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 130 industry peers in the Diversified REITs industry. CTRE has an excellent profitability rating, but there are concerns on its financial health. CTRE is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
CTRE had positive earnings in the past year.
CTRE had a positive operating cash flow in the past year.
Of the past 5 years CTRE 4 years were profitable.
In the past 5 years CTRE always reported a positive cash flow from operatings.
1.2 Ratios
CTRE's Return On Assets of 4.16% is amongst the best of the industry. CTRE outperforms 90.00% of its industry peers.
Looking at the Return On Equity, with a value of 5.52%, CTRE is in the better half of the industry, outperforming 71.54% of the companies in the same industry.
With an excellent Return On Invested Capital value of 4.60%, CTRE belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CTRE is above the industry average of 3.16%.
| 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's Profit Margin of 49.00% is amongst the best of the industry. CTRE outperforms 97.69% of its industry peers.
CTRE's Profit Margin has improved in the last couple of years.
CTRE has a better Operating Margin (66.50%) than 99.23% 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 98.44%, CTRE belongs to the top 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
CTRE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CTRE has more shares outstanding
Compared to 5 years ago, CTRE has more shares outstanding
CTRE has a better debt/assets ratio than last year.
2.2 Solvency
CTRE has an Altman-Z score of 3.70. This indicates that CTRE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CTRE (3.70) is better than 99.23% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that CTRE is not too dependend on debt financing.
CTRE has a Debt to Equity ratio of 0.28. This is amongst the best in the industry. CTRE outperforms 96.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.7 |
ROIC/WACC0.53
WACC8.72%
2.3 Liquidity
A Current Ratio of 0.25 indicates that CTRE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.25, CTRE is doing worse than 86.15% of the companies in the same industry.
CTRE has a Quick 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 worse Quick ratio (0.25) than 85.38% 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 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.
Looking at the last year, CTRE shows a very strong growth in Revenue. The Revenue has grown by 43.26%.
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)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
CTRE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.02% yearly.
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
The Price/Earnings ratio is 31.94, which means the current valuation is very expensive for CTRE.
CTRE's Price/Earnings ratio is a bit cheaper when compared to the industry. CTRE is cheaper than 61.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, CTRE is valued at the same level.
With a Price/Forward Earnings ratio of 20.17, CTRE is valued on the expensive side.
93.08% of the companies in the same industry are more expensive than CTRE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CTRE to the average of the S&P500 Index (36.44), we can say CTRE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.94 | ||
| Fwd PE | 20.17 |
4.2 Price Multiples
CTRE's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. CTRE is more expensive than 91.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.56 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
CTRE's earnings are expected to grow with 23.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)2.83
EPS Next 2Y35.45%
EPS Next 3Y23.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.42%, CTRE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.56, CTRE is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, CTRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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
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 2Y35.45%
EPS Next 3Y23.02%
30.34
+0.05 (+0.17%)
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 Change0.04%
Ins Owners0.56%
Ins Owner Change6.01%
Market Cap5.82B
Analysts81.25
Price Target33.89 (11.7%)
Short Float %2.78%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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)4.18%
PT rev (3m)4.55%
EPS NQ rev (1m)-3.56%
EPS NQ rev (3m)-6.65%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)-5.62%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)-7.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.94 | ||
| Fwd PE | 20.17 | ||
| P/S | 17.63 | ||
| P/FCF | N/A | ||
| P/OCF | 21.8 | ||
| P/B | 1.99 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 23.56 |
EPS(TTM)0.95
EY3.13%
EPS(NY)1.5
Fwd EY4.96%
FCF(TTM)-2.76
FCFYN/A
OCF(TTM)1.39
OCFY4.59%
SpS1.72
BVpS15.27
TBVpS15.27
PEG (NY)0.43
PEG (5Y)2.83
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 | 3.7 |
F-Score5
WACC8.72%
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 Y74.15%
EPS Next 2Y35.45%
EPS Next 3Y23.02%
EPS Next 5YN/A
Revenue 1Y (TTM)43.26%
Revenue growth 3Y15.48%
Revenue growth 5Y12.64%
Sales Q2Q%33.91%
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 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%