Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Ventas, Inc. is a company that invests in and manages buildings used for healthcare, like hospitals and senior living facilities. They work with doctors, health organizations, and property developers to create safe and comfortable spaces for people to receive care. By owning many of these properties, Ventas helps ensure that healthcare providers can focus on helping their patients while also making a profit for their investors.
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
Takeaways
Ventas, Inc. demonstrates strong market positioning and a robust business model within the healthcare REIT sector, benefiting from demographic trends and a diversified portfolio. Its effective management and solid financial health bolster its attractiveness, although it faces inherent risks from market fluctuations and regulatory changes.
Historical data shows an impressive CAGR compared with the USA stock market average, reflecting a strong market position.
10Y annualized return is
positive but below market average
at 1.2% per year
VTR has met or exceeded earnings expectations in
all
recent quarters (0/0)
Latest News
REITs finished the first quarter of 2025 in the red (-3.36%) with a brutal -4.92% average total return in March. Large cap (-2.04%) and mid cap REITs ...
First-quarter earnings season is in full swing. But investors playing the long game want to know which S&P 500 companies will profit most.
Aging population, rising healthcare expenses, favorable outpatient visit trends and accretive investments in its research portfolio are likely to supp...
Healthy Gross Profit Margin
Decent Operating Profit Margin
Adequate Current and Quick Ratios
Free Cash Flow Per Share
🏆 Strong Financial Performance
📈 Competitive Positioning in Senior Housing
🔍 Data-Driven Investment Strategy
🚀 Favorable Demographics for Growth
🏗️ Strategic Expansion Plans
💡 Investment Pipeline
Extremely High P/E Ratio
High Price to Sales Ratio
Low Net Profit Margin
Weak Return on Equity
High Debt Levels
Low Interest Coverage Ratio
Overall, Ventas demonstrates strong business quality with robust financial performance, competitive positioning in senior housing, and a data-driven investment strategy. The future prospects are promising, fueled by favorable demographics and strategic expansion plans, indicating a positive growth trajectory.
Analysis Date: February 13, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$0.72
Current Market Price: $68.03
IV/P Ratio: 0.01x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-9333.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for VTR
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (1135.46)
P/B ratio ≤ 1.5 (2.56)
Current ratio ≥ 2.0 (1.04x)
Long-term debt < Net current assets (293.72x)
Margin of safety (-9333.0%)
VTR does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
The gross profit margin of 30.5% indicates a strong ability to retain a significant portion of revenue as profit, which is a positive indicator of operational efficiency.
An operating profit margin of 10.58% shows that the company is able to convert a reasonable portion of sales into operating profit, indicating effective cost management.
The net profit margin of only 0.49% indicates that the company is not translating its revenue into profit effectively, which raises concerns about overall profitability.
A return on equity of 0.25% suggests that the company is not generating significant returns for shareholders, which could be a red flag for investors.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
0.82%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-22)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
30.50%
Higher values indicate better efficiency in production
TTM (as of 2025-04-22)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
0.49%
Higher values indicate better overall profitability
TTM (as of 2025-04-22)
Both the current ratio (1.04) and quick ratio (1.04) suggest that the company has sufficient short-term assets to cover its short-term liabilities, indicating a stable liquidity position.
A free cash flow per share of 1.91 indicates that the company is generating positive cash flow, which is essential for operations and potential growth.
The debt-to-equity ratio of 1.28 and debt-to-assets ratio of 0.52 indicate that the company has a high level of debt relative to its equity, which could pose risks in economic downturns.
An interest coverage ratio of 0.86 suggests that the company may struggle to meet its interest obligations, indicating potential financial stress.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
1.24x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.04x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Ventas delivered a normalized FFO per share of $3.19 for the full year, exceeding guidance. Shop same-store cash NOI grew nearly 16%, marking the third consecutive year of double-digit growth.
The company benefits from compelling secular demand in senior housing and minimal supply. With nearly 8% total company same-store cash NOI growth and significant investments in senior housing, Ventas is poised for continued success.
Ventas employs a rigorous data-driven approach to identify investment opportunities, ensuring that investments are made in high-performing assets with strong projected net absorption.
The upcoming surge in the senior population (over-80 demographic projected to grow by 28%) presents Ventas with a unique opportunity for growth in senior housing, especially given the current low construction starts.
Ventas plans to convert 45 large-scale senior housing communities, significantly increasing their shop footprint and enhancing NOI through targeted operator partnerships.
The company anticipates $1 billion in senior housing investments for 2025, with a clear line of sight on advanced stages of acquisition, underpinning their growth strategy.