Ventas (VTR) AI Stock Analysis

• Market Cap: $36.05B
• Dividend Yield: 2.55%
• Average Volume (3M): 2.71M
• Price to Earnings (P/E): 141.6
• Beta (1Y): 0.33
• Revenue Growth: 15.69%
• EPS Growth: N/A
• Country: US
• Employees: 498
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.14
• Shares Outstanding: 469,732,820
• 10 Day Avg. Volume: 2,957,634
• 30 Day Avg. Volume: 2,708,529
• PEG Ratio: -1.00
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 4.92
• P/FCF Ratio: 33.41
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 8.18
• Enterprise Value/Gross Profit: 52.93
• Enterprise Value/Ebitda: 24.05
• 1Y Price Target: $77.69
• Price Target Upside: 3.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 68 Neutral
• Price Target: $80.00 ▲(6.78% Upside)

Ventas receives a solid overall score driven by strong earnings call performance and positive technical indicators. However, the high P/E ratio raises valuation concerns, and financial performance is moderate due to declining profit margins and low return on equity. The company's strategic focus on senior housing and improved leverage are positive factors.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Ventas' healthcare properties, enhancing long-term financial stability and shareholder value.

Senior Housing Investments

Increased investment in senior housing with attractive returns positions Ventas for sustained growth, capitalizing on demographic trends like aging population.

Cash Flow Management

Effective cash flow management ensures Ventas can fund operations and investments, supporting long-term strategic initiatives and financial health.

Negative Factors

Rising Debt Levels

High leverage may limit financial flexibility and increase risk, potentially impacting Ventas' ability to invest in growth opportunities.

Post-Acute Asset Dispositions

Dispositions of nonstrategic assets may reduce FFO, impacting short-term financial performance and potentially slowing growth momentum.

Competitive Acquisition Market

Increased competition in acquisitions could pressure Ventas' ability to secure favorable deals, impacting long-term growth and profitability.

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 rental income from its extensive portfolio of healthcare properties. The company enters into long-term leases with operators of healthcare facilities, which typically offer stable and predictable cash flows. In addition to rental income, Ventas may also earn revenue from property management fees and other ancillary services. Key revenue streams include its investments in senior housing, skilled nursing facilities, and research and innovation centers. The company has established strategic partnerships with leading healthcare operators and service providers, enhancing its revenue stability and growth potential. Factors contributing to its earnings include demographic trends such as an aging population, increased demand for healthcare services, and favorable regulatory environments.

Ventas Financial Statement Overview

Summary

Ventas demonstrates moderate financial health with steady revenue growth and improved cash flow generation. However, declining profit margins and low return on equity highlight challenges in profitability and shareholder returns. The company's leverage is improving, but operational efficiency needs attention.

Income Statement

Ventas shows a moderate revenue growth rate of 4.77% TTM, indicating a steady increase in sales. However, the gross profit margin has significantly decreased to 15.46% TTM from 42.59% in the previous year, suggesting increased costs or pricing pressures. The net profit margin is low at 1.02% TTM, reflecting limited profitability. EBIT and EBITDA margins have also declined, indicating reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 1.03 TTM from 1.28 in the previous year, showing better leverage management. However, the return on equity is low at 0.49% TTM, indicating limited returns for shareholders. The equity ratio is stable, suggesting a balanced capital structure.

Cash Flow

Free cash flow growth is positive at 7.42% TTM, indicating improved cash generation. The operating cash flow to net income ratio is not available, but the free cash flow to net income ratio is strong at 74.40% TTM, suggesting effective cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.56B	4.92B	4.50B	4.13B	3.83B	3.80B
Gross Profit	858.82M	2.10B	770.72M	1.85B	1.74B	1.86B
EBITDA	1.89B	1.87B	1.83B	1.62B	1.58B	1.70B
Net Income	56.84M	81.15M	-40.97M	-47.45M	49.01M	439.15M
Balance Sheet
Total Assets	26.93B	26.19B	24.73B	24.16B	24.72B	23.93B
Cash, Cash Equivalents and Short-Term Investments	188.62M	897.85M	508.79M	122.56M	149.72M	650.88M
Total Debt	12.79B	13.74B	13.69B	12.49B	12.22B	12.11B
Total Liabilities	14.15B	15.36B	15.18B	13.94B	13.77B	13.65B
Stockholders Equity	12.36B	10.77B	9.49B	10.15B	10.85B	10.18B
Cash Flow
Free Cash Flow	1.15B	725.78M	860.46M	666.09M	593.15M	921.53M
Operating Cash Flow	1.55B	1.33B	1.12B	1.12B	1.03B	1.45B
Investing Cash Flow	-3.80B	-2.38B	-184.66M	-859.22M	-724.14M	154.29M
Financing Cash Flow	1.33B	1.45B	-543.75M	-283.93M	-558.47M	-1.30B

Ventas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 74.92 is above the 20-day moving average (MA) of 70.45, above the 50-day MA of 69.06, and above the 200-day MA of 65.71, indicating a bullish trend. The MACD of 1.41 indicates Negative momentum. The RSI at 69.06 is Neutral, neither overbought nor oversold. The STOCH value of 91.24 is Negative, 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
WELL	―	$126.52B	138.94	2.78%	1.51%	32.27%	67.00%
OHI	―	$12.70B	24.15	11.28%	6.24%	13.50%	31.56%
SBRA	―	$4.31B	23.65	6.66%	6.71%	6.89%	240.70%
VTR	―	$36.05B	141.60	2.15%	2.55%	15.69%	―
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DOC	―	$12.45B	-310.99	-0.48%	5.80%	9.58%	-111.99%
HR	―	$6.19B	-16.64	-7.26%	6.59%	-6.59%	33.35%

Ventas Corporate Events

Ventas Inc. Reports Strong Growth and Optimistic Outlook

The recent earnings call for Ventas Inc. painted a picture of robust financial health and strategic growth, particularly in the senior housing operating portfolio (SHOP). The company reported strong financial growth, successful investment activities, and improved financial leverage, despite facing some challenges in the research portfolio and the need for high capital expenditures on transitions. Overall, the sentiment was positive, with an optimistic outlook for the future.

Ventas, Inc. Reports Strong Q3 2025 Results

Ventas, Inc. is a leading real estate investment trust (REIT) that operates in the healthcare sector, focusing on senior housing communities, outpatient medical buildings, and research centers across North America and the United Kingdom.