VENTAS INC (VTR) Stock Fundamental Analysis
NYSE:VTR - New York Stock Exchange, Inc. - US92276F1003 - REIT - Currency: USD
Taking everything into account, VTR scores 4 out of 10 in our fundamental rating. VTR was compared to 129 industry peers in the Diversified REITs industry. VTR has a bad profitability rating. Also its financial health evaluation is rather negative. VTR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VTR was profitable.
VTR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: VTR reported negative net income in multiple years.
In the past 5 years VTR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of VTR (0.55%) is comparable to the rest of the industry.
VTR has a Return On Equity (1.21%) which is in line with its industry peers.
With a Return On Invested Capital value of 2.71%, VTR perfoms like the industry average, outperforming 49.61% of the companies in the same industry.
VTR had an Average Return On Invested Capital over the past 3 years of 2.29%. This is in line with the industry average of 3.15%.
The 3 year average ROIC (2.29%) for VTR is below the current ROIC(2.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 1.21% | ||
| ROIC | 2.71% |
ROA(3y)-0.02%
ROA(5y)0.4%
ROE(3y)-0.05%
ROE(5y)0.9%
ROIC(3y)2.29%
ROIC(5y)2.34%
1.3 Margins
VTR has a Profit Margin (2.80%) which is in line with its industry peers.
In the last couple of years the Profit Margin of VTR has declined.
With a Operating Margin value of 16.13%, VTR is not doing good in the industry: 64.34% of the companies in the same industry are doing better.
VTR's Operating Margin has declined in the last couple of years.
VTR's Gross Margin of 42.48% is on the low side compared to the rest of the industry. VTR is outperformed by 82.95% of its industry peers.
VTR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.13% | ||
| PM (TTM) | 2.8% | ||
| GM | 42.48% |
OM growth 3Y-1.91%
OM growth 5Y-9.33%
PM growth 3Y8.78%
PM growth 5Y-31.81%
GM growth 3Y-2.14%
GM growth 5Y-4.37%
2. Health
2.1 Basic Checks
VTR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, VTR has more shares outstanding
The number of shares outstanding for VTR has been increased compared to 5 years ago.
VTR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that VTR is in the distress zone and has some risk of bankruptcy.
VTR's Altman-Z score of 1.04 is fine compared to the rest of the industry. VTR outperforms 75.97% of its industry peers.
VTR has a debt to FCF ratio of 15.93. This is a negative value and a sign of low solvency as VTR would need 15.93 years to pay back of all of its debts.
The Debt to FCF ratio of VTR (15.93) is better than 84.50% of its industry peers.
VTR has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
VTR's Debt to Equity ratio of 1.02 is in line compared to the rest of the industry. VTR outperforms 57.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.93 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.38
WACC7.21%
2.3 Liquidity
VTR has a Current Ratio of 0.13. This is a bad value and indicates that VTR is not financially healthy enough and could expect problems in meeting its short term obligations.
VTR's Current ratio of 0.13 is on the low side compared to the rest of the industry. VTR is outperformed by 93.02% of its industry peers.
VTR has a Quick Ratio of 0.13. This is a bad value and indicates that VTR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.13, VTR is doing worse than 93.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
VTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 226.92%, which is quite impressive.
VTR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -30.12% yearly.
The Revenue has grown by 10.00% in the past year. This is quite good.
The Revenue has been growing slightly by 4.92% on average over the past years.
EPS 1Y (TTM)226.92%
EPS 3Y12.62%
EPS 5Y-30.12%
EPS Q2Q%433.33%
Revenue 1Y (TTM)10%
Revenue growth 3Y8.76%
Revenue growth 5Y4.92%
Sales Q2Q%13.18%
3.2 Future
The Earnings Per Share is expected to grow by 56.52% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.14% on average over the next years. This is quite good.
EPS Next Y133.74%
EPS Next 2Y93.31%
EPS Next 3Y78.17%
EPS Next 5Y56.52%
Revenue Next Year13.32%
Revenue Next 2Y10.98%
Revenue Next 3Y9.89%
Revenue Next 5Y9.14%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 196.27, the valuation of VTR can be described as expensive.
VTR's Price/Earnings ratio is a bit more expensive when compared to the industry. VTR is more expensive than 65.89% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. VTR is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 86.66, the valuation of VTR can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VTR is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.76. VTR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 196.27 | ||
| Fwd PE | 86.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VTR indicates a rather expensive valuation: VTR more expensive than 83.72% of the companies listed in the same industry.
68.99% of the companies in the same industry are more expensive than VTR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.66 | ||
| EV/EBITDA | 19.61 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as VTR's earnings are expected to grow with 78.17% in the coming years.
PEG (NY)1.47
PEG (5Y)N/A
EPS Next 2Y93.31%
EPS Next 3Y78.17%
5. Dividend
5.1 Amount
VTR has a Yearly Dividend Yield of 3.05%.
Compared to an average industry Dividend Yield of 6.43, VTR's dividend is way lower than its industry peers. On top of this 80.62% of the companies listed in the same industry pay a better dividend than VTR!
VTR's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
5.2 History
The dividend of VTR decreases each year by -11.07%.
VTR has been paying a dividend for at least 10 years, so it has a reliable track record.
VTR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-11.07%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
531.50% of the earnings are spent on dividend by VTR. This is not a sustainable payout ratio.
DP531.5%
EPS Next 2Y93.31%
EPS Next 3Y78.17%
64.77
+1.49 (+2.35%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.49%
Inst Owner Change0.01%
Ins Owners0.52%
Ins Owner Change4.22%
Market Cap29.23B
Analysts84.17
Price Target77.7 (19.96%)
Short Float %2.89%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
Yearly Dividend1.76
Dividend Growth(5Y)-11.07%
DP531.5%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)340.55%
Min EPS beat(2)45.6%
Max EPS beat(2)635.5%
EPS beat(4)4
Avg EPS beat(4)275.88%
Min EPS beat(4)45.6%
Max EPS beat(4)635.5%
EPS beat(8)6
Avg EPS beat(8)52.74%
EPS beat(12)7
Avg EPS beat(12)-777.38%
EPS beat(16)10
Avg EPS beat(16)-492.7%
Revenue beat(2)2
Avg Revenue beat(2)1.49%
Min Revenue beat(2)1.02%
Max Revenue beat(2)1.96%
Revenue beat(4)3
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-0.42%
Max Revenue beat(4)1.96%
Revenue beat(8)7
Avg Revenue beat(8)1%
Revenue beat(12)8
Avg Revenue beat(12)0.59%
Revenue beat(16)11
Avg Revenue beat(16)0.77%
PT rev (1m)0%
PT rev (3m)0.78%
EPS NQ rev (1m)21.55%
EPS NQ rev (3m)28.46%
EPS NY rev (1m)2.21%
EPS NY rev (3m)0.99%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)2.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 196.27 | ||
| Fwd PE | 86.66 | ||
| P/S | 5.75 | ||
| P/FCF | 36.66 | ||
| P/OCF | 21.12 | ||
| P/B | 2.48 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 19.61 |
EPS(TTM)0.33
EY0.51%
EPS(NY)0.75
Fwd EY1.15%
FCF(TTM)1.77
FCFY2.73%
OCF(TTM)3.07
OCFY4.74%
SpS11.26
BVpS26.17
TBVpS23.83
PEG (NY)1.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 1.21% | ||
| ROCE | 3.43% | ||
| ROIC | 2.71% | ||
| ROICexc | 2.73% | ||
| ROICexgc | 2.88% | ||
| OM | 16.13% | ||
| PM (TTM) | 2.8% | ||
| GM | 42.48% | ||
| FCFM | 15.69% |
ROA(3y)-0.02%
ROA(5y)0.4%
ROE(3y)-0.05%
ROE(5y)0.9%
ROIC(3y)2.29%
ROIC(5y)2.34%
ROICexc(3y)2.34%
ROICexc(5y)2.39%
ROICexgc(3y)2.49%
ROICexgc(5y)2.54%
ROCE(3y)2.9%
ROCE(5y)2.96%
ROICexcg growth 3Y8.54%
ROICexcg growth 5Y-3.91%
ROICexc growth 3Y8.57%
ROICexc growth 5Y-3.94%
OM growth 3Y-1.91%
OM growth 5Y-9.33%
PM growth 3Y8.78%
PM growth 5Y-31.81%
GM growth 3Y-2.14%
GM growth 5Y-4.37%
F-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 15.93 | ||
| Debt/EBITDA | 5.75 | ||
| Cap/Depr | 46.06% | ||
| Cap/Sales | 11.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.1% | ||
| Profit Quality | 560.18% | ||
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | 1.04 |
F-Score6
WACC7.21%
ROIC/WACC0.38
Cap/Depr(3y)44.09%
Cap/Depr(5y)43.21%
Cap/Sales(3y)12.52%
Cap/Sales(5y)12.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)226.92%
EPS 3Y12.62%
EPS 5Y-30.12%
EPS Q2Q%433.33%
EPS Next Y133.74%
EPS Next 2Y93.31%
EPS Next 3Y78.17%
EPS Next 5Y56.52%
Revenue 1Y (TTM)10%
Revenue growth 3Y8.76%
Revenue growth 5Y4.92%
Sales Q2Q%13.18%
Revenue Next Year13.32%
Revenue Next 2Y10.98%
Revenue Next 3Y9.89%
Revenue Next 5Y9.14%
EBIT growth 1Y28.17%
EBIT growth 3Y6.68%
EBIT growth 5Y-4.86%
EBIT Next Year242.81%
EBIT Next 3Y60.03%
EBIT Next 5Y34.75%
FCF growth 1Y33.77%
FCF growth 3Y6.96%
FCF growth 5Y-3.72%
OCF growth 1Y27.19%
OCF growth 3Y9.02%
OCF growth 5Y-1.55%