NYSE:HCP

Stock Analysis Report

Executive Summary

HCP, Inc. is a fully integrated real estate investment trust (REIT) that invests in real estate serving the healthcare industry in the United States.

Snowflake

Fundamentals

Solid track record average dividend payer.


Similar Companies

Share Price & News

How has HCP's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.8%

HCP

0.9%

US REITs

0.07%

US Market


1 Year Return

40.0%

HCP

21.8%

US REITs

8.9%

US Market

Return vs Industry: HCP exceeded the US REITs industry which returned 21.8% over the past year.

Return vs Market: HCP exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

HCPIndustryMarket
7 Day1.8%0.9%0.07%
30 Day7.0%2.2%-0.3%
90 Day18.0%7.9%-1.6%
1 Year47.0%40.0%27.0%21.8%11.3%8.9%
3 Year37.7%7.0%37.5%20.2%46.3%36.8%
5 Year25.8%-13.0%65.5%30.4%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is HCP undervalued compared to its fair value and its price relative to the market?

11.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HCP ($37.52) is trading below our estimate of fair value ($42.23)

Significantly Below Fair Value: HCP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HCP is good value based on its PE Ratio (18.3x) compared to the REITs industry average (37.3x).

PE vs Market: HCP is poor value based on its PE Ratio (18.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: HCP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HCP is overvalued based on its PB Ratio (3x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is HCP forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HCP's earnings are forecast to decline over the next 3 years (-8.2% per year).

Earnings vs Market: HCP's earnings are forecast to decline over the next 3 years (-8.2% per year).

High Growth Earnings: HCP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HCP's revenue (6.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: HCP's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HCP's Return on Equity is forecast to be low in 3 years time (3.9%).


Next Steps

Past Performance

How has HCP performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HCP's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: HCP's earnings growth over the past year (1462.3%) exceeds its 5-year average (6.1% per year).

Earnings vs Industry: HCP earnings growth over the past year (1462.3%) exceeded the REITs industry 16.9%.


Return on Equity

High ROE: HCP's Return on Equity (15%) is considered low.


Return on Assets

ROA vs Industry: HCP has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: HCP has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is HCP'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: HCP has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

3.94%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years4.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HCP's dividend (3.94%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HCP's dividend (3.94%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: HCP's dividend payments have been volatile in the past 10 years.

Growing Dividend: HCP's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (93.1%), HCP's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HCP's dividends in 3 years are forecast to be thoroughly covered by earnings (0.2% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Tom Herzog (56yo)

2.8yrs

Tenure

US$8,619,819

Compensation

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 ...


CEO Compensation Analysis

Compensation vs. Market: Tom's total compensation ($USD8.62M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

2.2yrs

Average Tenure

44yo

Average Age

Experienced Management: HCP's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

67yo

Average Age

Experienced Board: HCP's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$101,46813 May 19
Christine Garvey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,405
Max PriceUS$29.80

Ownership Breakdown


Management Team

  • Tom Herzog (56yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$8.62m
  • James Croy

    Senior Vice President of Leasing- Medical Office Properties

    • Tenure: 4.8yrs
  • Tom Klaritch (61yo)

    Executive VP and Chief Development & Operating Officer

    • Tenure: 2.2yrs
    • Compensation: US$3.29m
  • Scott Brinker (42yo)

    Executive VP & Chief Investment Officer

    • Tenure: 1.6yrs
    • Compensation: US$10.17m
  • Troy McHenry (46yo)

    Executive VP

    • Tenure: 3.7yrs
    • Compensation: US$3.24m
  • Shawn Johnston (39yo)

    Executive VP & Chief Accounting Officer

    • Tenure: 2.2yrs
  • Pete Scott (39yo)

    Executive VP & CFO

    • Tenure: 2.7yrs
    • Compensation: US$3.59m
  • Andrew Johns

    Vice President of Finance & Investor Relations

    • Tenure: 0yrs
  • Ankit Patadia

    Senior VP of Corporate Finance & Treasurer

    • Tenure: 0.7yrs
  • Lisa Alonso

    Senior Vice President of Human Resources

    • Tenure: 1.7yrs

Board Members

  • Christine Garvey (73yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$283.05k
  • Ken Roath (83yo)

    Chairman Emeritus

    • Tenure: 14.4yrs
    • Compensation: US$214.98k
  • Dave Henry (70yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$294.54k
  • Lydia Kennard (64yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$192.81k
  • Brian Cartwright (71yo)

    Independent Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: US$298.26k
  • Tom Herzog (56yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$8.62m
  • R. Griffin (49yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$191.76k
  • Kathy Sandstrom (50yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$165.26k

Company Information

HCP, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HCP, Inc.
  • Ticker: HCP
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Implied Market Cap: US$18.697b
  • Market Cap: US$18.426b
  • Shares outstanding: 497.66m
  • Website: https://www.hcpi.com

Number of Employees


Location

  • HCP, Inc.
  • 1920 Main Street
  • Suite 1200
  • Irvine
  • California
  • 92614
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HCPNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1985
HC5DB (Deutsche Boerse AG)YesCommon StockDEEURMay 1985
0J1ULSE (London Stock Exchange)YesCommon StockGBUSDMay 1985

Biography

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:01
End of Day Share Price2019/10/22 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.