VENTAS INC (VTR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VTR - US92276F1003 - REIT
77.38 USD
-1.47 (-1.86%)
77.38 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to VTR. VTR was compared to 127 industry peers in the Diversified REITs industry. VTR may be in some trouble as it scores bad on both profitability and health. 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.
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.
VTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of VTR (0.88%) is comparable to the rest of the industry.
With a Return On Equity value of 1.87%, VTR perfoms like the industry average, outperforming 47.24% of the companies in the same industry.
The Return On Invested Capital of VTR (2.88%) 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 3.06%.
The last Return On Invested Capital (2.88%) for VTR is above the 3 year average (2.29%), which is a sign of increasing profitability.
| 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 in line with its industry peers.
VTR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 16.60%, VTR is doing worse than 62.99% of the companies in the same industry.
VTR's Operating Margin has declined in the last couple of years.
The Gross Margin of VTR (41.97%) is worse than 82.68% 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
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
The debt/assets ratio for VTR has been reduced compared to a year ago.
2.2 Solvency
VTR has an Altman-Z score of 1.44. This is a bad value and indicates that VTR is not financially healthy and even has some risk of bankruptcy.
VTR has a Altman-Z score of 1.44. This is amongst the best in the industry. VTR outperforms 88.98% of its industry peers.
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.
The Debt to FCF ratio of VTR (12.99) is better than 85.83% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that VTR is somewhat dependend on debt financing.
VTR has a Debt to Equity ratio of 0.98. This is in the better half of the industry: VTR outperforms 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 12.99 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.39
WACC7.31%
2.3 Liquidity
A Current Ratio of 0.17 indicates that VTR may have some problems paying its short term obligations.
VTR has a Current ratio of 0.17. This is amonst the worse of the industry: VTR underperforms 93.70% of its industry peers.
A Quick Ratio of 0.17 indicates that VTR may have some problems paying its short term obligations.
VTR's Quick ratio of 0.17 is on the low side compared to the rest of the industry. VTR is outperformed by 92.13% of its industry peers.
| 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.
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.
Based on estimates for the next years, VTR will show a quite strong growth in Revenue. The Revenue will grow by 13.18% on average per year.
EPS Next Y150.61%
EPS Next 2Y84.46%
EPS Next 3Y70.51%
EPS Next 5Y55.15%
Revenue Next Year16.68%
Revenue Next 2Y13.33%
Revenue Next 3Y12.17%
Revenue Next 5Y13.18%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 148.81, which means the current valuation is very expensive for VTR.
VTR's Price/Earnings ratio is a bit more expensive when compared to the industry. VTR is more expensive than 62.99% of the companies in the same industry.
VTR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 113.71, the valuation of VTR can be described as expensive.
VTR's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.13. VTR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 148.81 | ||
| Fwd PE | 113.71 |
4.2 Price Multiples
VTR's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. VTR is more expensive than 85.83% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VTR indicates a somewhat cheap valuation: VTR is cheaper than 69.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.55 | ||
| EV/EBITDA | 21.89 |
4.3 Compensation for Growth
VTR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VTR's earnings are expected to grow with 70.51% in the coming years.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y84.46%
EPS Next 3Y70.51%
5. Dividend
5.1 Amount
VTR has a Yearly Dividend Yield of 2.41%.
With a Dividend Yield of 2.41, VTR pays less dividend than the industry average, which is at 6.43. 85.04% of the companies listed in the same industry pay a better dividend than VTR!
Compared to an average S&P500 Dividend Yield of 2.00, VTR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of VTR decreases each year by -11.07%.
VTR has paid a dividend for at least 10 years, which is 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%
77.38
-1.47 (-1.86%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.43%
Inst Owner Change2.29%
Ins Owners0.47%
Ins Owner Change-0.24%
Market Cap36.35B
Revenue(TTM)5.56B
Net Income(TTM)238.01M
Analysts82.4
Price Target85.95 (11.08%)
Short Float %3.47%
Short Ratio5.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend1.76
Dividend Growth(5Y)-11.07%
DP345.92%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.05%
Min EPS beat(2)4.59%
Max EPS beat(2)15.51%
EPS beat(4)4
Avg EPS beat(4)175.3%
Min EPS beat(4)4.59%
Max EPS beat(4)635.5%
EPS beat(8)7
Avg EPS beat(8)144.39%
EPS beat(12)9
Avg EPS beat(12)-669.3%
EPS beat(16)10
Avg EPS beat(16)-535.77%
Revenue beat(2)2
Avg Revenue beat(2)2.85%
Min Revenue beat(2)2.3%
Max Revenue beat(2)3.4%
Revenue beat(4)4
Avg Revenue beat(4)2.17%
Min Revenue beat(4)1.02%
Max Revenue beat(4)3.4%
Revenue beat(8)7
Avg Revenue beat(8)1.45%
Revenue beat(12)10
Avg Revenue beat(12)1.3%
Revenue beat(16)11
Avg Revenue beat(16)0.81%
PT rev (1m)5.4%
PT rev (3m)8.73%
EPS NQ rev (1m)-20.52%
EPS NQ rev (3m)-29.17%
EPS NY rev (1m)3.08%
EPS NY rev (3m)-3.24%
Revenue NQ rev (1m)1.41%
Revenue NQ rev (3m)3.51%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 148.81 | ||
| Fwd PE | 113.71 | ||
| P/S | 6.54 | ||
| P/FCF | 37.55 | ||
| P/OCF | 23.47 | ||
| P/B | 2.86 | ||
| P/tB | 3.12 | ||
| EV/EBITDA | 21.89 |
EPS(TTM)0.52
EY0.67%
EPS(NY)0.68
Fwd EY0.88%
FCF(TTM)2.06
FCFY2.66%
OCF(TTM)3.3
OCFY4.26%
SpS11.83
BVpS27.06
TBVpS24.81
PEG (NY)0.99
PEG (5Y)N/A
Graham Number17.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 1.87% | ||
| ROCE | 3.65% | ||
| ROIC | 2.88% | ||
| ROICexc | 2.91% | ||
| ROICexgc | 3.06% | ||
| OM | 16.6% | ||
| PM (TTM) | 4.28% | ||
| GM | 41.97% | ||
| FCFM | 17.42% |
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%
ROICexgc growth 3Y8.54%
ROICexgc 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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 12.99 | ||
| Debt/EBITDA | 5.52 | ||
| Cap/Depr | 43.5% | ||
| Cap/Sales | 10.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.61% | ||
| Profit Quality | 406.65% | ||
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 1.44 |
F-Score6
WACC7.31%
ROIC/WACC0.39
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)425%
EPS 3Y12.62%
EPS 5Y-30.12%
EPS Q2Q%180%
EPS Next Y150.61%
EPS Next 2Y84.46%
EPS Next 3Y70.51%
EPS Next 5Y55.15%
Revenue 1Y (TTM)15.69%
Revenue growth 3Y8.76%
Revenue growth 5Y4.92%
Sales Q2Q%20.44%
Revenue Next Year16.68%
Revenue Next 2Y13.33%
Revenue Next 3Y12.17%
Revenue Next 5Y13.18%
EBIT growth 1Y29.73%
EBIT growth 3Y6.68%
EBIT growth 5Y-4.86%
EBIT Next Year248.3%
EBIT Next 3Y62.24%
EBIT Next 5Y37.29%
FCF growth 1Y80.67%
FCF growth 3Y6.96%
FCF growth 5Y-3.72%
OCF growth 1Y39.77%
OCF growth 3Y9.02%
OCF growth 5Y-1.55%
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%.