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

1.0%

VTR

-0.3%

US REITs

1.8%

US Market


1 Year Return

30.2%

VTR

19.5%

US REITs

7.3%

US Market

Return vs Industry: VTR exceeded the US REITs industry which returned 19.5% over the past year.

Return vs Market: VTR exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

VTRIndustryMarket
7 Day1.0%-0.3%1.8%
30 Day0.5%0.9%-0.7%
90 Day8.9%7.0%0.06%
1 Year36.6%30.2%24.9%19.5%9.7%7.3%
3 Year24.2%6.6%34.5%17.4%46.3%36.9%
5 Year59.2%8.8%63.3%28.9%64.5%46.5%

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?

18.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: VTR ($72.86) is trading below our estimate of fair value ($89.18)

Significantly Undervalued: VTR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VTR is poor value based on its PE Ratio (52.1x) compared to the REITs industry average (36.2x).

PE vs Market: VTR is poor value based on its PE Ratio (52.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low 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 is overvalued based on its PB Ratio (2.5x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Ventas forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-3.5%

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 (-3.5% per year).

Earnings vs Market: VTR's earnings are forecast to decline over the next 3 years (-3.5% per year).

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

Revenue vs Market: VTR's revenue (7.5% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: VTR's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: VTR's Return on Equity is forecast to be low in 3 years time (5.7%).


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

Earnings Trend: VTR's earnings have grown by 16.3% per year over the past 5 years.

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

Earnings vs Industry: VTR had negative earnings growth (-60%) over the past year, making it difficult to compare to the REITs industry average (17.6%).


Return on Equity

High ROE: VTR's Return on Equity (4.6%) is considered low.


Return on Assets

ROA vs Industry: VTR's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: VTR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

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

Debt Coverage by Assets: VTR's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

4.35%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%1.5%markettop25%3.7%industryaverage3.6%forecastin3Years4.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VTR's dividend (4.35%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: VTR's dividend (4.35%) is in the top 25% of dividend payers in the US market (3.72%)

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.1%), VTR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VTR'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 Ventas's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Deb Cafaro (61yo)

20.6yrs

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

Compensation vs. Market: Deb's total compensation ($USD13.12M) is about average for companies of similar size in the US market ($USD11.21M).

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


Management Age and Tenure

5.0yrs

Average Tenure

58yo

Average Age

Experienced Management: VTR's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

61.5yo

Average Age

Experienced Board: VTR's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: VTR 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: 20.6yrs
    • Compensation: US$13.12m
  • T. Riney (61yo)

    Consultant

    • Tenure: 21.4yrs
    • Compensation: US$3.96m
  • Bob Probst (51yo)

    Executive VP & CFO

    • Tenure: 5yrs
    • Compensation: US$5.00m
  • John Cobb (48yo)

    Executive VP & Chief Investment Officer

    • Tenure: 8.9yrs
    • Compensation: US$4.99m
  • Ed Brady

    Chief Human Resources Officer & Senior VP

    • Tenure: 5.3yrs
  • Greg Liebbe

    Senior VP

    • Tenure: 4.1yrs
  • Louise Adhikari

    Vice President of Marketing & Corporate Communications

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

    Executive Vice President of Office

    • Tenure: 1.5yrs
    • Compensation: US$2.19m
  • Bhavana Devulapally

    Senior VP & Chief Information Officer

    • Tenure: 0.8yrs
  • Juan Sanabria

    Vice President of Investor Relations

    • Tenure: 0.8yrs

Board Members

  • Walt Rakowich (61yo)

    Independent Director

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

    Independent Director

    • Tenure: 18.1yrs
    • Compensation: US$291.17k
  • Deb Cafaro (61yo)

    Chairman & CEO

    • Tenure: 20.6yrs
    • Compensation: US$13.12m
  • Denny Shelton (66yo)

    Presiding Director

    • Tenure: 3.4yrs
    • Compensation: US$331.24k
  • Rick Gilchrist (73yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$299.88k
  • Matt Lustig (59yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$269.24k
  • Melody Barnes (55yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$293.82k
  • Roxanne Martino (62yo)

    Independent Director

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

    Independent Director

    • Tenure: 0.3yrs
  • Bob Reed (67yo)

    Independent Director

    • Tenure: 11.6yrs
    • 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$27.019b
  • Market Cap: US$27.147b
  • 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 Analysis2019/10/18 23:50
End of Day Share Price2019/10/18 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.