CARETRUST REIT INC (CTRE) Stock Fundamental Analysis
NYSE:CTRE - New York Stock Exchange, Inc. - US14174T1079 - REIT - Currency: USD
Overall CTRE gets a fundamental rating of 7 out of 10. We evaluated CTRE against 130 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 growing strongly while it is still valued neutral. This is a good combination! These ratings could make CTRE a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year CTRE was profitable.
CTRE had a positive operating cash flow in the past year.
Of the past 5 years CTRE 4 years were profitable.
CTRE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.63%, CTRE belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
CTRE has a better Return On Equity (4.29%) than 67.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.56%, CTRE belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CTRE is above the industry average of 3.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 4.29% | ||
| ROIC | 4.56% |
ROA(3y)1.9%
ROA(5y)3.08%
ROE(3y)2.37%
ROE(5y)4.75%
ROIC(3y)5.24%
ROIC(5y)5.34%
1.3 Margins
CTRE has a better Profit Margin (42.07%) than 91.54% of its industry peers.
CTRE's Profit Margin has improved in the last couple of years.
The Operating Margin of CTRE (64.83%) is better than 99.23% of its industry peers.
In the last couple of years the Operating Margin of CTRE has grown nicely.
CTRE's Gross Margin of 98.07% is amongst the best of the industry. CTRE outperforms 98.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 64.83% | ||
| PM (TTM) | 42.07% | ||
| GM | 98.07% |
OM growth 3Y5.41%
OM growth 5Y3.45%
PM growth 3Y4.22%
PM growth 5Y8.32%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
CTRE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CTRE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CTRE has been increased compared to 5 years ago.
Compared to 1 year ago, CTRE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.21 indicates that CTRE is not in any danger for bankruptcy at the moment.
CTRE has a better Altman-Z score (6.21) than 100.00% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that CTRE is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.14, CTRE belongs to the best of the industry, outperforming 99.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.21 |
ROIC/WACC0.53
WACC8.6%
2.3 Liquidity
A Current Ratio of 1.94 indicates that CTRE should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.94, CTRE is doing good in the industry, outperforming 76.92% of the companies in the same industry.
CTRE has a Quick Ratio of 1.94. This is a normal value and indicates that CTRE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.94, CTRE is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
CTRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.83%, which is quite impressive.
The Earnings Per Share has been growing by 11.30% on average over the past years. This is quite good.
CTRE shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.05%.
Measured over the past years, CTRE shows a quite strong growth in Revenue. The Revenue has been growing by 12.64% on average per year.
EPS 1Y (TTM)70.83%
EPS 3Y-1.19%
EPS 5Y11.3%
EPS Q2Q%45.45%
Revenue 1Y (TTM)36.05%
Revenue growth 3Y15.48%
Revenue growth 5Y12.64%
Sales Q2Q%16.32%
3.2 Future
The Earnings Per Share is expected to grow by 27.34% on average over the next years. This is a very strong growth
Based on estimates for the next years, CTRE will show a very strong growth in Revenue. The Revenue will grow by 23.09% on average per year.
EPS Next Y75.39%
EPS Next 2Y39.48%
EPS Next 3Y27.34%
EPS Next 5YN/A
Revenue Next Year38.32%
Revenue Next 2Y27.19%
Revenue Next 3Y23.09%
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.
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 35.06, the valuation of CTRE can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CTRE is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.29. CTRE is valued slightly more expensive when compared to this.
CTRE is valuated rather expensively with a Price/Forward Earnings ratio of 19.99.
Based on the Price/Forward Earnings ratio, CTRE is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
CTRE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.06 | ||
| Fwd PE | 19.99 |
4.2 Price Multiples
CTRE's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. CTRE is more expensive than 89.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.4 |
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.
The excellent profitability rating of CTRE may justify a higher PE ratio.
CTRE's earnings are expected to grow with 27.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)3.1
EPS Next 2Y39.48%
EPS Next 3Y27.34%
5. Dividend
5.1 Amount
CTRE has a Yearly Dividend Yield of 4.66%, which is a nice return.
Compared to an average industry Dividend Yield of 28.61, CTRE is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.52, CTRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
5.2 History
The dividend of CTRE has a limited annual growth rate of 4.05%.
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)4.05%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CTRE pays out 138.14% of its income as dividend. This is not a sustainable payout ratio.
CTRE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP138.14%
EPS Next 2Y39.48%
EPS Next 3Y27.34%
28.75
+0.13 (+0.45%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.95%
Inst Owner Change0%
Ins Owners0.54%
Ins Owner Change4.92%
Market Cap5.40B
Analysts80
Price Target32.41 (12.73%)
Short Float %3.22%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
Yearly Dividend1.09
Dividend Growth(5Y)4.05%
DP138.14%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-13.6%
Min EPS beat(2)-29.49%
Max EPS beat(2)2.3%
EPS beat(4)1
Avg EPS beat(4)-28.59%
Min EPS beat(4)-73.43%
Max EPS beat(4)2.3%
EPS beat(8)1
Avg EPS beat(8)-39.48%
EPS beat(12)2
Avg EPS beat(12)-38.5%
EPS beat(16)3
Avg EPS beat(16)-30.15%
Revenue beat(2)1
Avg Revenue beat(2)11.77%
Min Revenue beat(2)-10.26%
Max Revenue beat(2)33.8%
Revenue beat(4)2
Avg Revenue beat(4)5.71%
Min Revenue beat(4)-10.26%
Max Revenue beat(4)33.8%
Revenue beat(8)4
Avg Revenue beat(8)3.65%
Revenue beat(12)6
Avg Revenue beat(12)2.18%
Revenue beat(16)8
Avg Revenue beat(16)1.54%
PT rev (1m)0.56%
PT rev (3m)-4.86%
EPS NQ rev (1m)5.17%
EPS NQ rev (3m)15.58%
EPS NY rev (1m)3.17%
EPS NY rev (3m)4.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)36.56%
Revenue NY rev (1m)12.37%
Revenue NY rev (3m)5.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.06 | ||
| Fwd PE | 19.99 | ||
| P/S | 18.21 | ||
| P/FCF | N/A | ||
| P/OCF | 22.09 | ||
| P/B | 1.86 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 22.4 |
EPS(TTM)0.82
EY2.85%
EPS(NY)1.44
Fwd EY5%
FCF(TTM)-3.07
FCFYN/A
OCF(TTM)1.3
OCFY4.53%
SpS1.58
BVpS15.5
TBVpS15.5
PEG (NY)0.47
PEG (5Y)3.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 4.29% | ||
| ROCE | 5.77% | ||
| ROIC | 4.56% | ||
| ROICexc | 4.88% | ||
| ROICexgc | 4.88% | ||
| OM | 64.83% | ||
| PM (TTM) | 42.07% | ||
| GM | 98.07% | ||
| FCFM | N/A |
ROA(3y)1.9%
ROA(5y)3.08%
ROE(3y)2.37%
ROE(5y)4.75%
ROIC(3y)5.24%
ROIC(5y)5.34%
ROICexc(3y)5.66%
ROICexc(5y)5.62%
ROICexgc(3y)5.66%
ROICexgc(5y)5.62%
ROCE(3y)6.63%
ROCE(5y)6.75%
ROICexcg growth 3Y-3.12%
ROICexcg growth 5Y0.18%
ROICexc growth 3Y-3.12%
ROICexc growth 5Y0.18%
OM growth 3Y5.41%
OM growth 5Y3.45%
PM growth 3Y4.22%
PM growth 5Y8.32%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.59 | ||
| Cap/Depr | 1440.41% | ||
| Cap/Sales | 276.78% | ||
| Interest Coverage | 6.88 | ||
| Cash Conversion | 98.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | 6.21 |
F-Score5
WACC8.6%
ROIC/WACC0.53
Cap/Depr(3y)658.62%
Cap/Depr(5y)503.99%
Cap/Sales(3y)134.69%
Cap/Sales(5y)112.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)70.83%
EPS 3Y-1.19%
EPS 5Y11.3%
EPS Q2Q%45.45%
EPS Next Y75.39%
EPS Next 2Y39.48%
EPS Next 3Y27.34%
EPS Next 5YN/A
Revenue 1Y (TTM)36.05%
Revenue growth 3Y15.48%
Revenue growth 5Y12.64%
Sales Q2Q%16.32%
Revenue Next Year38.32%
Revenue Next 2Y27.19%
Revenue Next 3Y23.09%
Revenue Next 5YN/A
EBIT growth 1Y42.09%
EBIT growth 3Y21.72%
EBIT growth 5Y16.53%
EBIT Next Year159.29%
EBIT Next 3Y49.91%
EBIT Next 5Y30.58%
FCF growth 1Y-539.89%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y57.82%
OCF growth 3Y15.9%
OCF growth 5Y14.1%