Ventas (VTR) AI Stock Analysis

• Market Cap: $32.51B
• Dividend Yield: 2.71%
• Average Volume (3M): 2.83M
• Price to Earnings (P/E): 161.3
• Beta (1Y): 0.33
• Revenue Growth: 12.45%
• EPS Growth: N/A
• Country: US
• Employees: 498
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.15
• Shares Outstanding: 454,471,200
• 10 Day Avg. Volume: 3,250,813
• 30 Day Avg. Volume: 2,827,943
• 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: 1.29
• Enterprise Value/Revenue: 7.93
• Enterprise Value/Gross Profit: 21.89
• Enterprise Value/Ebitda: 20.93
• 1Y Price Target: $76.57
• Price Target Upside: 9.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 70 Outperform
• Price Target: $75.00 ▲(7.51% Upside)

Ventas' overall stock score is driven by strong financial performance and positive earnings call sentiment, indicating robust growth prospects. Technical analysis suggests a neutral trend, while valuation metrics indicate potential overvaluation. The company's strategic initiatives and guidance raise confidence, despite some market challenges.

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, Inc. (VTR) is a leading real estate investment trust (REIT) based in the United States, primarily focused on the healthcare sector. The company owns and operates a diverse portfolio of properties, including senior housing communities, medical office buildings, and post-acute care facilities. Ventas aims to provide long-term value to its shareholders through strategic investments and management of high-quality healthcare real estate across various geographic markets.

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 solid financial performance with strong revenue growth and improved profitability margins. The balance sheet shows moderate leverage with a stable equity base. Cash flow metrics are particularly strong, highlighting effective cash management and conversion.

Income Statement

Ventas shows a solid revenue growth trajectory with a TTM revenue growth rate of 4.33%. The gross profit margin has decreased over time, currently at 36.23% in TTM, indicating potential cost pressures. However, the net profit margin improved to 3.61% in TTM, reflecting better profitability management. The EBIT and EBITDA margins are strong, at 14.91% and 37.90% respectively, suggesting efficient operational performance.

Balance Sheet

The company maintains a high debt-to-equity ratio of 1.15 in TTM, which is a slight improvement from previous years, indicating a moderate leverage position. The return on equity has improved to 1.76% in TTM, showing better utilization of equity. The equity ratio stands at 43.54%, reflecting a stable capital structure with a balanced asset funding strategy.

Cash Flow

Ventas exhibits strong cash flow management with a significant free cash flow growth rate of 22.26% in TTM. The operating cash flow to net income ratio is robust at 1.20, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 0.70 suggests effective conversion of earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.30B	4.92B	4.50B	4.13B	3.83B	3.80B
Gross Profit	1.92B	2.10B	770.72M	1.85B	1.74B	1.86B
EBITDA	2.01B	1.87B	1.83B	1.62B	1.58B	1.70B
Net Income	191.21M	81.15M	-40.97M	-47.45M	49.01M	439.15M
Balance Sheet
Total Assets	26.47B	26.19B	24.73B	24.16B	24.72B	23.93B
Cash, Cash Equivalents and Short-Term Investments	614.20M	897.85M	508.79M	122.56M	149.72M	650.88M
Total Debt	13.27B	13.74B	13.69B	12.49B	12.22B	12.11B
Total Liabilities	14.55B	15.36B	15.18B	13.94B	13.77B	13.65B
Stockholders Equity	11.53B	10.77B	9.49B	10.15B	10.85B	10.18B
Cash Flow
Free Cash Flow	1.07B	725.78M	860.46M	666.09M	593.15M	921.53M
Operating Cash Flow	1.52B	1.33B	1.12B	1.12B	1.03B	1.45B
Investing Cash Flow	-3.05B	-2.38B	-184.66M	-859.22M	-724.14M	154.29M
Financing Cash Flow	1.59B	1.45B	-543.75M	-283.93M	-558.47M	-1.30B

Ventas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.76
• 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 69.76 is above the 20-day moving average (MA) of 68.39, above the 50-day MA of 67.75, and above the 200-day MA of 64.25, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 60.93 is Neutral, neither overbought nor oversold. The STOCH value of 82.96 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	77 Outperform	$116.92B	144.59	3.48%	1.57%	30.73%	96.48%
OHI	76 Outperform	$12.28B	25.97	10.47%	6.51%	12.73%	23.51%
SBRA	71 Outperform	$4.38B	24.02	6.66%	6.62%	6.89%	240.70%
VTR	70 Outperform	$32.51B	161.29	1.81%	2.71%	12.45%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DOC	65 Neutral	$13.75B	82.53	1.97%	6.27%	15.91%	-49.49%
HR	60 Neutral	$6.36B	―	-7.59%	6.54%	-7.16%	23.40%

Ventas Corporate Events

Ventas Amends ATM Sales Agreement to $2.25 Billion

On June 13, 2025, Ventas, Inc. announced an amendment to its ATM Sales Agreement with multiple financial institutions, increasing the aggregate gross sales price of common stock available for issuance to $2.25 billion. This amendment allows Ventas to offer and sell additional shares of common stock, potentially impacting its financial strategy and market presence.

Ventas Realty Issues $500 Million in Senior Notes

On June 3, 2025, Ventas Realty, a subsidiary of Ventas, Inc., successfully issued and sold $500 million in 5.100% Senior Notes due 2032. The proceeds from this offering are intended for general corporate purposes, including debt repayment, which could impact the company’s financial flexibility and market positioning.