VENTAS INC (VTR) Stock Fundamental Analysis
USA - NYSE:VTR - US92276F1003 - REIT
69.25 USD
-0.51 (-0.73%)
69.37 USD
+0.12 (+0.17%)
We assign a fundamental rating of 4 out of 10 to VTR. VTR was compared to 130 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.
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.
The Return On Equity of VTR (1.61%) is comparable to the rest of the industry.
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 3.02%.
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.
With a Operating Margin value of 16.44%, VTR is not doing good in the industry: 62.31% of the companies in the same industry are doing better.
VTR's Operating Margin has declined in the last couple of years.
VTR's Gross Margin of 42.13% is on the low side compared to the rest of the industry. VTR is outperformed by 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
VTR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VTR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for VTR has been increased compared to 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 1.16, we must say that VTR is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.16, VTR belongs to the best of the industry, outperforming 82.31% of the companies in the same industry.
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.
VTR has a Debt to FCF ratio of 13.78. This is amongst the best in 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.
VTR has a Debt to Equity ratio of 1.06. This is comparable to the rest of the industry: VTR outperforms 57.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 13.78 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.39
WACC7.15%
2.3 Liquidity
A Current Ratio of 0.34 indicates that VTR may have some problems paying its short term obligations.
With a Current ratio value of 0.34, VTR is not doing good in the industry: 86.15% of the companies in the same industry are doing better.
A Quick Ratio of 0.34 indicates that VTR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.34, VTR is doing worse than 85.38% of the companies in the same industry.
| 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
The Revenue has grown by 12.45% in the past year. This is quite good.
VTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.92% yearly.
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
The Earnings Per Share is expected to grow by 57.51% on average over the next years. This is a very strong growth
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 Y158.99%
EPS Next 2Y94.62%
EPS Next 3Y74.1%
EPS Next 5Y57.51%
Revenue Next Year15.33%
Revenue Next 2Y12.08%
Revenue Next 3Y10.97%
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.
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
VTR is valuated quite expensively with a Price/Earnings ratio of 161.05.
The rest of the industry has a similar Price/Earnings ratio as VTR.
VTR is valuated expensively when we compare the Price/Earnings ratio to 27.90, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 91.42, which means the current valuation is very expensive for VTR.
VTR's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of VTR to the average of the S&P500 Index (23.36), we can say VTR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 161.05 | ||
| Fwd PE | 91.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VTR is valued more expensive than 86.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VTR is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.23 | ||
| EV/EBITDA | 20.39 |
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 74.10% in the coming years.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y94.62%
EPS Next 3Y74.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.76%, VTR has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.76, VTR pays less dividend than the industry average, which is at 6.68. 84.62% of the companies listed in the same industry pay a better dividend than VTR!
VTR's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| 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
VTR pays out 413.76% of its income as dividend. This is not a sustainable payout ratio.
DP413.76%
EPS Next 2Y94.62%
EPS Next 3Y74.1%
69.25
-0.51 (-0.73%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.86%
Inst Owner Change0%
Ins Owners0.51%
Ins Owner Change-0.77%
Market Cap31.47B
Analysts82.4
Price Target78.78 (13.76%)
Short Float %4.02%
Short Ratio6.62
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)0.31%
PT rev (3m)1.39%
EPS NQ rev (1m)-6.11%
EPS NQ rev (3m)-11.11%
EPS NY rev (1m)-6.75%
EPS NY rev (3m)10.8%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0.82%
Revenue NY rev (3m)1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 161.05 | ||
| Fwd PE | 91.42 | ||
| P/S | 5.94 | ||
| P/FCF | 33.23 | ||
| P/OCF | 20.65 | ||
| P/B | 2.65 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 20.39 |
EPS(TTM)0.43
EY0.62%
EPS(NY)0.76
Fwd EY1.09%
FCF(TTM)2.08
FCFY3.01%
OCF(TTM)3.35
OCFY4.84%
SpS11.67
BVpS26.09
TBVpS23.77
PEG (NY)1.01
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 | 1.16 |
F-Score6
WACC7.15%
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 Y158.99%
EPS Next 2Y94.62%
EPS Next 3Y74.1%
EPS Next 5Y57.51%
Revenue 1Y (TTM)12.45%
Revenue growth 3Y8.76%
Revenue growth 5Y4.92%
Sales Q2Q%18.31%
Revenue Next Year15.33%
Revenue Next 2Y12.08%
Revenue Next 3Y10.97%
Revenue Next 5Y10.08%
EBIT growth 1Y29.62%
EBIT growth 3Y6.68%
EBIT growth 5Y-4.86%
EBIT Next Year245.48%
EBIT Next 3Y61.24%
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%