now modestly undervalued, indicating a potential opportunity for investors.
Introduction to Vornado Realty Trust
Vornado Realty Trust, a player in the REITs industry, is known for its ownership interests in Class A office and retail properties. These properties are primarily located in Manhattan, with additional assets in San Francisco and Chicago. As a real estate investment trust, Vornado's portfolio is highly concentrated in some of the most dynamic urban markets in the United States.
Assessing Vornado's Profitability
When it comes to profitability, Vornado Realty Trust holds a Profitability Rank of 6/10, which is a respectable score within the industry. The company's operating margin stands at 17.14%, outperforming 679 companies in the sector. However, VNO's return on equity (ROE) is currently negative at -5.54%, which is still better than 17.64% of its peers. Similarly, its return on assets (ROA) is also in the negative territory at -1.97%, yet this figure surpasses 18.79% of the competition. The return on invested capital (ROIC) at 2.22% is better than 25.26% of the industry. Over the past decade, Vornado has managed to maintain profitability for 8 years, which is more consistent than 59.57% of its industry counterparts.
Understanding Vornado's Growth Metrics
The Growth Rank for Vornado is currently at 2/10, indicating challenges in this area. The company has experienced a 3-year revenue growth rate per share of -2.30%, which is still better than 34.08% of similar companies. The 5-year revenue growth rate per share is even less encouraging at -5.30%, surpassing only 20.33% of its peers. These figures suggest that Vornado has been facing headwinds in terms of revenue expansion, which is a critical aspect for investors to consider.
Major Shareholders in Vornado Realty Trust
Among the notable shareholders of Vornado Realty Trust, First Pacific Advisors (Trades, Portfolio) leads with 1,934,131 shares, representing a 1.02% stake in the company. Following closely is Paul Tudor Jones (Trades, Portfolio), holding 450,749 shares, which equates to a 0.24% share percentage. Joel Greenblatt (Trades, Portfolio) also has a significant position with 321,993 shares, accounting for 0.17% of VNO's shares. The involvement of these prominent investors may provide a layer of confidence for potential shareholders.
In comparison to its competitors, Vornado Realty Trust stands out with a market cap of $5.32 billion. Its closest competitors include Kilroy Realty Corp (KRC, Financial) with a market cap of $4.34 billion, Cousins Properties Inc (CUZ, Financial) at $3.37 billion, and COPT Defense Properties (CDP, Financial) with $2.83 billion. This places Vornado in a leading position within its peer group, potentially offering a competitive advantage in the market.
In summary, Vornado Realty Trust's recent stock performance has been impressive, with a 10.41% gain over the past three months and a current valuation that suggests the stock is modestly undervalued. While the company's profitability metrics are mixed, with a strong operating margin but negative ROE and ROA, it has maintained profitability over the majority of the past decade. Growth remains a concern, as indicated by the low growth rank and negative revenue growth rates. However, the presence of significant shareholders and Vornado's competitive position in the market cap rankings among its peers may offer some reassurance to investors. As always, potential investors should conduct thorough due diligence and consider the company's complete financial picture before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.