LTC PROPERTIES INC (LTC) Stock Fundamental Analysis
NYSE:LTC - New York Stock Exchange, Inc. - US5021751020 - REIT - Currency: USD
Overall LTC gets a fundamental rating of 6 out of 10. We evaluated LTC against 129 industry peers in the Diversified REITs industry. LTC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LTC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LTC had positive earnings in the past year.
In the past year LTC had a positive cash flow from operations.
Each year in the past 5 years LTC has been profitable.
LTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LTC's Return On Assets of 6.24% is amongst the best of the industry. LTC outperforms 96.90% of its industry peers.
Looking at the Return On Equity, with a value of 11.53%, LTC belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
The Return On Invested Capital of LTC (7.27%) is better than 98.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
The Profit Margin of LTC (42.83%) is better than 93.02% of its industry peers.
LTC's Profit Margin has been stable in the last couple of years.
LTC's Operating Margin of 61.54% is amongst the best of the industry. LTC outperforms 96.12% of its industry peers.
LTC's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 93.81%, LTC belongs to the best of the industry, outperforming 96.12% of the companies in the same industry.
In the last couple of years the Gross Margin of LTC has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LTC is destroying value.
Compared to 1 year ago, LTC has more shares outstanding
The number of shares outstanding for LTC has been increased compared to 5 years ago.
LTC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.56, we must say that LTC is in the distress zone and has some risk of bankruptcy.
LTC has a better Altman-Z score (1.56) than 89.92% of its industry peers.
The Debt to FCF ratio of LTC is 5.68, which is a neutral value as it means it would take LTC, 5.68 years of fcf income to pay off 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.
With a decent Debt to Equity ratio value of 0.71, LTC is doing good in 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 | 1.56 |
ROIC/WACC0.98
WACC7.42%
2.3 Liquidity
LTC has a Current Ratio of 2.47. This indicates that LTC is financially healthy and has no problem in meeting 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.
LTC has a better Quick ratio (2.47) than 86.82% of its industry peers.
| 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.
Measured over the past years, LTC shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.48% on average per year.
Looking at the last year, LTC shows a very strong growth in Revenue. The Revenue has grown by 30.02%.
LTC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.52% yearly.
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 -2.23% 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 Y5.68%
EPS Next 2Y-3.08%
EPS Next 3Y-2.23%
EPS Next 5YN/A
Revenue Next Year-22.74%
Revenue Next 2Y-7.26%
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
Based on the Price/Earnings ratio of 18.20, the valuation of LTC can be described as rather expensive.
Based on the Price/Earnings ratio, LTC is valued cheaply inside the industry as 85.27% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. LTC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.34, the valuation of LTC can be described as rather expensive.
Based on the Price/Forward Earnings ratio, LTC is valued cheaply inside the industry as 93.80% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LTC to the average of the S&P500 Index (21.76), we can say LTC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 18.34 |
4.2 Price Multiples
LTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LTC is cheaper than 74.42% of the companies in the same industry.
LTC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LTC is cheaper than 88.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.5 | ||
| EV/EBITDA | 11.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of LTC may justify a higher PE ratio.
LTC's earnings are expected to decrease with -2.23% in the coming years. This may justify a cheaper valuation.
PEG (NY)3.2
PEG (5Y)N/A
EPS Next 2Y-3.08%
EPS Next 3Y-2.23%
5. Dividend
5.1 Amount
LTC has a Yearly Dividend Yield of 6.52%, which is a nice return.
LTC's Dividend Yield is comparable with the industry average which is at 6.43.
Compared to an average S&P500 Dividend Yield of 2.37, LTC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.52% |
5.2 History
The dividend of LTC decreases each year by -0.14%.
LTC has been paying a dividend for at least 10 years, so it has a reliable track record.
LTC has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
LTC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP93.05%
EPS Next 2Y-3.08%
EPS Next 3Y-2.23%
35.31
+0.36 (+1.03%)
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 Change0%
Ins Owners2.06%
Ins Owner Change10.07%
Market Cap1.62B
Analysts70
Price Target37.74 (6.88%)
Short Float %5.21%
Short Ratio7.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.52% |
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)-0.77%
EPS NQ rev (1m)-3.8%
EPS NQ rev (3m)52.61%
EPS NY rev (1m)12.8%
EPS NY rev (3m)10.28%
Revenue NQ rev (1m)1.58%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-4.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 18.34 | ||
| P/S | 6.26 | ||
| P/FCF | 13.5 | ||
| P/OCF | 12.12 | ||
| P/B | 1.69 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 11.57 |
EPS(TTM)1.94
EY5.49%
EPS(NY)1.93
Fwd EY5.45%
FCF(TTM)2.62
FCFY7.41%
OCF(TTM)2.91
OCFY8.25%
SpS5.64
BVpS20.94
TBVpS20.79
PEG (NY)3.2
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 | 1.56 |
F-Score8
WACC7.42%
ROIC/WACC0.98
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 Y5.68%
EPS Next 2Y-3.08%
EPS Next 3Y-2.23%
EPS Next 5YN/A
Revenue 1Y (TTM)30.02%
Revenue growth 3Y10.55%
Revenue growth 5Y2.52%
Sales Q2Q%-4.55%
Revenue Next Year-22.74%
Revenue Next 2Y-7.26%
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%