CARETRUST REIT INC (CTRE)
US14174T1079 - REIT
Taking everything into account, CTRE scores 6 out of 10 in our fundamental rating. CTRE was compared to 127 industry peers in the Diversified REITs industry. CTRE scores excellent on profitability, but there are some minor concerns on its financial health. CTRE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CTRE was profitable.
In the past year CTRE had a positive cash flow from operations.
CTRE had positive earnings in 4 of the past 5 years.
In the past 5 years CTRE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.68%, CTRE is in the better half of the industry, outperforming 72.58% of the companies in the same industry.
CTRE has a better Return On Equity (3.76%) than 63.71% of its industry peers.
With an excellent Return On Invested Capital value of 5.01%, CTRE belongs to the best of the industry, outperforming 92.74% of the companies in the same industry.
CTRE had an Average Return On Invested Capital over the past 3 years of 5.48%. This is above the industry average of 2.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 3.76% | ||
| ROIC | 5.01% |
ROA(3y)2.14%
ROA(5y)2.96%
ROE(3y)3.55%
ROE(5y)4.89%
ROIC(3y)5.48%
ROIC(5y)5.38%
1.3 Margins
With an excellent Profit Margin value of 27.30%, CTRE belongs to the best of the industry, outperforming 81.45% of the companies in the same industry.
In the last couple of years the Profit Margin of CTRE has declined.
CTRE has a Operating Margin of 62.56%. This is amongst the best in the industry. CTRE outperforms 98.39% of its industry peers.
In the last couple of years the Operating Margin of CTRE has grown nicely.
Looking at the Gross Margin, with a value of 98.65%, CTRE belongs to the top of the industry, outperforming 99.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 62.56% | ||
| PM (TTM) | 27.3% | ||
| GM | 98.65% |
OM growth 3Y1.9%
OM growth 5Y3.08%
PM growth 3Y-18.48%
PM growth 5Y-7.78%
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.
The number of shares outstanding for CTRE has been increased compared to 5 years ago.
Compared to 1 year ago, CTRE has an improved debt to assets ratio.
2.2 Solvency
CTRE has an Altman-Z score of 3.21. This indicates that CTRE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CTRE (3.21) is better than 96.77% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that CTRE is not too dependend on debt financing.
CTRE's Debt to Equity ratio of 0.36 is amongst the best of the industry. CTRE outperforms 95.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.21 |
ROIC/WACC0.59
WACC8.42%
2.3 Liquidity
CTRE has a Current Ratio of 6.27. This indicates that CTRE is financially healthy and has no problem in meeting its short term obligations.
CTRE has a Current ratio of 6.27. This is amongst the best in the industry. CTRE outperforms 96.77% of its industry peers.
A Quick Ratio of 6.27 indicates that CTRE has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 6.27, CTRE belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.27 | ||
| Quick Ratio | 6.27 |
3. Growth
3.1 Past
CTRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.29%, which is quite good.
CTRE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.79% yearly.
Looking at the last year, CTRE shows a quite strong growth in Revenue. The Revenue has grown by 14.97% in the last year.
CTRE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.78% yearly.
EPS 1Y (TTM)14.29%
EPS 3Y-17.34%
EPS 5Y-7.79%
EPS growth Q2Q84.21%
Revenue 1Y (TTM)14.97%
Revenue growth 3Y6.89%
Revenue growth 5Y6.78%
Revenue growth Q2Q24.62%
3.2 Future
The Earnings Per Share is expected to grow by 32.11% on average over the next years. This is a very strong growth
CTRE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.31% yearly.
EPS Next Y121.85%
EPS Next 2Y54.41%
EPS Next 3Y32.11%
EPS Next 5YN/A
Revenue Next Year10.65%
Revenue Next 2Y10.67%
Revenue Next 3Y10.31%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 38.88.
CTRE's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CTRE to the average of the S&P500 Index (28.02), we can say CTRE is valued slightly more expensively.
With a Price/Forward Earnings ratio of 21.74, CTRE is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CTRE is valued cheaply inside the industry as 87.90% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.58, CTRE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.88 | ||
| Fwd PE | 21.74 |
4.2 Price Multiples
72.58% of the companies in the same industry are cheaper than CTRE, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.83 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CTRE has a very decent 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 32.11% in the coming years.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y54.41%
EPS Next 3Y32.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.66%, CTRE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.85, CTRE has a dividend in line with its industry peers.
CTRE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
5.2 History
The dividend of CTRE has a limited annual growth rate of 5.26%.
CTRE has paid a dividend for at least 10 years, which is a reliable track record.
CTRE has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.26%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CTRE pays out 198.28% of its income as dividend. This is not a sustainable payout ratio.
CTRE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP198.28%
EPS Next 2Y54.41%
EPS Next 3Y32.11%
CARETRUST REIT INC
NYSE:CTRE (5/7/2024, 4:05:01 PM)
After market: 24.88 0 (0%)24.88
+0.01 (+0.04%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.88 | ||
| Fwd PE | 21.74 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 3.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 62.56% | ||
| PM (TTM) | 27.3% | ||
| GM | 98.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.27 | ||
| Quick Ratio | 6.27 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)14.29%
EPS 3Y-17.34%
EPS 5Y
EPS growth Q2Q
EPS Next Y121.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.97%
Revenue growth 3Y6.89%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y