VENTAS INC (VTR)
US92276F1003 - REIT
Taking everything into account, VTR scores 2 out of 10 in our fundamental rating. VTR was compared to 126 industry peers in the Diversified REITs industry. Both the profitability and financial health of VTR have multiple concerns. VTR has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
VTR had negative 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 has a worse Return On Assets (-0.17%) than 60.98% of its industry peers.
Looking at the Return On Equity, with a value of -0.42%, VTR is doing worse than 60.16% of the companies in the same industry.
The Return On Invested Capital of VTR (2.10%) is worse than 62.60% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VTR is in line with the industry average of 2.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.17% | ||
| ROE | -0.42% | ||
| ROIC | 2.1% |
ROA(3y)-0.05%
ROA(5y)0.68%
ROE(3y)-0.14%
ROE(5y)1.56%
ROIC(3y)2.12%
ROIC(5y)2.48%
1.3 Margins
VTR's Operating Margin of 13.83% is on the low side compared to the rest of the industry. VTR is outperformed by 70.73% of its industry peers.
In the last couple of years the Operating Margin of VTR has declined.
VTR's Gross Margin of 43.06% is on the low side compared to the rest of the industry. VTR is outperformed by 85.37% of its industry peers.
VTR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.83% | ||
| PM (TTM) | N/A | ||
| GM | 43.06% |
OM growth 3Y-11.98%
OM growth 5Y-13.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.15%
GM growth 5Y-4.73%
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.
VTR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VTR is higher compared to a year ago.
2.2 Solvency
VTR has an Altman-Z score of 0.58. This is a bad value and indicates that VTR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.58, VTR is in line with its industry, outperforming 52.85% of the companies in the same industry.
VTR has a debt to FCF ratio of 28.29. This is a negative value and a sign of low solvency as VTR would need 28.29 years to pay back of all of its debts.
VTR has a Debt to FCF ratio (28.29) which is in line with its industry peers.
VTR has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
VTR has a Debt to Equity ratio of 1.38. This is in the lower half of the industry: VTR underperforms 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 28.29 | ||
| Altman-Z | 0.58 |
ROIC/WACC0.29
WACC7.27%
2.3 Liquidity
VTR has a Current Ratio of 0.38. 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's Current ratio of 0.38 is on the low side compared to the rest of the industry. VTR is outperformed by 90.24% of its industry peers.
A Quick Ratio of 0.38 indicates that VTR may have some problems paying its short term obligations.
VTR's Quick ratio of 0.38 is on the low side compared to the rest of the industry. VTR is outperformed by 89.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
VTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -62.39%.
VTR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.93%.
VTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.73% yearly.
EPS 1Y (TTM)-62.39%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-109.09%
Revenue 1Y (TTM)8.93%
Revenue growth 3Y5.82%
Revenue growth 5Y3.73%
Revenue growth Q2Q10.74%
3.2 Future
The Earnings Per Share is expected to decrease by -44.28% on average over the next years. This is quite bad
VTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.25% yearly.
EPS Next Y-373.77%
EPS Next 2Y-94.66%
EPS Next 3Y-44.28%
EPS Next 5YN/A
Revenue Next Year7.26%
Revenue Next 2Y6.98%
Revenue Next 3Y6.25%
Revenue Next 5YN/A
3.3 Evolution
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
The Price/Earnings Ratio is negative for VTR. In the last year negative earnings were reported.
Also next year VTR is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
VTR's Enterprise Value to EBITDA ratio is in line with the industry average.
VTR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.95 | ||
| EV/EBITDA | 15.18 |
4.3 Compensation for Growth
VTR's earnings are expected to decrease with -44.28% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-94.66%
EPS Next 3Y-44.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.22%, VTR is a good candidate for dividend investing.
VTR's Dividend Yield is slightly below the industry average, which is at 6.13.
Compared to an average S&P500 Dividend Yield of 2.45, VTR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
5.2 History
The dividend of VTR decreases each year by -10.61%.
VTR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-10.61%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of VTR are negative and hence is the payout ratio. VTR will probably not be able to sustain this dividend level.
The Dividend Rate of VTR has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-1765.94%
EPS Next 2Y-94.66%
EPS Next 3Y-44.28%
VENTAS INC
NYSE:VTR (4/24/2024, 7:04:00 PM)
After market: 43.61 0 (0%)43.61
+0.05 (+0.11%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.62B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.17% | ||
| ROE | -0.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.83% | ||
| PM (TTM) | N/A | ||
| GM | 43.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-62.39%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-373.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.93%
Revenue growth 3Y5.82%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y