LTC PROPERTIES INC (LTC)
US5021751020 - REIT
We assign a fundamental rating of 6 out of 10 to LTC. LTC was compared to 126 industry peers in the Diversified REITs industry. LTC has an excellent profitability rating, but there are some minor concerns on its financial health. LTC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LTC was profitable.
In the past year LTC had a positive cash flow from operations.
In the past 5 years LTC has always been profitable.
LTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LTC (4.81%) is better than 89.43% of its industry peers.
LTC has a Return On Equity of 10.12%. This is amongst the best in the industry. LTC outperforms 86.18% of its industry peers.
LTC has a better Return On Invested Capital (5.10%) than 93.50% of its industry peers.
LTC had an Average Return On Invested Capital over the past 3 years of 4.70%. This is in line with the industry average of 2.95%.
The 3 year average ROIC (4.70%) for LTC is below the current ROIC(5.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 10.12% | ||
| ROIC | 5.1% |
ROA(3y)4.83%
ROA(5y)5.26%
ROE(3y)9.88%
ROE(5y)10.46%
ROIC(3y)4.7%
ROIC(5y)4.95%
1.3 Margins
The Profit Margin of LTC (45.20%) is better than 91.87% of its industry peers.
In the last couple of years the Profit Margin of LTC has declined.
LTC's Operating Margin of 59.11% is amongst the best of the industry. LTC outperforms 96.75% of its industry peers.
LTC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 93.27%, LTC belongs to the top of the industry, outperforming 95.94% 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 | 59.11% | ||
| PM (TTM) | 45.2% | ||
| GM | 93.27% |
OM growth 3Y3.27%
OM growth 5Y-2.27%
PM growth 3Y-8.79%
PM growth 5Y-13.17%
GM growth 3Y0.98%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.11, we must say that LTC is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.11, LTC is doing good in the industry, outperforming 79.67% of the companies in the same industry.
LTC has a debt to FCF ratio of 17.49. This is a negative value and a sign of low solvency as LTC would need 17.49 years to pay back of all of its debts.
LTC has a Debt to FCF ratio of 17.49. This is in the better half of the industry: LTC outperforms 73.17% of its industry peers.
LTC has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
LTC has a Debt to Equity ratio (1.01) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 17.49 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.65
WACC7.8%
2.3 Liquidity
LTC has a Current Ratio of 2.37. This indicates that LTC is financially healthy and has no problem in meeting its short term obligations.
LTC has a better Current ratio (2.37) than 83.74% of its industry peers.
A Quick Ratio of 2.37 indicates that LTC has no problem at all paying its short term obligations.
The Quick ratio of LTC (2.37) is better than 83.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.37 |
3. Growth
3.1 Past
The earnings per share for LTC have decreased strongly by -12.90% in the last year.
LTC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.10% yearly.
The Revenue has grown by 12.61% in the past year. This is quite good.
Measured over the past years, LTC shows a small growth in Revenue. The Revenue has been growing by 3.19% on average per year.
EPS 1Y (TTM)-12.9%
EPS 3Y9.17%
EPS 5Y-11.1%
EPS growth Q2Q52.27%
Revenue 1Y (TTM)12.61%
Revenue growth 3Y7.38%
Revenue growth 5Y3.19%
Revenue growth Q2Q4.92%
3.2 Future
LTC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.38% yearly.
The Revenue is expected to grow by 3.99% on average over the next years.
EPS Next Y-11.16%
EPS Next 2Y-6.29%
EPS Next 3Y-4.38%
EPS Next 5YN/A
Revenue Next Year2.12%
Revenue Next 2Y3.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LTC is valuated correctly with a Price/Earnings ratio of 14.72.
Based on the Price/Earnings ratio, LTC is valued cheaply inside the industry as 88.62% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.76. LTC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.57, which indicates a correct valuation of LTC.
Based on the Price/Forward Earnings ratio, LTC is valued cheaper than 95.94% of the companies in the same industry.
LTC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 16.57 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LTC.
60.16% of the companies in the same industry are more expensive than LTC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.9 | ||
| EV/EBITDA | 14.52 |
4.3 Compensation for Growth
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 -4.38% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.29%
EPS Next 3Y-4.38%
5. Dividend
5.1 Amount
LTC has a Yearly Dividend Yield of 7.14%, which is a nice return.
Compared to an average industry Dividend Yield of 5.97, LTC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, LTC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.14% |
5.2 History
The dividend of LTC decreases each year by -0.28%.
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)-0.28%
Div Incr Years0
Div Non Decr Years12
5.3 Sustainability
106.29% of the earnings are spent on dividend by LTC. 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.
DP106.29%
EPS Next 2Y-6.29%
EPS Next 3Y-4.38%
LTC PROPERTIES INC
NYSE:LTC (4/19/2024, 7:04:00 PM)
After market: 31.8 0 (0%)31.8
+0.12 (+0.38%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.14% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 16.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 10.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 59.11% | ||
| PM (TTM) | 45.2% | ||
| GM | 93.27% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-12.9%
EPS 3Y9.17%
EPS 5Y
EPS growth Q2Q
EPS Next Y-11.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.61%
Revenue growth 3Y7.38%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y