VENTAS INC (VTR) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:VTR • US92276F1003
77.67 USD
+0.8 (+1.04%)
At close: Jan 30, 2026
77.81 USD
+0.14 (+0.18%)
After Hours: 1/30/2026, 8:23:47 PM
Taking everything into account, VTR scores 4 out of 10 in our fundamental rating. VTR was compared to 124 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
- 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
- VTR has a Return On Assets (0.88%) which is in line with its industry peers.
- The Return On Equity of VTR (1.87%) is comparable to the rest of the industry.
- VTR has a Return On Invested Capital (2.88%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for VTR is in line with the industry average of 3.05%.
- 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 has a Profit Margin (4.28%) which is comparable to the rest of the industry.
- VTR's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 16.60%, VTR is not doing good in the industry: 62.10% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of VTR has declined.
- Looking at the Gross Margin, with a value of 41.97%, VTR is doing worse than 81.45% of the companies in the same industry.
- In the last couple of years the Gross Margin of VTR has declined.
| 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
- 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
- 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
- VTR has an Altman-Z score of 1.41. This is a bad value and indicates that VTR is not financially healthy and even has some risk of bankruptcy.
- With an excellent Altman-Z score value of 1.41, VTR belongs to the best of the industry, outperforming 88.71% of the companies in the same industry.
- VTR has a debt to FCF ratio of 12.99. This is a negative value and a sign of low solvency as VTR would need 12.99 years to pay back of all of its debts.
- VTR's Debt to FCF ratio of 12.99 is amongst the best of the industry. VTR outperforms 86.29% of its industry peers.
- A Debt/Equity ratio of 0.98 indicates that VTR is somewhat dependend on debt financing.
- VTR's Debt to Equity ratio of 0.98 is fine compared to the rest of the industry. VTR outperforms 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 12.99 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.39
WACC7.4%
2.3 Liquidity
- A Current Ratio of 0.17 indicates that VTR may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.17, VTR is doing worse than 92.74% of the companies in the same industry.
- A Quick Ratio of 0.17 indicates that VTR may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.17, VTR is doing worse than 91.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 425.00% over the past year.
- 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.
- The Revenue has grown by 15.69% in the past year. This is quite good.
- 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.
- The Revenue is expected to grow by 13.18% on average over the next years. This is quite good.
EPS Next Y127.25%
EPS Next 2Y76.54%
EPS Next 3Y72.25%
EPS Next 5Y55.15%
Revenue Next Year17.84%
Revenue Next 2Y14.52%
Revenue Next 3Y12.26%
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.
- 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
- With a Price/Earnings ratio of 149.37, VTR can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, VTR is valued a bit more expensive than the industry average as 62.90% of the companies are valued more cheaply.
- VTR is valuated expensively when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 124.61, VTR can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of VTR is on the same level as its industry peers.
- VTR is valuated expensively when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 149.37 | ||
| Fwd PE | 124.61 |
4.2 Price Multiples
- 83.87% 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 71.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.69 | ||
| EV/EBITDA | 21.65 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- VTR's earnings are expected to grow with 72.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.17
PEG (5Y)N/A
EPS Next 2Y76.54%
EPS Next 3Y72.25%
5. Dividend
5.1 Amount
- VTR has a Yearly Dividend Yield of 2.50%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 6.98, VTR's dividend is way lower than its industry peers. On top of this 83.87% of the companies listed in the same industry pay a better dividend than VTR!
- Compared to an average S&P500 Dividend Yield of 1.83, VTR pays a bit more dividend than the S&P500 average.
| 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
- 345.92% of the earnings are spent on dividend by VTR. This is not a sustainable payout ratio.
DP345.92%
EPS Next 2Y76.54%
EPS Next 3Y72.25%
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%.