NYSE:CHCT

Stock Analysis Report

Community Healthcare Trust

Executive Summary

Community Healthcare Trust Incorporated is a real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in non-urban markets throughout the United States.

Rewards

Trading at 55.9% below its fair value

Earnings are forecast to grow 25.47% per year

Risk Analysis

Dividend of 3.71% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (5.3%) are lower than last year (14.5%)

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential second-rate dividend payer.

Share Price & News

How has Community Healthcare Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.1%

CHCT

-3.0%

US REITs

0.7%

US Market


1 Year Return

46.1%

CHCT

11.0%

US REITs

21.1%

US Market

Return vs Industry: CHCT exceeded the US REITs industry which returned 11% over the past year.

Return vs Market: CHCT exceeded the US Market which returned 21.1% over the past year.


Shareholder returns

CHCTIndustryMarket
7 Day-5.1%-3.0%0.7%
30 Day-1.0%-2.8%2.3%
90 Day5.1%-2.2%5.0%
1 Year52.3%46.1%15.7%11.0%23.7%21.1%
3 Year135.0%99.6%31.9%15.4%47.0%37.4%
5 Yearn/a49.0%18.1%65.7%47.5%

Price Volatility Vs. Market

How volatile is Community Healthcare Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Community Healthcare Trust 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: CHCT ($44.69) is trading below our estimate of fair value ($101.34)

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


Price To Earnings Ratio

PE vs Industry: CHCT is poor value based on its PE Ratio (274x) compared to the REITs industry average (36.8x).

PE vs Market: CHCT is poor value based on its PE Ratio (274x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: CHCT is poor value based on its PEG Ratio (10.8x)


Price to Book Ratio

PB vs Industry: CHCT is overvalued based on its PB Ratio (2.9x) compared to the US REITs industry average (1.9x).


Next Steps

Future Growth

How is Community Healthcare Trust forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

25.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHCT's forecast earnings growth (25.5% per year) is above the savings rate (1.7%).

Earnings vs Market: CHCT's earnings (25.5% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CHCT's revenue (20.8% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: CHCT's revenue (20.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Community Healthcare Trust performed over the past 5 years?

11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHCT has a large one-off loss of $4.7M impacting its September 30 2019 financial results.

Growing Profit Margin: CHCT's current net profit margins (5.3%) are lower than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: CHCT's earnings have grown by 11% per year over the past 5 years.

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

Earnings vs Industry: CHCT had negative earnings growth (-56.9%) over the past year, making it difficult to compare to the REITs industry average (8.3%).


Return on Equity

High ROE: CHCT's Return on Equity (1.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Community Healthcare Trust'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: CHCT has a high level of physical assets or inventory.

Debt Coverage by Assets: CHCT's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Community Healthcare Trust's current dividend yield, its reliability and sustainability?

3.71%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.8%forecastin3Years3.9%

Current dividend yield vs market & industry

Notable Dividend: CHCT's dividend (3.71%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: CHCT's dividend (3.71%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

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

Growing Dividend: CHCT's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (121%), CHCT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CHCT's dividends in 3 years are forecast to be thoroughly covered by earnings (3.2% payout ratio).


Next Steps

Management

What is the CEO of Community Healthcare Trust's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Tim Wallace (60yo)

5.8yrs

Tenure

US$2,247,977

Compensation

Mr. Timothy G. Wallace, also known as Tim, has been the Chairman, Chief Executive Officer and President of Community Healthcare Trust Incorporated since March 2014. From 2003 to 2014, Mr. Wallace was co-fo ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD2.25M) is about average for companies of similar size in the US market ($USD2.63M).

Compensation vs Earnings: Tim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

0.8yrs

Average Tenure

56yo

Average Age

Experienced Management: CHCT's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.6yrs

Average Tenure

61yo

Average Age

Experienced Board: CHCT's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: CHCT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$242,10913 Nov 19
William Barnes
EntityIndividual
Role
Chief Operating Officer
Executive VP & Chief Operating Officer
Shares5,263
Max PriceUS$46.00
SellUS$152,95605 Jun 19
R. Van Horn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,053
Max PriceUS$37.74
SellUS$251,92515 Mar 19
Leigh Stach
EntityIndividual
Role
Chief Accounting Officer
Executive VP & Chief Accounting Officer
Shares7,500
Max PriceUS$33.59

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.7%.


Management Team

  • Tim Wallace (60yo)

    Chairman

    • Tenure: 5.8yrs
    • Compensation: US$2.25m
  • Leigh Stach (52yo)

    Executive VP & Chief Accounting Officer

    • Tenure: 5.8yrs
    • Compensation: US$1.28m
  • Page Barnes (65yo)

    Executive VP & Chief Operating Officer

    • Tenure: 0.6yrs
    • Compensation: US$1.33m
  • Ron Hart

    Vice President of Asset Management

    • Tenure: 0yrs
  • Dave Dupuy (50yo)

    Executive VP & CFO

    • Tenure: 0.6yrs
  • Timothy Meyer

    Senior Vice President of Asset Management

    • Tenure: 0.4yrs
  • Gary Moothart

    Controller

    • Tenure: 0.9yrs

Board Members

  • Tim Wallace (60yo)

    Chairman

    • Tenure: 5.8yrs
    • Compensation: US$2.25m
  • Claire Gulmi (65yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$125.00k
  • Robert Hensley (61yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$153.79k
  • Alan Gardner (65yo)

    Lead Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$166.71k
  • R. Van Horn (51yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$154.77k

Company Information

Community Healthcare Trust Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Community Healthcare Trust Incorporated
  • Ticker: CHCT
  • Exchange: NYSE
  • Founded:
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Market Cap: US$861.078m
  • Shares outstanding: 19.27m
  • Website: https://www.chct.reit

Number of Employees


Location

  • Community Healthcare Trust Incorporated
  • 3326 Aspen Grove Drive
  • Suite 150
  • Franklin
  • Tennessee
  • 37067
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHCTNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2015

Biography

Community Healthcare Trust Incorporated is a real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare serv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 00:24
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
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.