HEALTHCARE REALTY TRUST INC (HR) Stock Fundamental Analysis
NYSE:HR - New York Stock Exchange, Inc. - US42226K1051 - REIT - Currency: USD
HR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. HR has a bad profitability rating. Also its financial health evaluation is rather negative. HR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HR has reported negative net income.
HR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HR reported negative net income in multiple years.
Each year in the past 5 years HR had a positive operating cash flow.
1.2 Ratios
HR has a worse Return On Assets (-6.73%) than 90.00% of its industry peers.
HR's Return On Equity of -13.90% is on the low side compared to the rest of the industry. HR is outperformed by 80.00% of its industry peers.
HR's Return On Invested Capital of 0.44% is on the low side compared to the rest of the industry. HR is outperformed by 87.69% of its industry peers.
HR had an Average Return On Invested Capital over the past 3 years of 0.38%. This is below the industry average of 3.16%.
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: 87.69% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of HR has declined.
HR's Gross Margin of 62.46% is on the low side compared to the rest of the industry. HR is outperformed by 65.38% of its industry peers.
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
HR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, HR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.21, we must say that HR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.21, HR is not doing good in the industry: 66.92% of the companies in the same industry are doing better.
HR has a debt to FCF ratio of 34.28. This is a negative value and a sign of low solvency as HR would need 34.28 years to pay back of all of its debts.
The Debt to FCF ratio of HR (34.28) is better than 71.54% of its industry peers.
HR has a Debt/Equity ratio of 0.95. This is a neutral value indicating HR is somewhat dependend on debt financing.
HR has a better Debt to Equity ratio (0.95) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 34.28 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.05
WACC7.98%
2.3 Liquidity
HR has a Current Ratio of 0.07. This is a bad value and indicates that HR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of HR (0.07) is worse than 96.92% of its industry peers.
A Quick Ratio of 0.07 indicates that HR may have some problems paying its short term obligations.
HR's Quick ratio of 0.07 is on the low side compared to the rest of the industry. HR is outperformed by 96.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
HR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -62.69%.
The Revenue has grown by 17.17% in the past year. This is quite good.
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
HR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.91% yearly.
The Revenue is expected to grow by 0.06% on average over the next years.
EPS Next Y70.44%
EPS Next 2Y31.05%
EPS Next 3Y19.91%
EPS Next 5YN/A
Revenue Next Year-5.52%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.34%
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.
Also next year HR is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| 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.
66.15% of the companies in the same industry are more expensive than HR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.87 | ||
| EV/EBITDA | 14.79 |
4.3 Compensation for Growth
A more expensive valuation may be justified as HR's earnings are expected to grow with 19.91% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y31.05%
EPS Next 3Y19.91%
5. Dividend
5.1 Amount
HR has a Yearly Dividend Yield of 7.97%, which is a nice return.
Compared to an average industry Dividend Yield of 6.64, HR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, HR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.97% |
5.2 History
The dividend of HR has a limited annual growth rate of 0.57%.
HR has been paying a dividend for at least 10 years, so it has 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
The earnings of HR are negative and hence is the payout ratio. HR will probably not be able to sustain this dividend level.
The dividend of HR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-63.52%
EPS Next 2Y31.05%
EPS Next 3Y19.91%
15.92
-0.13 (-0.81%)
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 Change-1.35%
Ins Owners0.61%
Ins Owner Change20.75%
Market Cap5.59B
Analysts51.58
Price Target16.96 (6.53%)
Short Float %3.6%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.97% |
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)-4.66%
PT rev (3m)-6.34%
EPS NQ rev (1m)7.02%
EPS NQ rev (3m)22.74%
EPS NY rev (1m)2.6%
EPS NY rev (3m)16.97%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.57 | ||
| P/FCF | 39.87 | ||
| P/OCF | 11.81 | ||
| P/B | 1.1 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 14.79 |
EPS(TTM)-1.09
EYN/A
EPS(NY)-0.32
Fwd EYN/A
FCF(TTM)0.4
FCFY2.51%
OCF(TTM)1.35
OCFY8.47%
SpS4.47
BVpS14.47
TBVpS14.47
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 | 0.21 |
F-Score5
WACC7.98%
ROIC/WACC0.05
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 Y70.44%
EPS Next 2Y31.05%
EPS Next 3Y19.91%
EPS Next 5YN/A
Revenue 1Y (TTM)17.17%
Revenue growth 3Y18.25%
Revenue growth 5Y12.88%
Sales Q2Q%-8.52%
Revenue Next Year-5.52%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.34%
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%