NYSE:VTR
$46.49
(3/12 6:40PM)
+1.3%
| Open | $46.1 |
Mkt Cap | $7.3 Billion |
| High | $46.71 |
52Wk High | $46.71 |
| Low | $45.96 |
52Wk Low | $21.66 |
| Volume | 1.5 Million |
Avg Vol 10D | 1.3 Million |
Ockham's Rating/Recommendation Summary
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VTR Revenue
As a value investing shop, we are interested in seeing how VTR's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 9.71x and the low end of the range at 5.36x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for VTR of 7.79x is slightly above its historical average. This level of Price to Sales gives us a fairly neutral position on the shares. We would like to see a drop in the Price to Sales ratio of 3% given current sales figures before we would become more positive on a Price to Sales basis. Such a drop would put Price to Sales per share in line with VTR's weighted historical average.
VTR Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently VTR is significantly above their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for VTR, the current level of Cash Earnings compared to its historical levels helps identify where VTR is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 28.91 and a historical low Cash Earnings per share ratio of 15.27, an investor can relate where value becomes optimal.
Just recall that when a stock's price, as in the cases of VTR, is significantly elevated to the level of Cash Earnings being generated, the market has already priced in much of that value. For example, the historical average for VTR's Price to Cash Earnings ratio is 22% below the current ratio of 27.03. That is not an insignificant amount, and diminishes our overall outlook on VTR. However, you need to review several areas of a company's potential, and as management would point out, one metric is not the end-all-be-all of any analysis.
VTR Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.
In VTR’s case, the estimated annual dividend is $2.14 resulting in a current dividend yield of 4.60%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from VTR against the historic high and low levels over the past 10 years. The highest dividend yield from VTR over this period was 17.12% while the lowest dividend yield was 3.66% It is never a good sign for a company to pay significantly lower dividends, in this case 55.73% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
Fox Business Scanning the Balance Sheet at VTR
Investors in VTR should stay up to date on developments in the company's balance sheet. RazorWire has noticed a discussion of the balance sheet recently on Fox Business.
Ventas, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Ranking all stocks in terms of news coverage offers some interesting data. In the case of VTR, it is getting significantly more attention in recent news coverage than we are used to seeing. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… What we like about VENTAS and what we really like about the health care space overall, is it's not relying upon the economy. …”
VTR News Mentioned on Fox Business Recently
Ventas, Incorporated is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Fox Business.
Its interesting to note that the crowd at The Motley Fool does not like VTR and believes that it will Underperform. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Ventas, Incorporated has been talked about more than normal recently. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on VTR.
“… brian: one of your top holdings is VENTAS and we had the opportunity to speak with the cfo from chicago and she was positive on her sector, mostly older homes for the elderly, I... …”
Ventas, Incorporated (VTR) Discussed on CNBC's Street Signs
Ventas, Incorporated is in the news. Find out how this impacts VTR trading on Ockham Research.
You can see it's the lone green soldier in there, but invesco, little changed on the day. Cincinnati financial, VENTAS and people's united very strong on a relative basis when we're seeing one of the biggest givebacks that we've seen in this sector in a long while. Simon, back to you. >> matt, thank you very much for with an hour and 50 minutes to go, we're cutting our losses. We're now down just under 200
“… ong while. Simon, back to you. >> matt, thank you very much for with an hour and 50 minutes to go, we're cutting our losses. We're now down just under 200 …”
Ventas, Incorporated (VTR) Discussed on Fox Business's Fox Business
Ventas, Incorporated is in the news. Find out how this impacts VTR trading on Ockham Research.
>> brian: mitigated by lower payment rates? >> we believe that rates across the medicare spectrum will be diminished over the next ten years, so there could be some margin compression at the operators, but as a landlord, we at VENTAS will continue to get rent because we have the big cushion, the operators make substantially more than the rent they pay to us so we, in our shareholders at VENTAS, get reliable cash flows from those rent streams. >> brian: the ceo of VENTAS, nice to meet you as well, thank you so much. >> okay. Commentary from somebody on the front line of the health care >> dagen: and we'll stay on that theme, brian. Health care and any new taxes or fees to pay for the overhaul. Should the young and healthy be required to have insurance? And if they don't, could they be penalized? Joining us now in a first on fox business, it's the latest poll with scott rasmussen, president of rasmussen reports. Scott, the first question you asked the people in the latest poll, the general idea is, we don't want to be penalized. We don't want to pay for any kind of overhaul, right? >> well, that's right. I mean, for most americans, we talk about health care reform, they mean, let's find a way to get the costs under control. The question we asked was whether or not, whether there should ab change in the health care reform bill to make sure that nobody who earns less than $250,000 a year pays extra taxes or fees or anything, and 59% say, yeah, that's a great idea.
“… rent because we have the big cushion, the operators make substantially more than the rent they pay to us so we, in our shareholders at VENTAS, get reliable cash flows from those rent streams. >> brian: the ceo of VENTAS, nice to meet you as well, thank you so much. >> okay. Commentary from somebody on the front line of the health care >> dagen: and we'll stay on that theme, brian. Health care and any new taxes or fees to pay for the overhaul. Should the young and healthy be required to have insurance? And if they don't, could they be penalized? Joining us now in a first on fox business, it's the latest poll with scott rasmussen, president of rasmussen reports. Scott, the first question you asked the people in the latest poll, the general idea is, we don't want to be penalized. We don't want to pay for any kind of overhaul, right? >> well, that's right. I mean, for most americans, we talk about health care reform, they mean, let's find a way to get the costs under control. The question we asked was whether or not, whether there should ab change in the health care reform bill to make sure that nobody who earns less than $250,000 a year pays extra taxes or fees or anything, and 59% say, yeah, that's a great idea. …”
Ventas, Incorporated (VTR) Discussed on Fox Business's Fox Business
Ventas, Incorporated is in the news. Find out how this impacts VTR trading on Ockham Research.
Properties which was bank, I mean, in financial peril, right, and you guys had a balance sheet that was debt light and cash heavy. What did you see a couple of years ago that others missed? >> thank you for asking that >> brian: what a softball that >> VENTAS got ahead of the credit crisis, i've been involved in distressed situations over my career so in february of '07, when, after a period of extensive growth at VENTAS, where about 9 billion dollars in health care and senior housing assets now, we start today see cracks in the commercial real estate market and particularly the debt market and one thing I realized from my experience, when things in markets go against you, they can go against new a big way. >> brian: yeah, especially with the leverage. >> so we started in the second quarter of '07 and have since raised over 2 billion dollars mostly of equity capital. Totally cleaned up the balance sheet and so attractive pricing so we got ahead of the curve and in fact are now in a position that is quite beneficial to us, because we can really start growing again without raising-- >> if you saw that, debra, why didn't others? Why did so many smart companies miss it? >> aim an optimist by nature and protected the down side and that's one thing that I think all ceo's should do and we
“… ENTAS got ahead of the credit crisis, i've been involved in distressed situations over my career so in february of '07, when, after a period of extensive growth at VENTAS, where about 9 billion dollars in health care and senior housing assets now, we start today see cracks in the commercial real estate market and particularly the debt market and one thing I realized from my experience, when things in markets go against you, they can go against new a big way. >> brian: yeah, especially with the leverage. >> so we started in the second quarter of '07 and have since raised over 2 billion dollars mostly of equity capital. Totally cleaned up the balance sheet and so attractive pricing so we got ahead of the curve and in fact are now in a position that is quite beneficial to us, because we can really start growing again without raising-- >> if you saw that, debra, why didn't others? Why did so many smart companies miss it? >> aim an optimist by nature and protected the down side and that's one thing that I think all ceo's should do and we …”
Ventas, Incorporated (VTR) Discussed on Fox Business's Cavuto
Ventas, Incorporated is in the news. Find out how this impacts VTR trading on Ockham Research.
Should be part of a portfolio. Should not be the only part I am having some success with panasonic, 2g, of VENTAS, but that yen and the mexican peso is a diversified, have stocks but not you're only bet. Charles: obery wanted to answer whether or not this is
“… is …”
Ventas, Incorporated (VTR) Discussed on CNBC's Squawk On The Street
Ventas, Incorporated is in the news. Find out how this impacts VTR trading on Ockham Research.
To agree to concessions with ford. Hormel and VENTAS both higher. Smuckers is down 7%. The jam and jellymaker, lowered its outlook because of weak peanut butter sales. It's a knockoff from other
“… To agree to concessions with ford. Hormel and VENTAS both higher. Smuckers is down 7%. The jam and jellymaker, lowered its outlook because of weak peanut butter sales. It's a knockoff from other …”