CareTrust REIT, Inc.
CareTrust REIT, Inc. Fundamental Analysis
CareTrust REIT, Inc. (CTRE) shows moderate financial fundamentals with a PE ratio of 28.15, profit margin of 80.74%, and ROE of 8.99%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 4.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CTRE's fundamental strength across five key dimensions:
Efficiency Score
WeakCTRE struggles to generate sufficient returns from assets.
Valuation Score
ModerateCTRE shows balanced valuation metrics.
Growth Score
ModerateCTRE shows steady but slowing expansion.
Financial Health Score
ExcellentCTRE maintains a strong and stable balance sheet.
Profitability Score
ModerateCTRE maintains healthy but balanced margins.
Key Financial Metrics
Is CTRE Expensive or Cheap?
P/E Ratio
CTRE trades at 28.15 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CTRE's PEG of 1.81 indicates fair valuation.
Price to Book
The market values CareTrust REIT, Inc. at 2.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.45 times EBITDA. This signals the market has high growth expectations.
How Well Does CTRE Make Money?
Net Profit Margin
For every $100 in sales, CareTrust REIT, Inc. keeps $80.74 as profit after all expenses.
Operating Margin
Core operations generate 59.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.99 in profit for every $100 of shareholder equity.
ROA
CareTrust REIT, Inc. generates $6.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CareTrust REIT, Inc. generates strong operating cash flow of $342.04M, reflecting robust business health.
Free Cash Flow
CareTrust REIT, Inc. generates strong free cash flow of $329.03M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.70 in free cash annually.
FCF Yield
CTRE converts 4.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.81
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
19.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How CTRE Stacks Against Its Sector Peers
| Metric | CTRE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.15 | 24.42 | Worse (Expensive) |
| ROE | 8.99% | 679.00% | Weak |
| Net Margin | 80.74% | 4598.00% | Weak |
| Debt/Equity | 0.22 | -22.07 (disorted) | Distorted |
| Current Ratio | 1.54 | 14.99 | Neutral |
| ROA | 6.23% | -1369.00% (disorted) | Weak |
CTRE outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CareTrust REIT, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-13.70%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
312.52%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
16.30%
Industry Style: Income, Inflation Hedge, REIT
High Growth