We assign a fundamental rating of 4 out of 10 to LTC. LTC was compared to 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Each year in the past 5 years LTC has been profitable.
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 comparable to the rest of the industry.
LTC has a Return On Equity (3.47%) which is comparable to the rest of the industry.
LTC's Return On Invested Capital of 3.24% is fine compared to the rest of the industry. LTC outperforms 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

Looking at the Profit Margin, with a value of 14.37%, LTC is in the better half of the industry, outperforming 62.10% of the companies in the same industry.
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.
The Gross Margin of LTC (83.40%) is better than 83.87% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 5 years ago, LTC has more shares outstanding
LTC has a better debt/assets ratio than last year.

2.2 Solvency

LTC has an Altman-Z score of 1.08. This is a bad value and indicates that LTC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of LTC (1.08) is better than 79.84% of its industry peers.
LTC has a Debt/Equity ratio of 0.99. This is a neutral value indicating 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	1.08

ROIC/WACC0.44

WACC7.37%

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 (1.11) which is comparable to the rest of the industry.
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

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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%.
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.
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

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.
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

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 39.22, the valuation of LTC can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as LTC.
LTC is valuated rather expensively when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.84 indicates a rather expensive valuation of LTC.
Based on the Price/Forward Earnings ratio, LTC is valued cheaper than 95.97% of the companies in the same industry.
LTC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	39.22
Fwd PE	17.84

4.2 Price Multiples

LTC's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. LTC is more expensive than 84.68% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	22.62

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%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.30%, LTC is a good candidate for dividend investing.
LTC's Dividend Yield is a higher than the industry average which is at 6.98.
LTC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	6.3%

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

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%

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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 39.22 and the Price/Book (PB) ratio is 1.81.

How financially healthy is LTC PROPERTIES INC?

The financial health rating of LTC PROPERTIES INC (LTC) is 3 / 10.