CARETRUST REIT INC (CTRE) Stock Fundamental Analysis
NYSE:CTRE - New York Stock Exchange, Inc. - US14174T1079 - REIT
Taking everything into account, CTRE scores 6 out of 10 in our fundamental rating. CTRE was compared to 129 industry peers in the Diversified REITs industry. CTRE has an excellent profitability rating, but there are some minor concerns on its financial health. CTRE is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, CTRE could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year CTRE was profitable.
In the past year CTRE had a positive cash flow from operations.
Of the past 5 years CTRE 4 years were profitable.
In the past 5 years CTRE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CTRE (3.38%) is better than 82.54% of its industry peers.
CTRE's Return On Equity of 4.08% is fine compared to the rest of the industry. CTRE outperforms 65.87% of its industry peers.
CTRE has a Return On Invested Capital of 4.92%. This is amongst the best in the industry. CTRE outperforms 90.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTRE is above the industry average of 3.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 4.08% | ||
| ROIC | 4.92% |
ROA(3y)2.14%
ROA(5y)2.96%
ROE(3y)3.55%
ROE(5y)4.89%
ROIC(3y)5.48%
ROIC(5y)5.38%
1.3 Margins
With an excellent Profit Margin value of 36.73%, CTRE belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
CTRE's Profit Margin has declined in the last couple of years.
CTRE's Operating Margin of 65.34% is amongst the best of the industry. CTRE outperforms 99.21% of its industry peers.
In the last couple of years the Operating Margin of CTRE has grown nicely.
With an excellent Gross Margin value of 98.16%, CTRE belongs to the best of the industry, outperforming 98.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 65.34% | ||
| PM (TTM) | 36.73% | ||
| GM | 98.16% |
OM growth 3Y1.9%
OM growth 5Y3.08%
PM growth 3Y-18.48%
PM growth 5Y-7.78%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CTRE is destroying value.
The number of shares outstanding for CTRE has been increased compared to 1 year ago.
Compared to 5 years ago, CTRE has more shares outstanding
CTRE has a better debt/assets ratio than last year.
2.2 Solvency
CTRE has an Altman-Z score of 6.28. This indicates that CTRE is financially healthy and has little risk of bankruptcy at the moment.
CTRE has a Altman-Z score of 6.28. This is amongst the best in the industry. CTRE outperforms 99.21% of its industry peers.
CTRE has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CTRE (0.16) is better than 97.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.28 |
ROIC/WACC0.56
WACC8.74%
2.3 Liquidity
A Current Ratio of 4.14 indicates that CTRE has no problem at all paying its short term obligations.
CTRE's Current ratio of 4.14 is amongst the best of the industry. CTRE outperforms 91.27% of its industry peers.
A Quick Ratio of 4.14 indicates that CTRE has no problem at all paying its short term obligations.
The Quick ratio of CTRE (4.14) is better than 91.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.14 | ||
| Quick Ratio | 4.14 |
3. Growth
3.1 Past
CTRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.61%, which is quite impressive.
Measured over the past years, CTRE shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.79% on average per year.
Looking at the last year, CTRE shows a very strong growth in Revenue. The Revenue has grown by 28.22%.
Measured over the past years, CTRE shows a small growth in Revenue. The Revenue has been growing by 6.78% on average per year.
EPS 1Y (TTM)75.61%
EPS 3Y-17.34%
EPS 5Y-7.79%
EPS Q2Q%162.5%
Revenue 1Y (TTM)28.22%
Revenue growth 3Y6.89%
Revenue growth 5Y6.78%
Sales Q2Q%38.48%
3.2 Future
The Earnings Per Share is expected to grow by 45.40% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 23.98% on average over the next years. This is a very strong growth
EPS Next Y77.44%
EPS Next 2Y69.27%
EPS Next 3Y45.4%
EPS Next 5YN/A
Revenue Next Year19.48%
Revenue Next 2Y25.2%
Revenue Next 3Y23.98%
Revenue Next 5YN/A
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 37.76, CTRE can be considered very expensive at the moment.
CTRE's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CTRE to the average of the S&P500 Index (28.29), we can say CTRE is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 19.77, the valuation of CTRE can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CTRE is valued cheaper than 92.06% of the companies in the same industry.
CTRE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.76 | ||
| Fwd PE | 19.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTRE indicates a rather expensive valuation: CTRE more expensive than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.15 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CTRE has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CTRE's earnings are expected to grow with 45.40% in the coming years.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y69.27%
EPS Next 3Y45.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.26%, CTRE is a good candidate for dividend investing.
CTRE's Dividend Yield is comparable with the industry average which is at 18.51.
Compared to an average S&P500 Dividend Yield of 2.28, CTRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
5.2 History
The dividend of CTRE has a limited annual growth rate of 5.26%.
CTRE has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of CTRE decreased in the last 3 years.
Dividend Growth(5Y)5.26%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
156.68% of the earnings are spent on dividend by CTRE. This is not a sustainable payout ratio.
The dividend of CTRE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP156.68%
EPS Next 2Y69.27%
EPS Next 3Y45.4%
CARETRUST REIT INC
NYSE:CTRE (1/21/2025, 8:04:00 PM)
After market: 26.57 -0.62 (-2.28%)27.19
+0.46 (+1.72%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners96.38%
Inst Owner Change0.04%
Ins Owners0.47%
Ins Owner Change-2.25%
Market Cap5.08B
Analysts82.5
Price Target34.07 (25.3%)
Short Float %4.4%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend1.01
Dividend Growth(5Y)5.26%
DP156.68%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-51.46%
Min EPS beat(2)-73.43%
Max EPS beat(2)-29.49%
EPS beat(4)0
Avg EPS beat(4)-31.51%
Min EPS beat(4)-73.43%
Max EPS beat(4)-9.38%
EPS beat(8)0
Avg EPS beat(8)-45.82%
EPS beat(12)1
Avg EPS beat(12)-40.75%
EPS beat(16)3
Avg EPS beat(16)-30.02%
Revenue beat(2)2
Avg Revenue beat(2)16.99%
Min Revenue beat(2)0.19%
Max Revenue beat(2)33.8%
Revenue beat(4)2
Avg Revenue beat(4)7.99%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)33.8%
Revenue beat(8)5
Avg Revenue beat(8)5.09%
Revenue beat(12)7
Avg Revenue beat(12)3.05%
Revenue beat(16)8
Avg Revenue beat(16)2.01%
PT rev (1m)-0.79%
PT rev (3m)12.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.98%
Revenue NY rev (1m)4.45%
Revenue NY rev (3m)10.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.76 | ||
| Fwd PE | 19.77 | ||
| P/S | 18.9 | ||
| P/FCF | N/A | ||
| P/OCF | 24.02 | ||
| P/B | 2.1 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 22.15 |
EPS(TTM)0.72
EY2.65%
EPS(NY)1.38
Fwd EY5.06%
FCF(TTM)-0.52
FCFYN/A
OCF(TTM)1.13
OCFY4.16%
SpS1.44
BVpS12.95
TBVpS12.95
PEG (NY)0.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 4.08% | ||
| ROCE | 6.23% | ||
| ROIC | 4.92% | ||
| ROICexc | 5.68% | ||
| ROICexgc | 5.68% | ||
| OM | 65.34% | ||
| PM (TTM) | 36.73% | ||
| GM | 98.16% | ||
| FCFM | N/A |
ROA(3y)2.14%
ROA(5y)2.96%
ROE(3y)3.55%
ROE(5y)4.89%
ROIC(3y)5.48%
ROIC(5y)5.38%
ROICexc(3y)5.83%
ROICexc(5y)5.61%
ROICexgc(3y)5.83%
ROICexgc(5y)5.61%
ROCE(3y)6.94%
ROCE(5y)6.8%
ROICexcg growth 3Y2.68%
ROICexcg growth 5Y2.78%
ROICexc growth 3Y2.68%
ROICexc growth 5Y2.78%
OM growth 3Y1.9%
OM growth 5Y3.08%
PM growth 3Y-18.48%
PM growth 5Y-7.78%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 564.92% | ||
| Cap/Sales | 114.69% | ||
| Interest Coverage | 5.59 | ||
| Cash Conversion | 91.87% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.14 | ||
| Quick Ratio | 4.14 | ||
| Altman-Z | 6.28 |
F-Score6
WACC8.74%
ROIC/WACC0.56
Cap/Depr(3y)298.03%
Cap/Depr(5y)342.19%
Cap/Sales(3y)76.85%
Cap/Sales(5y)97.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)75.61%
EPS 3Y-17.34%
EPS 5Y-7.79%
EPS Q2Q%162.5%
EPS Next Y77.44%
EPS Next 2Y69.27%
EPS Next 3Y45.4%
EPS Next 5YN/A
Revenue 1Y (TTM)28.22%
Revenue growth 3Y6.89%
Revenue growth 5Y6.78%
Sales Q2Q%38.48%
Revenue Next Year19.48%
Revenue Next 2Y25.2%
Revenue Next 3Y23.98%
Revenue Next 5YN/A
EBIT growth 1Y34.35%
EBIT growth 3Y8.92%
EBIT growth 5Y10.06%
EBIT Next Year91.55%
EBIT Next 3Y47.28%
EBIT Next 5Y29.83%
FCF growth 1Y-189.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y41.9%
OCF growth 3Y2.03%
OCF growth 5Y9.26%