VENTAS INC (VTR) Stock Fundamental Analysis
USA - NYSE:VTR - US92276F1003 - REIT
69.85 USD
+0.12 (+0.17%)
69.85 USD
0 (0%)
Taking everything into account, VTR scores 4 out of 10 in our fundamental rating. VTR was compared to 130 industry peers in the Diversified REITs industry. VTR may be in some trouble as it scores bad on both profitability and health. VTR is quite expensive at the moment. It does show a decent growth rate.
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.
The reported net income has been mixed in the past 5 years: VTR reported negative net income in multiple years.
In the past 5 years VTR always reported a positive cash flow from operatings.
1.2 Ratios
VTR has a Return On Assets of 0.72%. This is comparable to the rest of the industry: VTR outperforms 52.31% of its industry peers.
VTR has a Return On Equity (1.61%) which is in line with its industry peers.
VTR has a Return On Invested Capital (2.81%) which is comparable to the rest of the industry.
VTR had an Average Return On Invested Capital over the past 3 years of 2.29%. This is in line with the industry average of 3.05%.
The last Return On Invested Capital (2.81%) for VTR is above the 3 year average (2.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 1.61% | ||
| ROIC | 2.81% |
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 3.61% is in line compared to the rest of the industry. VTR outperforms 48.46% of its industry peers.
VTR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 16.44%, VTR is doing worse than 62.31% of the companies in the same industry.
In the last couple of years the Operating Margin of VTR has declined.
The Gross Margin of VTR (42.13%) is worse than 82.31% of its industry peers.
In the last couple of years the Gross Margin of VTR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.44% | ||
| PM (TTM) | 3.61% | ||
| GM | 42.13% |
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.
Compared to 1 year ago, VTR has more shares outstanding
Compared to 5 years ago, VTR has more shares outstanding
The debt/assets ratio for VTR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.17, we must say that VTR is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.17, VTR belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
VTR has a debt to FCF ratio of 13.78. This is a negative value and a sign of low solvency as VTR would need 13.78 years to pay back of all of its debts.
VTR's Debt to FCF ratio of 13.78 is amongst the best of the industry. VTR outperforms 86.15% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that VTR has dependencies on debt financing.
The Debt to Equity ratio of VTR (1.06) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 13.78 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.4
WACC7.11%
2.3 Liquidity
A Current Ratio of 0.34 indicates that VTR may have some problems paying its short term obligations.
The Current ratio of VTR (0.34) is worse than 86.15% of its industry peers.
VTR has a Quick Ratio of 0.34. This is a bad value and indicates that VTR is not financially healthy enough and could expect problems in meeting its short term obligations.
VTR has a worse Quick ratio (0.34) than 85.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 210.26% over the past year.
The earnings per share for VTR have been decreasing by -30.12% on average. This is quite bad
Looking at the last year, VTR shows a quite strong growth in Revenue. The Revenue has grown by 12.45% 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)210.26%
EPS 3Y12.62%
EPS 5Y-30.12%
EPS Q2Q%200%
Revenue 1Y (TTM)12.45%
Revenue growth 3Y8.76%
Revenue growth 5Y4.92%
Sales Q2Q%18.31%
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 57.51% on average per year.
VTR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.08% yearly.
EPS Next Y177.75%
EPS Next 2Y102.04%
EPS Next 3Y79.09%
EPS Next 5Y57.51%
Revenue Next Year15.09%
Revenue Next 2Y11.92%
Revenue Next 3Y10.97%
Revenue Next 5Y10.08%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 162.44 indicates a quite expensive valuation of VTR.
60.00% of the companies in the same industry are cheaper than VTR, based on the Price/Earnings ratio.
VTR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.27.
The Price/Forward Earnings ratio is 85.56, which means the current valuation is very expensive for VTR.
The rest of the industry has a similar Price/Forward Earnings ratio as VTR.
When comparing the Price/Forward Earnings ratio of VTR to the average of the S&P500 Index (22.77), we can say VTR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 162.44 | ||
| Fwd PE | 85.56 |
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 86.92% of the companies listed in the same industry.
68.46% of the companies in the same industry are more expensive than VTR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.52 | ||
| EV/EBITDA | 20.49 |
4.3 Compensation for Growth
VTR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VTR's earnings are expected to grow with 79.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y102.04%
EPS Next 3Y79.09%
5. Dividend
5.1 Amount
VTR has a Yearly Dividend Yield of 2.76%.
With a Dividend Yield of 2.76, VTR pays less dividend than the industry average, which is at 6.66. 84.62% of the companies listed in the same industry pay a better dividend than VTR!
Compared to an average S&P500 Dividend Yield of 2.38, VTR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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.
VTR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-11.07%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
413.76% of the earnings are spent on dividend by VTR. This is not a sustainable payout ratio.
DP413.76%
EPS Next 2Y102.04%
EPS Next 3Y79.09%
69.85
+0.12 (+0.17%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.37%
Inst Owner Change1.85%
Ins Owners0.51%
Ins Owner Change0.28%
Market Cap31.74B
Analysts83.48
Price Target79.05 (13.17%)
Short Float %3.54%
Short Ratio5.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Yearly Dividend1.76
Dividend Growth(5Y)-11.07%
DP413.76%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.1%
Min EPS beat(2)4.59%
Max EPS beat(2)45.6%
EPS beat(4)4
Avg EPS beat(4)234.5%
Min EPS beat(4)4.59%
Max EPS beat(4)635.5%
EPS beat(8)6
Avg EPS beat(8)-45.57%
EPS beat(12)8
Avg EPS beat(12)-677.91%
EPS beat(16)10
Avg EPS beat(16)-520.99%
Revenue beat(2)2
Avg Revenue beat(2)2.13%
Min Revenue beat(2)1.96%
Max Revenue beat(2)2.3%
Revenue beat(4)4
Avg Revenue beat(4)1.53%
Min Revenue beat(4)0.84%
Max Revenue beat(4)2.3%
Revenue beat(8)7
Avg Revenue beat(8)1.26%
Revenue beat(12)9
Avg Revenue beat(12)0.99%
Revenue beat(16)11
Avg Revenue beat(16)0.89%
PT rev (1m)1.97%
PT rev (3m)1.74%
EPS NQ rev (1m)-11.25%
EPS NQ rev (3m)5.19%
EPS NY rev (1m)0%
EPS NY rev (3m)21.45%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)0.92%
Revenue NY rev (1m)1.02%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 162.44 | ||
| Fwd PE | 85.56 | ||
| P/S | 5.99 | ||
| P/FCF | 33.52 | ||
| P/OCF | 20.83 | ||
| P/B | 2.68 | ||
| P/tB | 2.94 | ||
| EV/EBITDA | 20.49 |
EPS(TTM)0.43
EY0.62%
EPS(NY)0.82
Fwd EY1.17%
FCF(TTM)2.08
FCFY2.98%
OCF(TTM)3.35
OCFY4.8%
SpS11.67
BVpS26.09
TBVpS23.77
PEG (NY)0.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 1.61% | ||
| ROCE | 3.56% | ||
| ROIC | 2.81% | ||
| ROICexc | 2.89% | ||
| ROICexgc | 3.04% | ||
| OM | 16.44% | ||
| PM (TTM) | 3.61% | ||
| GM | 42.13% | ||
| FCFM | 17.86% |
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 | 1.06 | ||
| Debt/FCF | 13.78 | ||
| Debt/EBITDA | 5.82 | ||
| Cap/Depr | 44.97% | ||
| Cap/Sales | 10.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.75% | ||
| Profit Quality | 495.35% | ||
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 1.17 |
F-Score6
WACC7.11%
ROIC/WACC0.4
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)210.26%
EPS 3Y12.62%
EPS 5Y-30.12%
EPS Q2Q%200%
EPS Next Y177.75%
EPS Next 2Y102.04%
EPS Next 3Y79.09%
EPS Next 5Y57.51%
Revenue 1Y (TTM)12.45%
Revenue growth 3Y8.76%
Revenue growth 5Y4.92%
Sales Q2Q%18.31%
Revenue Next Year15.09%
Revenue Next 2Y11.92%
Revenue Next 3Y10.97%
Revenue Next 5Y10.08%
EBIT growth 1Y29.62%
EBIT growth 3Y6.68%
EBIT growth 5Y-4.86%
EBIT Next Year245.32%
EBIT Next 3Y60.84%
EBIT Next 5Y34.75%
FCF growth 1Y57.88%
FCF growth 3Y6.96%
FCF growth 5Y-3.72%
OCF growth 1Y35.79%
OCF growth 3Y9.02%
OCF growth 5Y-1.55%