Ventas Inc
Exchange: NYSESector: Real EstateIndustry: REIT - Healthcare Facilities
Ventas, Inc. is a leading S&P 500 real estate investment trust enabling exceptional environments that benefit a large and growing aging population. With approximately 1,400 properties in North America and the United Kingdom, Ventas occupies an essential role in the longevity economy. The Company’s growth is fueled by its approximately 850 senior housing communities, which provide valuable services to residents and enable them to thrive in supported environments. Ventas aims to deliver outsized performance by leveraging its operational expertise, data-driven insights from its Ventas OI™ platform, extensive relationships and strong financial position. The Ventas portfolio also includes outpatient medical buildings, research centers and healthcare facilities. Ventas’s seasoned team of talented professionals shares a commitment to excellence, integrity and a common purpose of helping people live longer, healthier, happier lives.
Did you know?
A large-cap company with a $39.9B market cap.
Current Price
$84.96
+0.01%GoodMoat Value
$29.20
65.6% overvaluedProfile
Valuation (TTM)
Market Cap$39.91B
P/E158.76
EV$50.88B
P/B3.19
Shares Out469.73M
P/Sales6.84
Revenue$5.83B
EV/EBITDA23.49
Ventas Inc (VTR) Stock Analysis
GoodMoat Analysis
Ventas Inc appears unfavourable from a value investing perspective. The business model lacks a durable competitive moat, and the stock trades at an extreme premium to its estimated intrinsic value, with a GoodMoat Target of $29.20 versus a current price of $82.7.
Read full analysis
Ventas Inc is a healthcare-focused Real Estate Investment Trust (REIT) that owns senior housing communities, medical office buildings, and life science properties. Applying the GoodMoat Investment Framework, the company's competitive advantages appear weak. A systematic review of the 14 moat criteria reveals significant challenges: the business is capital-intensive and asset-heavy, lacking the high gross margins, network effects, or proprietary technology typical of a durable moat. Its operations are sensitive to regulatory changes and labour costs, and it does not exhibit the pricing power or scale privilege that would protect returns. Consequently, its Moat Score is likely well below the required threshold of 5, failing the first gate of the Decision Framework. The valuation assessment is starkly unfavourable. The stock trades at a P/E of over 154x, indicating extreme valuation, and carries a negative Free Cash Flow Yield of -2.8%. Most critically, the current price of $82.7 is 183% above the GoodMoat Target of $29.20, implying a deeply negative margin of safety. This, combined with red flags like high financial leverage (Debt/Equity of 1.06) and a low ROE of 2.0%, suggests the price requires perfect future execution. For a value investor, Ventas fails both the Moat & Quality Gate and the Valuation & Risk Gate, making it an unfavourable candidate for further investigation without a fundamental change in business quality or price. Analysis based on data as of 2024-05-15.
Market Cap$39.91B
Current Price$84.96
P/E Ratio158.76
Forward P/E—
PEG Ratio22.23
EPS$0.57
Book Value$26.67
P/B Ratio3.19
VTR Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 12.4B
Revenue
3.9B
FY19
3.8B
FY20
3.8B
FY21
4.1B
FY22
4.5B
FY23
4.9B
FY24
5.8B
FY25
Net Income
433M
FY19
439M
FY20
49M
FY21
—
FY22
—
FY23
81M
FY24
251M
FY25
VTR 52-Week Range
$60.79
$87.44
50-Day MA: $83.57200-Day MA: $73.91
Did you know?
Pays a 2.16% dividend yield.
Ventas Inc (VTR) Financial Summary
Ventas Inc (VTR) is a Real Estate company in the REIT - Healthcare Facilities industry, listed on NYSE. The stock currently trades at $84.96 with a market capitalization of $39.91B.
Key valuation metrics include a P/E ratio of 158.76, price-to-book ratio of 3.19, and EPS of $0.57. The company reports a profit margin of 4.3% and return on equity of 2.0%.
VTR Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $39.91B |
| P/E Ratio | 158.76 |
| EPS | $0.57 |
| P/B Ratio | 3.19 |
| P/S Ratio | 6.84 |
| EV/EBITDA | 23.49 |
| Dividend Yield | 2.16% |
| Profit Margin | 4.3% |
| Return on Equity | 2.0% |
| Debt/Equity | 1.06 |
VTR Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $3.87B | $433.02M |
| FY20 | $3.80B | $439.15M |
| FY21 | $3.83B | $49.01M |
| FY22 | $4.13B | $-47.45M |
| FY23 | $4.50B | $-40.97M |
| FY24 | $4.92B | $81.15M |
| FY25 | $5.83B | $251.38M |
Ventas Inc (VTR) Valuation
Based on GoodMoat's DCF model, Ventas Inc has a fair value estimate of $29.20. At the current price of $84.96, the stock appears 190.9% overvalued relative to our intrinsic value estimate.
VTR Quality Indicators
Ventas Inc maintains a profit margin of 4.3% and an operating margin of 14.0%. Return on equity stands at 2.0%. Debt-to-equity ratio is 1.06.
About Ventas Inc
Ventas, Inc. is a leading S&P 500 real estate investment trust enabling exceptional environments that benefit a large and growing aging population. With approximately 1,400 properties in North America and the United Kingdom, Ventas occupies an essential role in the longevity economy. The Company’s growth is fueled by its approximately 850 senior housing communities, which provide valuable services to residents and enable them to thrive in supported environments. Ventas aims to deliver outsized performance by leveraging its operational expertise, data-driven insights from its Ventas OI™ platform, extensive relationships and strong financial position. The Ventas portfolio also includes outpatient medical buildings, research centers and healthcare facilities. Ventas’s seasoned team of talented professionals shares a commitment to excellence, integrity and a common purpose of helping people live longer, healthier, happier lives.
VTR Free Cash Flow
Ventas Inc generated $-1.08B in trailing twelve-month free cash flow, representing an FCF yield of -2.70%. This low FCF yield may reflect heavy reinvestment or growth spending.
VTR Shares Outstanding
Ventas Inc has 0.47 billion shares outstanding at a share price of $84.96, giving it a market capitalization of $39.91B.
VTR Recent Insider Trades
Recent insider transactions at Ventas Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Roberts Carey S. (EVP and GC) | SELL | 35,532 | $3.02M |
| CAFARO DEBRA A (Chairman and CEO) | SELL | 10,322 | $848751.22 |
| CAFARO DEBRA A (Chairman and CEO) | SELL | 10,322 | $801605.49 |