Ventas (VTR) AI Stock Analysis

• Market Cap: $88.84B
• Dividend Yield: 2.79%
• Average Volume (3M): 3.13M
• Price to Earnings (P/E): 198.4
• Beta (1Y): 0.45
• Revenue Growth: 10.00%
• EPS Growth: N/A
• Country: US
• Employees: 498
• Sector: Real Estate
• Sector Strength: 67
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.10
• Shares Outstanding: 451,298,340
• 10 Day Avg. Volume: 3,082,219
• 30 Day Avg. Volume: 3,130,953
• PEG Ratio: 19.27
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.83
• Enterprise Value/Market Cap: 0.33
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 15.88
• Enterprise Value/Ebitda: 3.93
• 1Y Price Target: $74.36
• Price Target Upside: 13.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

Ventas demonstrates solid financial performance with robust cash flow management and improving profitability. However, the high P/E ratio suggests potential overvaluation, which could limit upside potential. The recent earnings call provided a positive outlook with significant growth in the senior housing segment and increased investment activity, although technical indicators show bearish trends, posing short-term risks.

Positive Factors

Financial Performance

Ventas Inc reported a 4Q24 Normalized FFO of $0.81, beating expectations and driven by favorable interest expense.

Investment Activity

Acquisition activity improved, with a notable acceleration in investment activity, significantly increasing from initial guidance.

Senior Housing

VTR is well positioned to benefit from limited senior housing deliveries and a growing 80+ population.

Negative Factors

Earnings Forecast

Maintained 2025 Norm. FFO of $3.41 midpoint -1.0%/-3.5¢ below Street of $3.44.

Guidance

Shares may initially react negatively given the beat and improved acquisitions without a guidance bump.

Research and Development

Research is also a risk given lab/NIH pressures.

Ventas Business Overview & Revenue Model

Company Description

Ventas, an S&P 500 company, operates at the intersection of two powerful and dynamic industries: healthcare and real estate. As one of the world's foremost Real Estate Investment Trusts (REIT), we use the power of capital to unlock the value of real estate, partnering with leading care providers, developers, research and medical institutions, innovators and healthcare organizations whose success is buoyed by the demographic tailwind of an aging population. For more than twenty years, Ventas has followed a successful strategy that endures: combining a high-quality diversified portfolio of properties and capital sources to manage through cycles, working with industry leading partners, and a collaborative and experienced team focused on producing consistent growing cash flows and superior returns on a strong balance sheet, ultimately rewarding Ventas shareholders. As of September 30, 2020, Ventas owned or managed through unconsolidated joint ventures approximately 1,200 properties.

How the Company Makes Money

Ventas generates revenue primarily through leasing its real estate properties to a diverse group of tenants in the healthcare and senior living industries. The company earns rental income from long-term lease agreements with operators of senior housing communities, medical office buildings, and other healthcare facilities. Additionally, Ventas benefits from property management fees and may also engage in development and redevelopment projects that enhance the value of its portfolio. The company's earnings are supported by strategic partnerships with leading healthcare operators and a focus on maintaining high occupancy rates across its properties. Ventas's diversified asset base and strategic relationships enable it to capitalize on trends in the healthcare sector, contributing to its financial stability and growth.

Ventas Financial Statement Overview

Summary

Ventas exhibits a solid financial position with consistent revenue growth and improving profitability. The leverage is notable but consistent with industry norms. The company's strong cash flow metrics highlight its effective cash management capabilities.

Income Statement

Ventas shows a consistent revenue growth trajectory, with a notable improvement in net income over the TTM period compared to the prior year. The gross profit margin and EBITDA margin indicate robust operational efficiency, although the net profit margin is relatively modest. The EBIT margin is stable, reflecting strong earnings before interest and taxes.

Balance Sheet

The company's balance sheet indicates a substantial debt load with a debt-to-equity ratio above 1, which is common in the REIT industry but still poses potential risks. The equity ratio is moderate, suggesting a balanced capital structure. Return on equity shows improvement, signifying better utilization of equity capital.

Cash Flow

Ventas demonstrates strong cash flow management, with a healthy operating cash flow to net income ratio, indicating efficient conversion of income into cash. Free cash flow growth is positive, supported by disciplined capital expenditures. The free cash flow to net income ratio suggests effective cash generation relative to net earnings.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.08B	4.92B	4.50B	4.13B	3.83B	3.80B
	Gross Profit
1.86B	2.10B	770.72M	1.85B	1.74B	1.86B
	EBIT
767.32M	681.23M	665.12M	454.08M	389.30M	592.58M
	EBITDA
1.94B	1.87B	1.83B	1.65B	1.60B	1.72B
	Net Income Common Stockholders
142.33M	81.15M	-40.97M	-40.93M	49.01M	439.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
182.34M	897.85M	508.79M	122.56M	149.72M	413.33M
	Total Assets
26.03B	26.19B	24.73B	24.16B	24.72B	23.93B
	Total Debt
12.92B	13.74B	13.69B	12.92B	12.22B	12.11B
	Net Debt
12.74B	12.84B	13.18B	12.79B	12.08B	11.69B
	Total Liabilities
14.51B	15.36B	14.88B	13.94B	13.77B	13.65B
	Stockholders Equity
11.47B	10.77B	9.49B	10.15B	10.85B	10.18B
Cash Flow		Free Cash Flow
877.42M	725.78M	935.13M	666.09M	593.15M	921.53M
	Operating Cash Flow
1.38B	1.33B	1.12B	1.12B	1.03B	1.45B
	Investing Cash Flow
-3.13B	-2.38B	-184.66M	-859.22M	-724.14M	154.29M
	Financing Cash Flow
1.30B	1.45B	-543.75M	-283.93M	-558.47M	-1.30B

Ventas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.63
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTR, the sentiment is Positive. The current price of 65.63 is below the 20-day moving average (MA) of 66.69, below the 50-day MA of 66.92, and above the 200-day MA of 62.70, indicating a neutral trend. The MACD of -0.64 indicates Positive momentum. The RSI at 46.97 is Neutral, neither overbought nor oversold. The STOCH value of 36.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VTR.

Ventas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTRE	80 Outperform	$5.59B	31.80	7.02%	4.13%	43.27%	80.97%
OHI	74 Outperform	$10.72B	23.22	10.53%	7.24%	10.56%	45.37%
WELL	71 Outperform	$97.26B	160.33	3.52%	1.76%	23.31%	36.07%
DOC	69 Neutral	$12.60B	44.68	3.26%	6.80%	23.65%	12.82%
VTR	68 Neutral	$88.84B	198.40	1.36%	2.79%	10.00%	―
Sector *	60 Neutral	$2.81B	10.29	0.39%	8508.26%	5.90%	-17.41%
HR	49 Neutral	$5.27B	―	-6.83%	8.26%	-7.26%	18.45%

Ventas Corporate Events

Ventas Approves Key Amendments at Annual Meeting

On May 13, 2025, Ventas, Inc. held its Annual Meeting of Stockholders, where key amendments to its Certificate of Incorporation were approved. These amendments include increasing the number of authorized common shares from 600 million to 1.2 billion and limiting the monetary liability of certain officers under Delaware law. The changes aim to enhance corporate governance and provide flexibility for future growth, potentially impacting shareholder value and company operations.

The most recent analyst rating on (VTR) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on Ventas stock, see the VTR Stock Forecast page.

Spark’s Take on VTR Stock

According to Spark, TipRanks’ AI Analyst, VTR is a Neutral.

Ventas demonstrates strong financial performance and positive future guidance, particularly in its senior housing segment. However, technical indicators suggest caution due to potential bearish trends. The high P/E ratio raises concerns about valuation, although the dividend yield offers a degree of attractiveness. Overall, the stock is positioned moderately well within the REIT sector, supported by strategic initiatives and demographic trends.

To see Spark’s full report on VTR stock, click here.