Realty Income Corporation (NYSE:O) seems to be forming a pattern of major movements, providing only some crumbs of outlook for market participants trying to figure out its next move. Now trading with a market value of 25.28B, the company has a mix of catalysts and obstacles that spring from the nature of its operations. As the day-to-day narrative ebbs and flows for this company, it is more important than ever to step back and get a bird’s eye view of the fundamental reality under the surface of this story.Realty Income Corporation (NYSE:O) Fundamentals That Matter
It’s generally a good idea to start with the most fundamental piece of the picture: the balance sheet. The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For O, the company currently has 3.02 billion of cash on the books, which is offset by 2.98 billion in current liabilities. The trend over time is important to note. In this case, the company’s debt has been growing. The company also has 7.86 billion in total assets, balanced by 0 in total liabilities, which should give you a sense of the viability of the company under any number of imagined business contexts.
Realty Income Corporation saw 1.26 million in free cash flow last quarter, representing a quarterly net change in cash of 238218. Perhaps most importantly where cash movements are concerned, the company saw about 777706 in net operating cash flow.
As far as key trends that demonstrate something of the future investment potential of this stock, we need to take a closer look at the top line, first and foremost. Last quarter, the company saw 374.25 million in total revenues. That represents a quarterly year/year change in revenues of 0.10% in sequential terms, the O saw sales decline by 0.02%.
But what about the bottom line? After all, that’s what really matters in the end. Realty Income Corporation is intriguing when broken down to its core data. The cost of selling goods last quarter was 273.15 million, yielding a gross basic income of 101.1 million. For shareholders, given the total diluted outstanding shares of 324.99M, this means overall earnings per share of 320. Note, this compares with a consensus analyst forecast of 0.86 in earnings per share for its next fiscal quarterly report.
Looking ahead at valuations, according to the consensus, the next fiscal year is forecast to bring about 3.52 in total earnings per share. However, one should always remember: the trends are more important than the forecasts. This continues to be an interesting story, and we look forward to updating it again soon on Realty Income Corporation.