LTC PROPERTIES INC (LTC) Stock Fundamental Analysis
NYSE:LTC - New York Stock Exchange, Inc. - US5021751020 - REIT - Currency: USD
LTC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. LTC gets an excellent profitability rating and is at the same time showing great financial health properties. LTC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LTC had positive earnings in the past year.
LTC had a positive operating cash flow in the past year.
LTC had positive earnings in each of the past 5 years.
LTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LTC has a Return On Assets of 6.24%. This is amongst the best in the industry. LTC outperforms 96.90% of its industry peers.
LTC has a better Return On Equity (11.53%) than 93.02% of its industry peers.
The Return On Invested Capital of LTC (7.27%) is better than 98.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LTC is above the industry average of 3.15%.
The last Return On Invested Capital (7.27%) for LTC is above the 3 year average (5.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 11.53% | ||
| ROIC | 7.27% |
ROA(3y)5.29%
ROA(5y)5.21%
ROE(3y)10.51%
ROE(5y)10.28%
ROIC(3y)5.29%
ROIC(5y)4.97%
1.3 Margins
Looking at the Profit Margin, with a value of 42.83%, LTC belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
In the last couple of years the Profit Margin of LTC has remained more or less at the same level.
LTC has a better Operating Margin (61.54%) than 96.12% of its industry peers.
LTC's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 93.81%, LTC belongs to the top of the industry, outperforming 96.12% of the companies in the same industry.
LTC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.54% | ||
| PM (TTM) | 42.83% | ||
| GM | 93.81% |
OM growth 3Y7.44%
OM growth 5Y1.11%
PM growth 3Y6.47%
PM growth 5Y-0.08%
GM growth 3Y1.37%
GM growth 5Y0.63%
2. Health
2.1 Basic Checks
LTC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
LTC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LTC has been increased compared to 5 years ago.
Compared to 1 year ago, LTC has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.58, we must say that LTC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.58, LTC belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.
LTC has a debt to FCF ratio of 5.68. This is a neutral value as LTC would need 5.68 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.68, LTC belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
A Debt/Equity ratio of 0.71 indicates that LTC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, LTC is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.68 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.86
WACC8.47%
2.3 Liquidity
A Current Ratio of 2.47 indicates that LTC has no problem at all paying its short term obligations.
The Current ratio of LTC (2.47) is better than 86.82% of its industry peers.
A Quick Ratio of 2.47 indicates that LTC has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.47, LTC belongs to the best of the industry, outperforming 86.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.04% over the past year.
The Earnings Per Share has been decreasing by -0.48% on average over the past years.
LTC shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.02%.
Measured over the past years, LTC shows a small growth in Revenue. The Revenue has been growing by 2.52% on average per year.
EPS 1Y (TTM)1.04%
EPS 3Y13.29%
EPS 5Y-0.48%
EPS Q2Q%-19.64%
Revenue 1Y (TTM)30.02%
Revenue growth 3Y10.55%
Revenue growth 5Y2.52%
Sales Q2Q%-4.55%
3.2 Future
Based on estimates for the next years, LTC will show a decrease in Earnings Per Share. The EPS will decrease by -2.96% on average per year.
Based on estimates for the next years, LTC will show a decrease in Revenue. The Revenue will decrease by -3.27% on average per year.
EPS Next Y-6.31%
EPS Next 2Y-2.66%
EPS Next 3Y-2.96%
EPS Next 5YN/A
Revenue Next Year-22.88%
Revenue Next 2Y-7.76%
Revenue Next 3Y-3.27%
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 decreasing.
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
A Price/Earnings ratio of 18.03 indicates a rather expensive valuation of LTC.
LTC's Price/Earnings ratio is rather cheap when compared to the industry. LTC is cheaper than 86.05% of the companies in the same industry.
LTC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.35.
With a Price/Forward Earnings ratio of 18.00, LTC is valued on the expensive side.
92.25% of the companies in the same industry are more expensive than LTC, based on the Price/Forward Earnings ratio.
LTC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.03 | ||
| Fwd PE | 18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LTC indicates a somewhat cheap valuation: LTC is cheaper than 71.32% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LTC is valued cheaply inside the industry as 86.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.37 | ||
| EV/EBITDA | 11.66 |
4.3 Compensation for Growth
The excellent profitability rating of LTC may justify a higher PE ratio.
LTC's earnings are expected to decrease with -2.96% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.66%
EPS Next 3Y-2.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.41%, LTC is a good candidate for dividend investing.
LTC's Dividend Yield is comparable with the industry average which is at 6.77.
LTC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.41% |
5.2 History
The dividend of LTC decreases each year by -0.14%.
LTC has paid a dividend for at least 10 years, which is a reliable track record.
LTC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.14%
Div Incr Years0
Div Non Decr Years22
5.3 Sustainability
LTC pays out 93.05% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of LTC has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP93.05%
EPS Next 2Y-2.66%
EPS Next 3Y-2.96%
34.97
-0.36 (-1.02%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners77.54%
Inst Owner Change-3.06%
Ins Owners2.06%
Ins Owner Change8.72%
Market Cap1.61B
Analysts70
Price Target37.74 (7.92%)
Short Float %4.86%
Short Ratio6.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.41% |
Yearly Dividend2.27
Dividend Growth(5Y)-0.14%
DP93.05%
Div Incr Years0
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.96%
Min EPS beat(2)-21.2%
Max EPS beat(2)-2.72%
EPS beat(4)1
Avg EPS beat(4)-0.57%
Min EPS beat(4)-21.2%
Max EPS beat(4)25.18%
EPS beat(8)4
Avg EPS beat(8)-0.56%
EPS beat(12)6
Avg EPS beat(12)22.27%
EPS beat(16)7
Avg EPS beat(16)14.4%
Revenue beat(2)2
Avg Revenue beat(2)37.26%
Min Revenue beat(2)25.77%
Max Revenue beat(2)48.75%
Revenue beat(4)4
Avg Revenue beat(4)23.04%
Min Revenue beat(4)0.7%
Max Revenue beat(4)48.75%
Revenue beat(8)7
Avg Revenue beat(8)11.85%
Revenue beat(12)11
Avg Revenue beat(12)19.61%
Revenue beat(16)15
Avg Revenue beat(16)20.25%
PT rev (1m)-0.77%
PT rev (3m)2.78%
EPS NQ rev (1m)70.26%
EPS NQ rev (3m)58.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.86%
Revenue NQ rev (1m)-10.9%
Revenue NQ rev (3m)-25.8%
Revenue NY rev (1m)-12.59%
Revenue NY rev (3m)-35.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.03 | ||
| Fwd PE | 18 | ||
| P/S | 6.2 | ||
| P/FCF | 13.37 | ||
| P/OCF | 12 | ||
| P/B | 1.67 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 11.66 |
EPS(TTM)1.94
EY5.55%
EPS(NY)1.94
Fwd EY5.55%
FCF(TTM)2.62
FCFY7.48%
OCF(TTM)2.91
OCFY8.33%
SpS5.64
BVpS20.94
TBVpS20.79
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 11.53% | ||
| ROCE | 9.2% | ||
| ROIC | 7.27% | ||
| ROICexc | 7.37% | ||
| ROICexgc | 7.4% | ||
| OM | 61.54% | ||
| PM (TTM) | 42.83% | ||
| GM | 93.81% | ||
| FCFM | 46.4% |
ROA(3y)5.29%
ROA(5y)5.21%
ROE(3y)10.51%
ROE(5y)10.28%
ROIC(3y)5.29%
ROIC(5y)4.97%
ROICexc(3y)5.33%
ROICexc(5y)5%
ROICexgc(3y)5.34%
ROICexgc(5y)5.01%
ROCE(3y)6.69%
ROCE(5y)6.29%
ROICexcg growth 3Y12.51%
ROICexcg growth 5Y0.5%
ROICexc growth 3Y12.36%
ROICexc growth 5Y0.41%
OM growth 3Y7.44%
OM growth 5Y1.11%
PM growth 3Y6.47%
PM growth 5Y-0.08%
GM growth 3Y1.37%
GM growth 5Y0.63%
F-Score8
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.68 | ||
| Debt/EBITDA | 3.49 | ||
| Cap/Depr | 37.54% | ||
| Cap/Sales | 5.28% | ||
| Interest Coverage | 4.18 | ||
| Cash Conversion | 68.35% | ||
| Profit Quality | 108.34% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 | ||
| Altman-Z | 1.58 |
F-Score8
WACC8.47%
ROIC/WACC0.86
Cap/Depr(3y)114.57%
Cap/Depr(5y)91.06%
Cap/Sales(3y)22.84%
Cap/Sales(5y)19.19%
Profit Quality(3y)75.06%
Profit Quality(5y)92.31%
High Growth Momentum
Growth
EPS 1Y (TTM)1.04%
EPS 3Y13.29%
EPS 5Y-0.48%
EPS Q2Q%-19.64%
EPS Next Y-6.31%
EPS Next 2Y-2.66%
EPS Next 3Y-2.96%
EPS Next 5YN/A
Revenue 1Y (TTM)30.02%
Revenue growth 3Y10.55%
Revenue growth 5Y2.52%
Sales Q2Q%-4.55%
Revenue Next Year-22.88%
Revenue Next 2Y-7.76%
Revenue Next 3Y-3.27%
Revenue Next 5YN/A
EBIT growth 1Y32.76%
EBIT growth 3Y18.78%
EBIT growth 5Y3.65%
EBIT Next Year72.51%
EBIT Next 3Y21.91%
EBIT Next 5Y15.03%
FCF growth 1Y181.97%
FCF growth 3Y9.4%
FCF growth 5Y22.26%
OCF growth 1Y27.42%
OCF growth 3Y11.13%
OCF growth 5Y0.43%