LTC PROPERTIES INC (LTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LTC - US5021751020 - REIT
35.25 USD
-0.75 (-2.08%)
35.25 USD
0 (0%)
Overall LTC gets a fundamental rating of 3 out of 10. We evaluated LTC against 124 industry peers in the Diversified REITs industry. While LTC is still in line with the averages on profitability rating, there are concerns on its financial health. LTC has a expensive valuation and it also scores bad on growth.
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.
- In the past 5 years LTC always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.62%, LTC is in line with its industry, outperforming 58.87% of the companies in the same industry.
- With a Return On Equity value of 3.47%, LTC perfoms like the industry average, outperforming 58.87% of the companies in the same industry.
- With a decent Return On Invested Capital value of 3.24%, LTC is doing good in the industry, outperforming 62.90% 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 3.05%.
| 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
- With a decent Profit Margin value of 14.37%, LTC is doing good in 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.
- 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
- LTC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for LTC has been increased compared to 1 year ago.
- LTC has more shares outstanding than it did 5 years ago.
- LTC has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.06, we must say that LTC is in the distress zone and has some risk of bankruptcy.
- LTC's Altman-Z score of 1.06 is fine compared to the rest of the industry. LTC outperforms 79.03% of its industry peers.
- A Debt/Equity ratio of 0.99 indicates that 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 | 1.06 |
ROIC/WACC0.44
WACC7.33%
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.
- 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.
- The Quick ratio of LTC (1.11) is comparable to the rest of the industry.
| 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.
- The Earnings Per Share has been decreasing by -0.48% on average over the past years.
- 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.
- 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.
- 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
- A Price/Earnings ratio of 37.90 indicates a quite expensive valuation of LTC.
- Compared to the rest of the industry, the Price/Earnings ratio of LTC is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of LTC to the average of the S&P500 Index (28.60), we can say LTC is valued slightly more expensively.
- 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 cheaply inside the industry as 95.97% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. LTC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.9 | ||
| Fwd PE | 17.24 |
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 | 22.43 |
4.3 Compensation for Growth
- LTC has a very decent profitability rating, which may justify a higher PE ratio.
- LTC's earnings are expected to decrease with -3.31% in the coming years. This may justify a cheaper valuation.
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.
- LTC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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.
- 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 37.9 and the Price/Book (PB) ratio is 1.75.
How financially healthy is LTC PROPERTIES INC?
The financial health rating of LTC PROPERTIES INC (LTC) is 3 / 10.