NasdaqGS:CTRE

Stock Analysis Report

Executive Summary

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition and leasing of seniors housing and healthcare-related properties.

Snowflake

Fundamentals

Solid track record average dividend payer.


Similar Companies

Share Price & News

How has CareTrust REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.6%

CTRE

-0.4%

US REITs

1.0%

US Market


1 Year Return

38.6%

CTRE

20.9%

US REITs

6.7%

US Market

Return vs Industry: CTRE exceeded the US REITs industry which returned 20.9% over the past year.

Return vs Market: CTRE exceeded the US Market which returned 6.7% over the past year.


Share holder returns

CTREIndustryMarket
7 Day-0.6%-0.4%1.0%
30 Day3.1%2.0%-1.8%
90 Day-1.1%4.0%-1.8%
1 Year44.3%38.6%26.3%20.9%9.1%6.7%
3 Year90.4%66.7%34.5%17.3%46.1%36.6%
5 Year195.6%59.2%64.8%29.9%66.9%48.6%

Price Volatility Vs. Market

How volatile is CareTrust REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CareTrust REIT undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: CTRE ($23.55) is trading below our estimate of fair value ($60.57)

Significantly Undervalued: CTRE is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: CTRE is good value based on its PE Ratio (31.3x) compared to the REITs industry average (34.8x).

PE vs Market: CTRE is poor value based on its PE Ratio (31.3x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: CTRE is poor value based on its PEG Ratio (2x)


Price Based on Value of Assets

PB vs Industry: CTRE is overvalued based on its PB Ratio (2.3x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is CareTrust REIT expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CTRE's forecast earnings growth (15.8% per year) is above the savings rate (2.7%).

Earnings vs Market: CTRE's earnings (15.8% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: CTRE's earnings are forecast to grow, but not significantly.

Revenue vs Market: CTRE's revenue (15.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: CTRE's revenue (15.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if CTRE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CareTrust REIT performed over the past 5 years?

53.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CTRE has become profitable over the past 5 years, growing earnings by 53.4% per year.

Accelerating Growth: CTRE's earnings growth over the past year (59.4%) exceeds its 5-year average (53.4% per year).

Earnings vs Industry: CTRE earnings growth over the past year (59.4%) exceeded the REITs industry 17%.


Return on Equity

High ROE: CTRE's Return on Equity (6.9%) is considered low.


Return on Assets

ROA vs Industry: CTRE has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: CTRE has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is CareTrust REIT's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CTRE has a high level of physical assets or inventory.

Debt Coverage by Assets: CTRE's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: CTRE's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CTRE has a sufficient allowance for bad loans.

Low Risk Liabilities: CTRE reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CTRE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CTRE has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CTRE has an appropriate level of bad loans.


Next Steps

Dividend

What is CareTrust REIT's current dividend yield, its reliability and sustainability?

4.12%

Expected Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.5%markettop25%3.8%industryaverage4.4%forecastin3Years4.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: CTRE's dividend (3.82%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: CTRE's dividend (3.82%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: Whilst dividend payments have been stable, CTRE has been paying a dividend for less than 10 years.

Growing Dividend: CTRE's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70%), CTRE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTRE's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

What is the CEO of CareTrust REIT's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

Greg Stapley (59yo)

6.8yrs

Tenure

US$3,093,769

Compensation

Mr. Gregory K. Stapley, also known as Greg, has been the Chief Executive Officer and President at Caretrust REIT, Inc. since 2014 and has been Chairman of the Board since June 2014. Mr. Stapley has extensi ...


CEO Compensation Analysis

Compensation vs. Market: Greg's total compensation ($USD3.09M) is about average for companies of similar size in the US market ($USD4.08M).

Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.6yrs

Average Tenure

53yo

Average Age

Experienced Management: CTRE's management team is seasoned and experienced (5.6 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

59yo

Average Age

Experienced Board: CTRE's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Bill Wagner (53yo)

    CFO, Treasurer & Secretary

    • Tenure: 5.8yrs
    • Compensation: US$1.46m
  • Greg Stapley (59yo)

    Chairman

    • Tenure: 6.8yrs
    • Compensation: US$3.09m
  • Dave Sedgwick (43yo)

    Chief Operating Officer

    • Tenure: 5.4yrs
    • Compensation: US$1.26m
  • Mark Lamb

    Chief Investment Officer

    • Tenure: 5.3yrs
    • Compensation: US$1.26m
  • Eric Gillis

    Director of Asset Management

    • Tenure: 0yrs
  • Lauren Beale

    Controller

    • Tenure: 0yrs

Board Members

  • Diana Laing (64yo)

    Director

    • Tenure: 0.8yrs
  • Jon Kline (52yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$130.00k
  • Allen Barbieri (61yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$120.00k
  • Greg Stapley (59yo)

    Chairman

    • Tenure: 6.8yrs
    • Compensation: US$3.09m
  • Spencer Plumb (44yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$120.00k

Company Information

CareTrust REIT, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CareTrust REIT, Inc.
  • Ticker: CTRE
  • Exchange: NasdaqGS
  • Founded: 2013
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Market Cap: US$2.250b
  • Shares outstanding: 95.56m
  • Website: https://www.caretrustreit.com

Number of Employees


Location

  • CareTrust REIT, Inc.
  • 905 Calle Amanecer
  • Suite 300
  • San Clemente
  • California
  • 92673
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTRENasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDMay 2014
0A1CLSE (London Stock Exchange)YesNew Common StockGBEURMay 2014
7XCDB (Deutsche Boerse AG)YesNew Common StockDEEURMay 2014

Biography

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition and leasing of seniors housing and healthcare-related properties. With 213 ne ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 03:06
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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