CareTrust REIT Net Income vs. Return On Equity
| CTRE Stock | USD 28.83 0.01 0.03% |
Net Income | First Reported 2011-12-31 | Previous Quarter 10.8 M | Current Value 33.4 M | Quarterly Volatility 13 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.74 | 0.9559 |
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| Operating Profit Margin | 0.9 | 0.8558 |
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For CareTrust REIT profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CareTrust REIT to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CareTrust REIT utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CareTrust REIT's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CareTrust REIT over time as well as its relative position and ranking within its peers.
CareTrust |
Is Diversified REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CareTrust REIT. If investors know CareTrust will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CareTrust REIT listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.614 | Dividend Share 1.15 | Earnings Share 0.73 | Revenue Per Share 1.926 | Quarterly Revenue Growth 0.385 |
The market value of CareTrust REIT is measured differently than its book value, which is the value of CareTrust that is recorded on the company's balance sheet. Investors also form their own opinion of CareTrust REIT's value that differs from its market value or its book value, called intrinsic value, which is CareTrust REIT's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CareTrust REIT's market value can be influenced by many factors that don't directly affect CareTrust REIT's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CareTrust REIT's value and its price as these two are different measures arrived at by different means. Investors typically determine if CareTrust REIT is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CareTrust REIT's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
CareTrust REIT Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining CareTrust REIT's current stock value. Our valuation model uses many indicators to compare CareTrust REIT value to that of its competitors to determine the firm's financial worth. CareTrust REIT is rated fifth in net income category among its peers. It is rated fourth in return on equity category among its peers . The ratio of Net Income to Return On Equity for CareTrust REIT is about 961,037,567 . At present, CareTrust REIT's Net Income is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value CareTrust REIT by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.CareTrust Return On Equity vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
CareTrust REIT |
| = | 53.72 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
CareTrust REIT |
| = | 0.0559 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
CareTrust Return On Equity Comparison
CareTrust REIT is currently under evaluation in return on equity category among its peers.
CareTrust REIT Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in CareTrust REIT, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CareTrust REIT will eventually generate negative long term returns. The profitability progress is the general direction of CareTrust REIT's change in net profit over the period of time. It can combine multiple indicators of CareTrust REIT, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -467.6 M | -444.2 M | |
| Operating Income | 186.4 M | 195.7 M | |
| Income Before Tax | 53.7 M | 33 M | |
| Total Other Income Expense Net | -132.7 M | -126 M | |
| Net Loss | -8.6 M | -8.2 M | |
| Net Income | 53.7 M | 33 M | |
| Income Tax Expense | 41.2 M | 43.3 M | |
| Net Income From Continuing Ops | 53.7 M | 82.3 M | |
| Interest Income | 19.2 M | 20.1 M | |
| Net Interest Income | -21.7 M | -22.8 M | |
| Non Operating Income Net Other | -9.8 M | -9.3 M | |
| Change To Netincome | 14 M | 8.6 M | |
| Net Income Per Share | 0.51 | 0.28 | |
| Income Quality | 2.88 | 2.74 | |
| Net Income Per E B T | 1.00 | 1.05 |
CareTrust Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on CareTrust REIT. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of CareTrust REIT position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the CareTrust REIT's important profitability drivers and their relationship over time.
Use CareTrust REIT in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CareTrust REIT position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CareTrust REIT will appreciate offsetting losses from the drop in the long position's value.CareTrust REIT Pair Trading
CareTrust REIT Pair Trading Analysis
The ability to find closely correlated positions to CareTrust REIT could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CareTrust REIT when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CareTrust REIT - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CareTrust REIT to buy it.
The correlation of CareTrust REIT is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CareTrust REIT moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CareTrust REIT moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CareTrust REIT can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your CareTrust REIT position
In addition to having CareTrust REIT in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project CareTrust REIT's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CareTrust REIT at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include CareTrust REIT's income statement, its balance sheet, and the statement of cash flows.