VENTAS INC (VTR) Stock Fundamental Analysis
NYSE:VTR - New York Stock Exchange, Inc. - US92276F1003 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to VTR. VTR was compared to 129 industry peers in the Diversified REITs industry. VTR has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
VTR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: VTR reported negative net income in multiple years.
VTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VTR's Return On Assets of 0.55% is in line compared to the rest of the industry. VTR outperforms 47.29% of its industry peers.
VTR has a Return On Equity of 1.21%. This is comparable to the rest of the industry: VTR outperforms 49.61% of its industry peers.
VTR's Return On Invested Capital of 2.71% is in line compared to the rest of the industry. VTR outperforms 49.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VTR is in line with the industry average of 3.15%.
The 3 year average ROIC (2.29%) for VTR is below the current ROIC(2.71%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 2.80%, VTR perfoms like the industry average, outperforming 47.29% of the companies in the same industry.
In the last couple of years the Profit Margin of VTR has declined.
VTR has a worse Operating Margin (16.13%) than 64.34% of its industry peers.
In the last couple of years the Operating Margin of VTR has declined.
VTR has a Gross Margin of 42.48%. This is amonst the worse of the industry: VTR underperforms 82.95% of its industry peers.
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.
The number of shares outstanding for VTR has been increased compared to 1 year ago.
Compared to 5 years ago, VTR has more shares outstanding
VTR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that VTR is in the distress zone and has some risk of bankruptcy.
VTR has a better Altman-Z score (1.04) than 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.
VTR has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.02, VTR is in line with its industry, outperforming 57.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.93 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.37
WACC7.28%
2.3 Liquidity
A Current Ratio of 0.13 indicates that VTR may have some problems paying its short term obligations.
VTR's Current 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.
A Quick Ratio of 0.13 indicates that VTR may have some problems paying its short term obligations.
With a Quick 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 226.92% over the past year.
Measured over the past years, VTR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -30.12% on average per year.
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 9.14% on average over the next years. This is quite good.
EPS Next Y128.69%
EPS Next 2Y93.31%
EPS Next 3Y78.17%
EPS Next 5Y56.52%
Revenue Next Year13.32%
Revenue Next 2Y10.98%
Revenue Next 3Y9.89%
Revenue Next 5Y9.14%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 192.15, VTR can be considered very expensive at the moment.
65.12% of the companies in the same industry are cheaper than VTR, based on the Price/Earnings ratio.
VTR is valuated expensively when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 84.84, VTR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VTR is on the same level as its industry peers.
VTR is valuated expensively when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 192.15 | ||
| Fwd PE | 84.84 |
4.2 Price Multiples
82.95% of the companies in the same industry are cheaper than VTR, based on the Enterprise Value to EBITDA ratio.
68.22% 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 | 35.89 | ||
| EV/EBITDA | 19.65 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VTR's earnings are expected to grow with 78.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)N/A
EPS Next 2Y93.31%
EPS Next 3Y78.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.03%, VTR has a reasonable but not impressive dividend return.
VTR's Dividend Yield is slightly below the industry average, which is at 6.75.
VTR's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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
531.50% of the earnings are spent on dividend by VTR. This is not a sustainable payout ratio.
DP531.5%
EPS Next 2Y93.31%
EPS Next 3Y78.17%
63.41
-0.04 (-0.06%)
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 Change4.97%
Ins Owners0.49%
Ins Owner Change8.01%
Market Cap28.62B
Analysts83.33
Price Target77.7 (22.54%)
Short Float %3.04%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend1.76
Dividend Growth(5Y)-11.07%
DP531.5%
Div Incr Years0
Div Non Decr Years3
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%
PT rev (3m)3.49%
EPS NQ rev (1m)1.56%
EPS NQ rev (3m)60.49%
EPS NY rev (1m)-6.76%
EPS NY rev (3m)10.45%
Revenue NQ rev (1m)1.54%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)1.29%
Revenue NY rev (3m)2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 192.15 | ||
| Fwd PE | 84.84 | ||
| P/S | 5.63 | ||
| P/FCF | 35.89 | ||
| P/OCF | 20.67 | ||
| P/B | 2.42 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 19.65 |
EPS(TTM)0.33
EY0.52%
EPS(NY)0.75
Fwd EY1.18%
FCF(TTM)1.77
FCFY2.79%
OCF(TTM)3.07
OCFY4.84%
SpS11.26
BVpS26.17
TBVpS23.83
PEG (NY)1.49
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 | 1.04 |
F-Score6
WACC7.28%
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 Year13.32%
Revenue Next 2Y10.98%
Revenue Next 3Y9.89%
Revenue Next 5Y9.14%
EBIT growth 1Y28.17%
EBIT growth 3Y6.68%
EBIT growth 5Y-4.86%
EBIT Next Year242.81%
EBIT Next 3Y60.03%
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%