HEALTHPEAK PROPERTIES INC (PEAK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PEAK - US42250P1030 - REIT
17.1 USD
+0.35 (+2.09%)
17.1 USD
0 (0%)
Overall PEAK gets a fundamental rating of 3 out of 10. We evaluated PEAK against 125 industry peers in the Diversified REITs industry. There are concerns on the financial health of PEAK while its profitability can be described as average. While showing a medium growth rate, PEAK is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- PEAK had positive earnings in the past year.
- In the past year PEAK had a positive cash flow from operations.
- Each year in the past 5 years PEAK has been profitable.
- Each year in the past 5 years PEAK had a positive operating cash flow.
1.2 Ratios
- PEAK's Return On Assets of 1.94% is fine compared to the rest of the industry. PEAK outperforms 65.60% of its industry peers.
- The Return On Equity of PEAK (4.79%) is better than 68.80% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 2.45%, PEAK is in line with its industry, outperforming 47.20% of the companies in the same industry.
- PEAK had an Average Return On Invested Capital over the past 3 years of 2.14%. This is in line with the industry average of 3.07%.
- The last Return On Invested Capital (2.45%) for PEAK is above the 3 year average (2.14%), which is a sign of increasing profitability.
| 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
- The Profit Margin of PEAK (13.95%) is better than 68.00% of its industry peers.
- PEAK's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 20.53%, PEAK is in line with its industry, outperforming 49.60% of the companies in the same industry.
- PEAK's Operating Margin has declined in the last couple of years.
- PEAK has a worse Gross Margin (59.28%) 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.
- 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.
- Looking at the Altman-Z score, with a value of 0.34, PEAK is doing worse than 64.80% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of PEAK (32.87) is comparable to the rest of the industry.
- PEAK has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.08, PEAK is in line with its industry, 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
- A Current Ratio of 0.14 indicates that PEAK may have some problems paying its short term obligations.
- PEAK has a Current ratio of 0.14. This is amonst the worse of the industry: PEAK underperforms 96.80% of its industry peers.
- PEAK has a Quick 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.
- PEAK's Quick ratio of 0.14 is on the low side compared to the rest of the industry. PEAK is outperformed by 96.80% of its industry peers.
| 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%.
- The earnings per share for PEAK have been decreasing by -23.30% on average. This is quite bad
- The Revenue has been growing slightly by 5.81% in the past year.
- The Revenue has been growing by 12.86% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to decrease by -3.48% on average over the next years.
- 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
- The Price/Earnings ratio is 30.54, which means the current valuation is very expensive for PEAK.
- PEAK's Price/Earnings ratio is a bit cheaper when compared to the industry. PEAK is cheaper than 61.60% of the companies in the same industry.
- PEAK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.32.
- PEAK is valuated quite expensively with a Price/Forward Earnings ratio of 43.73.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PEAK indicates a somewhat cheap valuation: PEAK is cheaper than 65.60% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. PEAK is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.54 | ||
| Fwd PE | 43.73 |
4.2 Price Multiples
- PEAK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PEAK is 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
- PEAK has a Yearly Dividend Yield of 7.02%, which is a nice return.
- PEAK's Dividend Yield is a higher than the industry average which is at 6.59.
- PEAK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
5.2 History
- The dividend of PEAK decreases each year by -11.76%.
- PEAK has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-11.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- PEAK pays out 215.92% of its income as dividend. 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%
HEALTHPEAK PROPERTIES INC / PEAK FAQ
Can you provide the ChartMill fundamental rating for HEALTHPEAK PROPERTIES INC?
ChartMill assigns a fundamental rating of 3 / 10 to PEAK.
What is the valuation status of HEALTHPEAK PROPERTIES INC (PEAK) stock?
ChartMill assigns a valuation rating of 2 / 10 to HEALTHPEAK PROPERTIES INC (PEAK). This can be considered as Overvalued.
What is the profitability of PEAK stock?
HEALTHPEAK PROPERTIES INC (PEAK) has a profitability rating of 5 / 10.
What is the earnings growth outlook for HEALTHPEAK PROPERTIES INC?
The Earnings per Share (EPS) of HEALTHPEAK PROPERTIES INC (PEAK) is expected to decline by -30.18% in the next year.
Is the dividend of HEALTHPEAK PROPERTIES INC sustainable?
The dividend rating of HEALTHPEAK PROPERTIES INC (PEAK) is 5 / 10 and the dividend payout ratio is 215.92%.