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 with reasonable growth potential.


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

3.0%

NasdaqGS:CTRE

1.4%

US REITs

2.1%

US Market


1 Year Return

30.4%

NasdaqGS:CTRE

10.4%

US REITs

-0.04%

US Market

CTRE outperformed the REITs industry which returned 9.9% over the past year.

CTRE outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

CTREIndustryMarket
7 Day3.0%1.4%2.1%
30 Day2.1%3.6%-3.2%
90 Day-5.2%3.7%2.8%
1 Year36.1%30.4%15.4%10.4%2.2%-0.04%
3 Year83.2%60.0%25.8%9.4%41.5%32.3%
5 Year152.3%37.2%60.2%26.1%55.0%37.8%

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?

31%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

CareTrust REIT's share price is below the future cash flow value, and at a moderate discount (> 20%).

CareTrust REIT's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

CareTrust REIT is good value based on earnings compared to the US REITs industry average.

CareTrust REIT is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

CareTrust REIT is poor value based on expected growth next year.


Price Based on Value of Assets

CareTrust REIT is overvalued based on assets compared to the US REITs industry average.


Next Steps

Future Growth

How is CareTrust REIT expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

25.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CareTrust REIT's revenue is expected to grow by 10.5% yearly, however this is not considered high growth (20% yearly).

CareTrust REIT's earnings are expected to grow significantly at over 20% yearly.

CareTrust REIT's revenue growth is expected to exceed the United States of America market average.

CareTrust REIT's earnings growth is expected to exceed the United States of America market average.

CareTrust REIT's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if CareTrust REIT will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

CareTrust REIT has delivered over 20% year on year earnings growth in the past 5 years.

CareTrust REIT's 1-year earnings growth exceeds its 5-year average (59.4% vs 53.4%)

CareTrust REIT's earnings growth has exceeded the US REITs industry average in the past year (59.4% vs 16.9%).


Return on Equity

CareTrust REIT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

CareTrust REIT used its assets more efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

CareTrust REIT has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is CareTrust REIT's financial position?


Financial Position Analysis

CareTrust REIT's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

CareTrust REIT's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

CareTrust REIT's level of debt (56.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (243.4% vs 56.3% today).

Debt is well covered by operating cash flow (22.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0x debt.


Next Steps

Dividend

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

3.96%

Expected Dividend Yield


Dividend Yield and Payments Analysis

CareTrust REIT's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

CareTrust REIT's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Whilst dividend payments have been stable, CareTrust REIT has been paying a dividend for less than 10 years.

Dividend payments have increased, but CareTrust REIT only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Greg Stapley (59yo)

6.6yrs

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

Greg's remuneration is about average for companies of similar size in United States of America.

Greg's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.5yrs

Average Tenure

53yo

Average Age

The average tenure for the CareTrust REIT management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.2yrs

Average Tenure

59yo

Average Age

The tenure for the CareTrust REIT board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Bill Wagner (53yo)

    CFO, Treasurer & Secretary

    • Tenure: 5.7yrs
    • Compensation: US$1.46m
  • Greg Stapley (59yo)

    Chairman

    • Tenure: 6.6yrs
    • Compensation: US$3.09m
  • Dave Sedgwick (43yo)

    Chief Operating Officer

    • Tenure: 5.3yrs
    • Compensation: US$1.26m
  • Mark Lamb

    Chief Investment Officer

    • Tenure: 5.1yrs
    • Compensation: US$1.26m
  • Eric Gillis

    Director of Asset Management

    • Tenure: 0.0yrs
  • Lauren Beale

    Controller

    • Tenure: 0.0yrs

Board Members

  • Diana Laing (64yo)

    Director

    • Tenure: 0.6yrs
  • Jon Kline (52yo)

    Director

    • Tenure: 5.2yrs
    • Compensation: US$130.00k
  • Allen Barbieri (61yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$120.00k
  • Greg Stapley (59yo)

    Chairman

    • Tenure: 6.6yrs
    • Compensation: US$3.09m
  • Spencer Plumb (44yo)

    Director

    • Tenure: 2.5yrs
    • 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$2.291b
  • 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 Analysis2019/08/23 00:27
End of Day Share Price2019/08/22 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.