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 129 industry peers in the Diversified REITs industry. Both the profitability and financial health of HR have multiple concerns. HR does not seem to be growing, but still is valued expensively.
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 Return On Assets of -6.73%. This is amonst the worse of the industry: HR underperforms 86.82% of its industry peers.
HR has a worse Return On Equity (-13.90%) than 78.29% of its industry peers.
HR has a Return On Invested Capital of 0.44%. This is amonst the worse of the industry: HR underperforms 86.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HR is below the industry average of 3.17%.
The 3 year average ROIC (0.38%) for HR is below the current ROIC(0.44%), indicating increased profibility in the last year.
| 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: 86.82% of the companies in the same industry are doing better.
HR's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 62.46%, HR is not doing good in the industry: 65.89% of the companies in the same industry are doing better.
HR's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, HR has less shares outstanding
The number of shares outstanding for HR has been increased compared to 5 years ago.
HR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.18, we must say that HR is in the distress zone and has some risk of bankruptcy.
HR has a Altman-Z score of 0.18. This is in the lower half of the industry: HR underperforms 66.67% of its industry peers.
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.
HR's Debt to FCF ratio of 34.28 is fine compared to the rest of the industry. HR outperforms 62.79% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that HR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.95, HR perfoms like the industry average, outperforming 59.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 34.28 | ||
| Altman-Z | 0.18 |
ROIC/WACC0.07
WACC6.71%
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.
Looking at the Current ratio, with a value of 0.07, HR is doing worse than 96.90% of the companies in the same industry.
HR has a Quick 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 Quick ratio of HR (0.07) is worse 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 has grown by an nice 14.93% over the past year.
Looking at the last year, HR shows a quite strong growth in Revenue. The Revenue has grown by 17.17% in the last year.
The Revenue has been growing by 12.88% on average over the past years. This is quite good.
EPS 1Y (TTM)14.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%343.75%
Revenue 1Y (TTM)17.17%
Revenue growth 3Y18.25%
Revenue growth 5Y12.88%
Sales Q2Q%-8.51%
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 18.62% yearly.
HR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.07% yearly.
EPS Next Y69.65%
EPS Next 2Y29.9%
EPS Next 3Y18.62%
EPS Next 5YN/A
Revenue Next Year-3.73%
Revenue Next 2Y-0.7%
Revenue Next 3Y-1.45%
Revenue Next 5Y-1.07%
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.
Based on the Price/Free Cash Flow ratio, HR is valued a bit cheaper than 63.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.36 | ||
| EV/EBITDA | 14.37 |
4.3 Compensation for Growth
HR's earnings are expected to grow with 18.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y29.9%
EPS Next 3Y18.62%
5. Dividend
5.1 Amount
HR has a Yearly Dividend Yield of 8.16%, which is a nice return.
Compared to an average industry Dividend Yield of 6.70, HR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, HR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.16% |
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.
HR has decreased its dividend 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.
HR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-63.52%
EPS Next 2Y29.9%
EPS Next 3Y18.62%
15.32
+0.11 (+0.72%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners107.75%
Inst Owner Change1.13%
Ins Owners0.39%
Ins Owner Change20.79%
Market Cap5.38B
Analysts51.58
Price Target17.79 (16.12%)
Short Float %3.62%
Short Ratio4.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.16% |
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)1
Avg EPS beat(2)115.28%
Min EPS beat(2)-290.16%
Max EPS beat(2)520.71%
EPS beat(4)1
Avg EPS beat(4)-112.45%
Min EPS beat(4)-377.54%
Max EPS beat(4)520.71%
EPS beat(8)2
Avg EPS beat(8)-73.2%
EPS beat(12)3
Avg EPS beat(12)15.92%
EPS beat(16)6
Avg EPS beat(16)23.38%
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)0.35%
PT rev (3m)-2.41%
EPS NQ rev (1m)-9.76%
EPS NQ rev (3m)2.7%
EPS NY rev (1m)0.86%
EPS NY rev (3m)14.76%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)-2.85%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)-3.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.43 | ||
| P/FCF | 38.36 | ||
| P/OCF | 11.36 | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 14.37 |
EPS(TTM)-0.57
EYN/A
EPS(NY)-0.35
Fwd EYN/A
FCF(TTM)0.4
FCFY2.61%
OCF(TTM)1.35
OCFY8.8%
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 | 0.18 |
F-Score5
WACC6.71%
ROIC/WACC0.07
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)14.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%343.75%
EPS Next Y69.65%
EPS Next 2Y29.9%
EPS Next 3Y18.62%
EPS Next 5YN/A
Revenue 1Y (TTM)17.17%
Revenue growth 3Y18.25%
Revenue growth 5Y12.88%
Sales Q2Q%-8.51%
Revenue Next Year-3.73%
Revenue Next 2Y-0.7%
Revenue Next 3Y-1.45%
Revenue Next 5Y-1.07%
EBIT growth 1Y1.03%
EBIT growth 3Y-40.82%
EBIT growth 5Y-24.46%
EBIT Next Year1220.63%
EBIT Next 3Y139.72%
EBIT Next 5Y92.25%
FCF growth 1Y155.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y58.76%
OCF growth 3Y9.16%
OCF growth 5Y8.06%