Community Healthcare Trust Incorporated
Community Healthcare Trust Incorporated Fundamental Analysis
Community Healthcare Trust Incorporated (CHCT) shows weak financial fundamentals with a PE ratio of 89.88, profit margin of 4.20%, and ROE of 1.16%. The company generates $0.1B in annual revenue with weak year-over-year growth of 2.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CHCT's fundamental strength across five key dimensions:
Efficiency Score
WeakCHCT struggles to generate sufficient returns from assets.
Valuation Score
ModerateCHCT shows balanced valuation metrics.
Growth Score
WeakCHCT faces weak or negative growth trends.
Financial Health Score
ModerateCHCT shows balanced financial health with some risks.
Profitability Score
ModerateCHCT maintains healthy but balanced margins.
Key Financial Metrics
Is CHCT Expensive or Cheap?
P/E Ratio
CHCT trades at 89.88 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CHCT's PEG of 0.76 indicates potential undervaluation.
Price to Book
The market values Community Healthcare Trust Incorporated at 1.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.69 times EBITDA. This is generally considered low.
How Well Does CHCT Make Money?
Net Profit Margin
For every $100 in sales, Community Healthcare Trust Incorporated keeps $4.20 as profit after all expenses.
Operating Margin
Core operations generate 59.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.16 in profit for every $100 of shareholder equity.
ROA
Community Healthcare Trust Incorporated generates $0.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Community Healthcare Trust Incorporated generates strong operating cash flow of $59.82M, reflecting robust business health.
Free Cash Flow
Community Healthcare Trust Incorporated generates strong free cash flow of $59.82M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.10 in free cash annually.
FCF Yield
CHCT converts 11.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
89.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.006
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
205.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How CHCT Stacks Against Its Sector Peers
| Metric | CHCT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 89.88 | 24.23 | Worse (Expensive) |
| ROE | 1.16% | 659.00% | Weak |
| Net Margin | 4.20% | 4497.00% | Weak |
| Debt/Equity | 1.26 | -22.14 (disorted) | Distorted |
| Current Ratio | 205.23 | 13.87 | Strong Liquidity |
| ROA | 0.51% | -1390.00% (disorted) | Weak |
CHCT outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Community Healthcare Trust Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.02%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-126.75%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
28.14%
Industry Style: Income, Inflation Hedge, REIT
High Growth