Stock fact sheet · data as of
Realty Income Corporation (O): fair value, margin of safety and Wheel Score
Real Estate · REIT - Retail · United States · High Yield Income
Is O undervalued?
Realty Income Corporation (O) closed at 55.55 on 16 Oct 2026, 78% above the GLS average fair value of 31.27. 8 of the 9 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
There is a wide gap between GLS Growth (0.3693) and 10 Cap (60.28). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files O under High Yield Income: a dividend yield above 4%.
Nine valuation models for O
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 53.72 | -3% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 36.77 | -34% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 22.85 | -59% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 5.67 | -90% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 0.3693 | -99% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 60.28 | +9% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 38.30 | -31% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 47.75 | -14% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 15.74 | -72% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -32.96 | -159% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 64.16 | +15% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Realty Income Corporation scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability O scores 5.7/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are thin or negative - ROIC 1.5%, ROE 2.7%, ROA 1.5% - with debt at 0.83 times equity and a free-cash-flow yield of 4.2%.
The dividend yield is high at 5.84% (payout ratio 227%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Product And Service, Retail 100% (quarter Q4 FY2025).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 3/10 on the GLS smart-money scales; the last recorded Congressional buy was on 23 Jul 2026.
| Piotroski F-score | 6 / 9 | ROIC | 1.5% |
|---|---|---|---|
| GLS Moat | 5.7 / 10 | ROE | 2.7% |
| Debt / equity | 0.83 | ROA | 1.5% |
| Free-cash-flow yield | 4.2% | Payout ratio | 227% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 3 / 10 |
Wheel Score 51: Fair
A Wheel Score of 51 puts Realty Income Corporation in the Fair band - below the 70 the Sunday Scan requires. Value 0/25, Health 13/20, Moat 9/15, Premium 9/20 and Stability 20/20; the weakest part is Value (0/25).
Implied volatility is 24% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (9 of 20 points). The option chain is deep: 175,310 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 7.4M shares a day on a market cap of $52.6B, with a beta of 0.70 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -78% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 9 / 15 | moat 5.7/10 | |
| Premium | 9 / 20 | implied volatility 24% | |
| Stability | 20 / 20 | 7.4M shares/day, $52.6B cap, beta 0.70 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 2 Nov 2026 (after the close), 17 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium. The shares go ex-dividend on 30 Oct 2026 (0.2715 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in REIT - Retail
The 12 companies below are the closest to Realty Income Corporation by market cap within the REIT - Retail industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SPG Simon Property Group, Inc. | 198.70 | 185.06 | -7% | 65Good | $64.3B |
| KIM Kimco Realty Corporation | 22.67 | 21.24 | -7% | 65Good | $15.2B |
| REG Regency Centers Corporation | 71.77 | 48.52 | -48% | 56Fair | $13.1B |
| REGCO Regency Centers Corporation | 21.35 | 38.84 | +45% | 39No options | $13.1B |
| REGCP Regency Centers Corporation | 21.82 | 39.05 | +44% | 39No options | $13.1B |
| FRT Federal Realty Investment Trust | 105.68 | 74.69 | -41% | 54Fair | $9.2B |
| BRX Brixmor Property Group Inc. | 27.43 | 23.66 | -16% | 65Good | $8.4B |
| ADC Agree Realty Corporation | 66.56 | 51.60 | -29% | 58Fair | $8.3B |
| NNN NNN REIT, Inc. | 41.15 | 37.64 | -9% | 60Fair | $7.8B |
| MAC The Macerich Company | 23.09 | 10.03 | -130% | 45Weak | $6.8B |
| KRG Kite Realty Group Trust | 24.52 | 37.10 | +34% | 86Prime | $4.9B |
| PECO Phillips Edison & Co. | 37.58 | 31.75 | -18% | 58Fair | $4.8B |
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Start free See the Sunday ScanQuestions about O
Is O undervalued right now?
No: at 55.55 the stock trades 78% above the GLS average fair value of 31.27 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of O and what does it mean?
O scores 51 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for O?
31.27 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Realty Income Corporation report earnings next?
The next earnings report is due on 2 Nov 2026 (after the close), 17 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does O have listed options, and how liquid are they?
Yes. The nightly snapshot found 378 listed contracts with 175,310 open interest across all expiries and implied volatility of 24% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.