NasdaqGS:CTRE

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Executive Summary

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


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


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

Stable Share Price: CTRE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.4%

CTRE

1.3%

US REITs

2.5%

US Market


1 Year Return

-16.6%

CTRE

-7.9%

US REITs

16.3%

US Market

Return vs Industry: CTRE underperformed the US REITs industry which returned -9.1% over the past year.

Return vs Market: CTRE underperformed the US Market which returned 15.8% over the past year.


Shareholder returns

CTREIndustryMarket
7 Day4.4%1.3%2.5%
30 Day15.3%5.7%5.6%
90 Day7.4%10.1%16.4%
1 Year-12.2%-16.6%-4.2%-7.9%18.8%16.3%
3 Year20.5%4.5%19.6%5.4%45.1%35.7%
5 Year113.6%67.8%44.9%15.4%75.8%56.8%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTRE ($18.81) is trading below our estimate of fair value ($38.88)

Significantly Below Fair Value: CTRE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CTRE is poor value based on its PE Ratio (36.9x) compared to the US REITs industry average (30.6x).

PE vs Market: CTRE is poor value based on its PE Ratio (36.9x) compared to the US market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: CTRE is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: CTRE is overvalued based on its PB Ratio (2x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is CareTrust REIT forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTRE's forecast earnings growth (11.3% per year) is above the savings rate (2.2%).

Earnings vs Market: CTRE's earnings (11.3% per year) are forecast to grow slower than the US market (22.9% per year).

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

Revenue vs Market: CTRE's revenue (7.5% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: CTRE's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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?

29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTRE has a large one-off loss of $15.0M impacting its June 30 2020 financial results.

Growing Profit Margin: CTRE's current net profit margins (29.3%) are lower than last year (39.4%).


Past Earnings Growth Analysis

Earnings Trend: CTRE's earnings have grown significantly by 29.4% per year over the past 5 years.

Accelerating Growth: CTRE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CTRE had negative earnings growth (-25.5%) over the past year, making it difficult to compare to the REITs industry average (3.9%).


Return on Equity

High ROE: CTRE's Return on Equity (5.3%) is considered low.


Next Steps

Financial Health

How is CareTrust REIT's financial position?


Financial Position Analysis

Short Term Liabilities: CTRE's short term assets ($13.4M) do not cover its short term liabilities ($37.5M).

Long Term Liabilities: CTRE's short term assets ($13.4M) do not cover its long term liabilities ($495.1M).


Debt to Equity History and Analysis

Debt Level: CTRE's debt to equity ratio (54%) is considered high.

Reducing Debt: CTRE's debt to equity ratio has reduced from 351% to 54% over the past 5 years.

Debt Coverage: CTRE's debt is well covered by operating cash flow (26.8%).

Interest Coverage: CTRE's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

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

5.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CTRE's dividend (5.32%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: CTRE's dividend (5.32%) is in the top 25% of dividend payers in the US market (4.45%)


Stability and Growth of Payments

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 6 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.7%), CTRE's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTRE's dividends in 3 years are forecast to be covered by earnings (73.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average management tenure


CEO

Greg Stapley (60 yo)

7.58yrs

Tenure

US$3,203,938

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 ($USD3.20M) is about average for companies of similar size in the US market ($USD4.57M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Stapley
Chairman7.58yrsUS$3.20m0.90%
$ 16.3m
William Wagner
CFO, Treasurer & Secretary6.67yrsUS$1.57m0.22%
$ 4.0m
David Sedgwick
Chief Operating Officer6.25yrsUS$1.30m0.20%
$ 3.6m
Mark Lamb
Chief Investment Officer6.08yrsUS$1.30m0.16%
$ 2.8m
Eric Gillis
Director of Asset Managementno datano datano data
Lauren Beale
Controllerno datano datano data

6.5yrs

Average Tenure

49yo

Average Age

Experienced Management: CTRE's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Stapley
Chairman7.58yrsUS$3.20m0.90%
$ 16.3m
Diana Laing
Independent Director1.58yrsUS$150.00k0.0099%
$ 178.2k
Jon Kline
Independent Director6.17yrsUS$160.00k0.079%
$ 1.4m
Allen Barbieri
Independent Director5.17yrsUS$150.00k0.035%
$ 626.2k
Spencer Plumb
Independent Director3.5yrsUS$160.00k0.019%
$ 347.6k

5.2yrs

Average Tenure

60yo

Average Age

Experienced Board: CTRE's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$1.800b
  • Shares outstanding: 95.71m
  • 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, development and leasing of skilled nursing, seniors housing and other health ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/08 00:16
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.