Ventas, Inc.
Ventas, Inc. Fundamental Analysis
Ventas, Inc. (VTR) shows weak financial fundamentals with a PE ratio of 160.94, profit margin of 4.31%, and ROE of 2.10%. The company generates $5.9B in annual revenue with moderate year-over-year growth of 9.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VTR's fundamental strength across five key dimensions:
Efficiency Score
WeakVTR struggles to generate sufficient returns from assets.
Valuation Score
WeakVTR trades at a premium to fair value.
Growth Score
ModerateVTR shows steady but slowing expansion.
Financial Health Score
WeakVTR carries high financial risk with limited liquidity.
Profitability Score
ModerateVTR maintains healthy but balanced margins.
Key Financial Metrics
Is VTR Expensive or Cheap?
P/E Ratio
VTR trades at 160.94 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VTR's PEG of 42.65 indicates potential overvaluation.
Price to Book
The market values Ventas, Inc. at 3.23 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.64 times EBITDA. This signals the market has high growth expectations.
How Well Does VTR Make Money?
Net Profit Margin
For every $100 in sales, Ventas, Inc. keeps $4.31 as profit after all expenses.
Operating Margin
Core operations generate 14.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.10 in profit for every $100 of shareholder equity.
ROA
Ventas, Inc. generates $0.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ventas, Inc. generates strong operating cash flow of $1.69B, reflecting robust business health.
Free Cash Flow
Ventas, Inc. generates strong free cash flow of $1.33B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.79 in free cash annually.
FCF Yield
VTR converts 3.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
160.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
42.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How VTR Stacks Against Its Sector Peers
| Metric | VTR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 160.94 | 24.23 | Worse (Expensive) |
| ROE | 2.10% | 659.00% | Weak |
| Net Margin | 4.31% | 4497.00% | Weak |
| Debt/Equity | 1.06 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.96 | 13.87 | Weak Liquidity |
| ROA | 0.91% | -1390.00% (disorted) | Weak |
VTR 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 Ventas, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.01%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-83.34%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-17.81%
Industry Style: Income, Inflation Hedge, REIT
Declining