VENTAS INC (VTR)
US92276F1003 - REIT
Taking everything into account, VTR scores 2 out of 10 in our fundamental rating. VTR was compared to 127 industry peers in the Diversified REITs industry. Both the profitability and financial health of VTR have multiple concerns. VTR is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years VTR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.30%, VTR is doing worse than 61.60% of the companies in the same industry.
VTR has a worse Return On Equity (-0.75%) than 62.40% of its industry peers.
The Return On Invested Capital of VTR (2.28%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for VTR is in line with the industry average of 3.01%.
The 3 year average ROIC (2.12%) for VTR is below the current ROIC(2.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.3% | ||
| ROE | -0.75% | ||
| ROIC | 2.28% |
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
Looking at the Operating Margin, with a value of 13.84%, VTR is doing worse than 69.60% of the companies in the same industry.
In the last couple of years the Operating Margin of VTR has declined.
VTR has a Gross Margin of 42.84%. This is amonst the worse of the industry: VTR underperforms 85.60% of its industry peers.
In the last couple of years the Gross Margin of VTR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.84% | ||
| PM (TTM) | N/A | ||
| GM | 42.84% |
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.
Compared to 5 years ago, VTR has more shares outstanding
The debt/assets ratio for VTR is higher compared to a year ago.
2.2 Solvency
VTR has an Altman-Z score of 0.68. This is a bad value and indicates that VTR is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.68, VTR perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
VTR has a debt to FCF ratio of 28.30. This is a negative value and a sign of low solvency as VTR would need 28.30 years to pay back of all of its debts.
With a Debt to FCF ratio value of 28.30, VTR perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
A Debt/Equity ratio of 1.28 is on the high side and indicates that VTR has dependencies on debt financing.
VTR has a Debt to Equity ratio (1.28) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 28.3 | ||
| Altman-Z | 0.68 |
ROIC/WACC0.33
WACC6.91%
2.3 Liquidity
A Current Ratio of 0.25 indicates that VTR may have some problems paying its short term obligations.
VTR has a worse Current ratio (0.25) than 93.60% of its industry peers.
A Quick Ratio of 0.25 indicates that VTR may have some problems paying its short term obligations.
VTR has a worse Quick ratio (0.25) than 92.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
VTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.89%.
The Revenue has grown by 10.30% in the past year. This is quite good.
The Revenue has been growing slightly by 3.73% on average over the past years.
EPS 1Y (TTM)-46.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-175%
Revenue 1Y (TTM)10.3%
Revenue growth 3Y5.82%
Revenue growth 5Y3.73%
Sales Q2Q%11.39%
3.2 Future
The Earnings Per Share is expected to grow by 52.20% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.57% on average over the next years.
EPS Next Y134.55%
EPS Next 2Y93.76%
EPS Next 3Y72.14%
EPS Next 5Y52.2%
Revenue Next Year8.46%
Revenue Next 2Y7.31%
Revenue Next 3Y7%
Revenue Next 5Y6.57%
3.3 Evolution
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
The Price/Earnings Ratio is negative for VTR. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 161.27 indicates a quite expensive valuation of 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 (20.59), we can say VTR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 161.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VTR is valued a bit more expensive than 66.40% of the companies in the same industry.
VTR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.42 | ||
| EV/EBITDA | 16.8 |
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 72.14% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y93.76%
EPS Next 3Y72.14%
5. Dividend
5.1 Amount
VTR has a Yearly Dividend Yield of 3.38%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.52, VTR is paying slightly less dividend.
VTR's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
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.
VTR has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-10.61%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
VTR has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-995.84%
EPS Next 2Y93.76%
EPS Next 3Y72.14%
VENTAS INC
NYSE:VTR (7/26/2024, 7:06:10 PM)
After market: 53.75 0 (0%)53.75
+0.56 (+1.05%)
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 Cap21.76B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
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)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 161.27 | ||
| 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 | -0.3% | ||
| ROE | -0.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.84% | ||
| PM (TTM) | N/A | ||
| GM | 42.84% | ||
| 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 Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-46.89%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y134.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.3%
Revenue growth 3Y5.82%
Revenue growth 5Y
Sales 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