LTC PROPERTIES INC (LTC) Stock Fundamental Analysis
NYSE:LTC - New York Stock Exchange, Inc. - US5021751020 - REIT - Currency: USD
Overall LTC gets a fundamental rating of 6 out of 10. We evaluated LTC against 129 industry peers in the Diversified REITs industry. LTC scores excellent on profitability, but there are some minor concerns on its financial health. LTC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LTC had positive earnings in the past year.
In the past year LTC had a positive cash flow from operations.
LTC had positive earnings in each of the past 5 years.
In the past 5 years LTC always reported a positive cash flow from operatings.
1.2 Ratios
LTC has a Return On Assets of 6.66%. This is amongst the best in the industry. LTC outperforms 97.62% of its industry peers.
LTC's Return On Equity of 13.15% is amongst the best of the industry. LTC outperforms 94.44% of its industry peers.
The Return On Invested Capital of LTC (6.90%) is better than 97.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LTC is in line with the industry average of 3.11%.
The 3 year average ROIC (4.70%) for LTC is below the current ROIC(6.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 13.15% | ||
| ROIC | 6.9% |
ROA(3y)4.83%
ROA(5y)5.26%
ROE(3y)9.88%
ROE(5y)10.46%
ROIC(3y)4.7%
ROIC(5y)4.95%
1.3 Margins
LTC has a better Profit Margin (48.14%) than 96.83% of its industry peers.
In the last couple of years the Profit Margin of LTC has declined.
The Operating Margin of LTC (61.63%) is better than 96.83% of its industry peers.
In the last couple of years the Operating Margin of LTC has declined.
Looking at the Gross Margin, with a value of 93.54%, LTC belongs to the top of the industry, outperforming 96.03% 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 | 61.63% | ||
| PM (TTM) | 48.14% | ||
| GM | 93.54% |
OM growth 3Y3.27%
OM growth 5Y-2.27%
PM growth 3Y-8.79%
PM growth 5Y-13.17%
GM growth 3Y0.98%
GM growth 5YN/A
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
The debt/assets ratio for LTC is higher compared to a year ago.
2.2 Solvency
LTC has an Altman-Z score of 1.40. This is a bad value and indicates that LTC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.40, LTC belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
LTC has a debt to FCF ratio of 7.66. This is a slightly negative value and a sign of low solvency as LTC would need 7.66 years to pay back of all of its debts.
LTC has a better Debt to FCF ratio (7.66) than 94.44% of its industry peers.
LTC has a Debt/Equity ratio of 0.83. This is a neutral value indicating LTC is somewhat dependend on debt financing.
LTC has a Debt to Equity ratio of 0.83. This is in the better half of the industry: LTC outperforms 70.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.66 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.92
WACC7.47%
2.3 Liquidity
LTC has a Current Ratio of 2.75. This indicates that LTC is financially healthy and has no problem in meeting its short term obligations.
LTC has a better Current ratio (2.75) than 83.33% of its industry peers.
A Quick Ratio of 2.75 indicates that LTC has no problem at all paying its short term obligations.
The Quick ratio of LTC (2.75) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 2.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.73% over the past year.
Measured over the past years, LTC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.10% on average per year.
LTC shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.81%.
The Revenue has been growing slightly by 3.19% on average over the past years.
EPS 1Y (TTM)20.73%
EPS 3Y9.17%
EPS 5Y-11.1%
EPS Q2Q%22.22%
Revenue 1Y (TTM)32.81%
Revenue growth 3Y7.38%
Revenue growth 5Y3.19%
Sales Q2Q%13.14%
3.2 Future
The Earnings Per Share is expected to decrease by -2.45% on average over the next years.
The Revenue is expected to grow by 3.34% on average over the next years.
EPS Next Y0.44%
EPS Next 2Y-3.83%
EPS Next 3Y-2.45%
EPS Next 5YN/A
Revenue Next Year4.42%
Revenue Next 2Y2.25%
Revenue Next 3Y3.34%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
LTC is valuated correctly with a Price/Earnings ratio of 14.78.
LTC's Price/Earnings ratio is rather cheap when compared to the industry. LTC is cheaper than 88.10% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, LTC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 17.24, the valuation of LTC can be described as rather expensive.
Based on the Price/Forward Earnings ratio, LTC is valued cheaper than 96.03% of the companies in the same industry.
LTC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.78 | ||
| Fwd PE | 17.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LTC is valued a bit cheaper than the industry average as 73.02% of the companies are valued more expensively.
81.75% of the companies in the same industry are more expensive than LTC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.21 | ||
| EV/EBITDA | 11.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LTC has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as LTC's earnings are expected to decrease with -2.45% in the coming years.
PEG (NY)33.68
PEG (5Y)N/A
EPS Next 2Y-3.83%
EPS Next 3Y-2.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.59%, LTC is a good candidate for dividend investing.
LTC's Dividend Yield is a higher than the industry average which is at 18.40.
Compared to an average S&P500 Dividend Yield of 2.27, LTC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
5.2 History
The dividend of LTC decreases each year by -0.28%.
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)-0.28%
Div Incr Years0
Div Non Decr Years22
5.3 Sustainability
LTC pays out 79.18% 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.
DP79.18%
EPS Next 2Y-3.83%
EPS Next 3Y-2.45%
34.44
-0.17 (-0.49%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners80.68%
Inst Owner Change4.56%
Ins Owners1.75%
Ins Owner Change-6.77%
Market Cap1.56B
Analysts70
Price Target36.85 (7%)
Short Float %3.86%
Short Ratio5.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
Yearly Dividend2.25
Dividend Growth(5Y)-0.28%
DP79.18%
Div Incr Years0
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.82%
Min EPS beat(2)-3.55%
Max EPS beat(2)25.18%
EPS beat(4)3
Avg EPS beat(4)16.95%
Min EPS beat(4)-3.55%
Max EPS beat(4)41.14%
EPS beat(8)5
Avg EPS beat(8)9.65%
EPS beat(12)6
Avg EPS beat(12)23.16%
EPS beat(16)7
Avg EPS beat(16)14.35%
Revenue beat(2)2
Avg Revenue beat(2)3.31%
Min Revenue beat(2)0.7%
Max Revenue beat(2)5.93%
Revenue beat(4)3
Avg Revenue beat(4)1.61%
Min Revenue beat(4)-0.18%
Max Revenue beat(4)5.93%
Revenue beat(8)7
Avg Revenue beat(8)9.11%
Revenue beat(12)11
Avg Revenue beat(12)17.9%
Revenue beat(16)15
Avg Revenue beat(16)17.7%
PT rev (1m)1.39%
PT rev (3m)6.46%
EPS NQ rev (1m)1.66%
EPS NQ rev (3m)-2.39%
EPS NY rev (1m)3.37%
EPS NY rev (3m)6.13%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.78 | ||
| Fwd PE | 17.24 | ||
| P/S | 6.02 | ||
| P/FCF | 15.21 | ||
| P/OCF | 13.28 | ||
| P/B | 1.64 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 11.82 |
EPS(TTM)2.33
EY6.77%
EPS(NY)2
Fwd EY5.8%
FCF(TTM)2.26
FCFY6.58%
OCF(TTM)2.59
OCFY7.53%
SpS5.72
BVpS20.94
TBVpS20.78
PEG (NY)33.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 13.15% | ||
| ROCE | 8.73% | ||
| ROIC | 6.9% | ||
| ROICexc | 7.03% | ||
| ROICexgc | 7.06% | ||
| OM | 61.63% | ||
| PM (TTM) | 48.14% | ||
| GM | 93.54% | ||
| FCFM | 39.61% |
ROA(3y)4.83%
ROA(5y)5.26%
ROE(3y)9.88%
ROE(5y)10.46%
ROIC(3y)4.7%
ROIC(5y)4.95%
ROICexc(3y)4.73%
ROICexc(5y)4.98%
ROICexgc(3y)4.74%
ROICexgc(5y)4.98%
ROCE(3y)5.94%
ROCE(5y)6.27%
ROICexcg growth 3Y2.8%
ROICexcg growth 5Y-2.87%
ROICexc growth 3Y2.64%
ROICexc growth 5Y-2.95%
OM growth 3Y3.27%
OM growth 5Y-2.27%
PM growth 3Y-8.79%
PM growth 5Y-13.17%
GM growth 3Y0.98%
GM growth 5YN/A
F-Score7
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.66 | ||
| Debt/EBITDA | 4.01 | ||
| Cap/Depr | 40.76% | ||
| Cap/Sales | 5.75% | ||
| Interest Coverage | 3.67 | ||
| Cash Conversion | 59.88% | ||
| Profit Quality | 82.28% | ||
| Current Ratio | 2.75 | ||
| Quick Ratio | 2.75 | ||
| Altman-Z | 1.4 |
F-Score7
WACC7.47%
ROIC/WACC0.92
Cap/Depr(3y)107.23%
Cap/Depr(5y)125.1%
Cap/Sales(3y)21.97%
Cap/Sales(5y)26.68%
Profit Quality(3y)85.13%
Profit Quality(5y)77.87%
High Growth Momentum
Growth
EPS 1Y (TTM)20.73%
EPS 3Y9.17%
EPS 5Y-11.1%
EPS Q2Q%22.22%
EPS Next Y0.44%
EPS Next 2Y-3.83%
EPS Next 3Y-2.45%
EPS Next 5YN/A
Revenue 1Y (TTM)32.81%
Revenue growth 3Y7.38%
Revenue growth 5Y3.19%
Sales Q2Q%13.14%
Revenue Next Year4.42%
Revenue Next 2Y2.25%
Revenue Next 3Y3.34%
Revenue Next 5YN/A
EBIT growth 1Y35.62%
EBIT growth 3Y10.89%
EBIT growth 5Y0.84%
EBIT Next Year109.46%
EBIT Next 3Y28.64%
EBIT Next 5Y17.95%
FCF growth 1Y181.62%
FCF growth 3Y-13.56%
FCF growth 5Y6.84%
OCF growth 1Y24.35%
OCF growth 3Y-3.48%
OCF growth 5Y-2%