VENTAS INC (VTR) Stock Fundamental Analysis
NYSE:VTR - US92276F1003 - REIT
67.78 USD
+0.06 (+0.09%)
VTR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. VTR may be in some trouble as it scores bad on both profitability and health. VTR is valied quite expensively at the moment, while 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.
VTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VTR has a Return On Assets (0.72%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 1.61%, VTR is in line with its industry, outperforming 50.39% of the companies in the same industry.
With a Return On Invested Capital value of 2.81%, VTR perfoms like the industry average, outperforming 53.49% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VTR is in line with the industry average of 3.04%.
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
The Profit Margin of VTR (3.61%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of VTR has declined.
Looking at the Operating Margin, with a value of 16.44%, VTR is doing worse than 62.02% of the companies in the same industry.
VTR's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 42.13%, VTR is not doing good in the industry: 82.17% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VTR is destroying value.
Compared to 1 year ago, VTR has more shares outstanding
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
VTR has an Altman-Z score of 1.13. This is a bad value and indicates that VTR is not financially healthy and even has some risk of bankruptcy.
VTR has a Altman-Z score of 1.13. This is in the better half of the industry: VTR outperforms 79.84% of its industry peers.
The Debt to FCF ratio of VTR is 13.78, which is on the high side as it means it would take VTR, 13.78 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VTR (13.78) is better than 86.05% of its industry peers.
VTR has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
VTR has a Debt to Equity ratio of 1.06. This is comparable to the rest of the industry: VTR outperforms 57.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 13.78 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.39
WACC7.18%
2.3 Liquidity
VTR has a Current 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.
The Current ratio of VTR (0.34) is worse than 86.05% of its industry peers.
A Quick Ratio of 0.34 indicates that VTR may have some problems paying its short term obligations.
VTR's Quick ratio of 0.34 is on the low side compared to the rest of the industry. VTR is outperformed by 85.27% 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.
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.
The Revenue has grown by 12.45% in the past year. This is quite good.
The Revenue has been growing slightly by 4.92% on average over the past years.
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
VTR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 57.51% yearly.
Based on estimates for the next years, VTR will show a quite strong growth in Revenue. The Revenue will grow by 10.08% on average per year.
EPS Next Y177.75%
EPS Next 2Y102.04%
EPS Next 3Y79.09%
EPS Next 5Y57.51%
Revenue Next Year14.4%
Revenue Next 2Y11.55%
Revenue Next 3Y10.72%
Revenue Next 5Y10.08%
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
VTR is valuated quite expensively with a Price/Earnings ratio of 157.63.
Based on the Price/Earnings ratio, VTR is valued a bit more expensive than the industry average as 60.47% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.03. VTR is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 83.02, which means the current valuation is very expensive for VTR.
VTR's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.63. VTR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 157.63 | ||
| Fwd PE | 83.02 |
4.2 Price Multiples
86.05% of the companies in the same industry are cheaper than VTR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VTR indicates a somewhat cheap valuation: VTR is cheaper than 68.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.52 | ||
| EV/EBITDA | 20.07 |
4.3 Compensation for Growth
The 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)0.89
PEG (5Y)N/A
EPS Next 2Y102.04%
EPS Next 3Y79.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.84%, VTR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.14, VTR's dividend is way lower than its industry peers. On top of this 82.17% of the companies listed in the same industry pay a better dividend than VTR!
Compared to an average S&P500 Dividend Yield of 2.32, VTR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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
VTR pays out 413.76% of its income as dividend. This is not a sustainable payout ratio.
DP413.76%
EPS Next 2Y102.04%
EPS Next 3Y79.09%
NYSE:VTR (9/5/2025, 2:22:58 PM)
67.78
+0.06 (+0.09%)
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 Change0.1%
Market Cap30.80B
Analysts83.48
Price Target78.54 (15.87%)
Short Float %3.54%
Short Ratio5.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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)1.48%
PT rev (3m)1.08%
EPS NQ rev (1m)-11.25%
EPS NQ rev (3m)12.1%
EPS NY rev (1m)0%
EPS NY rev (3m)21.45%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)2.37%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 157.63 | ||
| Fwd PE | 83.02 | ||
| P/S | 5.81 | ||
| P/FCF | 32.52 | ||
| P/OCF | 20.22 | ||
| P/B | 2.6 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 20.07 |
EPS(TTM)0.43
EY0.63%
EPS(NY)0.82
Fwd EY1.2%
FCF(TTM)2.08
FCFY3.07%
OCF(TTM)3.35
OCFY4.95%
SpS11.67
BVpS26.09
TBVpS23.77
PEG (NY)0.89
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 | 1.13 |
F-Score6
WACC7.18%
ROIC/WACC0.39
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 Year14.4%
Revenue Next 2Y11.55%
Revenue Next 3Y10.72%
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%