CARETRUST REIT INC (CTRE) Stock Fundamental Analysis
NYSE:CTRE - New York Stock Exchange, Inc. - US14174T1079 - REIT - Currency: USD
CTRE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. CTRE scores excellent on profitability, but there are concerns on its financial health. CTRE is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year CTRE was profitable.
CTRE had a positive operating cash flow in the past year.
Of the past 5 years CTRE 4 years were profitable.
CTRE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTRE has a better Return On Assets (4.16%) than 89.92% of its industry peers.
CTRE's Return On Equity of 5.52% is fine compared to the rest of the industry. CTRE outperforms 71.32% of its industry peers.
CTRE has a better Return On Invested Capital (4.60%) than 86.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTRE is above the industry average of 3.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.16% | ||
| ROE | 5.52% | ||
| ROIC | 4.6% |
ROA(3y)1.9%
ROA(5y)3.08%
ROE(3y)2.37%
ROE(5y)4.75%
ROIC(3y)5.24%
ROIC(5y)5.34%
1.3 Margins
CTRE has a Profit Margin of 49.00%. This is amongst the best in the industry. CTRE outperforms 97.67% of its industry peers.
In the last couple of years the Profit Margin of CTRE has grown nicely.
With an excellent Operating Margin value of 66.50%, CTRE belongs to the best of the industry, outperforming 99.22% of the companies in the same industry.
In the last couple of years the Operating Margin of CTRE has grown nicely.
CTRE has a better Gross Margin (98.44%) than 98.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 66.5% | ||
| PM (TTM) | 49% | ||
| GM | 98.44% |
OM growth 3Y5.41%
OM growth 5Y3.45%
PM growth 3Y4.22%
PM growth 5Y8.32%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
CTRE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CTRE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTRE has more shares outstanding
Compared to 1 year ago, CTRE has an improved debt to assets ratio.
2.2 Solvency
CTRE has an Altman-Z score of 3.47. This indicates that CTRE is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.47, CTRE belongs to the best of the industry, outperforming 98.45% of the companies in the same industry.
CTRE has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.28, CTRE belongs to the top of the industry, outperforming 96.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.47 |
ROIC/WACC0.53
WACC8.62%
2.3 Liquidity
A Current Ratio of 0.25 indicates that CTRE may have some problems paying its short term obligations.
CTRE has a worse Current ratio (0.25) than 86.05% of its industry peers.
A Quick Ratio of 0.25 indicates that CTRE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.25, CTRE is doing worse than 85.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
CTRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 86.27%, which is quite impressive.
Measured over the past years, CTRE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.30% on average per year.
The Revenue has grown by 43.26% in the past year. This is a very strong growth!
Measured over the past years, CTRE shows a quite strong growth in Revenue. The Revenue has been growing by 12.64% on average per year.
EPS 1Y (TTM)86.27%
EPS 3Y-1.19%
EPS 5Y11.3%
EPS Q2Q%59.09%
Revenue 1Y (TTM)43.26%
Revenue growth 3Y15.48%
Revenue growth 5Y12.64%
Sales Q2Q%33.91%
3.2 Future
The Earnings Per Share is expected to grow by 27.34% on average over the next years. This is a very strong growth
CTRE is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.34% yearly.
EPS Next Y84.51%
EPS Next 2Y42.1%
EPS Next 3Y27.34%
EPS Next 5YN/A
Revenue Next Year39.39%
Revenue Next 2Y25.74%
Revenue Next 3Y27.34%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.33, which means the current valuation is very expensive for CTRE.
Compared to the rest of the industry, the Price/Earnings ratio of CTRE indicates a somewhat cheap valuation: CTRE is cheaper than 62.02% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, CTRE is valued at the same level.
The Price/Forward Earnings ratio is 17.40, which indicates a rather expensive current valuation of CTRE.
Based on the Price/Forward Earnings ratio, CTRE is valued cheaper than 93.80% of the companies in the same industry.
CTRE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.33 | ||
| Fwd PE | 17.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTRE indicates a rather expensive valuation: CTRE more expensive than 89.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.23 |
4.3 Compensation for Growth
CTRE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of CTRE may justify a higher PE ratio.
CTRE's earnings are expected to grow with 27.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)2.68
EPS Next 2Y42.1%
EPS Next 3Y27.34%
5. Dividend
5.1 Amount
CTRE has a Yearly Dividend Yield of 4.59%, which is a nice return.
CTRE's Dividend Yield is comparable with the industry average which is at 6.75.
CTRE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
The dividend of CTRE has a limited annual growth rate of 4.05%.
CTRE has been paying a dividend for at least 10 years, so it has a reliable track record.
As CTRE did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.05%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
CTRE pays out 117.58% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CTRE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP117.58%
EPS Next 2Y42.1%
EPS Next 3Y27.34%
28.81
-0.2 (-0.69%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.95%
Inst Owner Change-0.68%
Ins Owners0.54%
Ins Owner Change6.01%
Market Cap5.41B
Analysts80
Price Target32.53 (12.91%)
Short Float %2.42%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
Yearly Dividend1.09
Dividend Growth(5Y)4.05%
DP117.58%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.23%
Min EPS beat(2)-6.76%
Max EPS beat(2)2.3%
EPS beat(4)1
Avg EPS beat(4)-26.85%
Min EPS beat(4)-73.43%
Max EPS beat(4)2.3%
EPS beat(8)1
Avg EPS beat(8)-37.63%
EPS beat(12)1
Avg EPS beat(12)-39.31%
EPS beat(16)3
Avg EPS beat(16)-30.17%
Revenue beat(2)0
Avg Revenue beat(2)-13.09%
Min Revenue beat(2)-15.93%
Max Revenue beat(2)-10.26%
Revenue beat(4)2
Avg Revenue beat(4)1.95%
Min Revenue beat(4)-15.93%
Max Revenue beat(4)33.8%
Revenue beat(8)4
Avg Revenue beat(8)1.81%
Revenue beat(12)6
Avg Revenue beat(12)1.25%
Revenue beat(16)8
Avg Revenue beat(16)0.61%
PT rev (1m)0.7%
PT rev (3m)-0.97%
EPS NQ rev (1m)-3.73%
EPS NQ rev (3m)2.4%
EPS NY rev (1m)0%
EPS NY rev (3m)8.54%
Revenue NQ rev (1m)-5.24%
Revenue NQ rev (3m)-5.02%
Revenue NY rev (1m)1.55%
Revenue NY rev (3m)6.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.33 | ||
| Fwd PE | 17.4 | ||
| P/S | 16.39 | ||
| P/FCF | N/A | ||
| P/OCF | 20.26 | ||
| P/B | 1.85 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 22.23 |
EPS(TTM)0.95
EY3.3%
EPS(NY)1.66
Fwd EY5.75%
FCF(TTM)-2.82
FCFYN/A
OCF(TTM)1.42
OCFY4.94%
SpS1.76
BVpS15.6
TBVpS15.6
PEG (NY)0.36
PEG (5Y)2.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.16% | ||
| ROE | 5.52% | ||
| ROCE | 5.82% | ||
| ROIC | 4.6% | ||
| ROICexc | 4.63% | ||
| ROICexgc | 4.63% | ||
| OM | 66.5% | ||
| PM (TTM) | 49% | ||
| GM | 98.44% | ||
| FCFM | N/A |
ROA(3y)1.9%
ROA(5y)3.08%
ROE(3y)2.37%
ROE(5y)4.75%
ROIC(3y)5.24%
ROIC(5y)5.34%
ROICexc(3y)5.66%
ROICexc(5y)5.62%
ROICexgc(3y)5.66%
ROICexgc(5y)5.62%
ROCE(3y)6.63%
ROCE(5y)6.75%
ROICexcg growth 3Y-3.12%
ROICexcg growth 5Y0.18%
ROICexc growth 3Y-3.12%
ROICexc growth 5Y0.18%
OM growth 3Y5.41%
OM growth 5Y3.45%
PM growth 3Y4.22%
PM growth 5Y8.32%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 1296.94% | ||
| Cap/Sales | 241.17% | ||
| Interest Coverage | 8.91 | ||
| Cash Conversion | 95.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 3.47 |
F-Score5
WACC8.62%
ROIC/WACC0.53
Cap/Depr(3y)658.62%
Cap/Depr(5y)503.99%
Cap/Sales(3y)134.69%
Cap/Sales(5y)112.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)86.27%
EPS 3Y-1.19%
EPS 5Y11.3%
EPS Q2Q%59.09%
EPS Next Y84.51%
EPS Next 2Y42.1%
EPS Next 3Y27.34%
EPS Next 5YN/A
Revenue 1Y (TTM)43.26%
Revenue growth 3Y15.48%
Revenue growth 5Y12.64%
Sales Q2Q%33.91%
Revenue Next Year39.39%
Revenue Next 2Y25.74%
Revenue Next 3Y27.34%
Revenue Next 5YN/A
EBIT growth 1Y52.29%
EBIT growth 3Y21.72%
EBIT growth 5Y16.53%
EBIT Next Year166.7%
EBIT Next 3Y54.71%
EBIT Next 5Y35.85%
FCF growth 1Y-484.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y84.14%
OCF growth 3Y15.9%
OCF growth 5Y14.1%