LTC PROPERTIES INC (LTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LTC - US5021751020 - REIT
35.97 USD
-0.34 (-0.94%)
We assign a fundamental rating of 3 out of 10 to LTC. LTC was compared to 124 industry peers in the Diversified REITs industry. While LTC is still in line with the averages on profitability rating, there are concerns on its financial health. LTC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year LTC was profitable.
- LTC had a positive operating cash flow in the past year.
- LTC had positive earnings in each of the past 5 years.
- LTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- LTC has a Return On Assets (1.62%) which is in line with its industry peers.
- With a Return On Equity value of 3.47%, LTC perfoms like the industry average, outperforming 58.87% of the companies in the same industry.
- LTC has a better Return On Invested Capital (3.24%) than 62.90% of its industry peers.
- LTC had an Average Return On Invested Capital over the past 3 years of 5.29%. This is above the industry average of 3.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 3.47% | ||
| ROIC | 3.24% |
ROA(3y)5.29%
ROA(5y)5.21%
ROE(3y)10.51%
ROE(5y)10.28%
ROIC(3y)5.29%
ROIC(5y)4.97%
1.3 Margins
- LTC has a better Profit Margin (14.37%) than 62.10% of its industry peers.
- LTC's Profit Margin has been stable in the last couple of years.
- LTC's Operating Margin of 35.30% is fine compared to the rest of the industry. LTC outperforms 72.58% of its industry peers.
- In the last couple of years the Operating Margin of LTC has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 83.40%, LTC belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
- In the last couple of years the Gross Margin of LTC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.3% | ||
| PM (TTM) | 14.37% | ||
| GM | 83.4% |
OM growth 3Y7.44%
OM growth 5Y1.11%
PM growth 3Y6.47%
PM growth 5Y-0.08%
GM growth 3Y1.37%
GM growth 5Y0.63%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LTC is destroying value.
- The number of shares outstanding for LTC has been increased compared to 1 year ago.
- LTC has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for LTC has been reduced compared to a year ago.
2.2 Solvency
- LTC has an Altman-Z score of 1.07. This is a bad value and indicates that LTC is not financially healthy and even has some risk of bankruptcy.
- With an excellent Altman-Z score value of 1.07, LTC belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
- A Debt/Equity ratio of 0.99 indicates that LTC is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.99, LTC is doing good in the industry, outperforming 62.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.07 |
ROIC/WACC0.44
WACC7.36%
2.3 Liquidity
- LTC has a Current Ratio of 1.11. This is a normal value and indicates that LTC is financially healthy and should not expect problems in meeting its short term obligations.
- LTC has a Current ratio of 1.11. This is comparable to the rest of the industry: LTC outperforms 56.45% of its industry peers.
- A Quick Ratio of 1.11 indicates that LTC should not have too much problems paying its short term obligations.
- LTC has a Quick ratio (1.11) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- LTC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -60.09%.
- The Earnings Per Share has been decreasing by -0.48% on average over the past years.
- The Revenue for LTC has decreased by -10.70% in the past year. This is quite bad
- Measured over the past years, LTC shows a small growth in Revenue. The Revenue has been growing by 2.52% on average per year.
EPS 1Y (TTM)-60.09%
EPS 3Y13.29%
EPS 5Y-0.48%
EPS Q2Q%-166.67%
Revenue 1Y (TTM)-10.7%
Revenue growth 3Y10.55%
Revenue growth 5Y2.52%
Sales Q2Q%11.66%
3.2 Future
- The Earnings Per Share is expected to decrease by -3.31% on average over the next years.
- LTC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.49% yearly.
EPS Next Y-12.7%
EPS Next 2Y-0.14%
EPS Next 3Y-3.31%
EPS Next 5YN/A
Revenue Next Year-4.08%
Revenue Next 2Y-8.61%
Revenue Next 3Y-2.49%
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 decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 38.68 indicates a quite expensive valuation of LTC.
- LTC's Price/Earnings is on the same level as the industry average.
- LTC is valuated rather expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 17.60, the valuation of LTC can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, LTC is valued cheaply inside the industry as 95.97% of the companies are valued more expensively.
- LTC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.68 | ||
| Fwd PE | 17.6 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LTC is valued expensively inside the industry as 85.48% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.56 |
4.3 Compensation for Growth
- The decent profitability rating of LTC may justify a higher PE ratio.
- A cheap valuation may be justified as LTC's earnings are expected to decrease with -3.31% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.14%
EPS Next 3Y-3.31%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.23%, LTC is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 6.82, LTC has a dividend in line with its industry peers.
- LTC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.23% |
5.2 History
- The dividend of LTC decreases each year by -0.14%.
- LTC has paid a dividend for at least 10 years, which is a reliable track record.
- LTC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.14%
Div Incr Years0
Div Non Decr Years22
5.3 Sustainability
- LTC pays out 318.68% of its income as dividend. This is not a sustainable payout ratio.
- LTC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP318.68%
EPS Next 2Y-0.14%
EPS Next 3Y-3.31%
LTC PROPERTIES INC / LTC FAQ
Can you provide the ChartMill fundamental rating for LTC PROPERTIES INC?
ChartMill assigns a fundamental rating of 3 / 10 to LTC.
What is the valuation status of LTC PROPERTIES INC (LTC) stock?
ChartMill assigns a valuation rating of 2 / 10 to LTC PROPERTIES INC (LTC). This can be considered as Overvalued.
What is the profitability of LTC stock?
LTC PROPERTIES INC (LTC) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for LTC stock?
The Price/Earnings (PE) ratio for LTC PROPERTIES INC (LTC) is 38.68 and the Price/Book (PB) ratio is 1.79.
How financially healthy is LTC PROPERTIES INC?
The financial health rating of LTC PROPERTIES INC (LTC) is 3 / 10.