VENTAS INC (VTR) Stock Fundamental Analysis
NYSE:VTR - New York Stock Exchange, Inc. - US92276F1003 - REIT - Currency: USD
VTR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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.
VTR had a positive operating cash flow in the past year.
In multiple years VTR reported negative net income over the last 5 years.
VTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VTR's Return On Assets of 0.31% is in line compared to the rest of the industry. VTR outperforms 44.62% of its industry peers.
VTR has a Return On Equity of 0.73%. This is comparable to the rest of the industry: VTR outperforms 44.62% of its industry peers.
With a Return On Invested Capital value of 2.65%, VTR perfoms like the industry average, outperforming 51.54% of the companies in the same 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 3.19%.
The 3 year average ROIC (2.29%) for VTR is below the current ROIC(2.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.31% | ||
| ROE | 0.73% | ||
| ROIC | 2.65% |
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
VTR has a Profit Margin (1.65%) which is comparable to the rest of the industry.
VTR's Profit Margin has declined in the last couple of years.
VTR has a worse Operating Margin (15.58%) than 64.62% of its industry peers.
In the last couple of years the Operating Margin of VTR has declined.
VTR has a Gross Margin of 42.59%. This is amonst the worse of the industry: VTR underperforms 82.31% of its industry peers.
VTR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.58% | ||
| PM (TTM) | 1.65% | ||
| GM | 42.59% |
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.
VTR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VTR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that VTR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.99, VTR is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
VTR has a debt to FCF ratio of 18.63. This is a negative value and a sign of low solvency as VTR would need 18.63 years to pay back of all of its debts.
VTR has a Debt to FCF ratio of 18.63. This is in the better half of the industry: VTR outperforms 76.15% 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 54.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 18.63 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.37
WACC7.23%
2.3 Liquidity
A Current Ratio of 0.30 indicates that VTR may have some problems paying its short term obligations.
The Current ratio of VTR (0.30) is worse than 86.92% of its industry peers.
VTR has a Quick Ratio of 0.30. 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 Quick ratio of 0.30 is on the low side compared to the rest of the industry. VTR is outperformed by 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
VTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 205.26%, which is quite impressive.
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 9.48% in the last year.
The Revenue has been growing slightly by 4.92% on average over the past years.
EPS 1Y (TTM)205.26%
EPS 3Y12.62%
EPS 5Y-30.12%
EPS Q2Q%156.52%
Revenue 1Y (TTM)9.48%
Revenue growth 3Y8.76%
Revenue growth 5Y4.92%
Sales Q2Q%10.53%
3.2 Future
The Earnings Per Share is expected to grow by 56.52% on average over the next years. This is a very strong growth
Based on estimates for the next years, VTR will show a small growth in Revenue. The Revenue will grow by 7.08% on average per year.
EPS Next Y145.28%
EPS Next 2Y95.72%
EPS Next 3Y79.49%
EPS Next 5Y56.52%
Revenue Next Year11.51%
Revenue Next 2Y10.26%
Revenue Next 3Y7.96%
Revenue Next 5Y7.08%
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
With a Price/Earnings ratio of 332.70, VTR can be considered very expensive at the moment.
VTR's Price/Earnings ratio is a bit more expensive when compared to the industry. VTR is more expensive than 64.62% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. VTR is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 135.64 indicates a quite expensive valuation of VTR.
VTR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of VTR to the average of the S&P500 Index (21.32), we can say VTR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 332.7 | ||
| Fwd PE | 135.64 |
4.2 Price Multiples
VTR's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. VTR is more expensive than 85.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VTR is valued a bit cheaper than the industry average as 62.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.13 | ||
| EV/EBITDA | 20.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VTR's earnings are expected to grow with 79.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.29
PEG (5Y)N/A
EPS Next 2Y95.72%
EPS Next 3Y79.49%
5. Dividend
5.1 Amount
VTR has a Yearly Dividend Yield of 2.83%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 16.87, VTR's dividend is way lower than its industry peers. On top of this 81.54% 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 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
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.
Dividend Growth(5Y)-11.07%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VTR pays out 912.26% of its income as dividend. This is not a sustainable payout ratio.
DP912.26%
EPS Next 2Y95.72%
EPS Next 3Y79.49%
NYSE:VTR (4/21/2025, 12:49:49 PM)
66.54
-1.39 (-2.05%)
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 Change0.18%
Ins Owners0.49%
Ins Owner Change8.81%
Market Cap29.12B
Analysts83.48
Price Target77.1 (15.87%)
Short Float %2.87%
Short Ratio4.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Yearly Dividend1.76
Dividend Growth(5Y)-11.07%
DP912.26%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)443.91%
Min EPS beat(2)252.32%
Max EPS beat(2)635.5%
EPS beat(4)4
Avg EPS beat(4)287.2%
Min EPS beat(4)90.89%
Max EPS beat(4)635.5%
EPS beat(8)6
Avg EPS beat(8)64.45%
EPS beat(12)7
Avg EPS beat(12)-700.66%
EPS beat(16)9
Avg EPS beat(16)-525.75%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.84%
Max Revenue beat(2)1.02%
Revenue beat(4)3
Avg Revenue beat(4)0.91%
Min Revenue beat(4)-0.42%
Max Revenue beat(4)2.21%
Revenue beat(8)7
Avg Revenue beat(8)1%
Revenue beat(12)7
Avg Revenue beat(12)0.24%
Revenue beat(16)11
Avg Revenue beat(16)0.69%
PT rev (1m)2.69%
PT rev (3m)6.46%
EPS NQ rev (1m)94.29%
EPS NQ rev (3m)326.67%
EPS NY rev (1m)18.47%
EPS NY rev (3m)55.84%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)3.02%
Revenue NY rev (1m)1.18%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 332.7 | ||
| Fwd PE | 135.64 | ||
| P/S | 5.91 | ||
| P/FCF | 40.13 | ||
| P/OCF | 21.9 | ||
| P/B | 2.63 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 20.97 |
EPS(TTM)0.2
EY0.3%
EPS(NY)0.49
Fwd EY0.74%
FCF(TTM)1.66
FCFY2.49%
OCF(TTM)3.04
OCFY4.57%
SpS11.25
BVpS25.32
TBVpS22.9
PEG (NY)2.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.31% | ||
| ROE | 0.73% | ||
| ROCE | 3.35% | ||
| ROIC | 2.65% | ||
| ROICexc | 2.76% | ||
| ROICexgc | 2.92% | ||
| OM | 15.58% | ||
| PM (TTM) | 1.65% | ||
| GM | 42.59% | ||
| FCFM | 14.74% |
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 Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 18.63 | ||
| Debt/EBITDA | 5.81 | ||
| Cap/Depr | 48.19% | ||
| Cap/Sales | 12.26% | ||
| Interest Coverage | 1.33 | ||
| Cash Conversion | 65.82% | ||
| Profit Quality | 894.33% | ||
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | 0.99 |
F-Score6
WACC7.23%
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)205.26%
EPS 3Y12.62%
EPS 5Y-30.12%
EPS Q2Q%156.52%
EPS Next Y145.28%
EPS Next 2Y95.72%
EPS Next 3Y79.49%
EPS Next 5Y56.52%
Revenue 1Y (TTM)9.48%
Revenue growth 3Y8.76%
Revenue growth 5Y4.92%
Sales Q2Q%10.53%
Revenue Next Year11.51%
Revenue Next 2Y10.26%
Revenue Next 3Y7.96%
Revenue Next 5Y7.08%
EBIT growth 1Y23.35%
EBIT growth 3Y6.68%
EBIT growth 5Y-4.86%
EBIT Next Year242.03%
EBIT Next 3Y58.56%
EBIT Next 5Y34.75%
FCF growth 1Y52.2%
FCF growth 3Y6.96%
FCF growth 5Y-3.72%
OCF growth 1Y18.73%
OCF growth 3Y9.02%
OCF growth 5Y-1.55%