VENTAS INC (VTR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VTR - US92276F1003 - REIT
76.99 USD
+0.41 (+0.54%)
76.99 USD
0 (0%)
Taking everything into account, VTR scores 4 out of 10 in our fundamental rating. VTR was compared to 125 industry peers in the Diversified REITs industry. VTR has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, VTR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- VTR had positive earnings in the past year.
- In the past year VTR had a positive cash flow from operations.
- In multiple years VTR reported negative net income over the last 5 years.
- VTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 0.88%, VTR perfoms like the industry average, outperforming 52.80% of the companies in the same industry.
- VTR's Return On Equity of 1.87% is in line compared to the rest of the industry. VTR outperforms 48.00% of its industry peers.
- VTR has a Return On Invested Capital (2.88%) which is in line with its industry peers.
- 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 3.07%.
- The 3 year average ROIC (2.29%) for VTR is below the current ROIC(2.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 1.87% | ||
| ROIC | 2.88% |
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's Profit Margin of 4.28% is in line compared to the rest of the industry. VTR outperforms 48.00% of its industry peers.
- VTR's Profit Margin has declined in the last couple of years.
- VTR has a worse Operating Margin (16.60%) than 62.40% of its industry peers.
- VTR's Operating Margin has declined in the last couple of years.
- VTR has a worse Gross Margin (41.97%) than 81.60% of its industry peers.
- VTR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.6% | ||
| PM (TTM) | 4.28% | ||
| GM | 41.97% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VTR is destroying value.
- The number of shares outstanding for VTR has been increased compared to 1 year ago.
- Compared to 5 years ago, VTR has more shares outstanding
- Compared to 1 year ago, VTR has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.39, we must say that VTR is in the distress zone and has some risk of bankruptcy.
- With an excellent Altman-Z score value of 1.39, VTR belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
- The Debt to FCF ratio of VTR is 12.99, which is on the high side as it means it would take VTR, 12.99 years of fcf income to pay off all of its debts.
- VTR has a better Debt to FCF ratio (12.99) than 86.40% of its industry peers.
- VTR has a Debt/Equity ratio of 0.98. This is a neutral value indicating VTR is somewhat dependend on debt financing.
- The Debt to Equity ratio of VTR (0.98) is better than 63.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 12.99 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.39
WACC7.39%
2.3 Liquidity
- A Current Ratio of 0.17 indicates that VTR may have some problems paying its short term obligations.
- VTR's Current ratio of 0.17 is on the low side compared to the rest of the industry. VTR is outperformed by 92.80% of its industry peers.
- VTR has a Quick Ratio of 0.17. This is a bad value and indicates that VTR is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of VTR (0.17) is worse than 91.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
- VTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 425.00%, which is quite impressive.
- Measured over the past years, VTR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -30.12% on average per year.
- Looking at the last year, VTR shows a quite strong growth in Revenue. The Revenue has grown by 15.69% in the last year.
- VTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.92% yearly.
EPS 1Y (TTM)425%
EPS 3Y12.62%
EPS 5Y-30.12%
EPS Q2Q%180%
Revenue 1Y (TTM)15.69%
Revenue growth 3Y8.76%
Revenue growth 5Y4.92%
Sales Q2Q%20.44%
3.2 Future
- Based on estimates for the next years, VTR will show a very strong growth in Earnings Per Share. The EPS will grow by 55.15% on average per year.
- VTR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.18% yearly.
EPS Next Y150.61%
EPS Next 2Y84.46%
EPS Next 3Y70.51%
EPS Next 5Y55.15%
Revenue Next Year17.71%
Revenue Next 2Y14.41%
Revenue Next 3Y12.37%
Revenue Next 5Y13.18%
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.
- 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
- The Price/Earnings ratio is 148.06, which means the current valuation is very expensive for VTR.
- Based on the Price/Earnings ratio, VTR is valued a bit more expensive than 62.40% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, VTR is valued quite expensively.
- With a Price/Forward Earnings ratio of 113.14, VTR can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as VTR.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. VTR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 148.06 | ||
| Fwd PE | 113.14 |
4.2 Price Multiples
- 84.00% of the companies in the same industry are cheaper than VTR, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, VTR is valued a bit cheaper than the industry average as 71.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.36 | ||
| EV/EBITDA | 21.42 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- VTR's earnings are expected to grow with 70.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.98
PEG (5Y)N/A
EPS Next 2Y84.46%
EPS Next 3Y70.51%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.50%, VTR has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 6.59, VTR's dividend is way lower than its industry peers. On top of this 84.00% 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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
- VTR pays out 345.92% of its income as dividend. This is not a sustainable payout ratio.
DP345.92%
EPS Next 2Y84.46%
EPS Next 3Y70.51%
VENTAS INC / VTR FAQ
What is the ChartMill fundamental rating of VENTAS INC (VTR) stock?
ChartMill assigns a fundamental rating of 4 / 10 to VTR.
What is the valuation status for VTR stock?
ChartMill assigns a valuation rating of 3 / 10 to VENTAS INC (VTR). This can be considered as Overvalued.
How profitable is VENTAS INC (VTR) stock?
VENTAS INC (VTR) has a profitability rating of 3 / 10.
How financially healthy is VENTAS INC?
The financial health rating of VENTAS INC (VTR) is 3 / 10.
How sustainable is the dividend of VENTAS INC (VTR) stock?
The dividend rating of VENTAS INC (VTR) is 3 / 10 and the dividend payout ratio is 345.92%.