Quick Report on VICI Properties (VICI)

Today we're going to take a closer look at large-cap Real Estate company VICI Properties, whose shares are currently trading at $31.26. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!

A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:

VICI Properties Inc. is an S&P 500 experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas, three of the most iconic entertainment facilities on the Las Vegas Strip. The company belongs to the Real Estate sector, which has an average price to earnings (P/E) ratio of 24.81 and an average price to book (P/B) ratio of 2.24. In contrast, VICI Properties has a trailing 12 month P/E ratio of 21.7 and a P/B ratio of 1.35.

VICI Properties's PEG ratio is 1.85, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.

An Exceptionally Strong Balance Sheet:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $895 $1,226 $1,510 $2,601
Operating Margins 94.7% 74.5% 95.7% 62.8%
Net Margins 61.02% 72.76% 67.16% 42.97%
Net Income (MM) $546 $892 $1,014 $1,118
Net Interest Expense (MM) -228 -302 -392 -530
Net Interest Expense (MM) -$228 -$302 -$392 -$530
Depreciation & Amort. (MM) -$4 -$4 -$3 -$3
Earnings Per Share $1.24 $1.75 $1.76 $1.44
EPS Growth n/a 41.13% 0.57% -18.18%
Diluted Shares (MM) 439 511 577 1,004
Free Cash Flow (MM) $679 $881 $894 $1,942
Capital Expenditures (MM) -$3 -$3 -$3 -$2
Net Current Assets (MM) -$4,055 -$4,079 -$1,528 $2,567
Current Ratio 5.1 11.01 11.42 30.08
Long Term Debt (MM) $4,792 $6,766 $4,695 $13,740
Net Debt / EBITDA 7.26 5.38 2.8 8.18

VICI Properties benefits from strong margins with a negative growth trend, a pattern of improving cash flows, and an excellent current ratio. The company's financial statements show growing revenues and decreasing reinvestment in the business and positive EPS growth. However, the firm has a highly leveraged balance sheet.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.