O Realty Income Corporation - Fundamental Analysis
NEUTRAL
O Stock | Fundamental Analysis & Investment Insights
NYSE
•
Real Estate
•
REIT - Retail
Current Price
$56.8
Analyst Target
$63.29
+11.4% Upside
52W High
$61.09
52W Low
$50.71
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
Realty Income Corporation (O) trades at a premium valuation with a high dividend yield of 5.69%, supported by solid revenue and earnings growth of 10.3% and 15.2% YoY, respectively. However, persistent earnings misses over the last four quarters—averaging a -20.12% surprise—and a concerning payout ratio of 299.53% raise sustainability concerns despite strong operating margins (44.51%) and manageable leverage (Debt/Equity: 0.74). The stock has underperformed peers like WELL (+46.7% 1Y) and PLD (+11.0% 1Y), with flat momentum over 6M (+3.9%) and negative 1M returns (-4.0%). Analysts are tepid with a 'hold' consensus and a $63.29 target, implying ~11% upside, while recent insider selling adds caution.
Key Strengths
High and stable dividend yield of 5.69%, among the highest in the REIT-retail sector
Strong operating margin of 44.51% and gross margin of 92.57%, reflecting pricing power and low variable costs
Revenue growth of 10.3% YoY outpaces key peers AMT (7.7%) and EQIX (6.6%)
Conservative capital structure with Debt/Equity of 0.74, well below sector average of 1.69
Market cap of $52.25B provides scale, liquidity, and resilience in volatile markets
Key Risks
Payout ratio of 299.53% indicates dividend is not sustainably covered by earnings, increasing risk of future cuts
Consistent earnings misses: 0 beats in last 4 quarters, with average surprise of -20.12%, signaling deteriorating forecasting accuracy or operational execution
Elevated P/E of 53.08 and Forward P/E of 35.72, above sector average (67.77) but not justified by superior growth or ROE
ROE of 2.49% is extremely low for a REIT and lags peers like AMT (28.84%) and EQIX (7.70%)
Recent insider selling: $0.66M in sales with no buys in last 6 months, suggesting lack of confidence at the executive level
AI Fair Value Estimate
Based on comprehensive analysis
$60.5
+6.5% above current price
Performance Snowflake
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Historical Performance Trends
Long-term financial metrics and growth patterns
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Profitability, Growth & Financial Health
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Sector Comparison & Peer Analysis
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