Fact based stock research
Vector Group (NYSE:VGR)

US92240M1080

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Vector Group stock research in summary

vectorgroupltd.com

ANALYSIS: With an Obermatt Combined Rank of 62 (better than 62% compared with investment alternatives), Vector Group (Tobacco, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Vector Group are a good value (attractively priced) with a consolidated Value Rank of 95 (better than 95% of alternatives) but show below-average growth (Growth Rank of 37), and are riskily financed (Safety Rank of 49), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 62, is a buy recommendation based on Vector Group's financial characteristics. As the company Vector Group's key financial metrics exhibit good value (Obermatt Value Rank of 95) but low growth (Obermatt Growth Rank of 37) and risky financing practices (Obermatt Safety Rank of 49), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 95% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	95
Growth Rank	37
Safety Rank	49
Combined Rank	62

Country	USA
Industry	Tobacco
Index	Dividends USA
Size class	Large

10-Oct-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Vector Group

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	84	100	100	95
GROWTH
GROWTH	95	89	17	37
SAFETY
SAFETY	1	43	49	49
SENTIMENT
SENTIMENT	n/a	90	98	^new
360° VIEW
360° VIEW	n/a	97	88	^new

Most recent update of the stock research: 10-Oct-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Vector Group is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	84	100	100	95
GROWTH
GROWTH	95	89	17	37
SAFETY
SAFETY	1	43	49	49
COMBINED
COMBINED	67	87	63	62

Last update of combined financial performance: 10-Oct-2024. Stock analysis on combined financial performance: The higher the rank of Vector Group the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 95 (better than 95% compared with alternatives) for 2024, Vector Group shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Vector Group. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 86 which means that the stock price compared with what market professionals expect for future profits is lower than for 86% of comparable companies, indicating a good value concerning Vector Group's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 94, and for Dividend Yield with a Dividend Yield Rank of 96. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 62% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 38). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 95, is a buy recommendation based on Vector Group's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Vector Group has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Vector Group shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	74	77	50	38
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	63	89	94	86
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	83	96	95	94
DIVIDEND YIELD
DIVIDEND YIELD	71	98	96	96
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	84	100	100	95

Last update of Value Rank: 10-Oct-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Vector Group; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 37 (better than 37% compared with alternatives), Vector Group shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Vector Group. Capital Growth has a rank of 50, which means that currently professionals expect the company to grow its invested capital more than 42% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 73 (above 73% of alternative investments). But Sales Growth has only a rank of 19, which means that, currently, professionals expect the company to grow less than 81% of its competitors, and Profit Growth is also low at a rank of 42. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 37, is a hold recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Vector Group, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	85	65	51	19
PROFIT GROWTH
PROFIT GROWTH	100	77	62	42
CAPITAL GROWTH
CAPITAL GROWTH	n/a	54	1	50
STOCK RETURNS
STOCK RETURNS	78	87	49	73
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	95	89	17	37

Last update of Growth Rank: 10-Oct-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Vector Group.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 49 (better than 49% compared with alternatives), the company Vector Group has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Vector Group is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Vector Group. Refinancing is at 77, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 77% of its competitors. Liquidity is also good at 57, meaning the company generates more profit to service its debt than 57% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 4, which means the company has an above-average debt-to-equity ratio. It has more debt than 96% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 49 (worse than 51% compared with alternatives), Vector Group has a financing structure that is riskier than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Vector Group could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Vector Group and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	26	1	1	4
REFINANCING
REFINANCING	13	88	85	77
LIQUIDITY
LIQUIDITY	26	53	56	57
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	1	43	49	49

Last update of Safety Rank: 10-Oct-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Vector Group and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	68	95	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	94	92	^new
MARKET PULSE
MARKET PULSE	n/a	64	73	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	90	98	^new

Last update of Sentiment Rank: 10-Oct-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Vector Group.
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