VENTAS INC (VTR)
US92276F1003 - REIT
VTR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. Both the profitability and financial health of VTR have multiple concerns. While showing a medium growth rate, VTR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year VTR has reported negative net income.
In the past year VTR had a positive cash flow from operations.
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
VTR has a Return On Assets of -0.26%. This is in the lower half of the industry: VTR underperforms 63.78% of its industry peers.
VTR's Return On Equity of -0.66% is on the low side compared to the rest of the industry. VTR is outperformed by 62.20% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.36%, VTR is in line with its industry, outperforming 40.94% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VTR is in line with the industry average of 3.10%.
The 3 year average ROIC (2.12%) for VTR is below the current ROIC(2.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.26% | ||
| ROE | -0.66% | ||
| ROIC | 2.36% |
ROA(3y)-0.05%
ROA(5y)0.68%
ROE(3y)-0.14%
ROE(5y)1.56%
ROIC(3y)2.12%
ROIC(5y)2.48%
1.3 Margins
Looking at the Operating Margin, with a value of 14.80%, VTR is doing worse than 66.93% of the companies in the same industry.
VTR's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 42.61%, VTR is not doing good in the industry: 85.04% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of VTR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.8% | ||
| PM (TTM) | N/A | ||
| GM | 42.61% |
OM growth 3Y-11.98%
OM growth 5Y-13.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.15%
GM growth 5Y-4.73%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VTR is destroying value.
VTR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VTR has more shares outstanding
The debt/assets ratio for VTR is higher compared to a year ago.
2.2 Solvency
VTR has an Altman-Z score of 0.92. This is a bad value and indicates that VTR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.92, VTR is in the better half of the industry, outperforming 66.14% of the companies in the same industry.
The Debt to FCF ratio of VTR is 24.48, which is on the high side as it means it would take VTR, 24.48 years of fcf income to pay off all of its debts.
VTR has a better Debt to FCF ratio (24.48) than 70.87% of its industry peers.
A Debt/Equity ratio of 1.35 is on the high side and indicates that VTR has dependencies on debt financing.
The Debt to Equity ratio of VTR (1.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 24.48 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.33
WACC7.05%
2.3 Liquidity
A Current Ratio of 0.72 indicates that VTR may have some problems paying its short term obligations.
VTR's Current ratio of 0.72 is on the low side compared to the rest of the industry. VTR is outperformed by 76.38% of its industry peers.
VTR has a Quick Ratio of 0.72. 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 Quick ratio of 0.72 is on the low side compared to the rest of the industry. VTR is outperformed by 72.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
VTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -128.57%.
Looking at the last year, VTR shows a quite strong growth in Revenue. The Revenue has grown by 9.50% in the last year.
The Revenue has been growing slightly by 3.73% on average over the past years.
EPS 1Y (TTM)-128.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%127.78%
Revenue 1Y (TTM)9.5%
Revenue growth 3Y5.82%
Revenue growth 5Y3.73%
Sales Q2Q%7.52%
3.2 Future
The Earnings Per Share is expected to grow by 52.20% on average over the next years. This is a very strong growth
VTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y129.77%
EPS Next 2Y81.48%
EPS Next 3Y69.82%
EPS Next 5Y52.2%
Revenue Next Year8.54%
Revenue Next 2Y7.81%
Revenue Next 3Y7.03%
Revenue Next 5Y6.57%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
VTR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 252.80, which means the current valuation is very expensive for VTR.
VTR's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.06, VTR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 252.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VTR is valued a bit more expensive than 77.95% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VTR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.67 | ||
| EV/EBITDA | 18.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VTR's earnings are expected to grow with 69.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y81.48%
EPS Next 3Y69.82%
5. Dividend
5.1 Amount
VTR has a Yearly Dividend Yield of 2.79%. Purely for dividend investing, there may be better candidates out there.
VTR's Dividend Yield is slightly below the industry average, which is at 7.09.
VTR's Dividend Yield is a higher than the S&P500 average which is at 2.16.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
The dividend of VTR decreases each year by -10.61%.
VTR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-10.61%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VTR has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-1101.78%
EPS Next 2Y81.48%
EPS Next 3Y69.82%
VENTAS INC
NYSE:VTR (12/4/2024, 8:18:02 PM)
After market: 62.13 0 (0%)62.13
-0.64 (-1.02%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 252.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.26% | ||
| ROE | -0.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.8% | ||
| PM (TTM) | N/A | ||
| GM | 42.61% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-128.57%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y129.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.5%
Revenue growth 3Y5.82%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y