Realty Income Profitability Analysis
| O Stock | USD 59.23 0.34 0.58% |
Net Income | First Reported 1994-09-30 | Previous Quarter 196.9 M | Current Value 315.8 M | Quarterly Volatility 69.1 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 1.05 | 1.07 |
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| Net Profit Margin | 0.18 | 0.19 |
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| Operating Profit Margin | 0.7 | 0.51 |
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| Pretax Profit Margin | 0.36 | 0.2 |
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| Return On Assets | 0.0137 | 0.0144 |
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| Return On Equity | 0.0242 | 0.0255 |
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For Realty Income profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Realty Income to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Realty Income utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Realty Income's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Realty Income over time as well as its relative position and ranking within its peers.
Realty Income's Revenue Breakdown by Earning Segment
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Realty Income Revenue Breakdown by Earning Segment
By analyzing Realty Income's earnings estimates, investors can diagnose different trends across Realty Income's analyst sentiment over time as well as compare current estimates against different timeframes.
Is Retail REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Realty Income. If investors know Realty will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Realty Income listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.152 | Dividend Share 3.205 | Earnings Share 1.07 | Revenue Per Share | Quarterly Revenue Growth 0.103 |
The market value of Realty Income is measured differently than its book value, which is the value of Realty that is recorded on the company's balance sheet. Investors also form their own opinion of Realty Income's value that differs from its market value or its book value, called intrinsic value, which is Realty Income's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Realty Income's market value can be influenced by many factors that don't directly affect Realty Income's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Realty Income's value and its price as these two are different measures arrived at by different means. Investors typically determine if Realty Income is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Realty Income's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Realty Income Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Realty Income's current stock value. Our valuation model uses many indicators to compare Realty Income value to that of its competitors to determine the firm's financial worth. Realty Income is rated below average in return on equity category among its peers. It is rated below average in return on asset category among its peers reporting about 0.91 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Realty Income is roughly 1.10 . At this time, Realty Income's Return On Equity is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Realty Income's earnings, one of the primary drivers of an investment's value.Realty Income's Earnings Breakdown by Geography
Realty Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Realty Income |
| = | 0.0249 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Realty Income |
| = | 0.0227 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Realty Return On Asset Comparison
Realty Income is currently under evaluation in return on asset category among its peers.
Realty Income Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Realty Income, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Realty Income will eventually generate negative long term returns. The profitability progress is the general direction of Realty Income's change in net profit over the period of time. It can combine multiple indicators of Realty Income, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 34.4 M | 36.1 M | |
| Operating Income | 2.7 B | 2.8 B | |
| Total Other Income Expense Net | -1.2 B | -1.2 B | |
| Net Income | 997.4 M | 1 B | |
| Income Tax Expense | 76.6 M | 80.4 M | |
| Income Before Tax | 1.1 B | 1.1 B | |
| Net Income Applicable To Common Shares | 975.1 M | 1 B | |
| Net Income From Continuing Ops | 997.4 M | 1 B | |
| Net Interest Income | -921.7 M | -875.6 M | |
| Non Operating Income Net Other | 146.5 M | 153.8 M | |
| Interest Income | 3.8 M | 3.6 M | |
| Change To Netincome | 134.4 M | 141.1 M | |
| Net Income Per Share | 0.89 | 0.88 | |
| Income Quality | 3.71 | 3.89 | |
| Net Income Per E B T | 1.06 | 1.12 |
Realty Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Realty Income. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Realty Income position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Realty Income's important profitability drivers and their relationship over time.
Realty Income Profitability Trends
Realty Income profitability trend refers to the progression of profit or loss within a business. An upward trend means that Realty Income's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Realty Income's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Realty Income Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Realty Income different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Realty Income in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Realty Income's future profitability.
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Realty Income Earnings Estimation Breakdown
The calculation of Realty Income's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Realty Income is estimated to be 0.4076 with the future projection ranging from a low of 0.4076 to a high of 0.4076. Please be aware that this consensus of annual earnings estimates for Realty Income is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
0.41 Lowest | Expected EPS | 0.41 Highest |
Realty Income Earnings Projection Consensus
Suppose the current estimates of Realty Income's value are higher than the current market price of the Realty Income stock. In this case, investors may conclude that Realty Income is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Realty Income's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of March 2026 | Current EPS (TTM) | |
| 25 | 70.24% | 0.0 | 0.4076 | 1.07 |
Realty Income Earnings History
Earnings estimate consensus by Realty Income analysts from Wall Street is used by the market to judge Realty Income's stock performance. Investors also use these earnings estimates to evaluate and project the stock performance into the future in order to make their investment decisions. However, we recommend analyzing not only Realty Income's upcoming profit reports and earnings-per-share forecasts but also comparing them to our different valuation methods.Realty Income Quarterly Gross Profit |
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Realty Income Earnings per Share Projection vs Actual
Actual Earning per Share of Realty Income refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering Realty Income predict the company's earnings will be in the future. The higher the earnings per share of Realty Income, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.Realty Income Estimated Months Earnings per Share
For an investor who is primarily interested in generating an income out of investing in entities such as Realty Income, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of Realty Income should always be considered in relation to other companies to make a more educated investment decision.Realty Quarterly Analyst Estimates and Surprise Metrics
Earnings surprises can significantly impact Realty Income's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
null | null | null | null | null | 0 | ||
2025-11-03 | 2025-09-30 | 0.36 | 0.35 | -0.01 | 2 | ||
2025-08-06 | 2025-06-30 | 0.35 | 0.22 | -0.13 | 37 | ||
2025-05-05 | 2025-03-31 | 0.3287 | 0.2794 | -0.0493 | 14 | ||
2025-02-25 | 2024-12-31 | 0.3909 | 0.2174 | -0.1735 | 44 | ||
2024-11-04 | 2024-09-30 | 0.36 | 0.3 | -0.06 | 16 | ||
2024-08-05 | 2024-06-30 | 0.36 | 0.29 | -0.07 | 19 | ||
2024-05-06 | 2024-03-31 | 0.39 | 0.16 | -0.23 | 58 | ||
2024-02-20 | 2023-12-31 | 0.32 | 0.3 | -0.02 | 6 | ||
2023-11-06 | 2023-09-30 | 0.32 | 0.33 | 0.01 | 3 | ||
2023-08-02 | 2023-06-30 | 0.34 | 0.29 | -0.05 | 14 | ||
2023-05-03 | 2023-03-31 | 0.34 | 0.34 | 0.0 | 0 | ||
2023-02-21 | 2022-12-31 | 0.32 | 0.36 | 0.04 | 12 | ||
2022-11-02 | 2022-09-30 | 0.33 | 0.36 | 0.03 | 9 | ||
2022-08-03 | 2022-06-30 | 0.38 | 0.37 | -0.01 | 2 | ||
2022-05-04 | 2022-03-31 | 0.42 | 0.34 | -0.08 | 19 | ||
2022-02-22 | 2021-12-31 | 0.37 | 0.01 | -0.36 | 97 | ||
2021-11-01 | 2021-09-30 | 0.4 | 0.34 | -0.06 | 15 | ||
2021-08-02 | 2021-06-30 | 0.37 | 0.33 | -0.04 | 10 | ||
2021-05-03 | 2021-03-31 | 0.3 | 0.26 | -0.04 | 13 | ||
2021-02-22 | 2020-12-31 | 0.34 | 0.33 | -0.01 | 2 | ||
2020-11-02 | 2020-09-30 | 0.35 | 0.07 | -0.28 | 80 | ||
2020-08-03 | 2020-06-30 | 0.32 | 0.31 | -0.01 | 3 | ||
2020-05-04 | 2020-03-31 | 0.45 | 0.46 | 0.01 | 2 | ||
2020-02-19 | 2019-12-31 | 0.34 | 0.39 | 0.05 | 14 | ||
2019-11-04 | 2019-09-30 | 0.33 | 0.32 | -0.01 | 3 | ||
2019-08-05 | 2019-06-30 | 0.34 | 0.3 | -0.04 | 11 | ||
2019-05-01 | 2019-03-31 | 0.34 | 0.37 | 0.03 | 8 | ||
2019-02-20 | 2018-12-31 | 0.31 | 0.29 | -0.02 | 6 | ||
2018-10-31 | 2018-09-30 | 0.33 | 0.34 | 0.01 | 3 | ||
2018-08-01 | 2018-06-30 | 0.32 | 0.34 | 0.02 | 6 | ||
2018-05-08 | 2018-03-31 | 0.33 | 0.29 | -0.04 | 12 | ||
2018-02-21 | 2017-12-31 | 0.32 | 0.22 | -0.1 | 31 | ||
2017-10-25 | 2017-09-30 | 0.31 | 0.32 | 0.01 | 3 | ||
2017-07-26 | 2017-06-30 | 0.32 | 0.3 | -0.02 | 6 | ||
2017-04-25 | 2017-03-31 | 0.29 | 0.27 | -0.02 | 6 | ||
2017-02-22 | 2016-12-31 | 0.3 | 0.33 | 0.03 | 10 | ||
2016-10-26 | 2016-09-30 | 0.29 | 0.27 | -0.02 | 6 | ||
2016-07-28 | 2016-06-30 | 0.29 | 0.27 | -0.02 | 6 | ||
2016-04-26 | 2016-03-31 | 0.28 | 0.25 | -0.03 | 10 | ||
2016-02-10 | 2015-12-31 | 0.26 | 0.31 | 0.05 | 19 | ||
2015-10-28 | 2015-09-30 | 0.26 | 0.26 | 0.0 | 0 | ||
2015-07-29 | 2015-06-30 | 0.25 | 0.25 | 0.0 | 0 | ||
2015-04-29 | 2015-03-31 | 0.24 | 0.27 | 0.03 | 12 | ||
2015-02-17 | 2014-12-31 | 0.23 | 0.32 | 0.09 | 39 | ||
2014-10-29 | 2014-09-30 | 0.23 | 0.26 | 0.03 | 13 | ||
2014-07-24 | 2014-06-30 | 0.23 | 0.23 | 0.0 | 0 | ||
2014-05-01 | 2014-03-31 | 0.21 | 0.22 | 0.01 | 4 | ||
2014-02-13 | 2013-12-31 | 0.21 | 0.26 | 0.05 | 23 | ||
2013-10-31 | 2013-09-30 | 0.21 | 0.21 | 0.0 | 0 | ||
2013-07-25 | 2013-06-30 | 0.21 | 0.23 | 0.02 | 9 | ||
2013-04-25 | 2013-03-31 | 0.21 | 0.42 | 0.21 | 100 | ||
2013-02-14 | 2012-12-31 | 0.24 | 0.25 | 0.01 | 4 | ||
2012-10-25 | 2012-09-30 | 0.25 | 0.24 | -0.01 | 4 | ||
2012-07-26 | 2012-06-30 | 0.24 | 0.25 | 0.01 | 4 | ||
2012-04-26 | 2012-03-31 | 0.24 | 0.2 | -0.04 | 16 | ||
2012-02-09 | 2011-12-31 | 0.28 | 0.26 | -0.02 | 7 | ||
2011-10-27 | 2011-09-30 | 0.27 | 0.27 | 0.0 | 0 | ||
2011-07-28 | 2011-06-30 | 0.27 | 0.26 | -0.01 | 3 | ||
2011-04-28 | 2011-03-31 | 0.27 | 0.25 | -0.02 | 7 | ||
2011-02-10 | 2010-12-31 | 0.26 | 0.29 | 0.03 | 11 | ||
2010-10-27 | 2010-09-30 | 0.24 | 0.25 | 0.01 | 4 | ||
2010-07-28 | 2010-06-30 | 0.24 | 0.24 | 0.0 | 0 | ||
2010-04-28 | 2010-03-31 | 0.25 | 0.23 | -0.02 | 8 | ||
2010-02-10 | 2009-12-31 | 0.24 | 0.28 | 0.04 | 16 | ||
2009-10-28 | 2009-09-30 | 0.23 | 0.26 | 0.03 | 13 | ||
2009-07-29 | 2009-06-30 | 0.23 | 0.26 | 0.03 | 13 | ||
2009-04-29 | 2009-03-31 | 0.25 | 0.23 | -0.02 | 8 | ||
2009-02-11 | 2008-12-31 | 0.24 | 0.27 | 0.03 | 12 | ||
2008-10-29 | 2008-09-30 | 0.24 | 0.29 | 0.05 | 20 | ||
2008-07-30 | 2008-06-30 | 0.25 | 0.27 | 0.02 | 8 | ||
2008-04-30 | 2008-03-31 | 0.27 | 0.24 | -0.03 | 11 | ||
2008-02-13 | 2007-12-31 | 0.31 | 0.24 | -0.07 | 22 | ||
2007-10-31 | 2007-09-30 | 0.31 | 0.25 | -0.06 | 19 | ||
2007-08-01 | 2007-06-30 | 0.29 | 0.26 | -0.03 | 10 | ||
2007-05-02 | 2007-03-31 | 0.3 | 0.28 | -0.02 | 6 | ||
2007-02-14 | 2006-12-31 | 0.3 | 0.29 | -0.01 | 3 | ||
2006-11-03 | 2006-09-30 | 0.28 | 0.26 | -0.02 | 7 | ||
2006-08-02 | 2006-06-30 | 0.28 | 0.27 | -0.01 | 3 | ||
2006-05-03 | 2006-03-31 | 0.28 | 0.25 | -0.03 | 10 | ||
2006-02-15 | 2005-12-31 | 0.28 | 0.26 | -0.02 | 7 | ||
2005-10-26 | 2005-09-30 | 0.29 | 0.25 | -0.04 | 13 | ||
2005-07-27 | 2005-06-30 | 0.27 | 0.28 | 0.01 | 3 | ||
2005-04-27 | 2005-03-31 | 0.26 | 0.27 | 0.01 | 3 | ||
2005-02-02 | 2004-12-31 | 0.27 | 0.25 | -0.02 | 7 | ||
2004-10-27 | 2004-09-30 | 0.24 | 0.23 | -0.01 | 4 | ||
2004-07-28 | 2004-06-30 | 0.22 | 0.21 | -0.01 | 4 |
Use Realty Income in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Realty Income position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Realty Income will appreciate offsetting losses from the drop in the long position's value.Realty Income Pair Trading
Realty Income Pair Trading Analysis
The ability to find closely correlated positions to Realty Income could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Realty Income when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Realty Income - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Realty Income to buy it.
The correlation of Realty Income is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Realty Income moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Realty Income moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Realty Income can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Realty Income position
In addition to having Realty Income in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Large & Mid Caps ETFs theme has 87 constituents at this time.
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Check out Your Equity Center. To learn how to invest in Realty Stock, please use our How to Invest in Realty Income guide.You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
To fully project Realty Income's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Realty Income at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Realty Income's income statement, its balance sheet, and the statement of cash flows.