LTC Properties Inc. Common Stock (LTC)

FairStock Score: 78/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $134 million in annual free cash flow (7.1% yield on market cap)
• Solid return on equity of 11.2% above cost of capital
• Superior net profit margin of 39.4% indicating pricing power and operational efficiency
• Revenue growth of 60.3% demonstrates strong top-line momentum
• Attractive 6.1% dividend yield providing steady income returns

Concerns

• Altman Z-Score of 1.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

LTC Properties Inc. Common Stock is a micro-cap real estate company valued at $1.9 billion. The business generates $258 million in annual revenue with a 39.4% net margin and $134 million in free cash flow. From a quality standpoint, LTC shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.6 warrants caution. On valuation, the stock is reasonably priced at 15.1x earnings, with trades above its Graham Number with a negative 7% margin. Growth dynamics show revenue growing at 60.3% and profit growth of 465.1%. The 6.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 78/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

LTC's 60% revenue growth trajectory could accelerate as it captures additional market share in the real estate sector. With $134 million in annual free cash flow (7.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the real estate space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer