MEDICAL PROPERTIES TRUST INC (MPW) Stock Fundamental Analysis
NYSE:MPW - New York Stock Exchange, Inc. - US58463J3041 - REIT - Currency: USD
Taking everything into account, MPW scores 3 out of 10 in our fundamental rating. MPW was compared to 129 industry peers in the Diversified REITs industry. Both the profitability and financial health of MPW have multiple concerns. MPW is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MPW had negative earnings in the past year.
In the past year MPW had a positive cash flow from operations.
In multiple years MPW reported negative net income over the last 5 years.
MPW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MPW's Return On Assets of -11.13% is on the low side compared to the rest of the industry. MPW is outperformed by 95.35% of its industry peers.
MPW has a worse Return On Equity (-34.74%) than 93.02% of its industry peers.
The Return On Invested Capital of MPW (1.88%) is worse than 68.99% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MPW is in line with the industry average of 3.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.13% | ||
| ROE | -34.74% | ||
| ROIC | 1.88% |
ROA(3y)-5.11%
ROA(5y)-1.92%
ROE(3y)-15.57%
ROE(5y)-6.62%
ROIC(3y)2.26%
ROIC(5y)2.99%
1.3 Margins
The Operating Margin of MPW (35.82%) is better than 75.19% of its industry peers.
In the last couple of years the Operating Margin of MPW has declined.
With an excellent Gross Margin value of 96.89%, MPW belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
MPW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.82% | ||
| PM (TTM) | N/A | ||
| GM | 96.89% |
OM growth 3Y-16.71%
OM growth 5Y-10.61%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.03%
GM growth 5Y-0.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MPW is destroying value.
MPW has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MPW has been increased compared to 5 years ago.
The debt/assets ratio for MPW is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.01, we must say that MPW is in the distress zone and has some risk of bankruptcy.
MPW has a Altman-Z score of 0.01. This is in the lower half of the industry: MPW underperforms 75.97% of its industry peers.
MPW has a Debt/Equity ratio of 1.99. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MPW (1.99) is worse than 72.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.01 |
ROIC/WACC0.3
WACC6.28%
2.3 Liquidity
A Current Ratio of 2.38 indicates that MPW has no problem at all paying its short term obligations.
MPW has a Current ratio of 2.38. This is amongst the best in the industry. MPW outperforms 83.72% of its industry peers.
MPW has a Quick Ratio of 2.38. This indicates that MPW is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.38, MPW belongs to the top of the industry, outperforming 83.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
The earnings per share for MPW have decreased strongly by -1304.35% in the last year.
The Revenue has grown by 19.56% in the past year. This is quite good.
Measured over the past years, MPW shows a small growth in Revenue. The Revenue has been growing by 3.11% on average per year.
EPS 1Y (TTM)-1304.35%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-185.71%
Revenue 1Y (TTM)19.56%
Revenue growth 3Y-13.62%
Revenue growth 5Y3.11%
Sales Q2Q%-17.51%
3.2 Future
Based on estimates for the next years, MPW will show a very strong growth in Earnings Per Share. The EPS will grow by 28.12% on average per year.
MPW is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.37% yearly.
EPS Next Y99.46%
EPS Next 2Y42.72%
EPS Next 3Y28.12%
EPS Next 5YN/A
Revenue Next Year-2.35%
Revenue Next 2Y1.84%
Revenue Next 3Y4.28%
Revenue Next 5Y-0.37%
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
MPW reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 47.93, which means the current valuation is very expensive for MPW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MPW is on the same level as its industry peers.
MPW is valuated expensively when we compare the Price/Forward Earnings ratio to 22.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 47.93 |
4.2 Price Multiples
MPW's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.77 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MPW's earnings are expected to grow with 28.12% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y42.72%
EPS Next 3Y28.12%
5. Dividend
5.1 Amount
MPW has a Yearly Dividend Yield of 6.93%, which is a nice return.
The stock price of MPW dropped by -20.68% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 6.93, MPW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, MPW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.93% |
5.2 History
The dividend of MPW decreases each year by -10.38%.
MPW has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-10.38%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MPW has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-16.72%
EPS Next 2Y42.72%
EPS Next 3Y28.12%
4.68
+0.1 (+2.18%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners62.86%
Inst Owner Change-3.12%
Ins Owners16.95%
Ins Owner Change11.27%
Market Cap2.81B
Analysts52.22
Price Target5.54 (18.38%)
Short Float %33.36%
Short Ratio15.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.93% |
Yearly Dividend0.54
Dividend Growth(5Y)-10.38%
DP-16.72%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6414.34%
Min EPS beat(2)-11757.5%
Max EPS beat(2)-1071.21%
EPS beat(4)0
Avg EPS beat(4)-3998.5%
Min EPS beat(4)-11757.5%
Max EPS beat(4)-653.07%
EPS beat(8)1
Avg EPS beat(8)-1972.17%
EPS beat(12)3
Avg EPS beat(12)-1334.35%
EPS beat(16)6
Avg EPS beat(16)-987.1%
Revenue beat(2)1
Avg Revenue beat(2)0.96%
Min Revenue beat(2)-3.58%
Max Revenue beat(2)5.51%
Revenue beat(4)2
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-9.56%
Max Revenue beat(4)5.9%
Revenue beat(8)3
Avg Revenue beat(8)-1.37%
Revenue beat(12)4
Avg Revenue beat(12)-1.93%
Revenue beat(16)6
Avg Revenue beat(16)-1.32%
PT rev (1m)-2.77%
PT rev (3m)18.98%
EPS NQ rev (1m)54.56%
EPS NQ rev (3m)84.57%
EPS NY rev (1m)79.51%
EPS NY rev (3m)91.43%
Revenue NQ rev (1m)2.21%
Revenue NQ rev (3m)1.52%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)2.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 47.93 | ||
| P/S | 2.97 | ||
| P/FCF | N/A | ||
| P/OCF | 16.39 | ||
| P/B | 0.59 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 14.77 |
EPS(TTM)-2.77
EYN/A
EPS(NY)0.1
Fwd EY2.09%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)0.29
OCFY6.1%
SpS1.58
BVpS7.92
TBVpS7.92
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.13% | ||
| ROE | -34.74% | ||
| ROCE | 2.38% | ||
| ROIC | 1.88% | ||
| ROICexc | 1.98% | ||
| ROICexgc | 2.05% | ||
| OM | 35.82% | ||
| PM (TTM) | N/A | ||
| GM | 96.89% | ||
| FCFM | N/A |
ROA(3y)-5.11%
ROA(5y)-1.92%
ROE(3y)-15.57%
ROE(5y)-6.62%
ROIC(3y)2.26%
ROIC(5y)2.99%
ROICexc(3y)2.3%
ROICexc(5y)3.06%
ROICexgc(3y)2.37%
ROICexgc(5y)3.14%
ROCE(3y)2.86%
ROCE(5y)3.79%
ROICexcg growth 3Y-18.25%
ROICexcg growth 5Y-8.72%
ROICexc growth 3Y-18.71%
ROICexc growth 5Y-8.92%
OM growth 3Y-16.71%
OM growth 5Y-10.61%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.03%
GM growth 5Y-0.02%
F-Score5
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 12.11 | ||
| Cap/Depr | 49.98% | ||
| Cap/Sales | 23.3% | ||
| Interest Coverage | 0.84 | ||
| Cash Conversion | 21.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.38 | ||
| Altman-Z | 0.01 |
F-Score5
WACC6.28%
ROIC/WACC0.3
Cap/Depr(3y)171.64%
Cap/Depr(5y)740.47%
Cap/Sales(3y)50.73%
Cap/Sales(5y)169.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1304.35%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-185.71%
EPS Next Y99.46%
EPS Next 2Y42.72%
EPS Next 3Y28.12%
EPS Next 5YN/A
Revenue 1Y (TTM)19.56%
Revenue growth 3Y-13.62%
Revenue growth 5Y3.11%
Sales Q2Q%-17.51%
Revenue Next Year-2.35%
Revenue Next 2Y1.84%
Revenue Next 3Y4.28%
Revenue Next 5Y-0.37%
EBIT growth 1Y1491.35%
EBIT growth 3Y-28.05%
EBIT growth 5Y-7.83%
EBIT Next Year124.47%
EBIT Next 3Y38.21%
EBIT Next 5YN/A
FCF growth 1Y31.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-75.33%
OCF growth 3Y-32.88%
OCF growth 5Y-13.06%