LTC PROPERTIES INC (LTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LTC - US5021751020 - REIT
36.18 USD
+0.93 (+2.64%)
36.18 USD
0 (0%)
LTC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 124 industry peers in the Diversified REITs industry. LTC has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
- In the past year LTC had a positive cash flow from operations.
- LTC had positive earnings in each of the past 5 years.
- Each year in the past 5 years LTC had a positive operating cash flow.
1.2 Ratios
- LTC has a Return On Assets of 1.62%. This is comparable to the rest of the industry: LTC outperforms 58.87% of its industry peers.
- LTC has a Return On Equity of 3.47%. This is comparable to the rest of the industry: LTC outperforms 58.87% of its industry peers.
- LTC has a better Return On Invested Capital (3.24%) than 62.90% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LTC 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
- The Profit Margin of LTC (14.37%) is better than 62.10% of its industry peers.
- In the last couple of years the Profit Margin of LTC has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 35.30%, LTC is in the better half of the industry, outperforming 72.58% of the companies in the same industry.
- LTC's Operating Margin has been stable in the last couple of years.
- The Gross Margin of LTC (83.40%) is better than 83.87% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LTC is destroying value.
- LTC has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, LTC has more shares outstanding
- LTC has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.04, we must say that LTC is in the distress zone and has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.04, LTC is doing good in the industry, outperforming 78.23% of the companies in the same industry.
- A Debt/Equity ratio of 0.99 indicates that LTC is somewhat dependend on debt financing.
- LTC has a Debt to Equity ratio of 0.99. This is in the better half of the industry: LTC outperforms 62.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.04 |
ROIC/WACC0.44
WACC7.37%
2.3 Liquidity
- A Current Ratio of 1.11 indicates that LTC should not have too much problems paying its short term obligations.
- LTC has a Current ratio (1.11) which is in line with 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- The earnings per share for LTC have decreased strongly by -60.09% in the last year.
- Measured over the past years, LTC shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.48% on average per year.
- Looking at the last year, LTC shows a very negative growth in Revenue. The Revenue has decreased by -10.70% in the last year.
- LTC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.52% yearly.
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
- Based on estimates for the next years, LTC will show a decrease in Earnings Per Share. The EPS will decrease by -3.31% on average per year.
- 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.
- 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
- A Price/Earnings ratio of 38.90 indicates a quite expensive valuation of LTC.
- The rest of the industry has a similar Price/Earnings ratio as LTC.
- LTC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.39.
- A Price/Forward Earnings ratio of 17.70 indicates a rather expensive valuation of LTC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LTC indicates a rather cheap valuation: LTC is cheaper than 95.97% of the companies listed in the same industry.
- LTC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.9 | ||
| Fwd PE | 17.7 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LTC is valued more expensive than 84.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.13 |
4.3 Compensation for Growth
- LTC has a very decent profitability rating, which 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.
- LTC's Dividend Yield is comparable with the industry average which is at 6.82.
- Compared to an average S&P500 Dividend Yield of 1.82, LTC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.23% |
5.2 History
- The dividend of LTC decreases each year by -0.14%.
- LTC has been paying a dividend for at least 10 years, so it has 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
- 318.68% of the earnings are spent on dividend by LTC. This is not a sustainable payout ratio.
- The Dividend Rate of LTC has been decling, while earnings will also be 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 38.9 and the Price/Book (PB) ratio is 1.8.
How financially healthy is LTC PROPERTIES INC?
The financial health rating of LTC PROPERTIES INC (LTC) is 3 / 10.