Bull Rankings model

Realty Income Corporation (O) stock analysis

REIT - Retail. Scored on the same transparent model behind the daily rankings.

★
O
Realty Income Corporation · REIT - Retail
75.6REIT strength
$54.99Oct 13 close$52.0B
1Y Target$66.06Analyst consensus · 21 analysts
5Y Target$96.72Compound horizon
10Y Target$143.47Long-dated conviction
Yield6.0%
A-
Yield 6.0% — strong income · REITs are valued on FFO / AFFO, which our data source doesn't provide — we grade income, growth, and sector-relative leverage instead.
Rev+9.1%
B
Revenue +9.1% — at or above S&P median
D/E0.75
B+
D/E 0.75 — below the Real Estate debt median (≈40th pctile)

Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology

Financial strength · 75.6 / 100
Profitability41.5
Value (P/B)78.4
Income96.7

A peer-relative read for reits on profitability (ROE, depreciation-adjusted), valuation, and covered income — the quality-growth (FCF/ROIC) screen doesn't apply to balance-sheet businesses. Not comparable to the 0–100 quality-growth score shown on other stocks.

Entry · Margin of safety
52-week rangeNear 52-week low
19% off the 12-month high

Model-generatedFrom reported fundamentals, checked against the figures above · Editorial standards

Why now
REIT - Retail · market cap $52.0b. 19% off the 52-week high of $67.94. 21 sell-side analysts rate this a Hold with a mean 1-yr target of $66.06 (implying +20% upside).
Moat
Net margin 21% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. $52.0b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Dividend payout 235% of earnings on a 6.0% yield — distribution coverage is thin; one earnings stumble could force a dividend cut. ROE 3% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.
Horizon
1-3 yr $66.06 (21-analyst consensus) — fundamentals + valuation re-rating. 5 yr $96.72 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $143.47 if current growth sustains into durable earnings power.

Not enough history yet — the model records O's score after each daily run, and the chart appears once a few days have accumulated.

O at a glance

FINANCIAL STRENGTH · REITPROFITABILITY42VALUE78COVERED INCOME9775.6/100 on our peer scale — not the quality-growth score.
PRICE IN ITS 52-WEEK RANGE$55LOW $53.2HIGH $67.9Trading near its 52-week low ($53.2–$67.9).
ONE-YEAR MOVE VS ITS BETAFLATThis stock-8%Trailing one-year price change. Price history is not an inputto the Bull Rankings score.

Same audited fundamentals as the score, unless a card says otherwise.

Analyst estimate revisions

30-day change+0.0%
90-day change-8.5%
Forward EPS estimate$1.55

Over the last 90 days, what analysts expect O to earn is materially lower (-8.5%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

Estimates move both ways and are not part of the Bull Rankings score. Biggest movers →

Shares to buy
36
Position size
$1,980
4.0% of portfolio
Stop price
$41.24
25% below $54.99
$ at risk if stopped
$494.91
budget $500.00 · 1% of portfolio

Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.

Realty Income Corporation (O): score, valuation & FAQ

Realty Income Corporation (O) is a REIT - Retail company. As a bank, insurer or REIT it runs on a different financial model from the rest of the market, so Bull Rankings grades it on a sector-appropriate card — price-to-book, dividend yield, payout ratio and cash-flow coverage — rather than the 0–100 quality-growth score used elsewhere. The read below is a transparent screen, not a buy recommendation.

Its strongest graded signals are Yield (A-) and D/E (B+).

Is O a good stock to buy?

Bull Rankings grades O on a sector-appropriate card — price-to-book, dividend yield, payout and cash-flow coverage — rather than a single quality-growth score. That is driven by Yield (A-) and D/E (B+). A score is a quantitative screen of Realty Income Corporation's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

How does Bull Rankings grade O?

As a bank, insurer or REIT, O isn't given a quality-growth score — signals like free cash flow, debt-to-equity and P/E don't translate cleanly to a balance-sheet business. Instead it's graded on a sector-appropriate card: price-to-book, dividend yield, payout ratio and operating-cash-flow coverage, where it rates strongest on Yield (A-) and D/E (B+).

Is O overvalued or undervalued?

We don't publish a discounted-cash-flow value for O, and not because the business is unprofitable. For a lender, insurer or property trust, "free cash flow" measures balance-sheet growth rather than owner earnings — loan originations and repayments run through operating cash flow — so discounting it would produce a confident-looking number with nothing behind it. O is judged on book value, return on equity and income cover instead, which is what the financial-strength card shows.

What are the main risks of investing in O?

Dividend payout 235% of earnings on a 6.0% yield — distribution coverage is thin; one earnings stumble could force a dividend cut. ROE 3% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.

New to these metrics? See the guides and the methodology.

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