NYSE:VTR

Stock Analysis Report

Executive Summary

Ventas, Inc., an S&P 500 company, is a leading real estate investment trust.

Snowflake

Fundamentals

6 star dividend payer and overvalued.


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


Market Performance


7 Day Return

-7.0%

NYSE:VTR

-2.1%

US REITs

1.2%

US Market


1 Year Return

20.9%

NYSE:VTR

10.1%

US REITs

1.7%

US Market

VTR outperformed the REITs industry which returned 10.1% over the past year.

VTR outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

VTRIndustryMarket
7 Day-7.0%-2.1%1.2%
30 Day-4.4%0.7%4.9%
90 Day2.0%1.1%3.7%
1 Year27.4%20.9%15.1%10.1%3.9%1.7%
3 Year18.6%2.9%29.8%12.9%47.2%37.7%
5 Year65.7%14.5%65.8%30.7%60.0%42.4%

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

21%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Ventas's share price is below the future cash flow value, and at a moderate discount (> 20%).

Ventas's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Ventas is overvalued based on earnings compared to the US REITs industry average.

Ventas is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Ventas earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Ventas is overvalued based on assets compared to the US REITs industry average.


Next Steps

Future Growth

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

-3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ventas's revenue is expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).

Ventas's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Ventas's revenue growth is positive but not above the United States of America market average.

Ventas's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Ventas's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Ventas is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Ventas performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ventas's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Ventas's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Ventas's 1-year earnings growth is negative, it can't be compared to the US REITs industry average.


Return on Equity

Ventas has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ventas used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Ventas's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ventas's financial position?


Financial Position Analysis

Ventas's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Ventas's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Ventas's level of debt (92.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (106.2% vs 92.4% 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 2.1x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0x debt.


Next Steps

Dividend

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

4.63%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ventas's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Ventas's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (505.1x coverage).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Deb Cafaro (61yo)

20.5yrs

Tenure

US$13,116,202

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

Deb's remuneration is about average for companies of similar size in United States of America.

Deb's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.9yrs

Average Tenure

58yo

Average Age

The tenure for the Ventas management team is about average.


Board Age and Tenure

6.6yrs

Average Tenure

61.5yo

Average Age

The tenure for the Ventas board of directors is about average.


Insider Trading

Ventas individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$725,37816 Aug 19
John Cobb
EntityIndividual
Role
Chief Investment Officer
Executive VP & Chief Investment Officer
Shares10,000
Max PriceUS$72.54
SellUS$249,53718 Apr 19
Gregory Liebbe
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares4,113
Max PriceUS$60.68
SellUS$648,75129 Mar 19
John Cobb
EntityIndividual
Role
Chief Investment Officer
Executive VP & Chief Investment Officer
Shares10,000
Max PriceUS$64.88

Ownership Breakdown


Management Team

  • Deb Cafaro (61yo)

    Chairman & CEO

    • Tenure: 20.5yrs
    • Compensation: US$13.12m
  • T. Riney (61yo)

    Consultant

    • Tenure: 21.3yrs
    • Compensation: US$3.96m
  • Bob Probst (51yo)

    Executive VP & CFO

    • Tenure: 4.9yrs
    • Compensation: US$5.00m
  • John Cobb (48yo)

    Executive VP & Chief Investment Officer

    • Tenure: 8.8yrs
    • Compensation: US$4.99m
  • Ed Brady

    Chief Human Resources Officer & Senior VP

    • Tenure: 5.3yrs
  • Greg Liebbe

    Senior VP

    • Tenure: 4yrs
  • Louise Adhikari

    Vice President of Marketing & Corporate Communications

    • Tenure: 0yrs
  • Pete Bulgarelli (58yo)

    Executive Vice President of Office

    • Tenure: 1.4yrs
    • Compensation: US$2.19m
  • Bhavana Devulapally

    Senior VP & Chief Information Officer

    • Tenure: 0.7yrs
  • Juan Sanabria

    Vice President of Investor Relations

    • Tenure: 0.7yrs

Board Members

  • Walt Rakowich (61yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$286.24k
  • Jay Gellert (65yo)

    Director

    • Tenure: 18yrs
    • Compensation: US$291.17k
  • Deb Cafaro (61yo)

    Chairman & CEO

    • Tenure: 20.5yrs
    • Compensation: US$13.12m
  • Denny Shelton (66yo)

    Presiding Director

    • Tenure: 3.3yrs
    • Compensation: US$331.24k
  • Rick Gilchrist (73yo)

    Director

    • Tenure: 8.2yrs
    • Compensation: US$299.88k
  • Matt Lustig (59yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: US$269.24k
  • Melody Barnes (55yo)

    Director

    • Tenure: 5yrs
    • Compensation: US$293.82k
  • Roxanne Martino (62yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$289.24k
  • Sean Nolan (51yo)

    Independent Director

    • Tenure: 0.2yrs
  • Bob Reed (67yo)

    Director

    • Tenure: 11.5yrs
    • Compensation: US$291.24k

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$26.282b
  • Market Cap: US$26.073b
  • Shares outstanding: 375.57m
  • 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

Biography

Ventas, Inc., an S&P 500 company, is a leading real estate investment trust. Its diverse portfolio of approximately 1,200 assets in the United States, Canada and the United Kingdom consists of senior housi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 00:03
End of Day Share Price2019/09/13 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.