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 130 industry peers in the Diversified REITs industry. While LTC has a great profitability rating, there are some minor concerns on its financial health. 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's Return On Assets of 6.41% is amongst the best of the industry. LTC outperforms 96.92% of its industry peers.
LTC has a better Return On Equity (11.91%) than 93.08% of its industry peers.
With an excellent Return On Invested Capital value of 7.50%, LTC belongs to the best of the industry, outperforming 98.46% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LTC is above the industry average of 3.19%.
The last Return On Invested Capital (7.50%) for LTC is above the 3 year average (5.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 11.91% | ||
| ROIC | 7.5% |
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 43.80%, LTC belongs to the top of the industry, outperforming 93.08% of the companies in the same industry.
LTC's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 63.14%, LTC belongs to the best of the industry, outperforming 97.69% 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 (93.75%) is better than 96.15% of its industry peers.
LTC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 63.14% | ||
| PM (TTM) | 43.8% | ||
| GM | 93.75% |
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 just above the Cost of Capital (WACC), so LTC is still creating some value.
The number of shares outstanding for LTC has been increased compared to 1 year ago.
The number of shares outstanding for LTC has been increased compared to 5 years ago.
The debt/assets ratio for LTC has been reduced compared to a year ago.
2.2 Solvency
LTC has an Altman-Z score of 1.57. 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 1.57, LTC belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
LTC has a debt to FCF ratio of 6.16. This is a slightly negative value and a sign of low solvency as LTC would need 6.16 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 6.16, LTC belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
LTC has a Debt/Equity ratio of 0.71. This is a neutral value indicating 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 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 6.16 | ||
| Altman-Z | 1.57 |
ROIC/WACC1.01
WACC7.43%
2.3 Liquidity
LTC has a Current Ratio of 1.95. This is a normal value and indicates that LTC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.95, LTC is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
A Quick Ratio of 1.95 indicates that LTC should not have too much problems paying its short term obligations.
LTC's Quick ratio of 1.95 is fine compared to the rest of the industry. LTC outperforms 78.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.95 |
3. Growth
3.1 Past
The earnings per share for LTC have decreased by -5.09% in the last year.
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 has grown by 32.43% 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)-5.09%
EPS 3Y13.29%
EPS 5Y-0.48%
EPS Q2Q%-41.79%
Revenue 1Y (TTM)32.43%
Revenue growth 3Y10.55%
Revenue growth 5Y2.52%
Sales Q2Q%4.76%
3.2 Future
The Earnings Per Share is expected to decrease by -2.96% on average over the next years.
LTC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -8.81% yearly.
EPS Next Y-4.75%
EPS Next 2Y-2.03%
EPS Next 3Y-2.96%
EPS Next 5YN/A
Revenue Next Year-18.74%
Revenue Next 2Y-8.27%
Revenue Next 3Y-8.81%
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
LTC is valuated rather expensively with a Price/Earnings ratio of 17.61.
Based on the Price/Earnings ratio, LTC is valued cheaply inside the industry as 86.15% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.33. LTC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.49, the valuation of LTC can be described as rather expensive.
Based on the Price/Forward Earnings ratio, LTC is valued cheaper than 94.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.37. LTC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.61 | ||
| Fwd PE | 18.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LTC is valued a bit cheaper than 70.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LTC is valued a bit cheaper than 77.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.9 | ||
| EV/EBITDA | 11.46 |
4.3 Compensation for Growth
The excellent profitability rating of LTC may justify a higher PE ratio.
LTC's earnings are expected to decrease with -2.96% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.03%
EPS Next 3Y-2.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.38%, LTC is a good candidate for dividend investing.
LTC's Dividend Yield is comparable with the industry average which is at 16.87.
Compared to an average S&P500 Dividend Yield of 2.51, LTC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
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
87.86% 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.
DP87.86%
EPS Next 2Y-2.03%
EPS Next 3Y-2.96%
36.1
+0.55 (+1.55%)
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 Change0.22%
Ins Owners1.75%
Ins Owner Change7.09%
Market Cap1.66B
Analysts70
Price Target38.03 (5.35%)
Short Float %3.75%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
Yearly Dividend2.27
Dividend Growth(5Y)-0.14%
DP87.86%
Div Incr Years0
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.99%
Min EPS beat(2)-21.2%
Max EPS beat(2)25.18%
EPS beat(4)2
Avg EPS beat(4)1.36%
Min EPS beat(4)-21.2%
Max EPS beat(4)25.18%
EPS beat(8)5
Avg EPS beat(8)7.31%
EPS beat(12)6
Avg EPS beat(12)22.02%
EPS beat(16)7
Avg EPS beat(16)13.22%
Revenue beat(2)2
Avg Revenue beat(2)21.36%
Min Revenue beat(2)16.95%
Max Revenue beat(2)25.77%
Revenue beat(4)3
Avg Revenue beat(4)10.81%
Min Revenue beat(4)-0.18%
Max Revenue beat(4)25.77%
Revenue beat(8)7
Avg Revenue beat(8)8.8%
Revenue beat(12)11
Avg Revenue beat(12)18.14%
Revenue beat(16)15
Avg Revenue beat(16)18.21%
PT rev (1m)3.57%
PT rev (3m)3.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)-2.26%
EPS NY rev (3m)-1.56%
Revenue NQ rev (1m)-25.07%
Revenue NQ rev (3m)-34.02%
Revenue NY rev (1m)-32.08%
Revenue NY rev (3m)-33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.61 | ||
| Fwd PE | 18.49 | ||
| P/S | 6.34 | ||
| P/FCF | 14.9 | ||
| P/OCF | 13.23 | ||
| P/B | 1.72 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 11.46 |
EPS(TTM)2.05
EY5.68%
EPS(NY)1.95
Fwd EY5.41%
FCF(TTM)2.42
FCFY6.71%
OCF(TTM)2.73
OCFY7.56%
SpS5.69
BVpS20.93
TBVpS20.78
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 11.91% | ||
| ROCE | 9.49% | ||
| ROIC | 7.5% | ||
| ROICexc | 7.54% | ||
| ROICexgc | 7.57% | ||
| OM | 63.14% | ||
| PM (TTM) | 43.8% | ||
| GM | 93.75% | ||
| FCFM | 42.56% |
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-Score7
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 6.16 | ||
| Debt/EBITDA | 3.4 | ||
| Cap/Depr | 38.48% | ||
| Cap/Sales | 5.36% | ||
| Interest Coverage | 4.12 | ||
| Cash Conversion | 62.18% | ||
| Profit Quality | 97.16% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.95 | ||
| Altman-Z | 1.57 |
F-Score7
WACC7.43%
ROIC/WACC1.01
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)-5.09%
EPS 3Y13.29%
EPS 5Y-0.48%
EPS Q2Q%-41.79%
EPS Next Y-4.75%
EPS Next 2Y-2.03%
EPS Next 3Y-2.96%
EPS Next 5YN/A
Revenue 1Y (TTM)32.43%
Revenue growth 3Y10.55%
Revenue growth 5Y2.52%
Sales Q2Q%4.76%
Revenue Next Year-18.74%
Revenue Next 2Y-8.27%
Revenue Next 3Y-8.81%
Revenue Next 5YN/A
EBIT growth 1Y41.47%
EBIT growth 3Y18.78%
EBIT growth 5Y3.65%
EBIT Next Year72.42%
EBIT Next 3Y18.17%
EBIT Next 5Y13.06%
FCF growth 1Y118.18%
FCF growth 3Y9.4%
FCF growth 5Y22.26%
OCF growth 1Y19.89%
OCF growth 3Y11.13%
OCF growth 5Y0.43%