HEALTHPEAK PROPERTIES INC (DOC) Stock Fundamental Analysis
NYSE:DOC - New York Stock Exchange, Inc. - US42250P1030 - REIT - Currency: USD
DOC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. While DOC is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, DOC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DOC was profitable.
In the past year DOC had a positive cash flow from operations.
In the past 5 years DOC has always been profitable.
Each year in the past 5 years DOC had a positive operating cash flow.
1.2 Ratios
DOC has a Return On Assets of 1.40%. This is in the better half of the industry: DOC outperforms 62.02% of its industry peers.
Looking at the Return On Equity, with a value of 3.40%, DOC is in the better half of the industry, outperforming 62.02% of the companies in the same industry.
DOC has a Return On Invested Capital of 2.16%. This is in the lower half of the industry: DOC underperforms 62.02% of its industry peers.
DOC had an Average Return On Invested Capital over the past 3 years of 2.39%. This is in line with the industry average of 3.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 3.4% | ||
| ROIC | 2.16% |
ROA(3y)2.1%
ROA(5y)2.44%
ROE(3y)5.05%
ROE(5y)5.78%
ROIC(3y)2.39%
ROIC(5y)2.05%
1.3 Margins
DOC has a better Profit Margin (9.95%) than 60.47% of its industry peers.
DOC's Profit Margin has improved in the last couple of years.
DOC has a Operating Margin (18.01%) which is comparable to the rest of the industry.
DOC's Operating Margin has declined in the last couple of years.
DOC's Gross Margin of 61.15% is on the low side compared to the rest of the industry. DOC is outperformed by 65.89% of its industry peers.
In the last couple of years the Gross Margin of DOC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.01% | ||
| PM (TTM) | 9.95% | ||
| GM | 61.15% |
OM growth 3Y5.47%
OM growth 5Y-2.9%
PM growth 3Y-30.28%
PM growth 5Y20.4%
GM growth 3Y2.83%
GM growth 5Y-0.77%
2. Health
2.1 Basic Checks
DOC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DOC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DOC has been increased compared to 5 years ago.
Compared to 1 year ago, DOC has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.38, we must say that DOC is in the distress zone and has some risk of bankruptcy.
DOC has a Altman-Z score (0.38) which is comparable to the rest of the industry.
The Debt to FCF ratio of DOC is 17.88, which is on the high side as it means it would take DOC, 17.88 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 17.88, DOC belongs to the best of the industry, outperforming 80.62% of the companies in the same industry.
DOC has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.08, DOC is in line with its industry, outperforming 54.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 17.88 | ||
| Altman-Z | 0.38 |
ROIC/WACC0.28
WACC7.82%
2.3 Liquidity
DOC has a Current Ratio of 0.10. This is a bad value and indicates that DOC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.10, DOC is doing worse than 95.35% of the companies in the same industry.
DOC has a Quick Ratio of 0.10. This is a bad value and indicates that DOC is not financially healthy enough and could expect problems in meeting its short term obligations.
DOC has a worse Quick ratio (0.10) than 95.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.29% over the past year.
The Earnings Per Share has been decreasing by -2.64% on average over the past years.
DOC shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.65%.
Measured over the past years, DOC shows a quite strong growth in Revenue. The Revenue has been growing by 16.84% on average per year.
EPS 1Y (TTM)14.29%
EPS 3Y-2.7%
EPS 5Y-2.64%
EPS Q2Q%500%
Revenue 1Y (TTM)23.65%
Revenue growth 3Y12.51%
Revenue growth 5Y16.84%
Sales Q2Q%15.88%
3.2 Future
DOC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.17% yearly.
Based on estimates for the next years, DOC will show a small growth in Revenue. The Revenue will grow by 4.12% on average per year.
EPS Next Y-32.35%
EPS Next 2Y-8.52%
EPS Next 3Y-7.14%
EPS Next 5Y-4.17%
Revenue Next Year4.12%
Revenue Next 2Y4.09%
Revenue Next 3Y3.56%
Revenue Next 5Y4.12%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 42.85, which means the current valuation is very expensive for DOC.
The rest of the industry has a similar Price/Earnings ratio as DOC.
Compared to an average S&P500 Price/Earnings ratio of 26.57, DOC is valued quite expensively.
With a Price/Forward Earnings ratio of 58.52, DOC can be considered very expensive at the moment.
DOC's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.41. DOC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.85 | ||
| Fwd PE | 58.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOC is valued a bit cheaper than the industry average as 63.57% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DOC is valued a bit cheaper than 76.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.98 | ||
| EV/EBITDA | 12.86 |
4.3 Compensation for Growth
DOC's earnings are expected to decrease with -7.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.52%
EPS Next 3Y-7.14%
5. Dividend
5.1 Amount
DOC has a Yearly Dividend Yield of 6.97%, which is a nice return.
Compared to an average industry Dividend Yield of 6.77, DOC pays a bit more dividend than its industry peers.
DOC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.97% |
5.2 History
The dividend of DOC decreases each year by -2.76%.
DOC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-2.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DOC pays out 303.32% of its income as dividend. This is not a sustainable payout ratio.
DOC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP303.32%
EPS Next 2Y-8.52%
EPS Next 3Y-7.14%
17.14
-0.24 (-1.38%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.71%
Inst Owner Change-42.8%
Ins Owners0.22%
Ins Owner Change7.37%
Market Cap11.91B
Analysts80.83
Price Target23.53 (37.28%)
Short Float %2.15%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.97% |
Yearly Dividend1.28
Dividend Growth(5Y)-2.76%
DP303.32%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-33.39%
Min EPS beat(2)-79.16%
Max EPS beat(2)12.38%
EPS beat(4)3
Avg EPS beat(4)35.07%
Min EPS beat(4)-79.16%
Max EPS beat(4)131.02%
EPS beat(8)5
Avg EPS beat(8)13.56%
EPS beat(12)8
Avg EPS beat(12)57.02%
EPS beat(16)10
Avg EPS beat(16)41.41%
Revenue beat(2)2
Avg Revenue beat(2)1.19%
Min Revenue beat(2)0.34%
Max Revenue beat(2)2.05%
Revenue beat(4)4
Avg Revenue beat(4)1.83%
Min Revenue beat(4)0.34%
Max Revenue beat(4)2.98%
Revenue beat(8)7
Avg Revenue beat(8)2.12%
Revenue beat(12)8
Avg Revenue beat(12)-4.71%
Revenue beat(16)12
Avg Revenue beat(16)16.58%
PT rev (1m)-1.98%
PT rev (3m)-6.49%
EPS NQ rev (1m)4.35%
EPS NQ rev (3m)16.66%
EPS NY rev (1m)0%
EPS NY rev (3m)7.1%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.85 | ||
| Fwd PE | 58.52 | ||
| P/S | 4.26 | ||
| P/FCF | 23.98 | ||
| P/OCF | 9.94 | ||
| P/B | 1.45 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 12.86 |
EPS(TTM)0.4
EY2.33%
EPS(NY)0.29
Fwd EY1.71%
FCF(TTM)0.71
FCFY4.17%
OCF(TTM)1.72
OCFY10.06%
SpS4.03
BVpS11.79
TBVpS10.71
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 3.4% | ||
| ROCE | 2.74% | ||
| ROIC | 2.16% | ||
| ROICexc | 2.17% | ||
| ROICexgc | 2.39% | ||
| OM | 18.01% | ||
| PM (TTM) | 9.95% | ||
| GM | 61.15% | ||
| FCFM | 17.75% |
ROA(3y)2.1%
ROA(5y)2.44%
ROE(3y)5.05%
ROE(5y)5.78%
ROIC(3y)2.39%
ROIC(5y)2.05%
ROICexc(3y)2.4%
ROICexc(5y)2.06%
ROICexgc(3y)2.61%
ROICexgc(5y)2.23%
ROCE(3y)3.02%
ROCE(5y)2.59%
ROICexcg growth 3Y12%
ROICexcg growth 5Y7.99%
ROICexc growth 3Y11.28%
ROICexc growth 5Y7.36%
OM growth 3Y5.47%
OM growth 5Y-2.9%
PM growth 3Y-30.28%
PM growth 5Y20.4%
GM growth 3Y2.83%
GM growth 5Y-0.77%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 17.88 | ||
| Debt/EBITDA | 5.51 | ||
| Cap/Depr | 63.33% | ||
| Cap/Sales | 25.06% | ||
| Interest Coverage | 1.96 | ||
| Cash Conversion | 74.36% | ||
| Profit Quality | 178.44% | ||
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 | ||
| Altman-Z | 0.38 |
F-Score6
WACC7.82%
ROIC/WACC0.28
Cap/Depr(3y)101.04%
Cap/Depr(5y)178.11%
Cap/Sales(3y)35.69%
Cap/Sales(5y)67.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.29%
EPS 3Y-2.7%
EPS 5Y-2.64%
EPS Q2Q%500%
EPS Next Y-32.35%
EPS Next 2Y-8.52%
EPS Next 3Y-7.14%
EPS Next 5Y-4.17%
Revenue 1Y (TTM)23.65%
Revenue growth 3Y12.51%
Revenue growth 5Y16.84%
Sales Q2Q%15.88%
Revenue Next Year4.12%
Revenue Next 2Y4.09%
Revenue Next 3Y3.56%
Revenue Next 5Y4.12%
EBIT growth 1Y-11.56%
EBIT growth 3Y18.66%
EBIT growth 5Y13.45%
EBIT Next Year238.26%
EBIT Next 3Y54.8%
EBIT Next 5Y33.17%
FCF growth 1Y894.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y36.06%
OCF growth 3Y10.42%
OCF growth 5Y4.82%