LTC PROPERTIES INC (LTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LTC - US5021751020 - REIT
36.52 USD
-0.08 (-0.22%)
36.52 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to LTC. LTC was compared to 124 industry peers in the Diversified REITs industry. There are concerns on the financial health of LTC while its profitability can be described as average. LTC is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- LTC had positive earnings in the past year.
- 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
- The Return On Assets of LTC (1.62%) is comparable to the rest of the industry.
- LTC has a Return On Equity (3.47%) which is comparable to the rest of the industry.
- The Return On Invested Capital of LTC (3.24%) is better than 62.40% 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
- The Profit Margin of LTC (14.37%) is better than 61.60% of its industry peers.
- In the last couple of years the Profit Margin of LTC has remained more or less at the same level.
- LTC has a better Operating Margin (35.30%) than 72.80% of its industry peers.
- In the last couple of years the Operating Margin of LTC has remained more or less at the same level.
- LTC has a Gross Margin of 83.40%. This is amongst the best in the industry. LTC outperforms 84.00% of its industry peers.
- LTC's Gross Margin has been stable in the last couple of years.
| 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.
- 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 1.08, we must say that LTC is in the distress zone and has some risk of bankruptcy.
- LTC's Altman-Z score of 1.08 is fine compared to the rest of the industry. LTC outperforms 80.00% of its industry peers.
- A Debt/Equity ratio of 0.99 indicates that LTC is somewhat dependend on debt financing.
- LTC's Debt to Equity ratio of 0.99 is fine compared to the rest of the industry. LTC outperforms 62.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.08 |
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.
- The Current ratio of LTC (1.11) is comparable to the rest of the industry.
- LTC has a Quick 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's Quick ratio of 1.11 is in line compared to the rest of the industry. LTC outperforms 56.80% of its industry peers.
| 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%.
- LTC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.48% yearly.
- The Revenue for LTC has decreased by -10.70% in the past year. This is quite bad
- The Revenue has been growing slightly by 2.52% on average over the past years.
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
- LTC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.31% yearly.
- The Revenue is expected to decrease by -2.49% on average over the next years.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- LTC is valuated quite expensively with a Price/Earnings ratio of 39.27.
- LTC's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. LTC is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 17.86, which indicates a rather expensive current 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 96.00% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of LTC to the average of the S&P500 Index (25.98), we can say LTC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.27 | ||
| Fwd PE | 17.86 |
4.2 Price Multiples
- 84.80% of the companies in the same industry are cheaper than LTC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.64 |
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
- LTC has a Yearly Dividend Yield of 6.23%, which is a nice return.
- LTC's Dividend Yield is comparable with the industry average which is at 6.82.
- LTC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 39.27 and the Price/Book (PB) ratio is 1.82.
How financially healthy is LTC PROPERTIES INC?
The financial health rating of LTC PROPERTIES INC (LTC) is 3 / 10.