REALTY INCOME CORP (O) Stock Analysis
REALTY INCOME CORP (O) Stock Analysis
Analysis from 10-Q filed 2025-11-04. Data as of Q4 2025.
Overall Grade: F (Concerning)
REALTY INCOME CORP faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 69.5% | Strong cash generation |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 69.5% provides financial flexibility for growth and shareholder returns.
Explore REALTY INCOME CORP: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: REALTY INCOME CORP earns N/A ROIC
REALTY INCOME CORP's trailing-twelve-month ROIC of N/A (sector median: 12.6%). Source: 10-Q filed 2025-11-04.
| Metric | O | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 12.6% |
| Return on Equity (ROE) | 2.7% | Warning | Moderate equity returns |
Cash Flow: REALTY INCOME CORP generates $4.0B FCF at 69.5% margin, positive NaN/8 quarters
REALTY INCOME CORP generated $4.0B in free cash flow (TTM), a 69.5% FCF margin, a margin that ranks Top 5% in Real Estate. Operating cash flow exceeds net income by 3.8x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-04.
| Metric | O | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 69.5% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $4.0B | Good | Positive cash generation |
| OCF/Net Income | 3.8x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: REALTY INCOME CORP at 0.0x leverage
REALTY INCOME CORP's debt-to-equity ratio of 0.0x reflects conservative leverage. Net cash position of $4.0M provides financial flexibility. Source: 10-Q filed 2025-11-04.
| Metric | O | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
| Net Cash Position | $4.0M | Excellent | Net cash positive |
Valuation: REALTY INCOME CORP trades at 47.8x earnings
REALTY INCOME CORP trades at a P/E of 47.8x. Free cash flow yield of 7.8% offers attractive cash returns relative to price.
| Metric | O | Rating | Context |
|---|---|---|---|
| P/E Ratio | 47.8x | Adequate | Premium valuation |
| EV/Sales | 8.9x | Adequate | Growth premium priced in |
| FCF Yield | 7.8% | Good | Attractive cash return |
| Dividend Yield | 5.7% | Good | Meaningful income |
Capital Allocation: REALTY INCOME CORP returns 5.7% shareholder yield
REALTY INCOME CORP's total shareholder yield is 5.7% (dividends 5.7% + buybacks). Source: 10-Q filed 2025-11-04.
| Metric | O | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 5.7% | Good | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $3.0B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 69.5% | Top 5% | 385.6x above |
| Return on Equity (ROE) | 2.7% | Top 50% | 1.1x above |
| P/E Ratio | 47.8x | N/A | - |
Financial Scorecard
| Metric | O | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 69.5% | Excellent | Top 5% of sector (median: 0.2%) |
| Debt to Equity Ratio | 1.3% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 47.8x | Adequate | High expectations priced in |
| Free Cash Flow Yield | 7.8% | Good | Solid cash yield |
Frequently Asked Questions
Q: What is REALTY INCOME CORP's Return on Invested Capital (ROIC)?
REALTY INCOME CORP (O) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 12.6%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is REALTY INCOME CORP's Free Cash Flow Margin?
REALTY INCOME CORP (O) has a free cash flow margin of 69.5%, generating $4.0 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is REALTY INCOME CORP stock overvalued or undervalued?
REALTY INCOME CORP (O) trades at a P/E ratio of 47.8x, which is above the sector median of N/A. The EV/Sales multiple is 8.9x. Free cash flow yield is 7.8%, which represents an attractive cash return to investors.
Q: Does REALTY INCOME CORP pay a dividend?
REALTY INCOME CORP (O) currently pays a dividend yield of 5.7%. Including share buybacks, the total shareholder yield is 5.7%. A yield above 4% is attractive for income investors, though sustainability should be verified through payout ratio analysis.
Q: What is REALTY INCOME CORP's revenue and earnings growth?
REALTY INCOME CORP (O) grew revenue by 9.1% year-over-year. Earnings per share increased by 20.4% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: How does REALTY INCOME CORP compare to competitors in Real Estate?
Compared to other companies in Real Estate, REALTY INCOME CORP (O) shows: ROIC of N/A is below the sector median of 12.6% (NaNx median). FCF margin of 69.5% exceeds the sector median of 0.2% (Top 5% of sector). These rankings are based on MetricDuck's analysis of all Real Estate companies with available SEC filings.
Q: What warning signs should I watch for with REALTY INCOME CORP?
REALTY INCOME CORP (O) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-11-04. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.