VENTAS INC (VTR) Stock Fundamental Analysis
NYSE:VTR - New York Stock Exchange, Inc. - US92276F1003 - REIT - Currency: USD
Taking everything into account, VTR scores 4 out of 10 in our fundamental rating. VTR was compared to 129 industry peers in the Diversified REITs industry. VTR may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, VTR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
VTR had positive earnings in the past year.
In the past year VTR had a positive cash flow from operations.
In multiple years VTR reported negative net income over the last 5 years.
In the past 5 years VTR always reported a positive cash flow from operatings.
1.2 Ratios
VTR's Return On Assets of 0.55% is in line compared to the rest of the industry. VTR outperforms 48.84% of its industry peers.
Looking at the Return On Equity, with a value of 1.21%, VTR is in line with its industry, outperforming 50.39% of the companies in the same industry.
The Return On Invested Capital of VTR (2.71%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for VTR is in line with the industry average of 3.15%.
The last Return On Invested Capital (2.71%) for VTR is above the 3 year average (2.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 1.21% | ||
| ROIC | 2.71% |
ROA(3y)-0.02%
ROA(5y)0.4%
ROE(3y)-0.05%
ROE(5y)0.9%
ROIC(3y)2.29%
ROIC(5y)2.34%
1.3 Margins
VTR's Profit Margin of 2.80% is in line compared to the rest of the industry. VTR outperforms 48.06% of its industry peers.
In the last couple of years the Profit Margin of VTR has declined.
Looking at the Operating Margin, with a value of 16.13%, VTR is doing worse than 64.34% of the companies in the same industry.
VTR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 42.48%, VTR is doing worse than 82.95% of the companies in the same industry.
In the last couple of years the Gross Margin of VTR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.13% | ||
| PM (TTM) | 2.8% | ||
| GM | 42.48% |
OM growth 3Y-1.91%
OM growth 5Y-9.33%
PM growth 3Y8.78%
PM growth 5Y-31.81%
GM growth 3Y-2.14%
GM growth 5Y-4.37%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VTR is destroying value.
VTR has more shares outstanding than it did 1 year ago.
VTR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VTR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.03, we must say that VTR is in the distress zone and has some risk of bankruptcy.
VTR's Altman-Z score of 1.03 is fine compared to the rest of the industry. VTR outperforms 75.97% of its industry peers.
VTR has a debt to FCF ratio of 15.93. This is a negative value and a sign of low solvency as VTR would need 15.93 years to pay back of all of its debts.
VTR has a better Debt to FCF ratio (15.93) than 84.50% of its industry peers.
A Debt/Equity ratio of 1.02 is on the high side and indicates that VTR has dependencies on debt financing.
VTR has a Debt to Equity ratio of 1.02. This is comparable to the rest of the industry: VTR outperforms 56.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.93 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.37
WACC7.24%
2.3 Liquidity
VTR has a Current Ratio of 0.13. This is a bad value and indicates that VTR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.13, VTR is not doing good in the industry: 93.02% of the companies in the same industry are doing better.
A Quick Ratio of 0.13 indicates that VTR may have some problems paying its short term obligations.
VTR's Quick ratio of 0.13 is on the low side compared to the rest of the industry. VTR is outperformed by 93.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
VTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 226.92%, which is quite impressive.
VTR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -30.12% yearly.
Looking at the last year, VTR shows a quite strong growth in Revenue. The Revenue has grown by 10.00% in the last year.
Measured over the past years, VTR shows a small growth in Revenue. The Revenue has been growing by 4.92% on average per year.
EPS 1Y (TTM)226.92%
EPS 3Y12.62%
EPS 5Y-30.12%
EPS Q2Q%433.33%
Revenue 1Y (TTM)10%
Revenue growth 3Y8.76%
Revenue growth 5Y4.92%
Sales Q2Q%13.18%
3.2 Future
Based on estimates for the next years, VTR will show a very strong growth in Earnings Per Share. The EPS will grow by 56.52% on average per year.
The Revenue is expected to grow by 7.08% on average over the next years.
EPS Next Y128.69%
EPS Next 2Y93.31%
EPS Next 3Y78.17%
EPS Next 5Y56.52%
Revenue Next Year12.71%
Revenue Next 2Y10.66%
Revenue Next 3Y9.89%
Revenue Next 5Y7.08%
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
Based on the Price/Earnings ratio of 192.79, the valuation of VTR can be described as expensive.
Based on the Price/Earnings ratio, VTR is valued a bit more expensive than the industry average as 65.89% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of VTR to the average of the S&P500 Index (26.60), we can say VTR is valued expensively.
The Price/Forward Earnings ratio is 85.12, which means the current valuation is very expensive for VTR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VTR is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, VTR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 192.79 | ||
| Fwd PE | 85.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VTR indicates a rather expensive valuation: VTR more expensive than 83.72% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VTR is valued a bit cheaper than 68.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.92 | ||
| EV/EBITDA | 19.56 |
4.3 Compensation for Growth
VTR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as VTR's earnings are expected to grow with 78.17% in the coming years.
PEG (NY)1.5
PEG (5Y)N/A
EPS Next 2Y93.31%
EPS Next 3Y78.17%
5. Dividend
5.1 Amount
VTR has a Yearly Dividend Yield of 2.96%.
Compared to an average industry Dividend Yield of 6.62, VTR is paying slightly less dividend.
VTR's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
The dividend of VTR decreases each year by -11.07%.
VTR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-11.07%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VTR pays out 531.50% of its income as dividend. This is not a sustainable payout ratio.
DP531.5%
EPS Next 2Y93.31%
EPS Next 3Y78.17%
63.62
-1.35 (-2.08%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners99.52%
Inst Owner Change4.89%
Ins Owners0.49%
Ins Owner Change9.57%
Market Cap27.85B
Analysts83.33
Price Target77.7 (22.13%)
Short Float %3.15%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend1.76
Dividend Growth(5Y)-11.07%
DP531.5%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)340.55%
Min EPS beat(2)45.6%
Max EPS beat(2)635.5%
EPS beat(4)4
Avg EPS beat(4)275.88%
Min EPS beat(4)45.6%
Max EPS beat(4)635.5%
EPS beat(8)6
Avg EPS beat(8)52.74%
EPS beat(12)7
Avg EPS beat(12)-777.38%
EPS beat(16)10
Avg EPS beat(16)-492.7%
Revenue beat(2)2
Avg Revenue beat(2)1.49%
Min Revenue beat(2)1.02%
Max Revenue beat(2)1.96%
Revenue beat(4)3
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-0.42%
Max Revenue beat(4)1.96%
Revenue beat(8)7
Avg Revenue beat(8)1%
Revenue beat(12)8
Avg Revenue beat(12)0.59%
Revenue beat(16)11
Avg Revenue beat(16)0.77%
PT rev (1m)0.78%
PT rev (3m)6.29%
EPS NQ rev (1m)4.07%
EPS NQ rev (3m)113.34%
EPS NY rev (1m)-6.76%
EPS NY rev (3m)-13.9%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)3.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 192.79 | ||
| Fwd PE | 85.12 | ||
| P/S | 5.48 | ||
| P/FCF | 34.92 | ||
| P/OCF | 20.12 | ||
| P/B | 2.36 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 19.56 |
EPS(TTM)0.33
EY0.52%
EPS(NY)0.75
Fwd EY1.17%
FCF(TTM)1.82
FCFY2.86%
OCF(TTM)3.16
OCFY4.97%
SpS11.61
BVpS26.98
TBVpS24.57
PEG (NY)1.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 1.21% | ||
| ROCE | 3.43% | ||
| ROIC | 2.71% | ||
| ROICexc | 2.73% | ||
| ROICexgc | 2.88% | ||
| OM | 16.13% | ||
| PM (TTM) | 2.8% | ||
| GM | 42.48% | ||
| FCFM | 15.69% |
ROA(3y)-0.02%
ROA(5y)0.4%
ROE(3y)-0.05%
ROE(5y)0.9%
ROIC(3y)2.29%
ROIC(5y)2.34%
ROICexc(3y)2.34%
ROICexc(5y)2.39%
ROICexgc(3y)2.49%
ROICexgc(5y)2.54%
ROCE(3y)2.9%
ROCE(5y)2.96%
ROICexcg growth 3Y8.54%
ROICexcg growth 5Y-3.91%
ROICexc growth 3Y8.57%
ROICexc growth 5Y-3.94%
OM growth 3Y-1.91%
OM growth 5Y-9.33%
PM growth 3Y8.78%
PM growth 5Y-31.81%
GM growth 3Y-2.14%
GM growth 5Y-4.37%
F-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.93 | ||
| Debt/EBITDA | 5.75 | ||
| Cap/Depr | 46.06% | ||
| Cap/Sales | 11.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.1% | ||
| Profit Quality | 560.18% | ||
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | 1.03 |
F-Score6
WACC7.24%
ROIC/WACC0.37
Cap/Depr(3y)44.09%
Cap/Depr(5y)43.21%
Cap/Sales(3y)12.52%
Cap/Sales(5y)12.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)226.92%
EPS 3Y12.62%
EPS 5Y-30.12%
EPS Q2Q%433.33%
EPS Next Y128.69%
EPS Next 2Y93.31%
EPS Next 3Y78.17%
EPS Next 5Y56.52%
Revenue 1Y (TTM)10%
Revenue growth 3Y8.76%
Revenue growth 5Y4.92%
Sales Q2Q%13.18%
Revenue Next Year12.71%
Revenue Next 2Y10.66%
Revenue Next 3Y9.89%
Revenue Next 5Y7.08%
EBIT growth 1Y28.17%
EBIT growth 3Y6.68%
EBIT growth 5Y-4.86%
EBIT Next Year242.03%
EBIT Next 3Y58.56%
EBIT Next 5Y34.75%
FCF growth 1Y33.77%
FCF growth 3Y6.96%
FCF growth 5Y-3.72%
OCF growth 1Y27.19%
OCF growth 3Y9.02%
OCF growth 5Y-1.55%