Realty Income Corporation (O) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Real Estate · REIT - Retail
Is Realty Income Corporation a safe investment right now?
Realty Income Corporation is in the Real Estate sector — Altman Z-Score does not apply to this type of company. Our fair value estimate is $68.30 (Watch Zone).
Why the Altman Z-Score does not apply to Realty Income Corporation
The Altman Z-Score is designed for manufacturing and non-financial companies. It uses ratios like Working Capital / Total Assets and Revenue / Total Assets that produce misleading results for Real Estate companies.
- Banks hold massive assets (loans) that inflate Total Assets, making WC/TA nearly zero — a false distress signal
- Utilities carry high regulated debt by design — the model misreads leverage as risk
- REITs use Funds From Operations (FFO), not Free Cash Flow — standard cash flow analysis doesn't apply
Altman Z-Score is designed for manufacturing companies and does not apply to banks, utilities, or REITs.
Note: A sector-specific financial health model for Real Estate companies is planned for a future update.
What is Realty Income Corporation actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Analyst Consensus Target | $68.30 | 20 Wall Street analysts |
| Analyst High / Low | $75.00 / $61.50 | Range of analyst price targets |
| Price / Book | 1.50x | Current market valuation vs book value |
| Return on Equity | 2.7% | Profitability relative to shareholder equity |
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Why standard moat analysis does not apply to Realty Income Corporation
Our standard moat model uses ROIC stability, gross margin trends, and switching costs — metrics designed for product and service companies. Real Estate companies compete on fundamentally different dimensions.
- Banks — moat comes from deposit cost advantage, net interest margin stability, and fee income diversification
- Utilities — moat is a regulatory monopoly with guaranteed rate of return on invested capital
- REITs — moat comes from property portfolio quality, location, tenant mix, and cap rate advantages
Standard moat analysis (ROIC/gross margin/switching costs) does not reliably apply to Real Estate companies. Banks compete on net interest margin, utilities on regulated returns, and REITs on occupancy and cap rates.
Note: A sector-specific competitive analysis for Real Estate companies is planned for a future update.
Is Realty Income Corporation's dividend safe?
Can Realty Income Corporation afford its dividend?
Payout ratio is 275.5%. FCF covers the dividend 1.4x. 33 consecutive years of payments.
Realty Income Corporation's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $5.7B | $5.3B | $3.3B | Rising |
| Net Income | $1.1B | $0.9B | $0.9B | Rising |
| Free Cash Flow | $4.0B | $3.6B | $2.6B | Rising |
| Gross Margin | 92.5% | 92.8% | 93.2% | Stable |
Recent events that affect our O analysis
O earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.42. Revenue estimate: $1.39B. Our current Fair Value: $68.30 — a significant beat or miss could shift this estimate.
O analyst consensus: 29% bullish (7 of 24 analysts)
3 Strong Buy, 4 Buy, 16 Hold, 0 Sell, 1 Strong Sell. Consensus target: $68.30 (7.8% upside). Compare with our independent Fair Value: $68.30.
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O paid $0.2710/share dividend
Dividend Safety Grade: C. Payout ratio: 275.5%.
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O paid $0.2700/share dividend
Dividend Safety Grade: C. Payout ratio: 275.5%.
O filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
O missed EPS estimates by 16.5%
Reported EPS: $0.32 vs estimate $0.38. Our Fair Value of $68.30 may face downward pressure if the trend continues.
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O paid $0.2700/share dividend
Dividend Safety Grade: C. Payout ratio: 275.5%.
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O paid $0.2700/share dividend
Dividend Safety Grade: C. Payout ratio: 275.5%.
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O paid $0.2700/share dividend
Dividend Safety Grade: C. Payout ratio: 275.5%.
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
O missed EPS estimates by 10.8%
Reported EPS: $0.36 vs estimate $0.40. Our Fair Value of $68.30 may face downward pressure if the trend continues.
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O paid $0.2700/share dividend
Dividend Safety Grade: C. Payout ratio: 275.5%.
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O paid $0.2700/share dividend
Dividend Safety Grade: C. Payout ratio: 275.5%.
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O paid $0.2690/share dividend
Dividend Safety Grade: C. Payout ratio: 275.5%.
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
O missed EPS estimates by 45.1%
Reported EPS: $0.22 vs estimate $0.40. Our Fair Value of $68.30 may face downward pressure if the trend continues.
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O paid $0.2690/share dividend
Dividend Safety Grade: C. Payout ratio: 275.5%.
O paid $0.2690/share dividend
Dividend Safety Grade: C. Payout ratio: 275.5%.
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O paid $0.2690/share dividend
Dividend Safety Grade: C. Payout ratio: 275.5%.
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
O missed EPS estimates by 15.0%
Reported EPS: $0.28 vs estimate $0.33. Our Fair Value of $68.30 may face downward pressure if the trend continues.
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O paid $0.2690/share dividend
Dividend Safety Grade: C. Payout ratio: 275.5%.
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O paid $0.2690/share dividend
Dividend Safety Grade: C. Payout ratio: 275.5%.
O paid $0.2680/share dividend
Dividend Safety Grade: C. Payout ratio: 275.5%.
O filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
O missed EPS estimates by 44.4%
Reported EPS: $0.22 vs estimate $0.39. Our Fair Value of $68.30 may face downward pressure if the trend continues.
O filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
O paid $0.2640/share dividend
Dividend Safety Grade: C. Payout ratio: 275.5%.
O paid $0.2640/share dividend
Dividend Safety Grade: C. Payout ratio: 275.5%.
Common questions about Realty Income Corporation
What is Realty Income Corporation stock price today?
Realty Income Corporation (O) stock price is $63.34 as of the latest market close, traded on the NYSE exchange.
What does Realty Income Corporation do?
Realty Income Corporation, an S&P 500 company, is real estate partner to the world's leading companies. We serve our clients as a full-service real estate capital provider. As of December 31, 2025, we have a portfolio of over 15,500 properties in all 50 states of the United States (U.S.), the United Kingdom (U.K.), and eight other countries in Europe.
What is Realty Income Corporation market cap?
Realty Income Corporation has a market capitalization of $59.06B, classifying it as a large-cap stock in the Real Estate sector.
What sector and industry is O in?
Realty Income Corporation operates in the Real Estate sector, specifically within the REIT - Retail industry. It trades on the NYSE under the ticker symbol O.
Is O stock overvalued or undervalued?
Based on our valuation model, Realty Income Corporation trades 7.3% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $68.30
- Current Price: $63.34
- Valuation Zone: Watch Zone
What is O stock forecast and analyst target price?
Based on 20 Wall Street analysts, the consensus price target for Realty Income Corporation is $68.30, implying upside of 7.8% from the current price.
- Analyst High Target: $75.00
- Analyst Low Target: $61.50
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Realty Income Corporation revenue and earnings growing?
Here are the analyst consensus growth estimates for Realty Income Corporation:
- Revenue growth (current year est.): 4.4%
- EPS growth (current year est.): 42.0%
- Revenue growth (next year est.): 6.5%
- EPS growth (next year est.): 7.4%
What are Realty Income Corporation's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $5.7B | Rising |
| Net Income | $1.1B | Rising |
| Free Cash Flow | $4.0B | Rising |
| Gross Margin | 92.5% | Stable |
What is O's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 54.1x
- Forward P/E (next 12 months est.): 34.8x
How volatile is O stock?
Realty Income Corporation has a beta of 0.80, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Realty Income Corporation have?
Realty Income Corporation's balance sheet shows:
- Total Cash: $439.9M
- Total Debt: $29.49B
- Net Cash Position: $-29.05B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Realty Income Corporation's free cash flow?
Realty Income Corporation generated $2.68B in trailing twelve-month free cash flow (from $3.99B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Realty Income Corporation pay a dividend, and is it safe?
Yes, Realty Income Corporation pays a regular dividend. Here are the key metrics:
- Dividend Yield: 5.0%
- Payout Ratio: 275.5%
- Consecutive Years Paid: 33
- 5-Year Dividend Growth: -21.8%
- FairValueLabs Safety Grade: C
Is Realty Income Corporation financially healthy?
The Altman Z-Score — the standard bankruptcy prediction model — is not applicable to Real Estate companies like Realty Income Corporation. The formula uses ratios designed for manufacturing firms that produce misleading results for banks, utilities, and REITs.
Does Realty Income Corporation have a competitive moat?
Our standard moat model (based on ROIC, gross margins, and switching costs) does not apply to Real Estate companies. These firms compete on fundamentally different dimensions such as regulatory advantages, deposit cost structures, or property portfolios.
What is O's return on equity (ROE)?
Realty Income Corporation's return on equity is 2.7%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy O stock?
O shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol O
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is O a value stock or speculative?
FairValueLabs classifies Realty Income Corporation as Value-Speculation. It has some value characteristics but carries elevated risk factors that make it speculative. Extra due diligence is recommended.
Who is the CEO of Realty Income Corporation?
The current CEO of Realty Income Corporation is Mr. Sumit Roy.
What is O's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $1.17
- Forward EPS (next 12 months est.): $1.82
- Analyst consensus EPS (this year): $1.66
- Analyst consensus EPS (next year): $1.82
Other Real Estate companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
O analysis methodology: How we calculate fair value, Z-Scores, and moat ratings