Vornado Realty Trust Common Stock (VNO)

FairStock Score: 61/100 — STEADY

Key Financials

Strengths

• Generates $1.3 billion in annual free cash flow (23.7% yield on market cap)
• Solid return on equity of 14.4% above cost of capital
• Attractive 2.5% dividend yield providing steady income returns

Concerns

• Revenue declining at 0.9% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 0.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Vornado Realty Trust Common Stock is a small-cap real estate company valued at $5.3 billion. The business generates $1.9 billion in annual revenue with a 0.0% net margin and $1.3 billion in free cash flow. From a quality standpoint, Vornado shows distressed Altman Z-Score of 0.2 warrants caution and adequate 14% ROE. On valuation, the stock is deeply undervalued on a P/E basis at 6.9x, with offers a 48% margin of safety vs Graham Number of $54. Growth dynamics show revenue growing at -0.9% and profit growth of -3.6%. The 2.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 61/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates Vornado's consistent 14% ROE at just 7x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $1.3 billion in annual free cash flow (23.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the real estate space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer