📊 O Key Takeaways
Is Realty Income Corp. (O) a Good Investment?
Realty Income exhibits solid revenue growth of 9.1% and exceptional cash generation (56.5% FCF margin) with a fortress balance sheet (0.12x debt/equity), but critically weak interest coverage of 0.5x signals insufficient operating income to service debt obligations. Flat net income despite rising revenues indicates concerning margin compression or structural profitability headwinds.
Realty Income shows solid fundamental stability, with 9.1% revenue growth and very strong operating cash generation relative to revenue. However, flat net income, low ROA/ROE, and weak 1.5x interest coverage suggest that growth quality is only moderate and that balance sheet capacity should be monitored carefully as financing costs remain important for a REIT.
Realty Income Corp. Key Strengths (O)
- Strong operating cash flow of $874.5M with exceptional 56.5% FCF margin demonstrates high-quality earnings
- Revenue growth of 9.1% YoY shows solid organic business expansion
- Fortress balance sheet: 0.12x debt/equity ratio with $39.1B stockholders' equity provides substantial financial cushion
- Revenue growth remains healthy at 9.1% year over year, indicating continued portfolio expansion and rental income growth
- Operating cash flow is strong at $3.99B, supporting the business with substantial internally generated cash
- Net margin of 18.4% and a large equity base provide evidence of earnings resilience and asset-backed financial stability
O Stock Risks: Realty Income Corp. Investment Risks
- Interest coverage of 0.5x is critically low—operating income cannot cover interest expenses, indicating unsustainable debt structure
- Net income flat YoY despite 9.1% revenue growth reveals margin compression and deteriorating operational leverage
- Extremely weak return metrics (0.8% ROE, 0.4% ROA) indicate severe capital inefficiency despite $74.6B asset base
- Net income was flat year over year, which raises concerns about how efficiently new growth is translating into bottom-line gains
- Interest coverage of 1.5x is thin, leaving limited room if financing costs rise or operating performance weakens
- Return metrics are low, with ROE at 2.7% and ROA at 1.5%, indicating modest profitability relative to the capital employed
Key Metrics to Watch
- Interest coverage ratio—must improve to 2.0x+ to demonstrate sustainable debt servicing capacity
- Net income growth rate relative to revenue growth—margin expansion critical to validate business model
- Operating cash flow to interest expense ratio and dividend payout sustainability
- Interest coverage and total fixed-charge burden
- Operating cash flow growth relative to revenue and net income
Realty Income Corp. (O) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 56.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
O Profit Margin, ROE & Profitability Analysis
O vs Real Estate Sector: How Realty Income Corp. Compares
How Realty Income Corp. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Realty Income Corp. Stock Overvalued? O Valuation Analysis 2026
Based on fundamental analysis, Realty Income Corp. has mixed fundamental signals relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Realty Income Corp. Balance Sheet: O Debt, Cash & Liquidity
O Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Realty Income Corp.'s revenue has grown significantly by 176% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.26 reflects profitable operations.
O Revenue Growth, EPS Growth & YoY Performance
O Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.4B | N/A | $0.28 |
| Q3 2025 | $1.3B | $269.5M | $0.30 |
| Q2 2025 | $1.3B | $196.9M | $0.22 |
| Q1 2025 | $1.3B | $132.3M | $0.16 |
| Q3 2024 | $1.0B | $233.5M | $0.30 |
| Q2 2024 | $1.0B | $195.4M | $0.29 |
| Q1 2024 | $944.4M | $132.3M | $0.16 |
| Q3 2023 | $837.3M | $219.6M | $0.33 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Realty Income Corp. Dividends, Buybacks & Capital Allocation
O SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Realty Income Corp. (CIK: 0000726728)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779834758.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779834628.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779834507.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779834380.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779834192.xml | View → |
❓ Frequently Asked Questions about O
What is the AI rating for O?
Realty Income Corp. (O) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are O's key strengths?
Claude: Strong operating cash flow of $874.5M with exceptional 56.5% FCF margin demonstrates high-quality earnings. Revenue growth of 9.1% YoY shows solid organic business expansion. ChatGPT: Revenue growth remains healthy at 9.1% year over year, indicating continued portfolio expansion and rental income growth. Operating cash flow is strong at $3.99B, supporting the business with substantial internally generated cash.
What are the risks of investing in O?
Claude: Interest coverage of 0.5x is critically low—operating income cannot cover interest expenses, indicating unsustainable debt structure. Net income flat YoY despite 9.1% revenue growth reveals margin compression and deteriorating operational leverage. ChatGPT: Net income was flat year over year, which raises concerns about how efficiently new growth is translating into bottom-line gains. Interest coverage of 1.5x is thin, leaving limited room if financing costs rise or operating performance weakens.
What is O's revenue and growth?
Realty Income Corp. reported revenue of $1.5B.
Does O pay dividends?
Realty Income Corp. pays dividends, with $758.0M distributed to shareholders in the trailing twelve months.
Where can I find O SEC filings?
Official SEC filings for Realty Income Corp. (CIK: 0000726728) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is O's EPS?
Realty Income Corp. has a diluted EPS of $0.33.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is O's fundamental grade?
Based on our AI fundamental analysis in June 2026, Realty Income Corp. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is O stock overvalued or undervalued?
Valuation metrics for O: ROE of 0.8% (sector avg: 8%), net margin of 20.1% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
What is O's AI grade for 2026?
Our dual AI analysis gives Realty Income Corp. a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is O's free cash flow?
Realty Income Corp.'s operating cash flow is $874.5M, with capital expenditures of N/A. FCF margin is 56.5%.
How does O compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 20.1% (avg: 20%), ROE 0.8% (avg: 8%), current ratio N/A (avg: 1.5).