SABRA HEALTH CARE REIT INC (SBRA) Stock Fundamental Analysis
USA - NASDAQ:SBRA - US78573L1061 - REIT
18.26 USD
-0.1 (-0.54%)
18.6 USD
+0.34 (+1.86%)
SBRA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. SBRA has only an average score on both its financial health and profitability. SBRA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SBRA was profitable.
SBRA had a positive operating cash flow in the past year.
In multiple years SBRA reported negative net income over the last 5 years.
In the past 5 years SBRA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SBRA (3.42%) is better than 80.62% of its industry peers.
The Return On Equity of SBRA (6.72%) is better than 78.29% of its industry peers.
SBRA has a better Return On Invested Capital (4.11%) than 76.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SBRA is in line with the industry average of 3.04%.
The 3 year average ROIC (3.52%) for SBRA is below the current ROIC(4.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.42% | ||
| ROE | 6.72% | ||
| ROIC | 4.11% |
ROA(3y)0.43%
ROA(5y)0.34%
ROE(3y)0.86%
ROE(5y)0.66%
ROIC(3y)3.52%
ROIC(5y)3.4%
1.3 Margins
The Profit Margin of SBRA (24.87%) is better than 77.52% of its industry peers.
In the last couple of years the Profit Margin of SBRA has grown nicely.
SBRA has a better Operating Margin (37.04%) than 79.07% of its industry peers.
SBRA's Operating Margin has declined in the last couple of years.
SBRA's Gross Margin of 69.46% is in line compared to the rest of the industry. SBRA outperforms 58.14% of its industry peers.
In the last couple of years the Gross Margin of SBRA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.04% | ||
| PM (TTM) | 24.87% | ||
| GM | 69.46% |
OM growth 3Y-0.95%
OM growth 5Y-4.46%
PM growth 3YN/A
PM growth 5Y9.21%
GM growth 3Y-4.03%
GM growth 5Y-3.89%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SBRA is destroying value.
SBRA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SBRA has more shares outstanding
Compared to 1 year ago, SBRA has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that SBRA is in the distress zone and has some risk of bankruptcy.
SBRA's Altman-Z score of 0.84 is fine compared to the rest of the industry. SBRA outperforms 68.99% of its industry peers.
SBRA has a debt to FCF ratio of 13.98. This is a negative value and a sign of low solvency as SBRA would need 13.98 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 13.98, SBRA belongs to the best of the industry, outperforming 85.27% of the companies in the same industry.
A Debt/Equity ratio of 0.91 indicates that SBRA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.91, SBRA is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 13.98 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.6
WACC6.87%
2.3 Liquidity
SBRA has a Current Ratio of 2.15. This indicates that SBRA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.15, SBRA belongs to the top of the industry, outperforming 83.72% of the companies in the same industry.
SBRA has a Quick Ratio of 2.15. This indicates that SBRA is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SBRA (2.15) is better than 83.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
SBRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 261.90%, which is quite impressive.
Measured over the past years, SBRA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.28% on average per year.
SBRA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.75%.
SBRA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.41% yearly.
EPS 1Y (TTM)261.9%
EPS 3YN/A
EPS 5Y9.28%
EPS Q2Q%170%
Revenue 1Y (TTM)9.75%
Revenue growth 3Y7.31%
Revenue growth 5Y3.41%
Sales Q2Q%7.39%
3.2 Future
Based on estimates for the next years, SBRA will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.31% on average per year.
SBRA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.46% yearly.
EPS Next Y43.06%
EPS Next 2Y22.13%
EPS Next 3Y15.31%
EPS Next 5YN/A
Revenue Next Year6.65%
Revenue Next 2Y7.24%
Revenue Next 3Y8.72%
Revenue Next 5Y7.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.03 indicates a rather expensive valuation of SBRA.
Based on the Price/Earnings ratio, SBRA is valued a bit cheaper than the industry average as 78.29% of the companies are valued more expensively.
SBRA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
SBRA is valuated rather expensively with a Price/Forward Earnings ratio of 23.10.
Based on the Price/Forward Earnings ratio, SBRA is valued cheaper than 86.05% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.29. SBRA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 23.1 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SBRA.
Based on the Price/Free Cash Flow ratio, SBRA is valued a bit cheaper than 74.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.68 | ||
| EV/EBITDA | 15.24 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SBRA may justify a higher PE ratio.
SBRA's earnings are expected to grow with 15.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)2.59
EPS Next 2Y22.13%
EPS Next 3Y15.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.44%, SBRA is a good candidate for dividend investing.
SBRA's Dividend Yield is a higher than the industry average which is at 6.41.
Compared to an average S&P500 Dividend Yield of 2.41, SBRA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.44% |
5.2 History
The dividend of SBRA decreases each year by -7.34%.
SBRA has been paying a dividend for at least 10 years, so it has a reliable track record.
SBRA has decreased its dividend recently.
Dividend Growth(5Y)-7.34%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
155.77% of the earnings are spent on dividend by SBRA. This is not a sustainable payout ratio.
DP155.77%
EPS Next 2Y22.13%
EPS Next 3Y15.31%
18.26
-0.1 (-0.54%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.95%
Inst Owner Change2.05%
Ins Owners1.03%
Ins Owner Change3.51%
Market Cap4.38B
Analysts76.84
Price Target20.96 (14.79%)
Short Float %8.3%
Short Ratio8.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.44% |
Yearly Dividend1.2
Dividend Growth(5Y)-7.34%
DP155.77%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)23.71%
Min EPS beat(2)-3.84%
Max EPS beat(2)51.26%
EPS beat(4)2
Avg EPS beat(4)10.7%
Min EPS beat(4)-18.65%
Max EPS beat(4)51.26%
EPS beat(8)2
Avg EPS beat(8)-26.88%
EPS beat(12)2
Avg EPS beat(12)-82.02%
EPS beat(16)3
Avg EPS beat(16)-80.22%
Revenue beat(2)2
Avg Revenue beat(2)1.82%
Min Revenue beat(2)0.88%
Max Revenue beat(2)2.77%
Revenue beat(4)4
Avg Revenue beat(4)1.34%
Min Revenue beat(4)0.46%
Max Revenue beat(4)2.77%
Revenue beat(8)7
Avg Revenue beat(8)1.58%
Revenue beat(12)8
Avg Revenue beat(12)0.39%
Revenue beat(16)9
Avg Revenue beat(16)-1.26%
PT rev (1m)2.26%
PT rev (3m)4.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)2.29%
EPS NY rev (3m)5.33%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 23.1 | ||
| P/S | 5.97 | ||
| P/FCF | 24.68 | ||
| P/OCF | 12.92 | ||
| P/B | 1.61 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 15.24 |
EPS(TTM)0.76
EY4.16%
EPS(NY)0.79
Fwd EY4.33%
FCF(TTM)0.74
FCFY4.05%
OCF(TTM)1.41
OCFY7.74%
SpS3.06
BVpS11.31
TBVpS11.2
PEG (NY)0.56
PEG (5Y)2.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.42% | ||
| ROE | 6.72% | ||
| ROCE | 5.21% | ||
| ROIC | 4.11% | ||
| ROICexc | 4.19% | ||
| ROICexgc | 4.21% | ||
| OM | 37.04% | ||
| PM (TTM) | 24.87% | ||
| GM | 69.46% | ||
| FCFM | 24.2% |
ROA(3y)0.43%
ROA(5y)0.34%
ROE(3y)0.86%
ROE(5y)0.66%
ROIC(3y)3.52%
ROIC(5y)3.4%
ROICexc(3y)3.55%
ROICexc(5y)3.44%
ROICexgc(3y)3.57%
ROICexgc(5y)3.46%
ROCE(3y)4.45%
ROCE(5y)4.3%
ROICexcg growth 3Y10.05%
ROICexcg growth 5Y1.42%
ROICexc growth 3Y10.2%
ROICexc growth 5Y1.69%
OM growth 3Y-0.95%
OM growth 5Y-4.46%
PM growth 3YN/A
PM growth 5Y9.21%
GM growth 3Y-4.03%
GM growth 5Y-3.89%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 13.98 | ||
| Debt/EBITDA | 5.59 | ||
| Cap/Depr | 93.8% | ||
| Cap/Sales | 22.02% | ||
| Interest Coverage | 2.61 | ||
| Cash Conversion | 76.37% | ||
| Profit Quality | 97.3% | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z | 0.84 |
F-Score6
WACC6.87%
ROIC/WACC0.6
Cap/Depr(3y)57.48%
Cap/Depr(5y)56.11%
Cap/Sales(3y)15.43%
Cap/Sales(5y)15.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)261.9%
EPS 3YN/A
EPS 5Y9.28%
EPS Q2Q%170%
EPS Next Y43.06%
EPS Next 2Y22.13%
EPS Next 3Y15.31%
EPS Next 5YN/A
Revenue 1Y (TTM)9.75%
Revenue growth 3Y7.31%
Revenue growth 5Y3.41%
Sales Q2Q%7.39%
Revenue Next Year6.65%
Revenue Next 2Y7.24%
Revenue Next 3Y8.72%
Revenue Next 5Y7.46%
EBIT growth 1Y14.09%
EBIT growth 3Y6.29%
EBIT growth 5Y-1.21%
EBIT Next Year83.79%
EBIT Next 3Y27.39%
EBIT Next 5Y19.52%
FCF growth 1Y-12.79%
FCF growth 3Y-12.17%
FCF growth 5Y-11.54%
OCF growth 1Y7.68%
OCF growth 3Y-4.49%
OCF growth 5Y-3.57%