HEALTHPEAK PROPERTIES INC (PEAK)
US42250P1030 - REIT
PEAK gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 126 industry peers in the Diversified REITs industry. While PEAK is still in line with the averages on profitability rating, there are concerns on its financial health. PEAK is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PEAK was profitable.
In the past year PEAK had a positive cash flow from operations.
PEAK had positive earnings in each of the past 5 years.
In the past 5 years PEAK always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PEAK (1.94%) is better than 65.60% of its industry peers.
Looking at the Return On Equity, with a value of 4.79%, PEAK is in the better half of the industry, outperforming 68.80% of the companies in the same industry.
PEAK has a Return On Invested Capital (2.45%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PEAK is in line with the industry average of 2.95%.
The last Return On Invested Capital (2.45%) for PEAK is above the 3 year average (2.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 4.79% | ||
| ROIC | 2.45% |
ROA(3y)2.8%
ROA(5y)2.26%
ROE(3y)6.66%
ROE(5y)5.35%
ROIC(3y)2.14%
ROIC(5y)1.89%
1.3 Margins
PEAK's Profit Margin of 13.95% is fine compared to the rest of the industry. PEAK outperforms 68.00% of its industry peers.
PEAK's Profit Margin has declined in the last couple of years.
PEAK has a Operating Margin (20.53%) which is comparable to the rest of the industry.
PEAK's Operating Margin has declined in the last couple of years.
PEAK's Gross Margin of 59.28% is on the low side compared to the rest of the industry. PEAK is outperformed by 73.60% of its industry peers.
In the last couple of years the Gross Margin of PEAK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.53% | ||
| PM (TTM) | 13.95% | ||
| GM | 59.28% |
OM growth 3Y15.69%
OM growth 5Y-5.54%
PM growth 3Y-17.66%
PM growth 5Y-30.94%
GM growth 3Y4.39%
GM growth 5Y-2.65%
2. Health
2.1 Basic Checks
PEAK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PEAK has about the same amount of shares outstanding.
Compared to 5 years ago, PEAK has more shares outstanding
Compared to 1 year ago, PEAK has a worse debt to assets ratio.
2.2 Solvency
PEAK has an Altman-Z score of 0.34. This is a bad value and indicates that PEAK is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.34, PEAK is doing worse than 64.80% of the companies in the same industry.
The Debt to FCF ratio of PEAK is 32.87, which is on the high side as it means it would take PEAK, 32.87 years of fcf income to pay off all of its debts.
PEAK has a Debt to FCF ratio (32.87) which is in line with its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that PEAK has dependencies on debt financing.
PEAK has a Debt to Equity ratio of 1.08. This is comparable to the rest of the industry: PEAK outperforms 53.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 32.87 | ||
| Altman-Z | 0.34 |
ROIC/WACC0.37
WACC6.55%
2.3 Liquidity
A Current Ratio of 0.14 indicates that PEAK may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.14, PEAK is doing worse than 96.80% of the companies in the same industry.
A Quick Ratio of 0.14 indicates that PEAK may have some problems paying its short term obligations.
PEAK has a worse Quick ratio (0.14) than 96.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
PEAK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.86%.
Measured over the past years, PEAK shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.30% on average per year.
PEAK shows a small growth in Revenue. In the last year, the Revenue has grown by 5.81%.
PEAK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.86% yearly.
EPS 1Y (TTM)-38.86%
EPS 3Y-12.64%
EPS 5Y-23.3%
EPS growth Q2Q1200%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y9.86%
Revenue growth 5Y12.86%
Revenue growth Q2Q5.56%
3.2 Future
Based on estimates for the next years, PEAK will show a decrease in Earnings Per Share. The EPS will decrease by -3.48% on average per year.
The Revenue is expected to grow by 8.55% on average over the next years. This is quite good.
EPS Next Y-30.18%
EPS Next 2Y-0.06%
EPS Next 3Y-5.39%
EPS Next 5Y-3.48%
Revenue Next Year15.38%
Revenue Next 2Y10.7%
Revenue Next 3Y8.55%
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.
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
The Price/Earnings ratio is 30.54, which means the current valuation is very expensive for PEAK.
Compared to the rest of the industry, the Price/Earnings ratio of PEAK indicates a somewhat cheap valuation: PEAK is cheaper than 61.60% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.76. PEAK is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 43.73, which means the current valuation is very expensive for PEAK.
65.60% of the companies in the same industry are more expensive than PEAK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PEAK to the average of the S&P500 Index (21.26), we can say PEAK is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.54 | ||
| Fwd PE | 43.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEAK is valued a bit cheaper than 62.40% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PEAK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.73 | ||
| EV/EBITDA | 13.46 |
4.3 Compensation for Growth
A cheap valuation may be justified as PEAK's earnings are expected to decrease with -5.39% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.06%
EPS Next 3Y-5.39%
5. Dividend
5.1 Amount
PEAK has a Yearly Dividend Yield of 7.02%, which is a nice return.
Compared to an average industry Dividend Yield of 5.97, PEAK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, PEAK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
5.2 History
The dividend of PEAK decreases each year by -11.76%.
PEAK has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-11.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PEAK pays out 215.92% of its income as dividend. This is not a sustainable payout ratio.
PEAK's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP215.92%
EPS Next 2Y-0.06%
EPS Next 3Y-5.39%
HEALTHPEAK PROPERTIES INC
NYSE:PEAK (3/1/2024, 7:04:00 PM)
After market: 17.1 0 (0%)17.1
+0.35 (+2.09%)
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 Cap9.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
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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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.54 | ||
| Fwd PE | 43.73 | ||
| 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 | 1.94% | ||
| ROE | 4.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.53% | ||
| PM (TTM) | 13.95% | ||
| GM | 59.28% | ||
| 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 Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 | ||
| 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)-38.86%
EPS 3Y-12.64%
EPS 5Y
EPS growth Q2Q
EPS Next Y-30.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.81%
Revenue growth 3Y9.86%
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