VENTAS INC (VTR) Stock Fundamental Analysis
NYSE:VTR - New York Stock Exchange, Inc. - US92276F1003 - REIT - Currency: USD
Overall VTR gets a fundamental rating of 4 out of 10. We evaluated VTR against 130 industry peers in the Diversified REITs industry. VTR may be in some trouble as it scores bad on both profitability and health. VTR is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years VTR had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.55%, VTR perfoms like the industry average, outperforming 47.69% of the companies in the same industry.
VTR's Return On Equity of 1.21% is in line compared to the rest of the industry. VTR outperforms 50.00% of its industry peers.
VTR has a Return On Invested Capital (2.71%) which 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 3.16%.
The last Return On Invested Capital (2.71%) for VTR is above the 3 year average (2.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 1.21% | ||
| ROIC | 2.71% |
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 (2.80%) is comparable to the rest of the industry.
VTR's Profit Margin has declined in the last couple of years.
The Operating Margin of VTR (16.13%) is worse than 64.62% of its industry peers.
In the last couple of years the Operating Margin of VTR has declined.
VTR's Gross Margin of 42.48% is on the low side compared to the rest of the industry. VTR is outperformed by 83.08% of its industry peers.
VTR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.13% | ||
| PM (TTM) | 2.8% | ||
| GM | 42.48% |
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.
VTR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VTR has more shares outstanding
Compared to 1 year ago, VTR has an improved debt to assets ratio.
2.2 Solvency
VTR has an Altman-Z score of 1.03. This is a bad value and indicates that VTR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VTR (1.03) is better than 76.92% of its industry peers.
VTR has a debt to FCF ratio of 15.93. This is a negative value and a sign of low solvency as VTR would need 15.93 years to pay back of all of its debts.
VTR has a better Debt to FCF ratio (15.93) than 84.62% of its industry peers.
VTR has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.02, VTR is in line with its industry, outperforming 57.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.93 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.33
WACC8.31%
2.3 Liquidity
A Current Ratio of 0.13 indicates that VTR may have some problems paying its short term obligations.
The Current ratio of VTR (0.13) is worse than 93.08% of its industry peers.
VTR has a Quick Ratio of 0.13. 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 has a Quick ratio of 0.13. This is amonst the worse of the industry: VTR underperforms 93.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
VTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 226.92%, which is quite impressive.
The earnings per share for VTR have been decreasing by -30.12% on average. This is quite bad
The Revenue has grown by 10.00% 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)226.92%
EPS 3Y12.62%
EPS 5Y-30.12%
EPS Q2Q%433.33%
Revenue 1Y (TTM)10%
Revenue growth 3Y8.76%
Revenue growth 5Y4.92%
Sales Q2Q%13.18%
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
VTR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.14% yearly.
EPS Next Y133.74%
EPS Next 2Y93.31%
EPS Next 3Y78.17%
EPS Next 5Y56.52%
Revenue Next Year13.32%
Revenue Next 2Y10.98%
Revenue Next 3Y9.89%
Revenue Next 5Y9.14%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 191.36 indicates a quite expensive valuation of VTR.
VTR's Price/Earnings ratio is a bit more expensive when compared to the industry. VTR is more expensive than 65.38% of the companies in the same industry.
VTR is valuated expensively when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 84.49, VTR can be considered very expensive at the moment.
VTR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, VTR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 191.36 | ||
| Fwd PE | 84.49 |
4.2 Price Multiples
83.85% of the companies in the same industry are cheaper than VTR, based on the Enterprise Value to EBITDA ratio.
67.69% of the companies in the same industry are more expensive than VTR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.74 | ||
| EV/EBITDA | 19.53 |
4.3 Compensation for Growth
VTR's 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 78.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.43
PEG (5Y)N/A
EPS Next 2Y93.31%
EPS Next 3Y78.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.03%, VTR has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.03, VTR pays less dividend than the industry average, which is at 6.64. 80.00% of the companies listed in the same industry pay a better dividend than VTR!
Compared to an average S&P500 Dividend Yield of 2.42, VTR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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 531.50% of its income as dividend. This is not a sustainable payout ratio.
DP531.5%
EPS Next 2Y93.31%
EPS Next 3Y78.17%
63.15
+0.27 (+0.43%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.49%
Inst Owner Change4.97%
Ins Owners0.52%
Ins Owner Change8.06%
Market Cap28.50B
Analysts83.33
Price Target77.7 (23.04%)
Short Float %2.83%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend1.76
Dividend Growth(5Y)-11.07%
DP531.5%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)340.55%
Min EPS beat(2)45.6%
Max EPS beat(2)635.5%
EPS beat(4)4
Avg EPS beat(4)275.88%
Min EPS beat(4)45.6%
Max EPS beat(4)635.5%
EPS beat(8)6
Avg EPS beat(8)52.74%
EPS beat(12)7
Avg EPS beat(12)-777.38%
EPS beat(16)10
Avg EPS beat(16)-492.7%
Revenue beat(2)2
Avg Revenue beat(2)1.49%
Min Revenue beat(2)1.02%
Max Revenue beat(2)1.96%
Revenue beat(4)3
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-0.42%
Max Revenue beat(4)1.96%
Revenue beat(8)7
Avg Revenue beat(8)1%
Revenue beat(12)8
Avg Revenue beat(12)0.59%
Revenue beat(16)11
Avg Revenue beat(16)0.77%
PT rev (1m)0%
PT rev (3m)0.78%
EPS NQ rev (1m)3.17%
EPS NQ rev (3m)5.69%
EPS NY rev (1m)2.21%
EPS NY rev (3m)0.99%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)2.22%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 191.36 | ||
| Fwd PE | 84.49 | ||
| P/S | 5.61 | ||
| P/FCF | 35.74 | ||
| P/OCF | 20.59 | ||
| P/B | 2.41 | ||
| P/tB | 2.65 | ||
| EV/EBITDA | 19.53 |
EPS(TTM)0.33
EY0.52%
EPS(NY)0.75
Fwd EY1.18%
FCF(TTM)1.77
FCFY2.8%
OCF(TTM)3.07
OCFY4.86%
SpS11.26
BVpS26.17
TBVpS23.83
PEG (NY)1.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 1.21% | ||
| ROCE | 3.43% | ||
| ROIC | 2.71% | ||
| ROICexc | 2.73% | ||
| ROICexgc | 2.88% | ||
| OM | 16.13% | ||
| PM (TTM) | 2.8% | ||
| GM | 42.48% | ||
| FCFM | 15.69% |
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 | 1.02 | ||
| Debt/FCF | 15.93 | ||
| Debt/EBITDA | 5.75 | ||
| Cap/Depr | 46.06% | ||
| Cap/Sales | 11.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.1% | ||
| Profit Quality | 560.18% | ||
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | 1.03 |
F-Score6
WACC8.31%
ROIC/WACC0.33
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)226.92%
EPS 3Y12.62%
EPS 5Y-30.12%
EPS Q2Q%433.33%
EPS Next Y133.74%
EPS Next 2Y93.31%
EPS Next 3Y78.17%
EPS Next 5Y56.52%
Revenue 1Y (TTM)10%
Revenue growth 3Y8.76%
Revenue growth 5Y4.92%
Sales Q2Q%13.18%
Revenue Next Year13.32%
Revenue Next 2Y10.98%
Revenue Next 3Y9.89%
Revenue Next 5Y9.14%
EBIT growth 1Y28.17%
EBIT growth 3Y6.68%
EBIT growth 5Y-4.86%
EBIT Next Year242.81%
EBIT Next 3Y60.03%
EBIT Next 5Y34.75%
FCF growth 1Y33.77%
FCF growth 3Y6.96%
FCF growth 5Y-3.72%
OCF growth 1Y27.19%
OCF growth 3Y9.02%
OCF growth 5Y-1.55%