VENTAS INC (VTR) Stock Fundamental Analysis
USA - NYSE:VTR - US92276F1003 - REIT
74.95 USD
-0.03 (-0.04%)
74.95 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to VTR. VTR was compared to 127 industry peers in the Diversified REITs industry. VTR has a bad profitability rating. Also its financial health evaluation is rather negative. VTR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VTR was profitable.
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.
Each year in the past 5 years VTR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.88%, VTR is in line with its industry, outperforming 52.76% of the companies in the same industry.
VTR has a Return On Equity (1.87%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 2.88%, VTR is in line with its industry, outperforming 56.69% 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 3.07%.
The last Return On Invested Capital (2.88%) for VTR is above the 3 year average (2.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 1.87% | ||
| ROIC | 2.88% |
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
With a Profit Margin value of 4.28%, VTR perfoms like the industry average, outperforming 48.82% of the companies in the same industry.
In the last couple of years the Profit Margin of VTR has declined.
VTR has a worse Operating Margin (16.60%) than 62.20% of its industry peers.
In the last couple of years the Operating Margin of VTR has declined.
With a Gross Margin value of 41.97%, VTR is not doing good in the industry: 82.68% 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 | 16.6% | ||
| PM (TTM) | 4.28% | ||
| GM | 41.97% |
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 1.31. 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 1.31. This is amongst the best in the industry. VTR outperforms 86.61% of its industry peers.
VTR has a debt to FCF ratio of 12.99. This is a negative value and a sign of low solvency as VTR would need 12.99 years to pay back of all of its debts.
VTR has a better Debt to FCF ratio (12.99) than 85.83% of its industry peers.
VTR has a Debt/Equity ratio of 0.98. This is a neutral value indicating VTR is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.98, VTR is doing good in the industry, outperforming 62.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 12.99 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.4
WACC7.26%
2.3 Liquidity
VTR has a Current Ratio of 0.17. This is a bad value and indicates that VTR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.17, VTR is doing worse than 93.70% of the companies in the same industry.
A Quick Ratio of 0.17 indicates that VTR may have some problems paying its short term obligations.
VTR has a worse Quick ratio (0.17) than 92.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 425.00% 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 15.69% 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)425%
EPS 3Y12.62%
EPS 5Y-30.12%
EPS Q2Q%180%
Revenue 1Y (TTM)15.69%
Revenue growth 3Y8.76%
Revenue growth 5Y4.92%
Sales Q2Q%20.44%
3.2 Future
VTR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 55.15% yearly.
Based on estimates for the next years, VTR will show a quite strong growth in Revenue. The Revenue will grow by 13.18% on average per year.
EPS Next Y143.12%
EPS Next 2Y88.59%
EPS Next 3Y71.38%
EPS Next 5Y55.15%
Revenue Next Year15.94%
Revenue Next 2Y12.58%
Revenue Next 3Y11.4%
Revenue Next 5Y13.18%
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
Based on the Price/Earnings ratio of 144.13, the valuation of VTR can be described as expensive.
Based on the Price/Earnings ratio, VTR is valued a bit more expensive than the industry average as 60.63% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 25.67, VTR is valued quite expensively.
The Price/Forward Earnings ratio is 105.37, which means the current valuation is very expensive for 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 (31.86), we can say VTR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 144.13 | ||
| Fwd PE | 105.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VTR indicates a rather expensive valuation: VTR more expensive than 87.40% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VTR is valued a bit cheaper than the industry average as 70.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.19 | ||
| EV/EBITDA | 20.58 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VTR's earnings are expected to grow with 71.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y88.59%
EPS Next 3Y71.38%
5. Dividend
5.1 Amount
VTR has a Yearly Dividend Yield of 2.56%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.56, VTR pays less dividend than the industry average, which is at 6.24. 82.68% of the companies listed in the same industry pay a better dividend than VTR!
Compared to an average S&P500 Dividend Yield of 2.40, VTR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
The dividend of VTR decreases each year by -11.07%.
VTR has been paying a dividend for at least 10 years, so it has 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
345.92% of the earnings are spent on dividend by VTR. This is not a sustainable payout ratio.
DP345.92%
EPS Next 2Y88.59%
EPS Next 3Y71.38%
74.95
-0.03 (-0.04%)
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 Change0.27%
Ins Owners0.51%
Ins Owner Change-0.77%
Market Cap34.06B
Revenue(TTM)5.56B
Net Income(TTM)238.01M
Analysts82.4
Price Target78.88 (5.24%)
Short Float %2.41%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend1.76
Dividend Growth(5Y)-11.07%
DP345.92%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.05%
Min EPS beat(2)4.59%
Max EPS beat(2)15.51%
EPS beat(4)4
Avg EPS beat(4)175.3%
Min EPS beat(4)4.59%
Max EPS beat(4)635.5%
EPS beat(8)7
Avg EPS beat(8)144.39%
EPS beat(12)9
Avg EPS beat(12)-669.3%
EPS beat(16)10
Avg EPS beat(16)-535.77%
Revenue beat(2)2
Avg Revenue beat(2)2.85%
Min Revenue beat(2)2.3%
Max Revenue beat(2)3.4%
Revenue beat(4)4
Avg Revenue beat(4)2.17%
Min Revenue beat(4)1.02%
Max Revenue beat(4)3.4%
Revenue beat(8)7
Avg Revenue beat(8)1.45%
Revenue beat(12)10
Avg Revenue beat(12)1.3%
Revenue beat(16)11
Avg Revenue beat(16)0.81%
PT rev (1m)-0.22%
PT rev (3m)1.92%
EPS NQ rev (1m)-10%
EPS NQ rev (3m)-25%
EPS NY rev (1m)-5.57%
EPS NY rev (3m)-11.95%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)1.62%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 144.13 | ||
| Fwd PE | 105.37 | ||
| P/S | 6.13 | ||
| P/FCF | 35.19 | ||
| P/OCF | 21.99 | ||
| P/B | 2.68 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | 20.58 |
EPS(TTM)0.52
EY0.69%
EPS(NY)0.71
Fwd EY0.95%
FCF(TTM)2.13
FCFY2.84%
OCF(TTM)3.41
OCFY4.55%
SpS12.22
BVpS27.97
TBVpS25.65
PEG (NY)1.01
PEG (5Y)N/A
Graham Number18.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 1.87% | ||
| ROCE | 3.65% | ||
| ROIC | 2.88% | ||
| ROICexc | 2.91% | ||
| ROICexgc | 3.06% | ||
| OM | 16.6% | ||
| PM (TTM) | 4.28% | ||
| GM | 41.97% | ||
| FCFM | 17.42% |
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%
ROICexgc growth 3Y8.54%
ROICexgc 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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 12.99 | ||
| Debt/EBITDA | 5.52 | ||
| Cap/Depr | 43.5% | ||
| Cap/Sales | 10.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.61% | ||
| Profit Quality | 406.65% | ||
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 1.31 |
F-Score6
WACC7.26%
ROIC/WACC0.4
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)425%
EPS 3Y12.62%
EPS 5Y-30.12%
EPS Q2Q%180%
EPS Next Y143.12%
EPS Next 2Y88.59%
EPS Next 3Y71.38%
EPS Next 5Y55.15%
Revenue 1Y (TTM)15.69%
Revenue growth 3Y8.76%
Revenue growth 5Y4.92%
Sales Q2Q%20.44%
Revenue Next Year15.94%
Revenue Next 2Y12.58%
Revenue Next 3Y11.4%
Revenue Next 5Y13.18%
EBIT growth 1Y29.73%
EBIT growth 3Y6.68%
EBIT growth 5Y-4.86%
EBIT Next Year245.48%
EBIT Next 3Y61.24%
EBIT Next 5Y37.29%
FCF growth 1Y80.67%
FCF growth 3Y6.96%
FCF growth 5Y-3.72%
OCF growth 1Y39.77%
OCF growth 3Y9.02%
OCF growth 5Y-1.55%
VENTAS INC / VTR FAQ
What is the ChartMill fundamental rating of VENTAS INC (VTR) stock?
ChartMill assigns a fundamental rating of 4 / 10 to VTR.
What is the valuation status of VENTAS INC (VTR) stock?
ChartMill assigns a valuation rating of 3 / 10 to VENTAS INC (VTR). This can be considered as Overvalued.
How profitable is VENTAS INC (VTR) stock?
VENTAS INC (VTR) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for VTR stock?
The Price/Earnings (PE) ratio for VENTAS INC (VTR) is 144.13 and the Price/Book (PB) ratio is 2.68.
Can you provide the expected EPS growth for VTR stock?
The Earnings per Share (EPS) of VENTAS INC (VTR) is expected to grow by 143.12% in the next year.