HEALTHPEAK PROPERTIES INC (PEAK) Stock Fundamental Analysis
NYSE:PEAK - New York Stock Exchange, Inc. - US42250P1030 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to PEAK. PEAK was compared to 129 industry peers in the Diversified REITs industry. There are concerns on the financial health of PEAK while its profitability can be described as average. PEAK is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PEAK was profitable.
In the past year PEAK had a positive cash flow from operations.
In the past 5 years PEAK has always been profitable.
Each year in the past 5 years PEAK had a positive operating cash flow.
1.2 Ratios
PEAK has a better Return On Assets (1.94%) than 65.60% of its industry peers.
With a decent Return On Equity value of 4.79%, PEAK is doing good in the industry, outperforming 68.80% of the companies in the same industry.
PEAK has a Return On Invested Capital (2.45%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for PEAK is in line with the industry average of 3.15%.
The 3 year average ROIC (2.14%) for PEAK is below the current ROIC(2.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 4.79% | ||
| ROIC | 2.45% |
ROA(3y)2.8%
ROA(5y)2.26%
ROE(3y)6.66%
ROE(5y)5.35%
ROIC(3y)2.14%
ROIC(5y)1.89%
1.3 Margins
PEAK's Profit Margin of 13.95% is fine compared to the rest of the industry. PEAK outperforms 68.00% of its industry peers.
In the last couple of years the Profit Margin of PEAK has declined.
PEAK has a Operating Margin of 20.53%. This is comparable to the rest of the industry: PEAK outperforms 49.60% of its industry peers.
PEAK's Operating Margin has declined in the last couple of years.
The Gross Margin of PEAK (59.28%) is worse than 73.60% of its industry peers.
PEAK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.53% | ||
| PM (TTM) | 13.95% | ||
| GM | 59.28% |
OM growth 3Y15.69%
OM growth 5Y-5.54%
PM growth 3Y-17.66%
PM growth 5Y-30.94%
GM growth 3Y4.39%
GM growth 5Y-2.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PEAK is destroying value.
The number of shares outstanding for PEAK remains at a similar level compared to 1 year ago.
The number of shares outstanding for PEAK has been increased compared to 5 years ago.
PEAK has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.34, we must say that PEAK is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.34, PEAK is not doing good in the industry: 64.80% of the companies in the same industry are doing better.
PEAK has a debt to FCF ratio of 32.87. This is a negative value and a sign of low solvency as PEAK would need 32.87 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 32.87, PEAK is in line with its industry, outperforming 52.00% of the companies in the same industry.
A Debt/Equity ratio of 1.08 is on the high side and indicates that PEAK has dependencies on debt financing.
With a Debt to Equity ratio value of 1.08, PEAK perfoms like the industry average, outperforming 53.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 32.87 | ||
| Altman-Z | 0.34 |
ROIC/WACC0.37
WACC6.55%
2.3 Liquidity
PEAK has a Current Ratio of 0.14. This is a bad value and indicates that PEAK is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.14, PEAK is doing worse than 96.80% of the companies in the same industry.
A Quick Ratio of 0.14 indicates that PEAK may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.14, PEAK is doing worse than 96.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
PEAK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.86%.
PEAK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.30% yearly.
Looking at the last year, PEAK shows a small growth in Revenue. The Revenue has grown by 5.81% in the last year.
Measured over the past years, PEAK shows a quite strong growth in Revenue. The Revenue has been growing by 12.86% on average per year.
EPS 1Y (TTM)-38.86%
EPS 3Y-12.64%
EPS 5Y-23.3%
EPS Q2Q%1200%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y9.86%
Revenue growth 5Y12.86%
Sales Q2Q%5.56%
3.2 Future
Based on estimates for the next years, PEAK will show a decrease in Earnings Per Share. The EPS will decrease by -3.48% on average per year.
The Revenue is expected to grow by 8.55% on average over the next years. This is quite good.
EPS Next Y-30.18%
EPS Next 2Y-0.06%
EPS Next 3Y-5.39%
EPS Next 5Y-3.48%
Revenue Next Year15.38%
Revenue Next 2Y10.7%
Revenue Next 3Y8.55%
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 accelerating.
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
Based on the Price/Earnings ratio of 30.54, the valuation of PEAK can be described as expensive.
Based on the Price/Earnings ratio, PEAK is valued a bit cheaper than 61.60% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. PEAK is around the same levels.
A Price/Forward Earnings ratio of 43.73 indicates a quite expensive valuation of PEAK.
65.60% of the companies in the same industry are more expensive than PEAK, based on the Price/Forward Earnings ratio.
PEAK's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.54 | ||
| Fwd PE | 43.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEAK is valued a bit cheaper than 62.40% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PEAK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.73 | ||
| EV/EBITDA | 13.46 |
4.3 Compensation for Growth
A cheap valuation may be justified as PEAK's earnings are expected to decrease with -5.39% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.06%
EPS Next 3Y-5.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.02%, PEAK is a good candidate for dividend investing.
PEAK's Dividend Yield is a higher than the industry average which is at 6.43.
PEAK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
5.2 History
The dividend of PEAK decreases each year by -11.76%.
PEAK has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-11.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
215.92% of the earnings are spent on dividend by PEAK. This is not a sustainable payout ratio.
The Dividend Rate of PEAK has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP215.92%
EPS Next 2Y-0.06%
EPS Next 3Y-5.39%
17.1
+0.35 (+2.09%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners117.78%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner Change0%
Market Cap9.36B
Analysts78.18
Price Target22.19 (29.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
Yearly Dividend1.2
Dividend Growth(5Y)-11.76%
DP215.92%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.48%
Min EPS beat(2)25.88%
Max EPS beat(2)43.09%
EPS beat(4)3
Avg EPS beat(4)50.32%
Min EPS beat(4)-17.64%
Max EPS beat(4)149.96%
EPS beat(8)6
Avg EPS beat(8)80.62%
EPS beat(12)9
Avg EPS beat(12)65.46%
EPS beat(16)12
Avg EPS beat(16)81.29%
Revenue beat(2)1
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)0.62%
Revenue beat(4)1
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-1.62%
Max Revenue beat(4)0.62%
Revenue beat(8)2
Avg Revenue beat(8)-0.54%
Revenue beat(12)3
Avg Revenue beat(12)-1.7%
Revenue beat(16)3
Avg Revenue beat(16)-8.89%
PT rev (1m)-1.34%
PT rev (3m)2.46%
EPS NQ rev (1m)-15.62%
EPS NQ rev (3m)-7.95%
EPS NY rev (1m)-12.55%
EPS NY rev (3m)-6.5%
Revenue NQ rev (1m)-1.28%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)6.65%
Revenue NY rev (3m)16.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.54 | ||
| Fwd PE | 43.73 | ||
| P/S | 4.29 | ||
| P/FCF | 44.73 | ||
| P/OCF | 9.78 | ||
| P/B | 1.47 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 13.46 |
EPS(TTM)0.56
EY3.27%
EPS(NY)0.39
Fwd EY2.29%
FCF(TTM)0.38
FCFY2.24%
OCF(TTM)1.75
OCFY10.22%
SpS3.99
BVpS11.61
TBVpS11.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 4.79% | ||
| ROCE | 3.1% | ||
| ROIC | 2.45% | ||
| ROICexc | 2.47% | ||
| ROICexgc | 2.68% | ||
| OM | 20.53% | ||
| PM (TTM) | 13.95% | ||
| GM | 59.28% | ||
| FCFM | 9.59% |
ROA(3y)2.8%
ROA(5y)2.26%
ROE(3y)6.66%
ROE(5y)5.35%
ROIC(3y)2.14%
ROIC(5y)1.89%
ROICexc(3y)2.16%
ROICexc(5y)1.9%
ROICexgc(3y)2.33%
ROICexgc(5y)2.05%
ROCE(3y)2.71%
ROCE(5y)2.39%
ROICexcg growth 3Y28.26%
ROICexcg growth 5Y4.6%
ROICexc growth 3Y28.51%
ROICexc growth 5Y3.28%
OM growth 3Y15.69%
OM growth 5Y-5.54%
PM growth 3Y-17.66%
PM growth 5Y-30.94%
GM growth 3Y4.39%
GM growth 5Y-2.65%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 32.87 | ||
| Debt/EBITDA | 5.74 | ||
| Cap/Depr | 99.62% | ||
| Cap/Sales | 34.25% | ||
| Interest Coverage | 2.38 | ||
| Cash Conversion | 79.85% | ||
| Profit Quality | 68.75% | ||
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 0.34 |
F-Score6
WACC6.55%
ROIC/WACC0.37
Cap/Depr(3y)183.97%
Cap/Depr(5y)234.29%
Cap/Sales(3y)65.04%
Cap/Sales(5y)98.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-38.86%
EPS 3Y-12.64%
EPS 5Y-23.3%
EPS Q2Q%1200%
EPS Next Y-30.18%
EPS Next 2Y-0.06%
EPS Next 3Y-5.39%
EPS Next 5Y-3.48%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y9.86%
Revenue growth 5Y12.86%
Sales Q2Q%5.56%
Revenue Next Year15.38%
Revenue Next 2Y10.7%
Revenue Next 3Y8.55%
Revenue Next 5YN/A
EBIT growth 1Y13.63%
EBIT growth 3Y27.09%
EBIT growth 5Y6.6%
EBIT Next Year208.15%
EBIT Next 3Y49.06%
EBIT Next 5Y31.97%
FCF growth 1Y249.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y6.21%
OCF growth 3Y8.03%
OCF growth 5Y2.41%