Loading...

HCP

NYSE:HCP
Snowflake Description

Average dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HCP
NYSE
$15B
Imp Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

HCP, Inc. is a fully integrated real estate investment trust (REIT) that invests in real estate serving the healthcare industry in the United States. The last earnings update was 18 days ago. More info.


Add to Portfolio Compare Print
HCP Share Price and Events
7 Day Returns
2.1%
NYSE:HCP
1.8%
US REITs
-0.7%
US Market
1 Year Returns
36.7%
NYSE:HCP
16.3%
US REITs
3%
US Market
HCP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HCP (HCP) 2.1% 6% 2.1% 36.7% -2.6% -24.9%
US REITs 1.8% 2.4% 3.1% 16.3% 13.8% 26.4%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • HCP outperformed the REITs industry which returned 16.3% over the past year.
  • HCP outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
HCP
Industry
5yr Volatility vs Market
Related Companies

HCP Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HCP to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HCP.

NYSE:HCP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:HCP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.53
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.531 (1 + (1- 21%) (38.63%))
0.794
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:HCP using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for HCP is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

HCP is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

NYSE:HCP DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 734.71 Analyst x10 683.47
2020 792.29 Analyst x10 685.62
2021 926.60 Analyst x1 745.92
2022 1,010.21 Est @ 9.02% 756.50
2023 1,082.29 Est @ 7.14% 753.95
2024 1,145.21 Est @ 5.81% 742.14
2025 1,201.20 Est @ 4.89% 724.12
2026 1,252.14 Est @ 4.24% 702.18
2027 1,299.57 Est @ 3.79% 677.95
2028 1,344.67 Est @ 3.47% 652.55
Present value of next 10 years cash flows $7,124.40
NYSE:HCP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,344.67 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$28,971.91
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $28,971.91 ÷ (1 + 7.5%)10
$14,059.61
NYSE:HCP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $7,124.40 + $14,059.61
$21,184.01
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $21,184.01 / 484.60
$43.71
NYSE:HCP Discount to Share Price
Calculation Result
Value per share (USD) From above. $43.71
Current discount Discount to share price of $31.61
= -1 x ($31.61 - $43.71) / $43.71
27.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price HCP is available for.
Intrinsic value
28%
Share price is $31.61 vs Future cash flow value of $43.71
Current Discount Checks
For HCP to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • HCP's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • HCP's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HCP's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HCP's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:HCP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.28
NYSE:HCP Share Price ** NYSE (2019-05-17) in USD $31.61
United States of America REITs Industry PE Ratio Median Figure of 156 Publicly-Listed REITs Companies 32.79x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HCP.

NYSE:HCP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HCP Share Price ÷ EPS (both in USD)

= 31.61 ÷ 2.28

13.84x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HCP is good value based on earnings compared to the US REITs industry average.
  • HCP is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does HCP's expected growth come at a high price?
Raw Data
NYSE:HCP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
-23.9%per year
United States of America REITs Industry PEG Ratio Median Figure of 141 Publicly-Listed REITs Companies 2.4x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:HCP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.84x ÷ -23.9%

-0.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HCP earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on HCP's assets?
Raw Data
NYSE:HCP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $12.21
NYSE:HCP Share Price * NYSE (2019-05-17) in USD $31.61
United States of America REITs Industry PB Ratio Median Figure of 191 Publicly-Listed REITs Companies 1.86x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:HCP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HCP Share Price ÷ Book Value per Share (both in USD)

= 31.61 ÷ 12.21

2.59x

* Primary Listing of HCP.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HCP is overvalued based on assets compared to the US REITs industry average.
X
Value checks
We assess HCP's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. HCP has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HCP Future Performance

 How is HCP expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-23.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HCP expected to grow at an attractive rate?
  • HCP's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • HCP's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • HCP's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:HCP Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HCP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts -23.9%
NYSE:HCP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 2.7%
United States of America REITs Industry Earnings Growth Rate Market Cap Weighted Average 5.7%
United States of America REITs Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:HCP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HCP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1,814 277 1
2020-12-31 1,903 943 276 7
2019-12-31 1,803 840 244 8
NYSE:HCP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,804 811 1,080
2018-12-31 1,847 849 1,058
2018-09-30 1,848 842 169
2018-06-30 1,846 855 62
2018-03-31 1,835 850 -8
2017-12-31 1,848 847 413
2017-09-30 1,945 853 549
2017-06-30 2,022 979 599
2017-03-31 2,101 1,139 774
2016-12-31 2,129 1,214 361
2016-09-30 1,655 1,353 384
2016-06-30 1,781 1,295 456

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HCP's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • HCP's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HCP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from HCP Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HCP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 0.56 0.62 0.51 8.00
2019-12-31 0.50 0.58 0.44 7.00
NYSE:HCP Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.28
2018-12-31 2.25
2018-09-30 0.36
2018-06-30 0.13
2018-03-31 -0.02
2017-12-31 0.88
2017-09-30 1.17
2017-06-30 1.28
2017-03-31 1.65
2016-12-31 0.77
2016-09-30 0.82
2016-06-30 0.98

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • HCP is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess HCP's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HCP has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HCP Past Performance

  How has HCP performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HCP's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HCP's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • HCP has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • HCP has become profitable in the last year making it difficult to compare the US REITs industry average.
Earnings and Revenue History
HCP's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HCP Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HCP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,803.65 1,079.61 86.88
2018-12-31 1,846.69 1,058.42 94.70
2018-09-30 1,848.03 168.97 96.68
2018-06-30 1,846.03 62.48 87.96
2018-03-31 1,835.41 -7.52 94.47
2017-12-31 1,848.38 413.01 87.77
2017-09-30 1,945.06 548.99 80.89
2017-06-30 2,021.60 599.25 92.15
2017-03-31 2,101.01 773.82 93.64
2016-12-31 2,129.29 360.79 96.61
2016-09-30 1,654.93 384.03 111.82
2016-06-30 1,780.96 456.37 97.29
2016-03-31 1,850.16 426.84 96.64
2015-12-31 1,940.49 138.53 95.97
2015-09-30 2,478.43 234.76 87.29
2015-06-30 2,418.49 366.92 86.53
2015-03-31 2,347.08 420.80 86.05
2014-12-31 1,636.83 254.52 81.77
2014-09-30 2,193.05 927.11 74.41
2014-06-30 2,142.57 903.36 73.88
2014-03-31 2,118.68 895.16 76.29
2013-12-31 2,099.88 894.73 76.04
2013-09-30 2,078.55 875.29 88.77
2013-06-30 2,000.46 840.78 89.23
2013-03-31 1,935.33 821.63 86.96
2012-12-31 1,879.97 766.64 75.41
2012-09-30 1,828.34 611.51 80.90
2012-06-30 1,801.50 588.12 81.13

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • HCP has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • HCP used its assets more efficiently than the US REITs industry average last year based on Return on Assets.
  • HCP has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess HCP's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HCP has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HCP Health

 How is HCP's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up HCP's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • HCP is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • HCP's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of HCP's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HCP Company Filings, last reported 1 month ago.

NYSE:HCP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 6,399.07 5,917.92 120.12
2018-12-31 6,512.59 5,569.22 110.79
2018-09-30 5,640.38 6,799.62 78.86
2018-06-30 5,416.72 7,404.75 91.38
2018-03-31 5,480.92 7,967.52 86.02
2017-12-31 5,594.94 7,882.95 55.31
2017-09-30 5,854.23 7,469.18 133.89
2017-06-30 6,028.94 7,494.10 391.97
2017-03-31 6,173.48 8,145.62 764.11
2016-12-31 5,941.31 9,189.50 94.73
2016-09-30 9,575.43 10,927.09 132.89
2016-06-30 9,676.39 10,763.31 116.45
2016-03-31 9,630.33 10,943.33 94.67
2015-12-31 9,746.32 11,069.00 340.44
2015-09-30 10,460.46 11,152.54 120.50
2015-06-30 10,527.00 11,220.37 115.77
2015-03-31 10,555.65 9,994.58 137.17
2014-12-31 10,997.10 9,721.27 183.81
2014-09-30 11,036.17 9,223.55 83.53
2014-06-30 10,972.59 8,686.11 54.07
2014-03-31 10,969.57 8,461.89 49.74
2013-12-31 10,931.13 8,661.63 300.56
2013-09-30 10,850.24 8,571.77 49.41
2013-06-30 10,798.26 8,776.51 53.11
2013-03-31 10,782.06 8,558.01 47.55
2012-12-31 10,753.78 8,695.55 247.67
2012-09-30 9,727.85 7,919.63 96.48
2012-06-30 9,690.94 7,654.90 169.64
  • HCP's level of debt (92.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (77.2% vs 92.5% today).
  • Debt is not well covered by operating cash flow (13.7%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess HCP's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HCP has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HCP Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.68%
Current annual income from HCP dividends. Estimated to be 4.75% next year.
If you bought $2,000 of HCP shares you are expected to receive $94 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • HCP's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • HCP's dividend is above the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:HCP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America REITs Industry Average Dividend Yield Market Cap Weighted Average of 184 Stocks 3.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:HCP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.61 1.00
2022-12-31 1.58 1.00
2021-12-31 1.53 4.00
2020-12-31 1.50 15.00
2019-12-31 1.48 15.00
NYSE:HCP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-25 1.480 4.869
2019-01-31 1.480 4.798
2018-10-25 1.480 5.147
2018-07-26 1.480 5.647
2018-02-01 1.480 6.281
2017-10-26 1.480 5.751
2017-07-27 1.480 5.195
2017-04-27 1.480 4.681
2017-02-02 1.480 4.745
2016-11-01 1.480 4.989
2016-07-28 2.300 6.094
2016-04-27 2.300 6.585
2016-01-28 2.300 7.167
2015-10-29 2.260 6.282
2015-07-30 2.260 5.912
2015-04-30 2.260 5.903
2015-01-29 2.260 5.291
2014-10-30 2.180 4.822
2014-07-31 2.180 5.229
2014-05-01 2.180 5.222
2014-01-30 2.180 5.625
2013-10-24 2.100 5.503
2013-07-25 2.100 5.051
2013-04-25 2.100 4.363
2013-01-25 2.100 4.274
2012-10-25 2.000 4.437
2012-07-26 2.000 4.392
2012-04-26 2.000 4.717
2012-01-26 2.000 4.993
2011-10-27 1.920 4.891
2011-07-28 1.920 5.430
2011-04-28 1.920 5.153
2011-01-27 1.920 5.137
2010-10-28 1.860 5.334
2010-07-29 1.860 5.174
2010-04-22 1.860 5.691
2010-02-12 1.860 5.907
2009-10-29 1.840 6.142
2009-07-29 1.840 6.494

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of HCP's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (609.8x coverage).
X
Income/ dividend checks
We assess HCP's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HCP afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HCP has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HCP Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tom Herzog
COMPENSATION $8,619,819
AGE 55
TENURE AS CEO 2.3 years
CEO Bio

Mr. Thomas M. Herzog, also known as Tom, has been the Chief Executive Officer, President and Director of HCP, Inc. since January 1, 2017. Mr. Herzog served as the Chief Financial Officer at HCP, Inc. from June 27, 2016 to December 2016. Previously, he served as the Chief Financial Officer and Senior Vice President at UDR, Inc. since January 1, 2013 until June 3, 2016 and served as its Senior Vice President until June 3, 2016. Mr. Herzog served as the Chief Financial Officer and Executive Vice President at MAERIL Inc. He served as a Managing General Partner at VMS National Properties Joint Venture since November 2005. Mr. Herzog served as Chief Financial Officer and Executive Vice President at Angeles Realty Corporation II. He served as the Chief Financial Officer at Amstar and was responsible for firm's accounting, finance, risk management, tax and information technology functions. Before joining Amstar in 2011, Mr. Herzog served as a Chief Financial Officer and Executive Vice President at HCP, Inc. from April 23, 2009 to May 15, 2011 and also served as its Treasurer. Prior to HCP, he served as the Chief Financial Officer of Apartment Investment and Management Co. from November 2005 to 2009 and Executive Vice President since July 2005 and Chief Accounting Officer from 2004 to 2005. Mr. Herzog served as Senior Vice President and Chief Accounting Officer at AIMCO from January 2004 to July 2005. He served as Chief Accounting Officer and Global Controller at GE Capital Real Estate from April 2002 to January 2004 and as Finance Technical Advisor/Chief Technical Advisor from March 2000 to April 2002, on real estate transactions. Mr. Herzog served as an Executive with GE Real Estate for four years and prior to this, served in multiple capacities at the accounting firm Deloitte & Touche for ten years. He started his career with Deloitte & Touche LLP and worked primarily in the real estate group from 1990 to 2000. Mr. Herzog served as an Independent Director of TIER REIT, Inc. from April 15, 2015 to January 28, 2019. He serves as a Director of Aimco-GP Inc. Mr. Herzog holds an M.S. in Business Administration from the Iowa State University and a B.S. in Business Administration from North Dakota State University.

CEO Compensation
  • Tom's compensation has increased in line with HCP recently becoming profitable.
  • Tom's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the HCP management team in years:

1.8
Average Tenure
43
Average Age
  • The average tenure for the HCP management team is less than 2 years, this suggests a new team.
Management Team

Tom Herzog

TITLE
President
COMPENSATION
$9M
AGE
55
TENURE
2.3 yrs

Pete Scott

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
38
TENURE
2.3 yrs

Tom Klaritch

TITLE
Executive VP and Chief Development & Operating Officer
COMPENSATION
$3M
AGE
60
TENURE
1.8 yrs

Scott Brinker

TITLE
Executive VP & Chief Investment Officer
COMPENSATION
$10M
AGE
41
TENURE
1.2 yrs

Troy McHenry

TITLE
Executive VP
COMPENSATION
$3M
AGE
45
TENURE
3.3 yrs

Shawn Johnston

TITLE
Executive VP & Chief Accounting Officer
AGE
38
TENURE
1.8 yrs

Ankit Patadia

TITLE
Senior VP of Corporate Finance & Treasurer
TENURE
0.3 yrs

Andrew Johns

TITLE
Vice President of Finance & Investor Relations

Lisa Alonso

TITLE
Senior Vice President of Human Resources
TENURE
1.3 yrs

James Croy

TITLE
Senior Vice President of Leasing- Medical Office Properties
TENURE
4.3 yrs
Board of Directors Tenure

Average tenure and age of the HCP board of directors in years:

1.7
Average Tenure
66
Average Age
  • The average tenure for the HCP board of directors is less than 3 years, this suggests a new board.
Board of Directors

Brian Cartwright

TITLE
Chairman of the Board
COMPENSATION
$298K
AGE
70
TENURE
1 yrs

Tom Herzog

TITLE
President
COMPENSATION
$9M
AGE
55
TENURE
2.3 yrs

Ken Roath

TITLE
Chairman Emeritus
COMPENSATION
$215K
AGE
82
TENURE
14 yrs

Dave Henry

TITLE
Independent Director
COMPENSATION
$295K
AGE
69
TENURE
15.3 yrs

Christine Garvey

TITLE
Independent Director
COMPENSATION
$283K
AGE
72
TENURE
11.6 yrs

R. Griffin

TITLE
Independent Director
COMPENSATION
$192K
AGE
48
TENURE
1 yrs

Lydia Kennard

TITLE
Independent Director
COMPENSATION
$193K
AGE
63
TENURE
1 yrs

Kathy Sandstrom

TITLE
Independent Director
COMPENSATION
$165K
AGE
49
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • HCP insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
13. May 19 Sell Christine Garvey Individual 09. May 19 09. May 19 -3,405 $29.80 $-101,468
X
Management checks
We assess HCP's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HCP has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HCP News

Simply Wall St News

Investing In HCP, Inc. (NYSE:HCP): What You Need To Know

Help shape the future of investing tools and you could win a $250 gift card! … real estate investment trust (REIT) based in Irvine, United States. … This term is very common in the REIT investing world as it provides a cleaner look at its cash flow from daily operations by excluding impact of one-off activities or non-cash items such as depreciation.

Simply Wall St -

Does HCP's (NYSE:HCP) Share Price Gain of 38% Match Its Business Performance?

(NYSE:HCP) share price is up 38% in the last year, clearly besting than the market return of around 7.6% (not including dividends). … In contrast, the longer term returns are negative, since the share price is 12% lower than it was three years ago. … When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

Simply Wall St -

Can HCP, Inc. (NYSE:HCP) Maintain Its Strong Returns?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.16 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Take Comfort From Insider Transactions At HCP, Inc. (NYSE:HCP)?

So shareholders might well want to know whether insiders have been buying or selling shares in HCP, Inc. … The Last 12 Months Of Insider Transactions At HCP. … Griffin made the biggest insider purchase in the last 12 months.

Simply Wall St -

Read This Before Judging HCP, Inc.'s (NYSE:HCP) ROE

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every $1 worth of shareholders' equity, it generated $0.032 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Invest In HCP Inc (NYSE:HCP)?

REITs own and operate income-generating property and adhere to a different set of regulations. … A common financial term REIT investors should know is Funds from Operations, or FFO for short, which is a REIT's main source of income from its portfolio of property, such as rent … FFO is a cleaner and more representative figure of how much HCP actually makes from its day-to-day operations, compared to net income, which can be affected by one-off activities or non-cash items such as depreciation.

Simply Wall St -

Should You Invest In HCP Inc (NYSE:HCP)?

real estate investment trust (REIT) based in Irvine, United States. … REITs own and operate income-generating property and adhere to a different set of regulations. … This impacts how HCP’s business operates and also how we should analyse its stock

Simply Wall St -

HCP Inc (NYSE:HCP): Dividend Is Coming In 3 Days, Should You Buy?

Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into HCP's latest financial data to analyse its dividend attributes. … Check out our latest analysis for HCP Here's how I find good dividend stocks When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Does it pay an annual yield higher than 75% of dividend payers? … Next Steps: After digging a little deeper into HCP's yield, it's easy to see why you should be cautious investing in the company just for the dividend.

Simply Wall St -

Does HCP Inc's (HCP) PE Ratio Warrant A Buy?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for HCP Price per share = $26.66 Earnings per share = $1.172 ∴ Price-Earnings Ratio = $26.66 ÷ $1.172 = 22.8x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … Since HCP's P/E of 22.8x is lower than its industry peers (25.4x), it means that investors are paying less than they should for each dollar of HCP's earnings. … For example, if you are inadvertently comparing lower risk firms with HCP, then HCP’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.

Simply Wall St -

HCP Company Info

Description

HCP, Inc. is a fully integrated real estate investment trust (REIT) that invests in real estate serving the healthcare industry in the United States. HCP owns a large-scale portfolio primarily diversified across life science, medical office and senior housing. Recognized as a global leader in sustainability, HCP has been a publicly-traded company since 1985 and was the first healthcare REIT selected to the S&P 500 index.

Details
Name: HCP, Inc.
HCP
Exchange: NYSE
Founded: 1985
$15,318,111,517
$15,109,042,977
484,597,011
Website: http://www.hcpi.com
Address: HCP, Inc.
1920 Main Street,
Suite 1200,
Irvine,
California, 92614,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HCP Common Stock New York Stock Exchange US USD 23. May 1985
DB HC5 Common Stock Deutsche Boerse AG DE EUR 23. May 1985
LSE 0J1U Common Stock London Stock Exchange GB USD 23. May 1985
Number of employees
Current staff
Staff numbers
201
HCP employees.
Industry
Health Care REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 02:11
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/15
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.