VENTAS INC (VTR)
US92276F1003 - REIT
Taking everything into account, VTR scores 3 out of 10 in our fundamental rating. VTR was compared to 130 industry peers in the Diversified REITs industry. Both the profitability and financial health of VTR have multiple concerns. 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 has reported negative net income.
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.
Each year in the past 5 years VTR had a positive operating cash flow.
1.2 Ratios
VTR's Return On Assets of -0.26% is on the low side compared to the rest of the industry. VTR is outperformed by 63.78% of its industry peers.
The Return On Equity of VTR (-0.66%) is worse than 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.
The Average Return On Invested Capital over the past 3 years 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
VTR has a Operating Margin of 14.80%. This is in the lower half of the industry: VTR underperforms 66.93% of its industry peers.
VTR's Operating Margin has declined in the last couple of years.
The Gross Margin of VTR (42.61%) is worse than 85.04% of its industry peers.
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
Compared to 1 year ago, VTR has a worse debt to assets ratio.
2.2 Solvency
VTR has an Altman-Z score of 0.85. This is a bad value and indicates that VTR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VTR (0.85) is better than 66.14% of its industry peers.
VTR has a debt to FCF ratio of 24.48. This is a negative value and a sign of low solvency as VTR would need 24.48 years to pay back of all of its debts.
VTR has a better Debt to FCF ratio (24.48) than 71.65% of its industry peers.
VTR has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
VTR has a Debt to Equity ratio (1.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 24.48 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.33
WACC7.25%
2.3 Liquidity
A Current Ratio of 0.72 indicates that VTR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.72, VTR is doing worse than 76.38% of the companies in the same industry.
A Quick Ratio of 0.72 indicates that VTR may have some problems paying 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
The earnings per share for VTR have decreased strongly by -128.57% in the last year.
VTR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.50%.
VTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.73% yearly.
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 55.43% on average over the next years. This is a very strong growth
Based on estimates for the next years, VTR will show a quite strong growth in Revenue. The Revenue will grow by 9.12% on average per year.
EPS Next Y145.72%
EPS Next 2Y91.23%
EPS Next 3Y68.64%
EPS Next 5Y55.43%
Revenue Next Year8.94%
Revenue Next 2Y8.59%
Revenue Next 3Y8.01%
Revenue Next 5Y9.12%
3.3 Evolution
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
VTR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 183.57, which means the current valuation is very expensive for VTR.
VTR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of VTR to the average of the S&P500 Index (23.61), we can say VTR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 183.57 |
4.2 Price Multiples
76.38% of the companies in the same industry are cheaper than VTR, based on the Enterprise Value to EBITDA ratio.
VTR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.41 | ||
| EV/EBITDA | 17.7 |
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 68.64% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y91.23%
EPS Next 3Y68.64%
5. Dividend
5.1 Amount
VTR has a Yearly Dividend Yield of 3.11%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 15.41, VTR is paying slightly less dividend.
VTR's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
5.2 History
The dividend of VTR decreases each year by -10.61%.
VTR has been paying a dividend for at least 10 years, so it has 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 2Y91.23%
EPS Next 3Y68.64%
VENTAS INC
NYSE:VTR (1/10/2025, 9:34:08 AM)
57.785
-0.49 (-0.83%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners96.45%
Inst Owner Change0%
Ins Owners0.5%
Ins Owner Change2.96%
Market Cap24.24B
Analysts80
Price Target72.42 (25.33%)
Short Float %5.16%
Short Ratio7.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Dividend Growth(5Y)-10.61%
DP-1101.78%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)211.2%
Min EPS beat(2)170.08%
Max EPS beat(2)252.32%
EPS beat(4)3
Avg EPS beat(4)113.47%
Min EPS beat(4)-59.4%
Max EPS beat(4)252.32%
EPS beat(8)5
Avg EPS beat(8)-1091.59%
EPS beat(12)6
Avg EPS beat(12)-772.79%
EPS beat(16)9
Avg EPS beat(16)-549.29%
Revenue beat(2)1
Avg Revenue beat(2)0.21%
Min Revenue beat(2)-0.42%
Max Revenue beat(2)0.84%
Revenue beat(4)3
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-0.42%
Max Revenue beat(4)2.21%
Revenue beat(8)6
Avg Revenue beat(8)0.87%
Revenue beat(12)7
Avg Revenue beat(12)0.36%
Revenue beat(16)10
Avg Revenue beat(16)0.61%
PT rev (1m)1.35%
PT rev (3m)10.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-77.78%
EPS NY rev (1m)53.57%
EPS NY rev (3m)2682.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 183.57 | ||
| P/S | 5.05 | ||
| P/FCF | 43.41 | ||
| P/OCF | 19.63 | ||
| P/B | 2.4 | ||
| P/tB | 2.68 | ||
| EV/EBITDA | 17.7 |
EPS(TTM)-0.16
EYN/A
EPS(NY)0.31
Fwd EY0.54%
FCF(TTM)1.33
FCFY2.3%
OCF(TTM)2.94
OCFY5.09%
SpS11.45
BVpS24.05
TBVpS21.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.26% | ||
| ROE | -0.66% | ||
| ROCE | 2.99% | ||
| ROIC | 2.36% | ||
| ROICexc | 2.47% | ||
| ROICexgc | 2.63% | ||
| OM | 14.8% | ||
| PM (TTM) | N/A | ||
| GM | 42.61% | ||
| FCFM | 11.63% |
ROA(3y)-0.05%
ROA(5y)0.68%
ROE(3y)-0.14%
ROE(5y)1.56%
ROIC(3y)2.12%
ROIC(5y)2.48%
ROICexc(3y)2.14%
ROICexc(5y)2.51%
ROICexgc(3y)2.28%
ROICexgc(5y)2.67%
ROCE(3y)2.68%
ROCE(5y)3.14%
ROICexcg growth 3Y-8.06%
ROICexcg growth 5Y-11.46%
ROICexc growth 3Y-7.96%
ROICexc growth 5Y-11.44%
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%
F-Score4
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 24.48 | ||
| Debt/EBITDA | 6.51 | ||
| Cap/Depr | 49.04% | ||
| Cap/Sales | 14.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 0.85 |
F-Score4
WACC7.25%
ROIC/WACC0.33
Cap/Depr(3y)40.08%
Cap/Depr(5y)44.3%
Cap/Sales(3y)12.2%
Cap/Sales(5y)13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-128.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%127.78%
EPS Next Y145.72%
EPS Next 2Y91.23%
EPS Next 3Y68.64%
EPS Next 5Y55.43%
Revenue 1Y (TTM)9.5%
Revenue growth 3Y5.82%
Revenue growth 5Y3.73%
Sales Q2Q%7.52%
Revenue Next Year8.94%
Revenue Next 2Y8.59%
Revenue Next 3Y8.01%
Revenue Next 5Y9.12%
EBIT growth 1Y14.85%
EBIT growth 3Y-6.86%
EBIT growth 5Y-10.2%
EBIT Next Year291.26%
EBIT Next 3Y67.26%
EBIT Next 5Y39.61%
FCF growth 1Y-23.28%
FCF growth 3Y-19.72%
FCF growth 5Y-12.29%
OCF growth 1Y10.4%
OCF growth 3Y-8.26%
OCF growth 5Y-4.11%