Ventas, Inc. (NYSE: VTR)

Sector: Real Estate Industry: REIT - Healthcare Facilities CIK: 0000740260
Market Cap 38.32 Bn
P/B 3.06
P/E 152.44
P/S 6.57
ROIC (Qtr) 3.26
Div Yield % 2.21
Rev 1y % (Qtr) 21.67
Total Debt (Qtr) 13.22 Bn
Debt/Equity (Qtr) 1.06
Add ratio to table...

About

Ventas, Inc., a real estate investment trust (REIT) commonly referred to as VTR, is a leading player in the healthcare real estate industry. The company is renowned for providing strong and sustainable shareholder returns by facilitating exceptional environments that cater to a vast and expanding aging population. Ventas boasts a diverse portfolio of properties, including senior housing communities, outpatient medical buildings, research centers, hospitals, and healthcare facilities, spread across North America and the United Kingdom. The company...

Read more

Investment thesis

Bull case

  • Operating cash flow of 1.65B provides exceptional 162.45x coverage of minority interest expenses 10.14M, showing strong core operations.
  • Operating cash flow of 1.65B provides strong 42.51x coverage of stock compensation 38.73M, indicating sustainable incentive practices.
  • Strong operating cash flow of 1.65B provides 9.28x coverage of SG&A expenses 177.40M, showing efficient operational cost management.
  • Strong free cash flow of (1.08B) provides 48.83x coverage of acquisition spending (22.09M), indicating disciplined M&A strategy.
  • Cash position of 786.14M provides exceptional 77.55x coverage of minority interest expenses 10.14M, indicating strong liquidity.

Bear case

  • Operating cash flow of 1.65B barely covers its investment activities of (2.69B), with a coverage ratio of -0.61, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.65B provides thin coverage of dividend payments of (860.06M) with a -1.91 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 786.14M provide limited coverage of acquisition spending of (22.09M), which is -35.60x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 1.65B provides minimal -116.38x coverage of tax expenses of (14.15M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of (1.08B) provides weak coverage of capital expenditures of 2.73B, with a -0.40 ratio suggesting additional external financing needs for growth initiatives.

Statement, Business Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the REIT - Healthcare Facilities
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 WELL Welltower Inc. 143.17 Bn 152.82 13.21 21.38 Bn
2 VTR Ventas, Inc. 38.32 Bn 152.44 6.57 13.22 Bn
3 OHI Omega Healthcare Investors Inc 9.79 Bn 37.42 11.00 4.26 Bn
4 DOC Healthpeak Properties, Inc. 9.29 Bn 18.52 5.20 10.14 Bn
5 CTRE CareTrust REIT, Inc. 8.40 Bn 26.19 17.62 0.89 Bn
6 AHR American Healthcare REIT, Inc. 6.95 Bn -212.00 3.23 1.70 Bn
7 HR Healthcare Realty Trust Inc 6.42 Bn -26.10 5.44 4.15 Bn
8 NHI National Health Investors Inc 2.58 Bn 24.34 21.93 1.11 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.84 1.24
EV to Cash from Ops. EV/CFO 30.89 24.29
EV to Debt EV to Debt 3.85 3.18
EV to EBIT EV/EBIT 59.88 14.77
EV to EBITDA EV/EBITDA 23.16 19.20
EV to Free Cash Flow [EV/FCF] EV/FCF -47.16 1.78
EV to Market Cap EV to Market Cap 1.33 1.96
EV to Revenue EV/Rev 8.72 11.43
Price to Book Value [P/B] P/B 3.06 2.64
Price to Earnings [P/E] P/E 152.44 29.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.29 -1.90
Dividend Payout Ratio % Div Payout % (Qtr) 336.80 299.46
Dividend per Basic Share Div per Share (Qtr) 1.92 1.85
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -83.62 49.00
Interest Coverage Int. cover (Qtr) 1.39 2.08
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -23.83 -326.40
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -17.87 31.24
Dividend Growth (1y) % Div 1y % (Qtr) 6.67 12.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -25.54 35.66
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 18.78 12.40
EBIT Growth (1y) % EBIT 1y % (Qtr) 31.45 25.81
EBT Growth (1y) % EBT 1y % (Qtr) 446.89 71.96
EPS Growth (1y) % EPS 1y % (Qtr) 171.43 29.36
FCF Growth (1y) % FCF 1y % (Qtr) -23.81 -181.35
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.11 13.29
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.21 0.17
Cash Payout Ratio Cash Payout (Qtr) 0.20 0.07
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 1.06 4.36
Interest Cover Ratio Int Coverage (Qtr) 1.39 2.08
Times Interest Earned Times Interest Earned (Qtr) 1.39 2.08
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 38.20 55.93
EBIT Margin % EBIT Margin % (Qtr) 14.56 28.99
EBT Margin % EBT Margin % (Qtr) 4.07 13.55
Gross Margin % Gross Margin % (Qtr) 41.40 71.26
Net Profit Margin % Net Margin % (Qtr) 4.30 13.18