NYSE:VTR

Stock Analysis Report

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Executive Summary

Ventas, Inc. (together with its subsidiaries, unless otherwise expressly noted), an S&P 500 company, is a real estate investment trust with a highly diversified portfolio of senior housing, research and innovation, and healthcare properties located throughout the United States, Canada and the United Kingdom.


Snowflake Analysis

Proven track record average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.4%

VTR

-0.5%

US REITs

2.6%

US Market


1 Year Return

-46.6%

VTR

-9.2%

US REITs

15.4%

US Market

Return vs Industry: VTR underperformed the US REITs industry which returned -7.4% over the past year.

Return vs Market: VTR underperformed the US Market which returned 16.2% over the past year.


Shareholder returns

VTRIndustryMarket
7 Day-0.4%-0.5%2.6%
30 Day8.3%3.0%6.1%
90 Day27.4%8.8%16.6%
1 Year-43.1%-46.6%-5.5%-9.2%17.8%15.4%
3 Year-29.8%-40.8%16.9%3.1%43.9%34.7%
5 Year-15.6%-43.5%43.7%14.3%76.2%57.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

48.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VTR ($38.36) is trading below our estimate of fair value ($74.65)

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


Price To Earnings Ratio

PE vs Industry: VTR is good value based on its PE Ratio (18.2x) compared to the US REITs industry average (31.2x).

PE vs Market: VTR's PE Ratio (18.2x) is in line with the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VTR's PB Ratio (1.3x) is in line with the US REITs industry average.


Next Steps

Future Growth

How is Ventas forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VTR's earnings are forecast to decline over the next 3 years (-7.9% per year).

Earnings vs Market: VTR's earnings are forecast to decline over the next 3 years (-7.9% per year).

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

Revenue vs Market: VTR's revenue (3.4% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: VTR's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VTR's Return on Equity is forecast to be low in 3 years time (3.7%).


Next Steps

Past Performance

How has Ventas performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VTR has a large one-off gain of $205.6M impacting its March 31 2020 financial results.

Growing Profit Margin: VTR's current net profit margins (19.9%) are higher than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: VTR's earnings have grown by 7.8% per year over the past 5 years.

Accelerating Growth: VTR's earnings growth over the past year (70.7%) exceeds its 5-year average (7.8% per year).

Earnings vs Industry: VTR earnings growth over the past year (70.7%) exceeded the REITs industry 1.4%.


Return on Equity

High ROE: VTR's Return on Equity (7.2%) is considered low.


Next Steps

Financial Health

How is Ventas's financial position?


Financial Position Analysis

Short Term Liabilities: VTR's short term assets ($3.3B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: VTR's short term assets ($3.3B) do not cover its long term liabilities ($14.6B).


Debt to Equity History and Analysis

Debt Level: VTR's debt to equity ratio (129.6%) is considered high.

Reducing Debt: VTR's debt to equity ratio has increased from 102.1% to 129.6% over the past 5 years.

Debt Coverage: VTR's debt is not well covered by operating cash flow (10%).

Interest Coverage: VTR's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Next Steps

Dividend

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

4.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VTR's dividend (4.69%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: VTR's dividend (4.69%) is in the top 25% of dividend payers in the US market (4.48%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.4%), VTR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VTR's dividends in 3 years are forecast to be covered by earnings (63.7% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Deb Cafaro (62 yo)

21.42yrs

Tenure

US$11,348,335

Compensation

Ms. Debra A. Cafaro, also known as Deb, J.D., has been the Chief Executive Officer at Ventas, Inc. since March 5, 1999 and has been its Chairman since January 28, 2003. Ms. Cafaro serves as a Chairman at T ...


CEO Compensation Analysis

Compensation vs Market: Deb's total compensation ($USD11.35M) is about average for companies of similar size in the US market ($USD11.29M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Debra Cafaro
Chairman & CEO21.42yrsUS$11.35m0.19%
$ 27.8m
Robert Probst
Executive VP & CFO5.83yrsUS$4.89m0.016%
$ 2.4m
John Cobb
Executive VP & Chief Investment Officer9.75yrsUS$4.94m0.013%
$ 1.9m
T. Riney
Senior Advisor0.83yrUS$3.85m0.058%
$ 8.4m
Peter Bulgarelli
Executive Vice President of Office2.33yrsUS$2.67m0.0016%
$ 226.5k
Gregory Liebbe
Senior VP4.92yrsno data0.0036%
$ 525.1k
Bhavana Devulapally
Senior VP & Chief Information Officer1.58yrsno datano data
Juan Sanabria
Vice President of Investor Relations1.58yrsno datano data
Carey Roberts
Executive VP0.42yrno datano data
Louise Adhikari
Vice President of Marketing & Corporate Communicationsno datano datano data
Edmund Brady
Chief Human Resources Officer & Senior VP6.17yrsno datano data
Brian Wood
Chief Tax Officer & Senior VP8.58yrsno datano data

4.9yrs

Average Tenure

55.5yo

Average Age

Experienced Management: VTR's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Debra Cafaro
Chairman & CEO21.42yrsUS$11.35m0.19%
$ 27.8m
Walter Rakowich
Independent Director4.17yrsUS$303.73k0.0042%
$ 607.3k
Jay Gellert
Independent Director18.92yrsUS$301.73k0.022%
$ 3.2m
James Shelton
Independent Presiding Director4.25yrsUS$348.73k0.0033%
$ 477.5k
Richard Gilchrist
Independent Director9.08yrsUS$314.73k0.0095%
$ 1.4m
Matthew Lustig
Independent Director9.25yrsUS$288.23k0.00071%
$ 102.4k
Marguerite Nader
Independent Director0.083yrno data0.0011%
$ 161.6k
Melody Barnes
Independent Director5.92yrsUS$318.73k0.0043%
$ 618.9k
Roxanne Martino
Independent Director4.17yrsUS$309.73k0.0036%
$ 512.1k
Sean Nolan
Independent Director1.08yrsUS$199.01k0.0020%
$ 292.8k
Robert Reed
Independent Director12.42yrsUS$308.73k0.0054%
$ 780.4k

5.9yrs

Average Tenure

62yo

Average Age

Experienced Board: VTR's board of directors are considered experienced (5.9 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Ventas, Inc.
  • Ticker: VTR
  • Exchange: NYSE
  • Founded: 1983
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Implied Market Cap: US$14.426b
  • Market Cap: US$14.069b
  • Shares outstanding: 376.06m
  • Website: https://www.ventasreit.com

Number of Employees


Location

  • Ventas, Inc.
  • 353 North Clark Street
  • Suite 3300
  • Chicago
  • Illinois
  • 60654
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VTRNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1989
VENDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1989
0LO4LSE (London Stock Exchange)YesCommon StockGBUSDSep 1989
V1TA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Ventas, Inc. (together with its subsidiaries, unless otherwise expressly noted), an S&P 500 company, is a real estate investment trust with a highly diversified portfolio of senior housing, research and in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 00:35
End of Day Share Price2020/08/05 00:00
Earnings2020/03/31
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.