MEDICAL PROPERTIES TRUST INC (MPW)

US58463J3041 - REIT

4.7  -0.02 (-0.42%)

After market: 4.7 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to MPW. MPW was compared to 127 industry peers in the Diversified REITs industry. Both the profitability and financial health of MPW have multiple concerns. MPW is valued correctly, but it does not seem to be growing.



3

1. Profitability

1.1 Basic Checks

MPW had positive earnings in the past year.
MPW had a positive operating cash flow in the past year.
Of the past 5 years MPW 4 years were profitable.
Each year in the past 5 years MPW had a positive operating cash flow.

1.2 Ratios

MPW has a Return On Assets of -3.05%. This is amonst the worse of the industry: MPW underperforms 82.26% of its industry peers.
MPW's Return On Equity of -7.31% is on the low side compared to the rest of the industry. MPW is outperformed by 83.06% of its industry peers.
MPW has a Return On Invested Capital of 0.36%. This is amonst the worse of the industry: MPW underperforms 87.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MPW is in line with the industry average of 2.93%.
Industry RankSector Rank
ROA -3.05%
ROE -7.31%
ROIC 0.36%
ROA(3y)1.57%
ROA(5y)1.97%
ROE(3y)3.64%
ROE(5y)4.41%
ROIC(3y)2.9%
ROIC(5y)3.2%

1.3 Margins

The Operating Margin of MPW (9.32%) is worse than 81.45% of its industry peers.
In the last couple of years the Operating Margin of MPW has declined.
MPW has a Gross Margin of 95.23%. This is amongst the best in the industry. MPW outperforms 96.77% of its industry peers.
MPW's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 9.32%
PM (TTM) N/A
GM 95.23%
OM growth 3Y-48%
OM growth 5Y-33.49%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.88%
GM growth 5Y-0.6%

3

2. Health

2.1 Basic Checks

MPW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MPW has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MPW has more shares outstanding
MPW has a worse debt/assets ratio than last year.

2.2 Solvency

MPW has an Altman-Z score of 0.17. This is a bad value and indicates that MPW is not financially healthy and even has some risk of bankruptcy.
MPW has a Altman-Z score of 0.17. This is in the lower half of the industry: MPW underperforms 73.39% of its industry peers.
The Debt to FCF ratio of MPW is 64.44, which is on the high side as it means it would take MPW, 64.44 years of fcf income to pay off all of its debts.
MPW's Debt to FCF ratio of 64.44 is in line compared to the rest of the industry. MPW outperforms 47.58% of its industry peers.
A Debt/Equity ratio of 1.32 is on the high side and indicates that MPW has dependencies on debt financing.
MPW has a Debt to Equity ratio (1.32) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.32
Debt/FCF 64.44
Altman-Z 0.17
ROIC/WACC0.06
WACC5.9%

2.3 Liquidity

MPW has a Current Ratio of 1.56. This is a normal value and indicates that MPW is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MPW (1.56) is better than 65.32% of its industry peers.
MPW has a Quick Ratio of 1.56. This is a normal value and indicates that MPW is financially healthy and should not expect problems in meeting its short term obligations.
MPW has a better Quick ratio (1.56) than 69.35% of its industry peers.
Industry RankSector Rank
Current Ratio 1.56
Quick Ratio 1.56

2

3. Growth

3.1 Past

MPW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -76.67%.
Measured over the past years, MPW shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.94% on average per year.
MPW shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -43.49%.
The Revenue has been growing slightly by 2.13% on average over the past years.
EPS 1Y (TTM)-76.67%
EPS 3Y-24.4%
EPS 5Y-18.94%
EPS growth Q2Q175%
Revenue 1Y (TTM)-43.49%
Revenue growth 3Y-11.3%
Revenue growth 5Y2.13%
Revenue growth Q2Q-132.16%

3.2 Future

MPW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.00% yearly.
MPW is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.02% yearly.
EPS Next Y44.29%
EPS Next 2Y24.83%
EPS Next 3Y13%
EPS Next 5YN/A
Revenue Next Year-6.54%
Revenue Next 2Y-4.4%
Revenue Next 3Y-5.56%
Revenue Next 5Y-0.02%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.43, MPW is valued correctly.
MPW's Price/Earnings ratio is rather cheap when compared to the industry. MPW is cheaper than 91.94% of the companies in the same industry.
MPW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.48.
With a Price/Forward Earnings ratio of 9.31, the valuation of MPW can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MPW indicates a rather cheap valuation: MPW is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, MPW is valued rather cheaply.
Industry RankSector Rank
PE 13.43
Fwd PE 9.31

4.2 Price Multiples

MPW's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MPW is more expensive than 71.77% of the companies in the same industry.
MPW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MPW is cheaper than 74.19% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.03
EV/EBITDA 18.13

4.3 Compensation for Growth

MPW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MPW's earnings are expected to grow with 13.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y24.83%
EPS Next 3Y13%

6

5. Dividend

5.1 Amount

MPW has a Yearly Dividend Yield of 14.08%, which is a nice return.
Compared to an average industry Dividend Yield of 5.72, MPW pays a better dividend. On top of this MPW pays more dividend than 99.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, MPW pays a better dividend.
Industry RankSector Rank
Dividend Yield 14.08%

5.2 History

The dividend of MPW has a limited annual growth rate of 0.77%.
MPW has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)0.77%
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.
MPW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-110.27%
EPS Next 2Y24.83%
EPS Next 3Y13%

MEDICAL PROPERTIES TRUST INC

NYSE:MPW (3/28/2024, 6:41:24 PM)

After market: 4.7 0 (0%)

4.7

-0.02 (-0.42%)

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 Cap2.82B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 14.08%
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)
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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 RankSector Rank
PE 13.43
Fwd PE 9.31
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)0.3
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.05%
ROE -7.31%
ROCE
ROIC
ROICexc
ROICexgc
OM 9.32%
PM (TTM) N/A
GM 95.23%
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 Turnover0.05
Health
Industry RankSector Rank
Debt/Equity 1.32
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.56
Quick Ratio 1.56
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)-76.67%
EPS 3Y-24.4%
EPS 5Y
EPS growth Q2Q
EPS Next Y44.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-43.49%
Revenue growth 3Y-11.3%
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