HEALTHCARE REALTY TRUST INC (HR) Stock Fundamental Analysis
NYSE:HR - New York Stock Exchange, Inc. - US42226K1051 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to HR. HR was compared to 130 industry peers in the Diversified REITs industry. Both the profitability and financial health of HR have multiple concerns. While showing a medium growth rate, HR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year HR has reported negative net income.
In the past year HR had a positive cash flow from operations.
In multiple years HR reported negative net income over the last 5 years.
In the past 5 years HR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -6.73%, HR is doing worse than 89.92% of the companies in the same industry.
The Return On Equity of HR (-13.90%) is worse than 80.62% of its industry peers.
With a Return On Invested Capital value of 0.44%, HR is not doing good in the industry: 87.60% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for HR is below the industry average of 3.17%.
The last Return On Invested Capital (0.44%) for HR is above the 3 year average (0.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.73% | ||
| ROE | -13.9% | ||
| ROIC | 0.44% |
ROA(3y)-2.72%
ROA(5y)-1.19%
ROE(3y)-5.41%
ROE(5y)-2.31%
ROIC(3y)0.38%
ROIC(5y)1.07%
1.3 Margins
With a Operating Margin value of 3.58%, HR is not doing good in the industry: 87.60% of the companies in the same industry are doing better.
HR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 62.46%, HR is doing worse than 65.12% of the companies in the same industry.
In the last couple of years the Gross Margin of HR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.58% | ||
| PM (TTM) | N/A | ||
| GM | 62.46% |
OM growth 3Y-49.95%
OM growth 5Y-33.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.21%
GM growth 5Y-2.03%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HR is destroying value.
HR has less shares outstanding than it did 1 year ago.
HR has more shares outstanding than it did 5 years ago.
HR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.22, we must say that HR is in the distress zone and has some risk of bankruptcy.
HR has a worse Altman-Z score (0.22) than 67.44% of its industry peers.
The Debt to FCF ratio of HR is 34.28, which is on the high side as it means it would take HR, 34.28 years of fcf income to pay off all of its debts.
HR has a better Debt to FCF ratio (34.28) than 71.32% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that HR is somewhat dependend on debt financing.
HR has a Debt to Equity ratio of 0.95. This is in the better half of the industry: HR outperforms 61.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 34.28 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.06
WACC6.75%
2.3 Liquidity
A Current Ratio of 0.07 indicates that HR may have some problems paying its short term obligations.
HR has a worse Current ratio (0.07) than 96.90% of its industry peers.
A Quick Ratio of 0.07 indicates that HR may have some problems paying its short term obligations.
HR has a worse Quick ratio (0.07) than 96.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
The earnings per share for HR have decreased strongly by -62.69% in the last year.
HR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.17%.
The Revenue has been growing by 12.88% on average over the past years. This is quite good.
EPS 1Y (TTM)-62.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%18.75%
Revenue 1Y (TTM)17.17%
Revenue growth 3Y18.25%
Revenue growth 5Y12.88%
Sales Q2Q%-8.52%
3.2 Future
Based on estimates for the next years, HR will show a very strong growth in Earnings Per Share. The EPS will grow by 20.76% on average per year.
HR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.06% yearly.
EPS Next Y71.34%
EPS Next 2Y31.77%
EPS Next 3Y20.76%
EPS Next 5YN/A
Revenue Next Year-5.75%
Revenue Next 2Y-2%
Revenue Next 3Y-0.76%
Revenue Next 5Y0.06%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for HR. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HR.
Based on the Price/Free Cash Flow ratio, HR is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.42 | ||
| EV/EBITDA | 14.83 |
4.3 Compensation for Growth
A more expensive valuation may be justified as HR's earnings are expected to grow with 20.76% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y31.77%
EPS Next 3Y20.76%
5. Dividend
5.1 Amount
HR has a Yearly Dividend Yield of 7.64%, which is a nice return.
Compared to an average industry Dividend Yield of 6.45, HR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, HR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.64% |
5.2 History
The dividend of HR has a limited annual growth rate of 0.57%.
HR has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of HR decreased recently.
Dividend Growth(5Y)0.57%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
HR has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of HR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-63.52%
EPS Next 2Y31.77%
EPS Next 3Y20.76%
16.12
-0.12 (-0.74%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners107.34%
Inst Owner Change0%
Ins Owners0.61%
Ins Owner Change22.04%
Market Cap5.66B
Analysts51.58
Price Target17.19 (6.64%)
Short Float %3.19%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.64% |
Yearly Dividend1.25
Dividend Growth(5Y)0.57%
DP-63.52%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-165.2%
Min EPS beat(2)-290.16%
Max EPS beat(2)-40.24%
EPS beat(4)0
Avg EPS beat(4)-252.69%
Min EPS beat(4)-377.54%
Max EPS beat(4)-40.24%
EPS beat(8)1
Avg EPS beat(8)-143.32%
EPS beat(12)2
Avg EPS beat(12)-30.82%
EPS beat(16)5
Avg EPS beat(16)-11.68%
Revenue beat(2)0
Avg Revenue beat(2)-1.72%
Min Revenue beat(2)-2.27%
Max Revenue beat(2)-1.18%
Revenue beat(4)0
Avg Revenue beat(4)-2.04%
Min Revenue beat(4)-4.19%
Max Revenue beat(4)-0.53%
Revenue beat(8)1
Avg Revenue beat(8)-1.36%
Revenue beat(12)2
Avg Revenue beat(12)6.44%
Revenue beat(16)2
Avg Revenue beat(16)2.39%
PT rev (1m)1.4%
PT rev (3m)-4.69%
EPS NQ rev (1m)-5.67%
EPS NQ rev (3m)12.73%
EPS NY rev (1m)3.04%
EPS NY rev (3m)5.55%
Revenue NQ rev (1m)-0.83%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.61 | ||
| P/FCF | 40.42 | ||
| P/OCF | 11.97 | ||
| P/B | 1.12 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 14.83 |
EPS(TTM)-1.09
EYN/A
EPS(NY)-0.3
Fwd EYN/A
FCF(TTM)0.4
FCFY2.47%
OCF(TTM)1.35
OCFY8.35%
SpS4.46
BVpS14.45
TBVpS14.45
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.73% | ||
| ROE | -13.9% | ||
| ROCE | 0.55% | ||
| ROIC | 0.44% | ||
| ROICexc | 0.44% | ||
| ROICexgc | 0.46% | ||
| OM | 3.58% | ||
| PM (TTM) | N/A | ||
| GM | 62.46% | ||
| FCFM | 8.94% |
ROA(3y)-2.72%
ROA(5y)-1.19%
ROE(3y)-5.41%
ROE(5y)-2.31%
ROIC(3y)0.38%
ROIC(5y)1.07%
ROICexc(3y)0.38%
ROICexc(5y)1.09%
ROICexgc(3y)0.39%
ROICexgc(5y)1.1%
ROCE(3y)0.48%
ROCE(5y)1.36%
ROICexcg growth 3Y-49.37%
ROICexcg growth 5Y-31.73%
ROICexc growth 3Y-49.34%
ROICexc growth 5Y-31.78%
OM growth 3Y-49.95%
OM growth 5Y-33.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.21%
GM growth 5Y-2.03%
F-Score5
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 34.28 | ||
| Debt/EBITDA | 6.82 | ||
| Cap/Depr | 51.4% | ||
| Cap/Sales | 21.25% | ||
| Interest Coverage | 0.29 | ||
| Cash Conversion | 67.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 | ||
| Altman-Z | 0.22 |
F-Score5
WACC6.75%
ROIC/WACC0.06
Cap/Depr(3y)74.85%
Cap/Depr(5y)98.72%
Cap/Sales(3y)37.95%
Cap/Sales(5y)42.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-62.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%18.75%
EPS Next Y71.34%
EPS Next 2Y31.77%
EPS Next 3Y20.76%
EPS Next 5YN/A
Revenue 1Y (TTM)17.17%
Revenue growth 3Y18.25%
Revenue growth 5Y12.88%
Sales Q2Q%-8.52%
Revenue Next Year-5.75%
Revenue Next 2Y-2%
Revenue Next 3Y-0.76%
Revenue Next 5Y0.06%
EBIT growth 1Y1.03%
EBIT growth 3Y-40.82%
EBIT growth 5Y-24.46%
EBIT Next Year1218.51%
EBIT Next 3Y139.76%
EBIT Next 5Y94.49%
FCF growth 1Y155.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y58.76%
OCF growth 3Y9.16%
OCF growth 5Y8.06%