Fundamental Facts for VICI Properties Investors

Today we're going to take a closer look at large-cap Real Estate company VICI Properties, whose shares are currently trading at $30.88. 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!

The Market May Be Undervaluing VICI Properties's Assets and Equity:

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 13.8 and a P/B ratio of 1.31.

VICI Properties's PEG ratio is 1.77, 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:

2018-02-01 2019-02-14 2020-02-20 2021-02-18 2022-02-23 2023-02-23
Revenue (MM) $188 $898 $895 $1,226 $1,510 $2,601
Operating Margins 82% 86% 95% 94% 94% 95%
Net Margins 23.0% 57.0% 61.0% 73.0% 67.0% 43.0%
Net Income (MM) $43 $524 $546 $892 $1,014 $1,118
Net Interest Expense (MM) -$63 -$201 -$228 -$302 -$392 -$530
Depreciation & Amort. (MM) -$1 -$4 -$4 -$4 -$3 -$3
Earnings Per Share $0.12 $1.43 $1.24 $1.75 $1.76 $1.94
EPS Growth n/a 1091.67% -13.29% 41.13% 0.57% 10.23%
Diluted Shares (MM) 356 367 439 511 577 577
Free Cash Flow (MM) $129 $505 $684 $836 $886 $1,945
Capital Expenditures (MM) -$0 -$1 -$2 $47 $11 -$2
Net Current Assets (MM) n/a n/a n/a n/a $11,609 $19,522
Long Term Debt (MM) n/a n/a n/a n/a $4,695 $13,740
LT Debt to Equity n/a n/a n/a n/a 0.39 0.62

VICI Properties benefits from strong margins with a stable trend, exceptional EPS growth, and a pattern of improving cash flows. The company's financial statements show an excellent current ratio and healthy debt levels. Furthermore, VICI Properties has weak revenue growth and a flat capital expenditure trend.

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.