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CareTrust REIT

Nasdaq:CTRE
Snowflake Description

Reasonable growth potential with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CTRE
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. The last earnings update was 15 days ago. More info.


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CTRE Share Price and Events
7 Day Returns
-0.6%
NasdaqGS:CTRE
1.4%
US REITs
0.5%
US Market
1 Year Returns
2.5%
NasdaqGS:CTRE
15.7%
US REITs
16.1%
US Market
CTRE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CareTrust REIT (CTRE) -0.6% -18.6% -15.8% 2.5% 39.5% 23.6%
US REITs 1.4% -2.3% 1.9% 15.7% 22.8% 23.5%
US Market 0.5% 3.9% 6.6% 16.1% 37.7% 43.7%
1 Year Return vs Industry and Market
  • CTRE underperformed the REITs industry which returned 15.7% over the past year.
  • CTRE underperformed the Market in United States of America which returned 16.1% over the past year.
Price Volatility
CTRE
Industry
5yr Volatility vs Market

Value

 Is CareTrust REIT undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CareTrust REIT to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CareTrust REIT.

NasdaqGS:CTRE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CTRE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.47
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.468 (1 + (1- 21%) (29.3%))
0.716
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:CTRE using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

NasdaqGS:CTRE Discount to Share Price
Calculation Result
Value per share (USD) From above. $43.14
Current discount Discount to share price of $19.98
= -1 x ($19.98 - $43.14) / $43.14
53.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price CareTrust REIT is available for.
Intrinsic value
>50%
Share price is $19.98 vs Future cash flow value of $43.14
Current Discount Checks
For CareTrust REIT to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • CareTrust REIT's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • CareTrust REIT's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CareTrust REIT's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CareTrust REIT's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CTRE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $0.45
NasdaqGS:CTRE Share Price ** NasdaqGS (2019-11-21) in USD $19.98
United States of America REITs Industry PE Ratio Median Figure of 144 Publicly-Listed REITs Companies 38.55x
United States of America Market PE Ratio Median Figure of 2,917 Publicly-Listed Companies 18.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CareTrust REIT.

NasdaqGS:CTRE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CTRE Share Price ÷ EPS (both in USD)

= 19.98 ÷ 0.45

44.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CareTrust REIT is overvalued based on earnings compared to the US REITs industry average.
  • CareTrust REIT is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does CareTrust REIT's expected growth come at a high price?
Raw Data
NasdaqGS:CTRE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 44.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
38.8%per year
United States of America REITs Industry PEG Ratio Median Figure of 133 Publicly-Listed REITs Companies 2.41x
United States of America Market PEG Ratio Median Figure of 2,043 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

NasdaqGS:CTRE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 44.1x ÷ 38.8%

1.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CareTrust REIT is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on CareTrust REIT's assets?
Raw Data
NasdaqGS:CTRE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $9.71
NasdaqGS:CTRE Share Price * NasdaqGS (2019-11-21) in USD $19.98
United States of America REITs Industry PB Ratio Median Figure of 183 Publicly-Listed REITs Companies 1.97x
United States of America Market PB Ratio Median Figure of 5,089 Publicly-Listed Companies 1.75x
NasdaqGS:CTRE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CTRE Share Price ÷ Book Value per Share (both in USD)

= 19.98 ÷ 9.71

2.06x

* Primary Listing of CareTrust REIT.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CareTrust REIT is overvalued based on assets compared to the US REITs industry average.
X
Value checks
We assess CareTrust REIT's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. CareTrust REIT has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is CareTrust REIT expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
38.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CareTrust REIT expected to grow at an attractive rate?
  • CareTrust REIT's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • CareTrust REIT's earnings growth is expected to exceed the United States of America market average.
  • CareTrust REIT's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CTRE Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CTRE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 38.8%
NasdaqGS:CTRE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 12.8%
United States of America REITs Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
United States of America REITs Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CTRE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CTRE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 205 96 2
2020-12-31 181 82 5
2019-12-31 156 45 2
2019-11-22
NasdaqGS:CTRE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 160 122 41
2019-06-30 166 119 65
2019-03-31 158 107 59
2018-12-31 157 99 58
2018-09-30 153 94 44
2018-06-30 147 86 41
2018-03-31 140 91 30
2017-12-31 133 89 26
2017-09-30 125 82 32
2017-06-30 119 81 28
2017-03-31 112 70 34
2016-12-31 105 64 29

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CareTrust REIT's earnings are expected to grow significantly at over 20% yearly.
  • CareTrust REIT's revenue is expected to grow by 12.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CTRE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from CareTrust REIT Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CTRE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.94 0.96 0.91 2.00
2020-12-31 0.85 0.87 0.82 3.00
2019-12-31 0.49 0.51 0.47 2.00
2019-11-22
NasdaqGS:CTRE Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 0.45
2019-06-30 0.75
2019-03-31 0.72
2018-12-31 0.73
2018-09-30 0.57
2018-06-30 0.54
2018-03-31 0.40
2017-12-31 0.35
2017-09-30 0.46
2017-06-30 0.44
2017-03-31 0.56
2016-12-31 0.52

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if CareTrust REIT will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess CareTrust REIT's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CareTrust REIT has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has CareTrust REIT performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CareTrust REIT's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CareTrust REIT has delivered over 20% year on year earnings growth in the past 5 years.
  • CareTrust REIT's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • CareTrust REIT's 1-year earnings growth is negative, it can't be compared to the US REITs industry average.
Earnings and Revenue History
CareTrust REIT's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CareTrust REIT Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CTRE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 159.53 40.92 14.34
2019-06-30 165.73 65.47 13.92
2019-03-31 158.50 59.05 12.67
2018-12-31 156.94 57.56 12.56
2018-09-30 153.18 44.28 12.33
2018-06-30 146.62 41.08 12.30
2018-03-31 140.48 29.82 11.92
2017-12-31 132.98 25.52 11.12
2017-09-30 124.63 31.68 11.00
2017-06-30 118.79 28.23 10.22
2017-03-31 111.66 33.85 9.46
2016-12-31 104.68 29.09 9.30
2016-09-30 99.07 25.69 8.94
2016-06-30 89.95 18.55 8.95
2016-03-31 81.62 13.17 8.33
2015-12-31 74.95 9.75 7.66
2015-09-30 68.40 5.45 7.84
2015-06-30 66.30 6.78 6.34
2015-03-31 62.98 -5.74 10.76
2014-12-31 58.90 -8.14 11.11
2014-09-30 55.67 -9.96 11.24
2014-06-30 52.34 -12.20 12.29
2014-03-31 50.33 -1.36 7.01
2013-12-31 48.80 -0.40 5.44
2013-09-30 46.95 0.99 3.36
2013-06-30 45.03 1.26 1.96
2013-03-31 43.19 0.72 1.68
2012-12-31 42.06 0.11 1.79

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • CareTrust REIT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • CareTrust REIT used its assets more efficiently than the US REITs industry average last year based on Return on Assets.
  • CareTrust REIT's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess CareTrust REIT's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CareTrust REIT has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is CareTrust REIT's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CareTrust REIT's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CareTrust REIT is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • CareTrust REIT's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of CareTrust REIT's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CareTrust REIT Company Filings, last reported 1 month ago.

NasdaqGS:CTRE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 927.49 559.38 5.75
2019-06-30 958.14 539.14 2.63
2019-03-31 811.03 678.90 214.35
2018-12-31 768.25 489.77 36.79
2018-09-30 720.05 484.55 15.75
2018-06-30 638.74 544.34 11.56
2018-03-31 593.89 594.12 14.20
2017-12-31 594.62 558.91 6.91
2017-09-30 605.88 488.71 14.81
2017-06-30 607.98 393.51 35.07
2017-03-31 557.95 382.01 1.28
2016-12-31 452.43 449.72 7.50
2016-09-30 362.78 457.43 11.88
2016-06-30 361.85 422.14 9.64
2016-03-31 364.11 358.86 4.66
2015-12-31 262.29 393.91 11.47
2015-09-30 264.56 400.70 12.10
2015-06-30 108.29 391.85 29.90
2015-03-31 110.82 357.52 13.59
2014-12-31 113.46 350.77 25.32
2014-09-30 149.63 358.87 88.85
2014-06-30 147.66 359.50 80.35
2014-03-31 172.72 259.12 0.93
2013-12-31 162.69 261.14 0.90
2013-09-30 210.10 214.40 0.83
2013-06-30 208.05 216.12 0.78
2013-03-31 184.55 210.56 0.74
2012-12-31 184.55 210.56 0.74
  • CareTrust REIT's level of debt (60.3%) 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 (240.4% vs 60.3% today).
  • Debt is well covered by operating cash flow (21.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).
X
Financial health checks
We assess CareTrust REIT's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CareTrust REIT has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.5%
Current annual income from CareTrust REIT dividends. Estimated to be 4.82% next year.
If you bought $2,000 of CareTrust REIT shares you are expected to receive $90 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • CareTrust REIT's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • CareTrust REIT's dividend is above the markets top 25% of dividend payers in United States of America (3.65%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CTRE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America REITs Industry Average Dividend Yield Market Cap Weighted Average of 175 Stocks 3.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1954 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CTRE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.11 1.00
2022-12-31 1.05 1.00
2021-12-31 1.00 2.00
2020-12-31 0.95 4.00
2019-12-31 0.90 4.00
2019-11-22
NasdaqGS:CTRE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-09-20 0.900 3.974
2019-06-18 0.900 3.815
2019-03-19 0.900 3.734
2018-12-17 0.820 3.890
2018-09-19 0.820 4.461
2018-06-18 0.820 4.689
2018-03-16 0.820 5.674
2017-12-18 0.740 4.862
2017-09-18 0.740 3.951
2017-08-02 0.740 3.910
2017-03-16 0.740 4.156
2016-12-19 0.680 4.422
2016-09-20 0.680 4.773
2016-06-20 0.680 4.704
2016-03-16 0.680 5.236
2015-12-16 0.640 5.890
2015-09-17 0.640 5.748
2015-06-19 0.640 5.232
2015-03-19 0.640 4.862
2014-10-27 0.500 3.695

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, CareTrust REIT has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but CareTrust REIT only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of CareTrust REIT's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (149.7x coverage).
X
Income/ dividend checks
We assess CareTrust REIT's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CareTrust REIT afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CareTrust REIT has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Greg Stapley
COMPENSATION $3,093,769
AGE 59
TENURE AS CEO 6.8 years
CEO Bio

Mr. Gregory K. Stapley, also known as Greg, has been the Chief Executive Officer and President at Caretrust REIT, Inc. since 2014 and has been Chairman of the Board since June 2014. Mr. Stapley has extensive management experience and knowledge of properties and knowledge and understanding of the healthcare business in general. He serves as the President and Chief Executive Officer at Tenth East Holdings LLC, Regal Road Health Holdings LLC, Falls City Health Holdings LLC, Arapahoe Health Holdings LLC, Flamingo Health Holdings LLC, Josey Ranch Healthcare Holdings LLC, Dallas Independence LLC, Willows Health Holdings LLC, Josey Ranch Healthcare Holdings LLC, South Dora Health Holdings LLC, Dixie Health Holdings LLC, Memorial Health Holdings LLC, Expressway Health Holdings LLC, Oleson Park Health Holdings LLC, Orem Health Holdings LLC, Stillhouse Health Holdings LLC, Snohomish Health Holdings LLC, Salt Lake Independence LLC, Rio Grande Health Holdings LLC, Big Sioux River Health Holdings LLC, 4th Street Holdings LLC, Jordan Health Properties LLC, Wayne Health Holdings LLC, Guadalupe Health Holdings LLC, Verde Villa Holdings LLC, Gazebo Park Health Holdings LLC, Jefferson Ralston Holdings LLC, Everglades Health Holdings LLC, Gillette Park Health Holdings LLC, Fig Street Health Holdings LLC, Ives Health Holdings LLC, Burley Healthcare Holdings LLC, Lowell Health Holdings LLC and Kings Court Health Holdings LLC. Mr. Stapley also serves as Chief Executive Officer and President at 49th Street Health Holdings LLC, Cottonwood Health Holdings LLC, Avenue N Holdings LLC, Queen City Health Holdings LLC, Boardwalk Health Holdings LLC, Expo Park Health Holdings LLC, San Corrine Health Holdings LLC, Mission CCRC LLC, Queensway Health Holdings LLC, 51st Avenue Health Holdings LLC and Irving Health Holdings LLC. He served as an Executive Vice President at The Ensign Group, Inc. since November 2, 2009 and its Secretary since January 2006. He served as General Counsel and Vice President at The Ensign Group, Inc. from 1999 to November 2, 2009. Mr. Stapley served as a General Counsel of the Sedgwick Companies, where he was responsible for all of that company's legal affairs, site acquisitions and developer relations. Prior to that, he was a Partner of the Phoenix law firm of Jennings, Strouss & Salmon PLC, where his practice emphasized real estate and business transactions and federal, state and local government relations.

CEO Compensation
  • Greg's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Greg's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the CareTrust REIT management team in years:

5.7
Average Tenure
53
Average Age
  • The average tenure for the CareTrust REIT management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Greg Stapley

TITLE
Chairman
COMPENSATION
$3M
AGE
59
TENURE
6.8 yrs

Bill Wagner

TITLE
CFO, Treasurer & Secretary
COMPENSATION
$1M
AGE
53
TENURE
5.9 yrs

Dave Sedgwick

TITLE
Chief Operating Officer
COMPENSATION
$1M
AGE
43
TENURE
5.5 yrs

Mark Lamb

TITLE
Chief Investment Officer
COMPENSATION
$1M
TENURE
5.3 yrs

Eric Gillis

TITLE
Director of Asset Management

Lauren Beale

TITLE
Controller
Board of Directors Tenure

Average tenure and age of the CareTrust REIT board of directors in years:

4.4
Average Tenure
59
Average Age
  • The tenure for the CareTrust REIT board of directors is about average.
Board of Directors

Greg Stapley

TITLE
Chairman
COMPENSATION
$3M
AGE
59
TENURE
5.8 yrs

Jon Kline

TITLE
Independent Director
COMPENSATION
$130K
AGE
52
TENURE
5.4 yrs

Allen Barbieri

TITLE
Independent Director
COMPENSATION
$120K
AGE
61
TENURE
4.4 yrs

Spencer Plumb

TITLE
Independent Director
COMPENSATION
$120K
AGE
44
TENURE
2.8 yrs

Diana Laing

TITLE
Independent Director
AGE
64
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess CareTrust REIT's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CareTrust REIT has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Buy CareTrust REIT, Inc. (NASDAQ:CTRE) For Its Dividend?

Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see CareTrust REIT has grown its earnings per share at 48% per annum over the past five years. … Second, the company has not been able to generate earnings growth, and its history of dividend payments too short for us to thoroughly evaluate the dividend's consistency across an economic cycle. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Does CareTrust REIT (NASDAQ:CTRE) Deserve A Spot On Your Watchlist?

But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in CareTrust REIT (NASDAQ:CTRE). … Check out our latest analysis for CareTrust REIT How Fast Is CareTrust REIT Growing? … As a result, I'm encouraged by the fact that insiders own CareTrust REIT shares worth a considerable sum.

Simply Wall St -

Can You Imagine How CareTrust REIT's (NASDAQ:CTRE) Shareholders Feel About The 62% Share Price Increase?

(NASDAQ:CTRE) share price is up 62% in the last three years, clearly besting than the market return of around 35% (not including dividends). … CareTrust REIT was able to grow its EPS at 31% per year over three years, sending the share price higher. … We note that for CareTrust REIT the TSR over the last 3 years was 85%, which is better than the share price return mentioned above.

Simply Wall St -

Is There Now An Opportunity In CareTrust REIT, Inc. (NASDAQ:CTRE)?

The stock’s ratio of 32.36x is currently trading slightly above its industry peers’ ratio of 31.51x, which means if you buy CareTrust REIT today, you’d be paying a relatively fair price for it. … And if you believe CareTrust REIT should be trading in this range, then there isn’t really any room for the share price grow beyond what it’s currently trading. … CTRE’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.

Simply Wall St -

Should You Be Holding CareTrust REIT, Inc. (NASDAQ:CTRE)?

In the case of CTRE, it is a highly-regarded dividend payer with a strong history of delivering benchmark-beating performance. … Solid track record average dividend payer Over the past year, CTRE has grown its earnings by 98%, with its most recent figure exceeding its annual average over the past five years. … NasdaqGS:CTRE Historical Dividend Yield, July 1st 2019 Next Steps: For CareTrust REIT, there are three important aspects you should further examine: Future Outlook: What are well-informed industry analysts predicting for CTRE’s future growth?

Simply Wall St -

These 4 Measures Indicate That CareTrust REIT (NASDAQ:CTRE) Is Using Debt Reasonably Well

NasdaqGS:CTRE Historical Debt, June 21st 2019 A Look At CareTrust REIT's Liabilities We can see from the most recent balance sheet that CareTrust REIT had liabilities of US$34.1m falling due within a year, and liabilities of US$678.9m due beyond that. … Because it carries more debt than cash, we think it's worth watching CareTrust REIT's balance sheet over time. … Our View CareTrust REIT's conversion of EBIT to free cash flow suggests it can handle its debt as easily as Cristiano Ronaldo could score a goal against an under 14's goalkeeper.

Simply Wall St -

Does CareTrust REIT (NASDAQ:CTRE) Have A Healthy Balance Sheet?

NasdaqGS:CTRE Historical Debt, June 21st 2019 A Look At CareTrust REIT's Liabilities The latest balance sheet data shows that CareTrust REIT had liabilities of US$34.1m due within a year, and liabilities of US$678.9m falling due after that. … Either way, since CareTrust REIT does have more debt than cash, it's worth keeping an eye on its balance sheet. … Our View Happily, CareTrust REIT's impressive conversion of EBIT to free cash flow implies it has the upper hand on its debt.

Simply Wall St -

Does CareTrust REIT, Inc.'s (NASDAQ:CTRE) CEO Pay Matter?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … Check out our latest analysis for CareTrust REIT How Does Greg Stapley's Compensation Compare With Similar Sized Companies? … Remuneration for Greg Stapley is close enough to the median pay for a CEO of a similar sized company.

Simply Wall St -

Does CareTrust REIT, Inc. (NASDAQ:CTRE) Create Value For Shareholders?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for CareTrust REIT: 7.3% = US$59m ÷ US$811m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … How Does Debt Impact Return On Equity? … CareTrust REIT's Debt And Its 7.3% ROE Although CareTrust REIT does use debt, its debt to equity ratio of 0.84 is still low.

Simply Wall St -

Should You Be Concerned About CareTrust REIT, Inc.'s (NASDAQ:CTRE) Historical Volatility?

A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … Check out our latest analysis for CareTrust REIT What CTRE's beta value tells investors With a beta of 1.01, (which is quite close to 1) the share price of CareTrust REIT has historically been about as voltile as the broader market. … What this means for you: It is probable that there is a link between the share price of CareTrust REIT and the broader market, since it has a beta value quite close to one.

Simply Wall St -

Company Info

Description

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States.

Details
Name: CareTrust REIT, Inc.
CTRE
Exchange: NasdaqGS
Founded: 2013
$1,909,234,274
95,557,271
Website: http://www.caretrustreit.com
Address: CareTrust REIT, Inc.
905 Calle Amanecer,
Suite 300,
San Clemente,
California, 92673,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CTRE New Common Stock Nasdaq Global Select US USD 20. May 2014
DB 7XC New Common Stock Deutsche Boerse AG DE EUR 20. May 2014
LSE 0A1C New Common Stock London Stock Exchange GB EUR 20. May 2014
Number of employees
Current staff
Staff numbers
57
CareTrust REIT employees.
Industry
Health Care REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/22 00:13
End of day share price update: 2019/11/21 00:00
Last estimates confirmation: 2019/11/19
Last earnings filing: 2019/11/07
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.