NYSE · Real Estate

Ventas, Inc.

VTR · REIT - Healthcare Facilities

$81.60

▼ -0.55 (-0.67%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

C⤢

Gross Profit Margin 39.4%

Operating Margin 12.6%

Net Income Margin 3.4%

Fin. Health

F⤢

Years to Pay Off Debt 227.6 yrs

Working Capital vs Long-Term Debt -$13.2B

Working Capital -$722M

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 3.02x

Cash Flow

C⤢

Free Cash Flow $249M

CapEx % of Net Income 260.1%

Owner Earnings $593M

Profitability

Gross Profit Margin 39.4%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 12.6%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 3.4%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 227.6 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$13.2B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital -$722M

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $249M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 260.1%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $593M

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Ventas, Inc.

Ventas, Inc. is a leading S&P 500 real estate investment trust enabling exceptional environments that benefit a large and growing aging population. With approximately 1,400 properties in North America and the United Kingdom, Ventas occupies an essential role in the longevity economy. The Company's growth is fueled by its more than 850 senior housing communities, which provide valuable services to residents and enable them to thrive in supported environments. Ventas aims to deliver outsized performance by leveraging its operational expertise, data-driven insights from its Ventas OI platform, extensive relationships and strong financial position. The Ventas portfolio also includes outpatient medical buildings, research centers and healthcare facilities. Ventas's seasoned team of talented professionals shares a commitment to excellence, integrity and a common purpose of helping people live longer, healthier, happier lives. Ventas, Inc. was incorporated in 1983 and is based in Chicago, United States.

Market Data

Market Cap $39.7B

Enterprise Value $53.8B

P/E (TTM) 148.36

Dividend Yield 2.39%

Exchange NYSE

Key Margins

Gross Profit 39.4%

Operating Margin 12.6%

Net Margin 3.4%

Company Info

Sector Real Estate

Industry REIT - Healthcare Facilities

Employees 542

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Ventas, Inc. at $81.60.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

At $81.60, the stock trades at a 899% premium to its Graham Number of $8.17. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	39.4%▼	40.1%•	N/A
Operating Margin %	12.6%▼	15.0%•	N/A
Net Income %	3.4%▼	4.5%•	N/A
Diluted EPS	0.11▼	0.15•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$27.7B	$27.6B	N/A
Total Debt	$12.7B▼	$13.2B•	N/A
Working Capital	-$722M▼	-$62M•	N/A
Years to Pay Debt	227.61	188.31	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$249M▲	$238M•	N/A
Owner Earnings	$593M	$667M	N/A
CapEx % of Net Income	260.1%	333.4%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	3,175	1,946
Tax Rate For Calcs	0	0
Normalized EBITDA	583,148	579,639
Total Unusual Items	7,938	9,266
Total Unusual Items Excluding Goodwill	7,938	9,266
Net Income From Continuing Operation Net Minority Interest	55,912	70,202
Reconciled Depreciation	391,835	362,567
Reconciled Cost Of Revenue	994,000	927,552
EBITDA	591,086	588,905
EBIT	199,251	226,338
Net Interest Income	-156,142	-154,468
Interest Expense	156,142	154,468
Normalized Income	51,149	62,882
Net Income From Continuing And Discontinued Operation	55,912	70,202
Total Expenses	1,448,581	1,331,127
Rent Expense Supplemental	83,202	80,639
Diluted Average Shares	486,715	480,763
Basic Average Shares	476,185	471,138
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	55,912	70,202
Net Income Common Stockholders	55,912	70,202
Net Income	55,912	70,202
Minority Interests	-3,134	-2,790
Net Income Including Noncontrolling Interests	59,046	72,992
Net Income Continuous Operations	59,046	72,992
Tax Provision	-15,937	-1,122
Pretax Income	43,109	71,870
Other Income Expense	-9,112	-8,552
Other Non Operating Income Expenses	-9,700	-10,091
Special Income Charges	-7,108
Other Special Charges	449	53	15
Restructuring And Mergern Acquisition	6,659	-6,008
Earnings From Equity Interest	-7,350	-7,727
Gain On Sale Of Security	15,046	3,311
Net Non Operating Interest Income Expense	-156,142	-154,468
Interest Expense Non Operating	156,142	154,468
Operating Income	208,363	234,890
Operating Expense	445,214	393,731
Depreciation Amortization Depletion Income Statement	382,468	352,723
Depreciation And Amortization In Income Statement	382,468	352,723
Selling General And Administration	62,746	41,008
Gross Profit	653,577	628,621
Cost Of Revenue	1,003,367	937,396
Total Revenue	1,656,944	1,566,017
Operating Revenue	1,650,376	1,549,790

Balance Sheet

	2026	2025	2024
Treasury Shares Number			4
Ordinary Shares Number	486,097	474,926
Share Issued	486,097	474,926
Net Debt	12,334,880	12,269,949
Total Debt	12,726,149	13,219,618
Tangible Book Value	12,068,746	11,470,500
Invested Capital	25,643,457	25,538,269
Working Capital	-722,014	-61,864
Net Tangible Assets	12,068,746	11,470,500
Capital Lease Obligations	207,656	208,602
Common Stock Equity	13,124,964	12,527,253
Total Capitalization	25,578,457	25,538,269
Total Equity Gross Minority Interest	13,182,002	12,585,808
Minority Interest	57,038	58,555
Stockholders Equity	13,124,964	12,527,253
Gains Losses Not Affecting Retained Earnings	-7,765,108	-7,567,628
Other Equity Adjustments	-7,765,108	-7,567,628
Treasury Stock	0	34
Additional Paid In Capital	20,768,548	19,976,183
Capital Stock	121,524	118,732
Common Stock	121,524	118,732
Total Liabilities Net Minority Interest	14,504,543	15,006,137
Total Non Current Liabilities Net Minority Interest	13,082,453	13,618,181
Preferred Securities Outside Stock Equity	394,578	375,154	310,229
Non Current Deferred Liabilities	26,726	23,409
Non Current Deferred Taxes Liabilities	26,726	23,409
Long Term Debt And Capital Lease Obligation	12,661,149	13,219,618
Long Term Capital Lease Obligation	207,656	208,602
Long Term Debt	12,453,493	13,011,016
Current Liabilities	1,422,090	1,387,956
Other Current Liabilities	1,529	4,032
Current Debt And Capital Lease Obligation	65,000		6,397
Current Debt	65,000		6,397
Line Of Credit	0	0
Commercial Paper	65,000	0
Payables And Accrued Expenses	1,355,561	1,383,924
Current Accrued Expenses	113,612	143,104
Interest Payable	113,612	143,104
Payables	1,241,949	1,240,820
Accounts Payable	1,241,949	1,240,820
Total Assets	27,686,545	27,591,945
Total Non Current Assets	26,986,469	26,265,853
Other Non Current Assets	86,212	97,832
Non Current Deferred Assets	168,890	166,278
Non Current Deferred Taxes Assets	2,668	2,797
Non Current Accounts Receivable	105,337	99,872
Financial Assets			40,192
Investments And Advances	712,188	718,185
Long Term Equity Investment	712,188	718,185
Investment Properties	24,857,624	24,126,933
Goodwill And Other Intangible Assets	1,056,218	1,056,753
Other Intangible Assets	10,444	10,681
Goodwill	1,045,774	1,046,072
Current Assets	700,076	1,326,092
Assets Held For Sale Current	13,530	42,993
Restricted Cash	17,677	45,070
Prepaid Assets	72,201	81,389	71,786
Receivables	413,055	415,573
Loans Receivable	158,152	164,740
Accounts Receivable	254,903	250,833
Cash Cash Equivalents And Short Term Investments	183,613	741,067
Cash And Cash Equivalents	183,613	741,067

Cash Flow

	2026	2025	2024
Free Cash Flow	249,202	237,612
Repayment Of Debt	-810,684	-134,879
Issuance Of Debt	289,501	523,647
Issuance Of Capital Stock	799,299	279,460
Capital Expenditure	-145,405	-234,051
Income Tax Paid Supplemental Data	3,156
End Cash Position	201,290	786,137
Beginning Cash Position	786,137	242,551
Effect Of Exchange Rate Changes	-912	789
Changes In Cash	-583,935	542,797
Financing Cash Flow	89,963	499,856
Cash Flow From Continuing Financing Activities	89,963	499,856
Net Other Financing Charges	-36,233	-14,668
Proceeds From Stock Option Exercised	13,275	65,212
Cash Dividends Paid	-230,188	-225,684
Common Stock Dividend Paid	-230,188	-225,684
Net Common Stock Issuance	799,299	279,460
Common Stock Issuance	799,299	279,460
Net Issuance Payments Of Debt	-456,190	395,536
Net Short Term Debt Issuance	64,993	6,768	6,151
Net Long Term Debt Issuance	-521,183	388,768
Long Term Debt Payments	-810,684	-134,879
Long Term Debt Issuance	289,501	523,647
Investing Cash Flow	-1,068,505	-428,722
Cash Flow From Continuing Investing Activities	-1,068,505	-428,722
Net Other Investing Changes	7,262	41,385
Dividends Received Cfi		33,700	5,813
Net Investment Properties Purchase And Sale	-924,449	-254,128
Sale Of Investment Properties	47,055	54,392
Purchase Of Investment Properties	-971,504	-308,520
Net Business Purchase And Sale	-5,913	-15,628
Purchase Of Business	-5,913	-15,628
Capital Expenditure Reported	-145,405	-234,051
Operating Cash Flow	394,607	471,663
Cash Flow From Continuing Operating Activities	394,607	471,663
Dividend Received Cfo	4,360	7,292
Change In Working Capital	-46,164	35,233
Change In Other Current Assets	10,669	-16,168
Change In Payables And Accrued Expense	-56,833	51,401
Change In Accrued Expense	-29,201	29,638
Change In Interest Payable	-29,201	29,638
Change In Payable	-27,632	21,763
Change In Account Payable	-27,632	21,763
Other Non Cash Items	-12,815	-15,060
Stock Based Compensation	24,842	6,318
Deferred Tax	-19,237	-2,148
Deferred Income Tax	-19,237	-2,148
Depreciation Amortization Depletion	391,835	362,567
Depreciation And Amortization	391,835	362,567
Amortization Cash Flow	9,367	9,844
Amortization Of Intangibles	9,367	9,844
Depreciation	382,468	352,723
Operating Gains Losses	-7,260	4,469
Earnings Losses From Equity Investments	7,350	7,727
Gain Loss On Investment Securities	-15,059	-3,311
Net Income From Continuing Operations	59,046	72,992

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $1.4B ▲ $1.7B +22.0%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 42.1% ▲ 39.4% -2.7pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 15.3% ▲ 12.6% -2.8pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 3.5% ▲ 3.4% -0.1pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$1.7B/qtr (≈$6.6B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.49x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$249M

vs Positive

Operating Cash Flow

$395M

Latest quarter · Buffett's cash reality check

ROIC

0.6%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

3.0x

Net Assets: $13.2B

⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.

Peers & Industry

No auto-detected peers for REIT - Healthcare Facilities. You can manually compare VTR against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.53%

Low — management has little skin in the game

Return on Equity (ROE)

0.4%

Weak — poor returns on equity

Return on Assets (ROA)

0.2%

Poor — assets are not generating adequate returns

Debt Trend YoY

-3.7% YoY

Debt is declining — management is deleveraging

Leadership Team

Debra Cafaro

Chairman & CEO

Age 67

Pay: $5,486,022

9.812% of net income

Robert Probst

Executive VP & CFO

Age 57

Pay: $2,539,356

4.542% of net income

Bill Grant

Senior Vice President of Investor Relations

Timothy Sanders

Senior Vice President of Business Development

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	11.64%	56,582,774
Vanguard Portfolio Management LLC	8.49%	41,261,965
JPMORGAN CHASE & CO	7.28%	35,379,149
Vanguard Capital Management LLC	6.35%	30,866,845
State Street Corporation	6.13%	29,798,498
FMR, LLC	5.61%	27,251,339
Principal Financial Group, Inc.	3.15%	15,335,080
Geode Capital Management, LLC	2.78%	13,501,043

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.73

Low volatility — more stable than the market

Short Interest

5.5% of float

Moderate short interest

Debt-to-Equity

0.94x

Conservative balance sheet — low financial risk

Current Ratio

0.21x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $61.76 Current: $81.60 High: $91.06

Currently at 68% of 52-week range

Ventas, Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis