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CTRE (CareTrust REIT) Altman Z-Score : 6.62 (As of Dec. 15, 2024)


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What is CareTrust REIT Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 6.58 is strong.

CareTrust REIT has a Altman Z-Score of 6.62, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for CareTrust REIT's Altman Z-Score or its related term are showing as below:

CTRE' s Altman Z-Score Range Over the Past 10 Years
Min: 0.51   Med: 1.61   Max: 6.58
Current: 6.58

During the past 12 years, CareTrust REIT's highest Altman Z-Score was 6.58. The lowest was 0.51. And the median was 1.61.


CareTrust REIT Altman Z-Score Historical Data

The historical data trend for CareTrust REIT's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CareTrust REIT Altman Z-Score Chart

CareTrust REIT Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.02 2.22 1.81 1.14 2.69

CareTrust REIT Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.06 2.69 3.23 3.22 6.48

Competitive Comparison of CareTrust REIT's Altman Z-Score

For the REIT - Healthcare Facilities subindustry, CareTrust REIT's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


CareTrust REIT's Altman Z-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, CareTrust REIT's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where CareTrust REIT's Altman Z-Score falls into.



CareTrust REIT Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

CareTrust REIT's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.1009+1.4*-0.1816+3.3*0.0453+0.6*10.8773+1.0*0.0752
=6.62

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2024:
Total Assets was $2,920.9 Mil.
Total Current Assets was $394.0 Mil.
Total Current Liabilities was $99.4 Mil.
Retained Earnings was $-530.3 Mil.
Pre-Tax Income was 33.276 + 10.418 + 28.75 + 26.294 = $98.7 Mil.
Interest Expense was -8.281 + -8.679 + -8.228 + -8.266 = $-33.5 Mil.
Revenue was 57.153 + 55.407 + 53.502 + 53.473 = $219.5 Mil.
Market Cap (Today) was $5,396.7 Mil.
Total Liabilities was $496.1 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(394.029 - 99.438)/2920.879
=0.1009

X2=Retained Earnings/Total Assets
=-530.317/2920.879
=-0.1816

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(98.738 - -33.454)/2920.879
=0.0453

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=5396.695/496.143
=10.8773

X5=Revenue/Total Assets
=219.535/2920.879
=0.0752

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

CareTrust REIT has a Altman Z-Score of 6.62 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


CareTrust REIT  (NYSE:CTRE) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


CareTrust REIT Altman Z-Score Related Terms

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CareTrust REIT Business Description

Traded in Other Exchanges
N/A
Address
905 Calle Amanecer, Suite 300, San Clemente, CA, USA, 92673
CareTrust REIT Inc is a self-administered, publicly-traded REIT engaged in the ownership, acquisition, financing, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. The Company has one reportable segment consisting of investments in healthcare-related real estate assets. It generates revenues by leasing healthcare-related properties to healthcare operators in triple-net lease arrangements. The Company generate revenues by leasing healthcare-related properties to healthcare operators in triple-net lease arrangements, under which the tenant is solely responsible for the costs related to the property (including property taxes, insurance, maintenance and repair costs and capital expenditures).
Executives
William M Wagner officer: See Remarks 903 CALLE AMANECER, SUITE 100, SAN CLEMENTE CA 92673
James Callister officer: Executive Vice President 905 CALLE AMANECER, SUITE 300, SAN CLEMENTE CA 92673
Anne Olson director 800 LASALLE AVENUE, SUITE 1600, MINNEAPOLIS MN 55402
Careina D. Williams director 905 CALLE AMANECER, SUITE 300, SAN CLEMENTE CA 92673
Spencer G Plumb director 17140 BERNARDO CENTER DRIVE, SUITE 300, SAN DIEGO CA 92128
Diana Laing director THE MACERICH COMPANY, 401 WILSHIRE BVLD., STE. 700, SANTA MONICA CA 90401
Mark D Lamb officer: Chief Investment Officer 905 CALLE AMANECER, SUITE 300, SAN CLEMENTE CA 92673
Gary B Sabin director 16955 VIA DEL CAMPO SUITE 110, SAN DIEGO CA 92127
Jon D Kline director 903 CALLE AMANECER, SUITE 100, SAN CLEMENTE CA 92673
David M. Sedgwick officer: Vice President of Operations 27101 PUERTA REAL, SUITE 450, MISSION VIEJO CA 92691
Gregory K. Stapley director, officer: President and CEO 27101 PUERTA REAL, SUITE 450, MISSION VIEJO CA 92691
Allen Barbieri director
David G. Lindahl director 27101 PUERTA REAL, SUITE 400, MISSION VIEJO CA 92691
Christopher R. Christensen director 27101 PUERTA REAL, SUITE 450, MISSION VIEJO CA 92691
Ensign Group, Inc 10 percent owner 29222 RANCHO VIEJO RD., SUITE 127, SAN JUAN CAPISTRANO CA 92675