HEALTHCARE REALTY TRUST INC (HR) Stock Fundamental Analysis
NYSE:HR - New York Stock Exchange, Inc. - US42226K1051 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to HR. HR was compared to 129 industry peers in the Diversified REITs industry. HR may be in some trouble as it scores bad on both profitability and health. HR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
HR had negative earnings in the past year.
HR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HR reported negative net income in multiple years.
Each year in the past 5 years HR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -9.14%, HR is doing worse than 95.24% of the companies in the same industry.
Looking at the Return On Equity, with a value of -18.60%, HR is doing worse than 86.51% of the companies in the same industry.
With a Return On Invested Capital value of 0.38%, HR is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for HR is below the industry average of 3.11%.
The 3 year average ROIC (0.38%) for HR is below the current ROIC(0.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.14% | ||
| ROE | -18.6% | ||
| ROIC | 0.38% |
ROA(3y)-2.72%
ROA(5y)-1.19%
ROE(3y)-5.41%
ROE(5y)-2.31%
ROIC(3y)0.38%
ROIC(5y)1.07%
1.3 Margins
With a Operating Margin value of 3.10%, HR is not doing good in the industry: 89.68% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of HR has declined.
Looking at the Gross Margin, with a value of 62.73%, HR is doing worse than 67.46% of the companies in the same industry.
HR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.1% | ||
| PM (TTM) | N/A | ||
| GM | 62.73% |
OM growth 3Y-49.95%
OM growth 5Y-33.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.21%
GM growth 5Y-2.03%
2. Health
2.1 Basic Checks
HR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HR has been reduced compared to 1 year ago.
HR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.26, we must say that HR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.26, HR is doing worse than 68.25% of the companies in the same industry.
The Debt to FCF ratio of HR is 25.97, which is on the high side as it means it would take HR, 25.97 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 25.97, HR is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
HR has a Debt/Equity ratio of 0.90. This is a neutral value indicating HR is somewhat dependend on debt financing.
HR has a better Debt to Equity ratio (0.90) than 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 25.97 | ||
| Altman-Z | 0.26 |
ROIC/WACC0.06
WACC6.75%
2.3 Liquidity
A Current Ratio of 0.15 indicates that HR may have some problems paying its short term obligations.
The Current ratio of HR (0.15) is worse than 96.03% of its industry peers.
A Quick Ratio of 0.15 indicates that HR may have some problems paying its short term obligations.
HR has a Quick ratio of 0.15. This is amonst the worse of the industry: HR underperforms 96.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.59% over the past year.
The Revenue has grown by 18.71% in the past year. This is quite good.
Measured over the past years, HR shows a quite strong growth in Revenue. The Revenue has been growing by 12.88% on average per year.
EPS 1Y (TTM)44.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%463.64%
Revenue 1Y (TTM)18.71%
Revenue growth 3Y18.25%
Revenue growth 5Y12.88%
Sales Q2Q%-6.26%
3.2 Future
HR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.86% yearly.
HR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.27% yearly.
EPS Next Y2.74%
EPS Next 2Y2.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.78%
Revenue Next 2Y1.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
HR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for HR. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HR.
61.90% of the companies in the same industry are more expensive than HR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.04 | ||
| EV/EBITDA | 14.55 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.39%, HR is a good candidate for dividend investing.
HR's Dividend Yield is a higher than the industry average which is at 18.48.
HR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.39% |
5.2 History
The dividend of HR has a limited annual growth rate of 0.57%.
HR has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of HR decreased recently.
Dividend Growth(5Y)0.57%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of HR are negative and hence is the payout ratio. HR will probably not be able to sustain this dividend level.
The dividend of HR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-47.03%
EPS Next 2Y2.86%
EPS Next 3YN/A
16.48
-0.1 (-0.6%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners107.26%
Inst Owner Change-1.4%
Ins Owners0.52%
Ins Owner Change5.32%
Market Cap5.84B
Analysts51.58
Price Target18.21 (10.5%)
Short Float %3.73%
Short Ratio5.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.39% |
Yearly Dividend1.25
Dividend Growth(5Y)0.57%
DP-47.03%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)112.95%
Min EPS beat(2)-377.54%
Max EPS beat(2)603.43%
EPS beat(4)1
Avg EPS beat(4)-28.64%
Min EPS beat(4)-377.54%
Max EPS beat(4)603.43%
EPS beat(8)2
Avg EPS beat(8)-39.28%
EPS beat(12)4
Avg EPS beat(12)60.24%
EPS beat(16)7
Avg EPS beat(16)47.44%
Revenue beat(2)0
Avg Revenue beat(2)-0.86%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)-0.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.58%
Min Revenue beat(4)-4.19%
Max Revenue beat(4)3.6%
Revenue beat(8)1
Avg Revenue beat(8)-1.29%
Revenue beat(12)2
Avg Revenue beat(12)4.12%
Revenue beat(16)2
Avg Revenue beat(16)2.41%
PT rev (1m)-0.68%
PT rev (3m)-1.69%
EPS NQ rev (1m)-3.84%
EPS NQ rev (3m)1.82%
EPS NY rev (1m)-2.64%
EPS NY rev (3m)-11.47%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.66 | ||
| P/FCF | 32.04 | ||
| P/OCF | 11.64 | ||
| P/B | 1.12 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 14.55 |
EPS(TTM)-0.41
EYN/A
EPS(NY)-0.4
Fwd EYN/A
FCF(TTM)0.51
FCFY3.12%
OCF(TTM)1.42
OCFY8.59%
SpS4.5
BVpS14.77
TBVpS14.77
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.14% | ||
| ROE | -18.6% | ||
| ROCE | 0.48% | ||
| ROIC | 0.38% | ||
| ROICexc | 0.39% | ||
| ROICexgc | 0.41% | ||
| OM | 3.1% | ||
| PM (TTM) | N/A | ||
| GM | 62.73% | ||
| FCFM | 11.43% |
ROA(3y)-2.72%
ROA(5y)-1.19%
ROE(3y)-5.41%
ROE(5y)-2.31%
ROIC(3y)0.38%
ROIC(5y)1.07%
ROICexc(3y)0.38%
ROICexc(5y)1.09%
ROICexgc(3y)0.39%
ROICexgc(5y)1.1%
ROCE(3y)0.48%
ROCE(5y)1.36%
ROICexcg growth 3Y-49.37%
ROICexcg growth 5Y-31.73%
ROICexc growth 3Y-49.34%
ROICexc growth 5Y-31.78%
OM growth 3Y-49.95%
OM growth 5Y-33.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.21%
GM growth 5Y-2.03%
F-Score4
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 25.97 | ||
| Debt/EBITDA | 6.53 | ||
| Cap/Depr | 47.3% | ||
| Cap/Sales | 20.02% | ||
| Interest Coverage | 0.24 | ||
| Cash Conversion | 69.23% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z | 0.26 |
F-Score4
WACC6.75%
ROIC/WACC0.06
Cap/Depr(3y)74.85%
Cap/Depr(5y)98.72%
Cap/Sales(3y)37.95%
Cap/Sales(5y)42.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)44.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%463.64%
EPS Next Y2.74%
EPS Next 2Y2.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.71%
Revenue growth 3Y18.25%
Revenue growth 5Y12.88%
Sales Q2Q%-6.26%
Revenue Next Year-0.78%
Revenue Next 2Y1.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-8.85%
EBIT growth 3Y-40.82%
EBIT growth 5Y-24.46%
EBIT Next Year1268.65%
EBIT Next 3Y144.75%
EBIT Next 5YN/A
FCF growth 1Y2.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.36%
OCF growth 3Y9.16%
OCF growth 5Y8.06%