CARETRUST REIT INC (CTRE) Stock Fundamental Analysis
NYSE:CTRE - New York Stock Exchange, Inc. - US14174T1079 - REIT - Currency: USD
Overall CTRE gets a fundamental rating of 6 out of 10. We evaluated CTRE against 130 industry peers in the Diversified REITs industry. While CTRE has a great profitability rating, there are quite some 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 90.00% of its industry peers.
CTRE has a Return On Equity of 5.52%. This is in the better half of the industry: CTRE outperforms 71.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.60%, CTRE belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
CTRE had an Average Return On Invested Capital over the past 3 years of 5.24%. This 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 better Profit Margin (49.00%) than 97.69% of its industry peers.
CTRE's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 66.50%, CTRE belongs to the best of the industry, outperforming 99.23% of the companies in the same industry.
CTRE's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 98.44%, CTRE belongs to the best of the industry, outperforming 98.46% of the companies in the same industry.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CTRE is destroying value.
The number of shares outstanding for CTRE has been increased compared to 1 year ago.
The number of shares outstanding for CTRE has been increased compared to 5 years ago.
The debt/assets ratio for CTRE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.97 indicates that CTRE is not in any danger for bankruptcy at the moment.
The Altman-Z score of CTRE (3.97) is better than 99.23% of its industry peers.
CTRE has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CTRE (0.28) is better than 96.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.97 |
ROIC/WACC0.54
WACC8.58%
2.3 Liquidity
CTRE has a Current Ratio of 0.25. This is a bad value and indicates that CTRE is not financially healthy enough and could expect problems in meeting its short term obligations.
CTRE has a Current ratio of 0.25. This is amonst the worse of the industry: CTRE underperforms 88.46% of its industry peers.
A Quick Ratio of 0.25 indicates that CTRE may have some problems paying its short term obligations.
CTRE has a worse Quick ratio (0.25) than 88.46% of its industry peers.
| 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 122.03%, 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.
Looking at the last year, CTRE shows a very strong growth in Revenue. The Revenue has grown by 36.05%.
CTRE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.64% yearly.
EPS 1Y (TTM)122.03%
EPS 3Y-1.19%
EPS 5Y11.3%
EPS Q2Q%514.29%
Revenue 1Y (TTM)36.05%
Revenue growth 3Y15.48%
Revenue growth 5Y12.64%
Sales Q2Q%102.99%
3.2 Future
The Earnings Per Share is expected to grow by 23.02% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 26.62% on average over the next years. This is a very strong growth
EPS Next Y74.15%
EPS Next 2Y35.45%
EPS Next 3Y23.02%
EPS Next 5YN/A
Revenue Next Year37.09%
Revenue Next 2Y28.42%
Revenue Next 3Y26.62%
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
CTRE is valuated quite expensively with a Price/Earnings ratio of 25.11.
67.69% of the companies in the same industry are more expensive than CTRE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CTRE to the average of the S&P500 Index (26.48), we can say CTRE is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.87, the valuation of CTRE can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CTRE is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
CTRE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.11 | ||
| Fwd PE | 21.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTRE is valued more expensive than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.06 |
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.
CTRE has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CTRE's earnings are expected to grow with 23.02% in the coming years.
PEG (NY)0.34
PEG (5Y)2.22
EPS Next 2Y35.45%
EPS Next 3Y23.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.10%, CTRE is a good candidate for dividend investing.
CTRE's Dividend Yield is slightly below the industry average, which is at 6.72.
Compared to an average S&P500 Dividend Yield of 2.39, CTRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
5.2 History
The dividend of CTRE has a limited annual growth rate of 4.05%.
CTRE has paid a dividend for at least 10 years, which is 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
117.58% of the earnings are spent on dividend by CTRE. This is not a sustainable payout ratio.
CTRE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP117.58%
EPS Next 2Y35.45%
EPS Next 3Y23.02%
32.9
+0.35 (+1.08%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.69%
Inst Owner Change0.18%
Ins Owners0.56%
Ins Owner Change1.14%
Market Cap6.31B
Analysts85.33
Price Target33.89 (3.01%)
Short Float %3.34%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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)2.54%
PT rev (3m)4.91%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-6.65%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)-5.62%
Revenue NQ rev (1m)1.67%
Revenue NQ rev (3m)-7.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.11 | ||
| Fwd PE | 21.87 | ||
| P/S | 19.12 | ||
| P/FCF | N/A | ||
| P/OCF | 23.64 | ||
| P/B | 2.15 | ||
| P/tB | 2.15 | ||
| EV/EBITDA | 25.06 |
EPS(TTM)1.31
EY3.98%
EPS(NY)1.5
Fwd EY4.57%
FCF(TTM)-2.76
FCFYN/A
OCF(TTM)1.39
OCFY4.23%
SpS1.72
BVpS15.27
TBVpS15.27
PEG (NY)0.34
PEG (5Y)2.22
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 | 3.97 |
F-Score5
WACC8.58%
ROIC/WACC0.54
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)122.03%
EPS 3Y-1.19%
EPS 5Y11.3%
EPS Q2Q%514.29%
EPS Next Y74.15%
EPS Next 2Y35.45%
EPS Next 3Y23.02%
EPS Next 5YN/A
Revenue 1Y (TTM)36.05%
Revenue growth 3Y15.48%
Revenue growth 5Y12.64%
Sales Q2Q%102.99%
Revenue Next Year37.09%
Revenue Next 2Y28.42%
Revenue Next 3Y26.62%
Revenue Next 5YN/A
EBIT growth 1Y52.29%
EBIT growth 3Y21.72%
EBIT growth 5Y16.53%
EBIT Next Year178.37%
EBIT Next 3Y54.56%
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%