NYSE:MPW

Stock Analysis Report

Medical Properties Trust

Executive Summary

Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities.


Snowflake Analysis

6 star dividend payer and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MPW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-18.6%

MPW

-7.4%

US REITs

-2.0%

US Market


1 Year Return

-23.2%

MPW

-26.6%

US REITs

-15.1%

US Market

Return vs Industry: MPW exceeded the US REITs industry which returned -22.8% over the past year.

Return vs Market: MPW underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

MPWIndustryMarket
7 Day-18.6%-7.4%-2.0%
30 Day-38.6%-30.5%-19.7%
90 Day-31.2%-29.8%-23.2%
1 Year-19.1%-23.2%-23.5%-26.6%-13.4%-15.1%
3 Year27.5%5.6%-8.7%-20.1%10.9%3.7%
5 Year34.4%-3.6%7.3%-15.0%28.4%14.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Medical Properties 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: MPW ($15.03) is trading below our estimate of fair value ($42.78)

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


Price To Earnings Ratio

PE vs Industry: MPW is good value based on its PE Ratio (17.2x) compared to the REITs industry average (23x).

PE vs Market: MPW is poor value based on its PE Ratio (17.2x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: MPW is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: MPW is good value based on its PB Ratio (1.1x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

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

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPW's forecast earnings growth (16.4% per year) is above the savings rate (1.7%).

Earnings vs Market: MPW's earnings (16.4% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: MPW's revenue (12.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: MPW's revenue (12.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MPW's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has Medical Properties Trust performed over the past 5 years?

41.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MPW has high quality earnings.

Growing Profit Margin: MPW's current net profit margins (42.8%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: MPW's earnings have grown significantly by 41.5% per year over the past 5 years.

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

Earnings vs Industry: MPW had negative earnings growth (-63.2%) over the past year, making it difficult to compare to the REITs industry average (5%).


Return on Equity

High ROE: MPW's Return on Equity (5.4%) is considered low.


Next Steps

Financial Health

How is Medical Properties 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: MPW has a high level of physical assets or inventory.

Debt Coverage by Assets: MPW's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Medical Properties Trust's current dividend yield, its reliability and sustainability?

7.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MPW's dividend (7.19%) is higher than the bottom 25% of dividend payers in the US market (2%).

High Dividend: MPW's dividend (7.19%) is in the top 25% of dividend payers in the US market (5.56%)


Stability and Growth of Payments

Stable Dividend: MPW's dividends per share have been stable in the past 10 years.

Growing Dividend: MPW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.8%), MPW's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MPW's dividends in 3 years are forecast to be thoroughly covered by earnings (0.1% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Ed Aldag (55yo)

16.67s

Tenure

US$13,213,265

Compensation

Mr. Edward K. Aldag, Jr., also known as Ed, is a Founder of Medical Properties Trust, Inc. and has been its President and Chief Executive Officer since August 2003. He serves as Director of Infracore SA si ...


CEO Compensation Analysis

Compensation vs Market: Ed's total compensation ($USD13.21M) is above average for companies of similar size in the US market ($USD7.59M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Edward Aldag
Founder16.67yrsUS$13.21m0.65% $48.8m
Emmett McLean
Founderno dataUS$6.02m0.28% $21.3m
R. Hamner
Founder15.17yrsUS$6.65m0.35% $26.3m
James Hanna
Chief Accounting Officer4.25yrsno data0.019% $1.4m
Tim Berryman
Director of Investor Relationsno datano datano data
Rosa Hooper
VP and MD of Asset Management & Underwriting4.25yrsno datano data
Jamey Ramsey
Managing Director of Taxno datano datano data
Charles Lambert
Treasurer & MD of Capital Markets2.17yrsno datano data

4.3yrs

Average Tenure

55yo

Average Age

Experienced Management: MPW's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Aldag
Founder16.67yrsUS$13.21m0.65% $48.8m
R. Hamner
Founder15.17yrsUS$6.65m0.35% $26.3m
C. Thompson
Independent Director3.67yrsUS$219.10k0.0053% $400.7k
G. Dawson
Independent Director16yrsUS$224.10k0.018% $1.3m
Michael Stewart
Lead Director4.25yrsUS$229.10k0.043% $3.2m
D. Sparks
Independent Director5.58yrsUS$219.10k0.0087% $652.8k
Elizabeth Pitman
Independent Director2.17yrsUS$175.35k0.0048% $363.2k
Caterina Mozingo
Independent Director0.17yrno data0.0010% $75.8k

4.9yrs

Average Tenure

56yo

Average Age

Experienced Board: MPW's board of directors are considered experienced (4.9 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.9%.


Top Shareholders

Company Information

Medical Properties Trust, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Medical Properties Trust, Inc.
  • Ticker: MPW
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Implied Market Cap: US$7.504b
  • Market Cap: US$7.500b
  • Shares outstanding: 521.09m
  • Website: https://www.medicalpropertiestrust.com

Number of Employees


Location

  • Medical Properties Trust, Inc.
  • 1000 Urban Center Drive
  • Suite 501
  • Birmingham
  • Alabama
  • 35242
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MPWNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2005
M3PDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2005
0JZZLSE (London Stock Exchange)YesCommon StockGBUSDJul 2005

Biography

Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world’s largest owners of hospitals with 389 facilities and more than 41,000 licensed beds in eight countries and across three continents. MPT’s financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 04:17
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.