COMMUNITY HEALTHCARE TRUST I (CHCT) Stock Fundamental Analysis
NYSE:CHCT - New York Stock Exchange, Inc. - US20369C1062 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to CHCT. CHCT was compared to 129 industry peers in the Diversified REITs industry. There are concerns on the financial health of CHCT while its profitability can be described as average. CHCT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CHCT was profitable.
CHCT had a positive operating cash flow in the past year.
CHCT had positive earnings in 4 of the past 5 years.
In the past 5 years CHCT always reported a positive cash flow from operatings.
1.2 Ratios
CHCT's Return On Assets of -0.30% is on the low side compared to the rest of the industry. CHCT is outperformed by 65.87% of its industry peers.
The Return On Equity of CHCT (-0.62%) is worse than 64.29% of its industry peers.
With a decent Return On Invested Capital value of 3.23%, CHCT is doing good in the industry, outperforming 63.49% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CHCT is in line with the industry average of 3.11%.
The 3 year average ROIC (2.59%) for CHCT is below the current ROIC(3.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.3% | ||
| ROE | -0.62% | ||
| ROIC | 3.23% |
ROA(3y)0.71%
ROA(5y)1.48%
ROE(3y)1.2%
ROE(5y)2.39%
ROIC(3y)2.59%
ROIC(5y)2.93%
1.3 Margins
CHCT has a Operating Margin (27.45%) which is comparable to the rest of the industry.
CHCT's Operating Margin has declined in the last couple of years.
CHCT's Gross Margin of 80.27% is fine compared to the rest of the industry. CHCT outperforms 79.37% of its industry peers.
In the last couple of years the Gross Margin of CHCT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.45% | ||
| PM (TTM) | N/A | ||
| GM | 80.27% |
OM growth 3Y-9.56%
OM growth 5Y-2.62%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.21%
GM growth 5Y0.1%
2. Health
2.1 Basic Checks
CHCT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CHCT has more shares outstanding
Compared to 5 years ago, CHCT has more shares outstanding
The debt/assets ratio for CHCT is higher compared to a year ago.
2.2 Solvency
CHCT has an Altman-Z score of 1.01. This is a bad value and indicates that CHCT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.01, CHCT is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
A Debt/Equity ratio of 1.03 is on the high side and indicates that CHCT has dependencies on debt financing.
The Debt to Equity ratio of CHCT (1.03) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.01 |
ROIC/WACC0.47
WACC6.94%
2.3 Liquidity
A Current Ratio of 0.62 indicates that CHCT may have some problems paying its short term obligations.
The Current ratio of CHCT (0.62) is worse than 77.78% of its industry peers.
A Quick Ratio of 0.24 indicates that CHCT may have some problems paying its short term obligations.
The Quick ratio of CHCT (0.24) is worse than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 300.00% over the past year.
The Earnings Per Share has been growing by 14.87% on average over the past years. This is quite good.
CHCT shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.59%.
CHCT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.73% yearly.
EPS 1Y (TTM)300%
EPS 3Y-5.75%
EPS 5Y14.87%
EPS Q2Q%266.67%
Revenue 1Y (TTM)28.59%
Revenue growth 3Y8.53%
Revenue growth 5Y13.73%
Sales Q2Q%0.6%
3.2 Future
The Earnings Per Share is expected to decrease by -14.17% on average over the next years. This is quite bad
Based on estimates for the next years, CHCT will show a quite strong growth in Revenue. The Revenue will grow by 13.32% on average per year.
EPS Next Y-47.58%
EPS Next 2Y-14.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.55%
Revenue Next 2Y8.53%
Revenue Next 3Y15.02%
Revenue Next 5Y13.32%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.08, the valuation of CHCT can be described as expensive.
70.63% of the companies in the same industry are more expensive than CHCT, based on the Price/Earnings ratio.
CHCT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 49.76, which means the current valuation is very expensive for CHCT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHCT indicates a somewhat cheap valuation: CHCT is cheaper than 61.90% of the companies listed in the same industry.
CHCT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.08 | ||
| Fwd PE | 49.76 |
4.2 Price Multiples
CHCT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CHCT is cheaper than 68.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.29 |
4.3 Compensation for Growth
A cheap valuation may be justified as CHCT's earnings are expected to decrease with -14.17% in the coming years.
PEG (NY)N/A
PEG (5Y)1.75
EPS Next 2Y-14.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.80%, CHCT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 18.40, CHCT pays a better dividend. On top of this CHCT pays more dividend than 88.10% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, CHCT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.8% |
5.2 History
The dividend of CHCT has a limited annual growth rate of 2.33%.
CHCT has paid a dividend for at least 10 years, which is a reliable track record.
CHCT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)2.33%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
The earnings of CHCT are negative and hence is the payout ratio. CHCT will probably not be able to sustain this dividend level.
DP-1747.73%
EPS Next 2Y-14.17%
EPS Next 3YN/A
18.78
-0.14 (-0.74%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners86.54%
Inst Owner Change-88.78%
Ins Owners5.11%
Ins Owner Change0.21%
Market Cap530.35M
Analysts81.82
Price Target22.03 (17.31%)
Short Float %2.83%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.8% |
Yearly Dividend1.8
Dividend Growth(5Y)2.33%
DP-1747.73%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)313.17%
Min EPS beat(2)-43.98%
Max EPS beat(2)670.31%
EPS beat(4)1
Avg EPS beat(4)124.83%
Min EPS beat(4)-86.93%
Max EPS beat(4)670.31%
EPS beat(8)2
Avg EPS beat(8)27.84%
EPS beat(12)2
Avg EPS beat(12)13.03%
EPS beat(16)2
Avg EPS beat(16)6.44%
Revenue beat(2)0
Avg Revenue beat(2)-2.61%
Min Revenue beat(2)-3.63%
Max Revenue beat(2)-1.59%
Revenue beat(4)0
Avg Revenue beat(4)-4.84%
Min Revenue beat(4)-11.19%
Max Revenue beat(4)-1.59%
Revenue beat(8)1
Avg Revenue beat(8)-3.46%
Revenue beat(12)1
Avg Revenue beat(12)-3%
Revenue beat(16)4
Avg Revenue beat(16)-2.28%
PT rev (1m)1.89%
PT rev (3m)3.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-55.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.5%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-7.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.08 | ||
| Fwd PE | 49.76 | ||
| P/S | 3.65 | ||
| P/FCF | N/A | ||
| P/OCF | 9.01 | ||
| P/B | 1.11 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 12.29 |
EPS(TTM)0.72
EY3.83%
EPS(NY)0.38
Fwd EY2.01%
FCF(TTM)-1.35
FCFYN/A
OCF(TTM)2.09
OCFY11.1%
SpS5.14
BVpS16.85
TBVpS16.79
PEG (NY)N/A
PEG (5Y)1.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.3% | ||
| ROE | -0.62% | ||
| ROCE | 4.09% | ||
| ROIC | 3.23% | ||
| ROICexc | 3.24% | ||
| ROICexgc | 3.33% | ||
| OM | 27.45% | ||
| PM (TTM) | N/A | ||
| GM | 80.27% | ||
| FCFM | N/A |
ROA(3y)0.71%
ROA(5y)1.48%
ROE(3y)1.2%
ROE(5y)2.39%
ROIC(3y)2.59%
ROIC(5y)2.93%
ROICexc(3y)2.61%
ROICexc(5y)2.94%
ROICexgc(3y)2.69%
ROICexgc(5y)3%
ROCE(3y)3.28%
ROCE(5y)3.7%
ROICexcg growth 3Y-9.66%
ROICexcg growth 5Y-0.75%
ROICexc growth 3Y-10.19%
ROICexc growth 5Y-1.2%
OM growth 3Y-9.56%
OM growth 5Y-2.62%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.21%
GM growth 5Y0.1%
F-Score3
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.92 | ||
| Cap/Depr | 226.78% | ||
| Cap/Sales | 66.85% | ||
| Interest Coverage | 1.73 | ||
| Cash Conversion | 71.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 1.01 |
F-Score3
WACC6.94%
ROIC/WACC0.47
Cap/Depr(3y)284.94%
Cap/Depr(5y)339.12%
Cap/Sales(3y)99.29%
Cap/Sales(5y)115.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)300%
EPS 3Y-5.75%
EPS 5Y14.87%
EPS Q2Q%266.67%
EPS Next Y-47.58%
EPS Next 2Y-14.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)28.59%
Revenue growth 3Y8.53%
Revenue growth 5Y13.73%
Sales Q2Q%0.6%
Revenue Next Year7.55%
Revenue Next 2Y8.53%
Revenue Next 3Y15.02%
Revenue Next 5Y13.32%
EBIT growth 1Y58.73%
EBIT growth 3Y-1.85%
EBIT growth 5Y10.76%
EBIT Next Year276.18%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y32.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-4.08%
OCF growth 3Y1.48%
OCF growth 5Y12.72%