CARETRUST REIT INC (CTRE)
US14174T1079 - REIT
We assign a fundamental rating of 6 out of 10 to CTRE. CTRE was compared to 129 industry peers in the Diversified REITs industry. While CTRE has a great profitability rating, there are some minor concerns on its financial health. CTRE is growing strongly while it is still valued neutral. This is a good combination! With these ratings, CTRE could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
CTRE had positive earnings in the past year.
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 82.68% of its industry peers.
Looking at the Return On Equity, with a value of 4.08%, CTRE is in the better half of the industry, outperforming 66.14% of the companies in the same industry.
With an excellent Return On Invested Capital value of 4.92%, CTRE belongs to the best of the industry, outperforming 89.76% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CTRE is above the industry average of 3.08%.
| 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 88.19% of the companies in the same industry.
In the last couple of years the Profit Margin of CTRE has declined.
CTRE has a Operating Margin of 65.34%. This is amongst the best in the industry. CTRE outperforms 99.21% of its industry peers.
In the last couple of years the Operating Margin of CTRE has grown nicely.
CTRE has a better Gross Margin (98.16%) than 98.43% of its industry peers.
| 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
CTRE 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, CTRE has more shares outstanding
Compared to 5 years ago, CTRE has more shares outstanding
Compared to 1 year ago, CTRE has an improved debt to assets ratio.
2.2 Solvency
CTRE has an Altman-Z score of 7.06. This indicates that CTRE is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.06, CTRE belongs to the top of the industry, outperforming 99.21% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that CTRE is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.16, CTRE belongs to the best of the industry, outperforming 97.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.06 |
ROIC/WACC0.57
WACC8.61%
2.3 Liquidity
CTRE has a Current Ratio of 4.14. This indicates that CTRE is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.14, CTRE belongs to the best of the industry, outperforming 90.55% of the companies in the same industry.
CTRE has a Quick Ratio of 4.14. This indicates that CTRE is financially healthy and has no problem in meeting its short term obligations.
CTRE has a Quick ratio of 4.14. This is amongst the best in the industry. CTRE outperforms 90.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.14 | ||
| Quick Ratio | 4.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 75.61% over the past year.
CTRE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.79% yearly.
CTRE shows a strong growth in Revenue. In the last year, 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 42.09% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.20% on average over the next years. This is quite good.
EPS Next Y90.83%
EPS Next 2Y65.18%
EPS Next 3Y42.09%
EPS Next 5YN/A
Revenue Next Year8.35%
Revenue Next 2Y10.25%
Revenue Next 3Y13.2%
Revenue Next 5YN/A
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.
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
The Price/Earnings ratio is 42.69, which means the current valuation is very expensive for CTRE.
CTRE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.96, CTRE is valued a bit more expensive.
CTRE is valuated rather expensively with a Price/Forward Earnings ratio of 23.47.
Based on the Price/Forward Earnings ratio, CTRE is valued cheaper than 88.98% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. CTRE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.69 | ||
| Fwd PE | 23.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTRE is valued more expensive than 91.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.96 |
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 decent profitability rating of CTRE may justify a higher PE ratio.
CTRE's earnings are expected to grow with 42.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y65.18%
EPS Next 3Y42.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.88%, CTRE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.55, CTRE is paying slightly less dividend.
CTRE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
5.2 History
The dividend of CTRE has a limited annual growth rate of 5.26%.
CTRE has paid a dividend for at least 10 years, which is a reliable track record.
CTRE has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.26%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CTRE pays out 156.68% 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.
DP156.68%
EPS Next 2Y65.18%
EPS Next 3Y42.09%
CARETRUST REIT INC
NYSE:CTRE (11/21/2024, 8:21:27 PM)
After market: 30.74 0 (0%)30.74
+0.08 (+0.26%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.75B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.69 | ||
| Fwd PE | 23.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 4.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 65.34% | ||
| PM (TTM) | 36.73% | ||
| GM | 98.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.14 | ||
| Quick Ratio | 4.14 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)75.61%
EPS 3Y-17.34%
EPS 5Y
EPS Q2Q%
EPS Next Y90.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)28.22%
Revenue growth 3Y6.89%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y