LTC PROPERTIES INC (LTC) Stock Fundamental Analysis
NYSE:LTC - New York Stock Exchange, Inc. - US5021751020 - REIT - Currency: USD
LTC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. Both the health and profitability get an excellent rating, making LTC a very profitable company, without any liquidiy or solvency issues. LTC has a valuation in line with the averages, but 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.
In the past 5 years LTC has always been profitable.
In the past 5 years LTC always reported a positive cash flow from operatings.
1.2 Ratios
LTC has a Return On Assets of 6.24%. This is amongst the best in the industry. LTC outperforms 96.92% of its industry peers.
Looking at the Return On Equity, with a value of 11.53%, LTC belongs to the top of the industry, outperforming 93.08% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.27%, LTC belongs to the best of the industry, outperforming 98.46% of the companies in the same industry.
LTC had an Average Return On Invested Capital over the past 3 years of 5.29%. This is above the industry average of 3.16%.
The 3 year average ROIC (5.29%) for LTC is below the current ROIC(7.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 11.53% | ||
| ROIC | 7.27% |
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 Profit Margin of 42.83%. This is amongst the best in the industry. LTC outperforms 93.08% of its industry peers.
In the last couple of years the Profit Margin of LTC has remained more or less at the same level.
With an excellent Operating Margin value of 61.54%, LTC belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
LTC's Operating Margin has been stable in the last couple of years.
LTC's Gross Margin of 93.81% is amongst the best of the industry. LTC outperforms 96.15% of its industry peers.
LTC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.54% | ||
| PM (TTM) | 42.83% | ||
| GM | 93.81% |
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
LTC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.55, we must say that LTC is in the distress zone and has some risk of bankruptcy.
LTC has a Altman-Z score of 1.55. This is amongst the best in the industry. LTC outperforms 90.77% of its industry peers.
The Debt to FCF ratio of LTC is 5.68, which is a neutral value as it means it would take LTC, 5.68 years of fcf income to pay off all of its debts.
LTC's Debt to FCF ratio of 5.68 is amongst the best of the industry. LTC outperforms 97.69% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that LTC is somewhat dependend on debt financing.
LTC's Debt to Equity ratio of 0.71 is fine compared to the rest of the industry. LTC outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.68 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.86
WACC8.5%
2.3 Liquidity
A Current Ratio of 2.47 indicates that LTC has no problem at all paying its short term obligations.
The Current ratio of LTC (2.47) is better than 86.92% of its industry peers.
A Quick Ratio of 2.47 indicates that LTC has no problem at all paying its short term obligations.
LTC has a Quick ratio of 2.47. This is amongst the best in the industry. LTC outperforms 86.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
LTC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.04%.
LTC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.48% yearly.
The Revenue has grown by 30.02% in the past year. This is a very strong growth!
LTC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.52% yearly.
EPS 1Y (TTM)1.04%
EPS 3Y13.29%
EPS 5Y-0.48%
EPS Q2Q%-19.64%
Revenue 1Y (TTM)30.02%
Revenue growth 3Y10.55%
Revenue growth 5Y2.52%
Sales Q2Q%-4.55%
3.2 Future
The Earnings Per Share is expected to decrease by -2.23% on average over the next years.
LTC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.27% yearly.
EPS Next Y5.68%
EPS Next 2Y-3.08%
EPS Next 3Y-2.23%
EPS Next 5YN/A
Revenue Next Year-22.74%
Revenue Next 2Y-7.26%
Revenue Next 3Y-3.27%
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.
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
With a Price/Earnings ratio of 17.88, LTC is valued on the expensive side.
Based on the Price/Earnings ratio, LTC is valued cheaply inside the industry as 85.38% of the companies are valued more expensively.
LTC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
Based on the Price/Forward Earnings ratio of 18.01, the valuation of LTC can be described as rather expensive.
93.85% of the companies in the same industry are more expensive than LTC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, LTC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 18.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LTC is valued a bit cheaper than 73.08% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LTC indicates a rather cheap valuation: LTC is cheaper than 86.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.26 | ||
| EV/EBITDA | 11.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LTC does not grow enough to justify the current Price/Earnings ratio.
LTC has an outstanding profitability rating, which may justify a higher PE ratio.
LTC's earnings are expected to decrease with -2.23% in the coming years. This may justify a cheaper valuation.
PEG (NY)3.15
PEG (5Y)N/A
EPS Next 2Y-3.08%
EPS Next 3Y-2.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.55%, LTC is a good candidate for dividend investing.
LTC's Dividend Yield is comparable with the industry average which is at 6.64.
LTC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.55% |
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 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 93.05% 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.
DP93.05%
EPS Next 2Y-3.08%
EPS Next 3Y-2.23%
34.68
+0.07 (+0.2%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners77.54%
Inst Owner Change-3.06%
Ins Owners2.06%
Ins Owner Change9.28%
Market Cap1.59B
Analysts70
Price Target37.74 (8.82%)
Short Float %5.21%
Short Ratio7.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.55% |
Yearly Dividend2.27
Dividend Growth(5Y)-0.14%
DP93.05%
Div Incr Years0
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.96%
Min EPS beat(2)-21.2%
Max EPS beat(2)-2.72%
EPS beat(4)1
Avg EPS beat(4)-0.57%
Min EPS beat(4)-21.2%
Max EPS beat(4)25.18%
EPS beat(8)4
Avg EPS beat(8)-0.56%
EPS beat(12)6
Avg EPS beat(12)22.27%
EPS beat(16)7
Avg EPS beat(16)14.4%
Revenue beat(2)2
Avg Revenue beat(2)37.26%
Min Revenue beat(2)25.77%
Max Revenue beat(2)48.75%
Revenue beat(4)4
Avg Revenue beat(4)23.04%
Min Revenue beat(4)0.7%
Max Revenue beat(4)48.75%
Revenue beat(8)7
Avg Revenue beat(8)11.85%
Revenue beat(12)11
Avg Revenue beat(12)19.61%
Revenue beat(16)15
Avg Revenue beat(16)20.25%
PT rev (1m)-0.77%
PT rev (3m)3.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)58.63%
EPS NY rev (1m)12.8%
EPS NY rev (3m)10.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)-12.43%
Revenue NY rev (3m)-35.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 18.01 | ||
| P/S | 6.15 | ||
| P/FCF | 13.26 | ||
| P/OCF | 11.91 | ||
| P/B | 1.66 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 11.49 |
EPS(TTM)1.94
EY5.59%
EPS(NY)1.93
Fwd EY5.55%
FCF(TTM)2.62
FCFY7.54%
OCF(TTM)2.91
OCFY8.4%
SpS5.64
BVpS20.94
TBVpS20.79
PEG (NY)3.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 11.53% | ||
| ROCE | 9.2% | ||
| ROIC | 7.27% | ||
| ROICexc | 7.37% | ||
| ROICexgc | 7.4% | ||
| OM | 61.54% | ||
| PM (TTM) | 42.83% | ||
| GM | 93.81% | ||
| FCFM | 46.4% |
ROA(3y)5.29%
ROA(5y)5.21%
ROE(3y)10.51%
ROE(5y)10.28%
ROIC(3y)5.29%
ROIC(5y)4.97%
ROICexc(3y)5.33%
ROICexc(5y)5%
ROICexgc(3y)5.34%
ROICexgc(5y)5.01%
ROCE(3y)6.69%
ROCE(5y)6.29%
ROICexcg growth 3Y12.51%
ROICexcg growth 5Y0.5%
ROICexc growth 3Y12.36%
ROICexc growth 5Y0.41%
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%
F-Score8
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.68 | ||
| Debt/EBITDA | 3.49 | ||
| Cap/Depr | 37.54% | ||
| Cap/Sales | 5.28% | ||
| Interest Coverage | 4.18 | ||
| Cash Conversion | 68.35% | ||
| Profit Quality | 108.34% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 | ||
| Altman-Z | 1.55 |
F-Score8
WACC8.5%
ROIC/WACC0.86
Cap/Depr(3y)114.57%
Cap/Depr(5y)91.06%
Cap/Sales(3y)22.84%
Cap/Sales(5y)19.19%
Profit Quality(3y)75.06%
Profit Quality(5y)92.31%
High Growth Momentum
Growth
EPS 1Y (TTM)1.04%
EPS 3Y13.29%
EPS 5Y-0.48%
EPS Q2Q%-19.64%
EPS Next Y5.68%
EPS Next 2Y-3.08%
EPS Next 3Y-2.23%
EPS Next 5YN/A
Revenue 1Y (TTM)30.02%
Revenue growth 3Y10.55%
Revenue growth 5Y2.52%
Sales Q2Q%-4.55%
Revenue Next Year-22.74%
Revenue Next 2Y-7.26%
Revenue Next 3Y-3.27%
Revenue Next 5YN/A
EBIT growth 1Y32.76%
EBIT growth 3Y18.78%
EBIT growth 5Y3.65%
EBIT Next Year72.51%
EBIT Next 3Y21.91%
EBIT Next 5Y15.03%
FCF growth 1Y181.97%
FCF growth 3Y9.4%
FCF growth 5Y22.26%
OCF growth 1Y27.42%
OCF growth 3Y11.13%
OCF growth 5Y0.43%