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VICI VICI Properties Inc. - Fundamental Analysis

BULLISH
VICI Stock | Fundamental Analysis & Investment Insights
NYSE Real Estate REIT - Diversified
Current Price
$30.36
Analyst Target
$36.45
+20.1% Upside
52W High
$34.03
52W Low
$27.98

AI Analysis

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Confidence Score
88%
Analysis Accuracy
VICI Properties presents a compelling value proposition in the REIT sector, trading at a steep discount to peers with a P/E of 11.12 versus a sector average of 52.53, while delivering superior profitability metrics including a 97.67% operating margin and 70.18% net margin. The stock offers a high 5.93% dividend yield supported by a sustainable 66.4% payout ratio and strong cash flow generation, despite near-term earnings volatility. While recent quarterly EPS growth has been inconsistent, long-term fundamentals remain robust, with solid balance sheet health and a favorable analyst consensus. Priced at $30.36, the stock trades well below a $36.45 mean target, implying 20% upside, and benefits from sector tailwinds in experiential real estate and casino monetization.

Key Strengths

Exceptionally low valuation with P/E of 11.12 vs sector average of 52.53, offering significant margin of safety
Industry-leading profitability: 97.67% operating margin and 70.18% net margin, far exceeding REIT sector average of 14.44%
Strong dividend profile with 5.93% yield and sustainable 66.44% payout ratio, well-covered by earnings
Healthy capital structure with conservative 0.63 debt/equity ratio, below sector average of 2.27
Robust liquidity position evidenced by current and quick ratios of 37.05, indicating negligible short-term solvency risk

Key Risks

Earnings volatility: only 2 out of last 4 quarters beat estimates, with recent negative surprises including -24.9% and -14.3%
Near-term earnings contraction: most recent Q/Q EPS growth declined by 14.5%, signaling potential operational headwinds
Limited visibility on EV/EBITDA and cash flow metrics due to missing data, raising transparency concerns
Underperformance in price momentum: -2.8% over 6M and -3.0% over 1M, lagging peers like O and DLR
Exposure to cyclical gaming and hospitality sectors, which may face macroeconomic pressure from consumer spending shifts
AI Fair Value Estimate
Based on comprehensive analysis
$36.45
+20.1% above current price

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