LTC PROPERTIES INC (LTC) Stock Fundamental Analysis
NYSE:LTC - New York Stock Exchange, Inc. - US5021751020 - REIT - Currency: USD
We assign a fundamental rating of 6 out of 10 to LTC. LTC was compared to 128 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.
In the past 5 years LTC always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.24%, LTC belongs to the best of the industry, outperforming 96.90% of the companies in the same industry.
LTC has a better Return On Equity (11.53%) than 93.02% of its industry peers.
With an excellent Return On Invested Capital value of 7.27%, LTC belongs to the best of the industry, outperforming 98.45% of the companies in the same industry.
LTC had an Average Return On Invested Capital over the past 3 years of 5.29%. This is above the industry average of 3.14%.
The 3 year average ROIC (5.29%) for LTC is below the current ROIC(7.27%), indicating increased profibility in the last year.
| 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
LTC has a Profit Margin of 42.83%. This is amongst the best in the industry. LTC outperforms 93.02% of its industry peers.
LTC's Profit Margin has been stable in the last couple of years.
The Operating Margin of LTC (61.54%) is better than 96.12% of its industry peers.
In the last couple of years the Operating Margin of LTC has remained more or less at the same level.
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.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LTC 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.
The debt/assets ratio for LTC has been reduced compared to a year ago.
2.2 Solvency
LTC has an Altman-Z score of 1.57. This is a bad value and indicates that LTC is not financially healthy and even has some risk of bankruptcy.
LTC has a better Altman-Z score (1.57) than 90.70% of its industry peers.
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.
LTC's Debt to FCF ratio of 5.68 is amongst the best of the industry. LTC outperforms 97.67% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that LTC is somewhat dependend on debt financing.
The Debt to Equity ratio of LTC (0.71) is better than 76.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.68 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.85
WACC8.55%
2.3 Liquidity
A Current Ratio of 2.47 indicates that LTC has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.47, LTC belongs to the best of the industry, outperforming 86.82% of the companies in the same industry.
A Quick Ratio of 2.47 indicates that LTC has no problem at all paying its short term obligations.
The Quick ratio of LTC (2.47) is better than 86.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
LTC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.04%.
LTC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.48% yearly.
The Revenue has grown by 30.02% in the past year. This is a very strong growth!
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 -2.23% 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.
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
LTC is valuated rather expensively with a Price/Earnings ratio of 18.03.
Compared to the rest of the industry, the Price/Earnings ratio of LTC indicates a rather cheap valuation: LTC is cheaper than 86.05% of the companies listed in the same industry.
LTC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.16, which indicates a rather expensive current valuation of LTC.
Based on the Price/Forward Earnings ratio, LTC is valued cheaper than 93.80% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.03. LTC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.03 | ||
| Fwd PE | 18.16 |
4.2 Price Multiples
LTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LTC is cheaper than 73.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LTC indicates a rather cheap valuation: LTC is cheaper than 87.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.37 | ||
| 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.
LTC has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as LTC's earnings are expected to decrease with -2.23% in the coming years.
PEG (NY)3.17
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 6.45%, which is a nice return.
LTC's Dividend Yield is comparable with the industry average which is at 6.72.
LTC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.45% |
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 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-3.08%
EPS Next 3Y-2.23%
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 Change9.28%
Market Cap1.61B
Analysts70
Price Target37.74 (7.92%)
Short Float %4.86%
Short Ratio6.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.45% |
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)0%
EPS NQ rev (3m)58.63%
EPS NY rev (1m)12.8%
EPS NY rev (3m)8.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-25.8%
Revenue NY rev (1m)-12.43%
Revenue NY rev (3m)-35.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.03 | ||
| Fwd PE | 18.16 | ||
| P/S | 6.2 | ||
| P/FCF | 13.37 | ||
| P/OCF | 12 | ||
| P/B | 1.67 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 11.57 |
EPS(TTM)1.94
EY5.55%
EPS(NY)1.93
Fwd EY5.51%
FCF(TTM)2.62
FCFY7.48%
OCF(TTM)2.91
OCFY8.33%
SpS5.64
BVpS20.94
TBVpS20.79
PEG (NY)3.17
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 | 1.57 |
F-Score8
WACC8.55%
ROIC/WACC0.85
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%