NYSE:DOC

Stock Analysis Report

Physicians Realty Trust

Executive Summary

Physicians Realty Trust is a self-managed healthcare real estate company organized to acquire, selectively develop, own and manage healthcare properties that are leased to physicians, hospitals and healthcare delivery systems.

Rewards

Trading at 36.9% below its fair value

Earnings are forecast to grow 10.17% per year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.5%

DOC

-2.9%

US REITs

1.3%

US Market


1 Year Return

6.3%

DOC

11.0%

US REITs

19.4%

US Market

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

Return vs Market: DOC underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

DOCIndustryMarket
7 Day-4.5%-2.9%1.3%
30 Day-0.1%-1.3%2.6%
90 Day6.3%-1.7%5.0%
1 Year12.2%6.3%15.7%11.0%22.0%19.4%
3 Year16.1%-0.8%33.2%16.5%46.8%37.3%
5 Year43.9%11.0%49.1%18.2%66.3%48.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Physicians Realty Trust undervalued compared to its fair value and its price relative to the market?

36.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DOC ($18.31) is trading below our estimate of fair value ($29.01)

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


Price To Earnings Ratio

PE vs Industry: DOC is poor value based on its PE Ratio (79.1x) compared to the REITs industry average (37x).

PE vs Market: DOC is poor value based on its PE Ratio (79.1x) compared to the US market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: DOC is poor value based on its PEG Ratio (7.8x)


Price to Book Ratio

PB vs Industry: DOC is good value based on its PB Ratio (1.4x) compared to the US REITs industry average (1.9x).


Next Steps

Future Growth

How is Physicians Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DOC's forecast earnings growth (10.2% per year) is above the savings rate (1.7%).

Earnings vs Market: DOC's earnings (10.2% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: DOC's revenue (8.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: DOC's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DOC's Return on Equity is forecast to be low in 3 years time (2.6%).


Next Steps

Past Performance

How has Physicians Realty Trust performed over the past 5 years?

44.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DOC has high quality earnings.

Growing Profit Margin: DOC's current net profit margins (10.3%) are lower than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: DOC has become profitable over the past 5 years, growing earnings by 44.4% per year.

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

Earnings vs Industry: DOC had negative earnings growth (-21%) over the past year, making it difficult to compare to the REITs industry average (8.3%).


Return on Equity

High ROE: DOC's Return on Equity (1.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Physicians Realty 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: DOC has a high level of physical assets or inventory.

Debt Coverage by Assets: DOC's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Physicians Realty Trust's current dividend yield, its reliability and sustainability?

5.02%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%1.4%markettop25%3.7%industryaverage3.8%forecastin3Years5.1%

Current dividend yield vs market & industry

Notable Dividend: DOC's dividend (5.02%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: DOC's dividend (5.02%) is in the top 25% of dividend payers in the US market (3.68%)


Stability and Growth of Payments

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

Growing Dividend: DOC'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 (89.9%), DOC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DOC's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

John Thomas (53yo)

6.9yrs

Tenure

US$4,141,269

Compensation

Mr. John T. Thomas is Physicians Realty Trust’s President and Chief Executive Officer and also serves on its Board. Mr. Thomas has been an Executive Officer and Trustee of Physicians Realty Trust since Apr ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD4.14M) is about average for companies of similar size in the US market ($USD5.09M).

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


Management Age and Tenure

4.0yrs

Average Tenure

54yo

Average Age

Experienced Management: DOC's management team is considered experienced (4 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: DOC's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

Insider Buying: DOC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$50,43010 Dec 19
Mark Theine
EntityIndividual
Shares2,650
Max PriceUS$19.03
BuyUS$75,48912 Nov 19
Jeffrey Theiler
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares4,150
Max PriceUS$18.19
BuyUS$10,00408 Nov 19
Laurie Becker
EntityIndividual
Role
Controller
Senior VP & Controller
Shares553
Max PriceUS$18.09
BuyUS$52,07608 Nov 19
John Lucey
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting & Administrative Officer
Shares2,900
Max PriceUS$17.99
BuyUS$74,77906 Sep 19
Bradley Page
EntityIndividual
Role
Chief Legal Officer
Senior VP & General Counsel
Shares4,330
Max PriceUS$17.27

Ownership Breakdown

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


Management Team

  • Del Mar Taylor (62yo)

    Executive VP & Chief Investment Officer

    • Tenure: 2.9yrs
    • Compensation: US$2.16m
  • John Thomas (53yo)

    President

    • Tenure: 6.9yrs
    • Compensation: US$4.14m
  • Bradley Page (58yo)

    Senior VP & General Counsel

    • Tenure: 4.8yrs
    • Compensation: US$1.26m
  • Jeff Theiler (45yo)

    Executive VP

    • Tenure: 5.4yrs
    • Compensation: US$2.13m
  • John Lucey (57yo)

    Chief Accounting & Administrative Officer

    • Tenure: 3.1yrs
    • Compensation: US$1.18m
  • Daniel Klein (54yo)

    Senior VP of Investments & Deputy Chief Investment Officer

    • Tenure: 2.9yrs
    • Compensation: US$1.35m
  • Jennifer Manna

    Vice President & Associate General Counsel

    • Tenure: 0yrs
  • Laurie Becker (40yo)

    Senior VP & Controller

    • Tenure: 0yrs

Board Members

  • Albert Black (60yo)

    • Tenure: 6.3yrs
    • Compensation: US$187.45k
  • Stanton Anderson (79yo)

    • Tenure: 6.4yrs
    • Compensation: US$187.45k
  • Tommy Thompson (77yo)

    Non-Executive Chairman of the Board

    • Tenure: 6.4yrs
    • Compensation: US$286.17k
  • Pam Shelley-Kessler (53yo)

    • Tenure: 1.9yrs
    • Compensation: US$160.00k
  • John Thomas (53yo)

    President

    • Tenure: 6.9yrs
    • Compensation: US$4.14m
  • Mark Baumgartner (64yo)

    • Tenure: 6.4yrs
    • Compensation: US$207.45k
  • William Ebinger (65yo)

    • Tenure: 6.3yrs
    • Compensation: US$167.45k
  • Richard Weiss (73yo)

    • Tenure: 6.4yrs
    • Compensation: US$187.45k

Company Information

Physicians Realty Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Physicians Realty Trust
  • Ticker: DOC
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Implied Market Cap: US$3.628b
  • Market Cap: US$3.445b
  • Shares outstanding: 194.53m
  • Website: https://www.docreit.com

Number of Employees


Location

  • Physicians Realty Trust
  • 309 North Water Street
  • Suite 500
  • Milwaukee
  • Wisconsin
  • 53202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DOCNYSE (New York Stock Exchange)YesCommon SharesUSUSDJul 2013

Biography

Physicians Realty Trust is a self-managed healthcare real estate company organized to acquire, selectively develop, own and manage healthcare properties that are leased to physicians, hospitals and healthc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 00:55
End of Day Share Price2019/12/12 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.