SABRA HEALTH CARE REIT INC (SBRA) Stock Fundamental Analysis
NASDAQ:SBRA - Nasdaq - US78573L1061 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to SBRA. SBRA was compared to 130 industry peers in the Diversified REITs industry. SBRA has only an average score on both its financial health and profitability. SBRA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SBRA was profitable.
In the past year SBRA had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SBRA reported negative net income in multiple years.
In the past 5 years SBRA always reported a positive cash flow from operatings.
1.2 Ratios
SBRA has a Return On Assets of 2.69%. This is in the better half of the industry: SBRA outperforms 73.85% of its industry peers.
With a decent Return On Equity value of 5.21%, SBRA is doing good in the industry, outperforming 70.77% of the companies in the same industry.
SBRA has a better Return On Invested Capital (4.11%) than 76.92% 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 3.16%.
The last Return On Invested Capital (4.11%) for SBRA is above the 3 year average (3.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 5.21% | ||
| 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
Looking at the Profit Margin, with a value of 19.55%, SBRA is in the better half of the industry, outperforming 76.15% of the companies in the same industry.
In the last couple of years the Profit Margin of SBRA has grown nicely.
The Operating Margin of SBRA (37.01%) is better than 83.08% of its industry peers.
SBRA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 69.89%, SBRA perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
SBRA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.01% | ||
| PM (TTM) | 19.55% | ||
| GM | 69.89% |
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.
The number of shares outstanding for SBRA has been increased compared to 1 year ago.
The number of shares outstanding for SBRA has been increased compared to 5 years ago.
SBRA has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that SBRA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.82, SBRA is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
The Debt to FCF ratio of SBRA is 12.36, which is on the high side as it means it would take SBRA, 12.36 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 12.36, SBRA belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
A Debt/Equity ratio of 0.89 indicates that SBRA is somewhat dependend on debt financing.
The Debt to Equity ratio of SBRA (0.89) is better than 66.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 12.36 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.58
WACC7.07%
2.3 Liquidity
SBRA has a Current Ratio of 1.27. This is a normal value and indicates that SBRA is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SBRA (1.27) is better than 64.62% of its industry peers.
SBRA has a Quick Ratio of 1.27. This is a normal value and indicates that SBRA is financially healthy and should not expect problems in meeting its short term obligations.
SBRA's Quick ratio of 1.27 is fine compared to the rest of the industry. SBRA outperforms 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 195.00% over the past year.
SBRA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.28% yearly.
The Revenue has grown by 10.28% in the past year. This is quite good.
SBRA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.41% yearly.
EPS 1Y (TTM)195%
EPS 3YN/A
EPS 5Y9.28%
EPS Q2Q%54.55%
Revenue 1Y (TTM)10.28%
Revenue growth 3Y7.31%
Revenue growth 5Y3.41%
Sales Q2Q%10.07%
3.2 Future
SBRA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.63% yearly.
The Revenue is expected to grow by 7.46% on average over the next years.
EPS Next Y35.68%
EPS Next 2Y21.6%
EPS Next 3Y15.63%
EPS Next 5YN/A
Revenue Next Year6.44%
Revenue Next 2Y6.78%
Revenue Next 3Y8.21%
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 30.63 indicates a quite expensive valuation of SBRA.
SBRA's Price/Earnings ratio is a bit cheaper when compared to the industry. SBRA is cheaper than 63.08% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, SBRA is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.06, the valuation of SBRA can be described as rather expensive.
85.38% of the companies in the same industry are more expensive than SBRA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, SBRA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.63 | ||
| Fwd PE | 23.06 |
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 the industry average as 76.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.19 | ||
| EV/EBITDA | 15.28 |
4.3 Compensation for Growth
SBRA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SBRA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SBRA's earnings are expected to grow with 15.63% in the coming years.
PEG (NY)0.86
PEG (5Y)3.3
EPS Next 2Y21.6%
EPS Next 3Y15.63%
5. Dividend
5.1 Amount
SBRA has a Yearly Dividend Yield of 6.53%, which is a nice return.
SBRA's Dividend Yield is a higher than the industry average which is at 6.42.
SBRA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.53% |
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.
The dividend of SBRA decreased recently.
Dividend Growth(5Y)-7.34%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
SBRA pays out 200.39% of its income as dividend. This is not a sustainable payout ratio.
DP200.39%
EPS Next 2Y21.6%
EPS Next 3Y15.63%
18.07
-0.01 (-0.06%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners99.43%
Inst Owner Change0.48%
Ins Owners1.01%
Ins Owner Change19.08%
Market Cap4.30B
Analysts78
Price Target20.06 (11.01%)
Short Float %8.46%
Short Ratio7.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.53% |
Yearly Dividend1.2
Dividend Growth(5Y)-7.34%
DP200.39%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.1%
Min EPS beat(2)-3.84%
Max EPS beat(2)14.05%
EPS beat(4)1
Avg EPS beat(4)-10.61%
Min EPS beat(4)-34.01%
Max EPS beat(4)14.05%
EPS beat(8)1
Avg EPS beat(8)-34.6%
EPS beat(12)1
Avg EPS beat(12)-91.09%
EPS beat(16)2
Avg EPS beat(16)-113.33%
Revenue beat(2)2
Avg Revenue beat(2)0.67%
Min Revenue beat(2)0.46%
Max Revenue beat(2)0.88%
Revenue beat(4)4
Avg Revenue beat(4)1.65%
Min Revenue beat(4)0.46%
Max Revenue beat(4)4.01%
Revenue beat(8)6
Avg Revenue beat(8)1.2%
Revenue beat(12)7
Avg Revenue beat(12)0.02%
Revenue beat(16)8
Avg Revenue beat(16)-1.56%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.63 | ||
| Fwd PE | 23.06 | ||
| P/S | 5.97 | ||
| P/FCF | 22.19 | ||
| P/OCF | 12.72 | ||
| P/B | 1.59 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 15.28 |
EPS(TTM)0.59
EY3.27%
EPS(NY)0.78
Fwd EY4.34%
FCF(TTM)0.81
FCFY4.51%
OCF(TTM)1.42
OCFY7.86%
SpS3.03
BVpS11.36
TBVpS11.25
PEG (NY)0.86
PEG (5Y)3.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 5.21% | ||
| ROCE | 5.2% | ||
| ROIC | 4.11% | ||
| ROICexc | 4.13% | ||
| ROICexgc | 4.15% | ||
| OM | 37.01% | ||
| PM (TTM) | 19.55% | ||
| GM | 69.89% | ||
| FCFM | 26.91% |
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 | 0.89 | ||
| Debt/FCF | 12.36 | ||
| Debt/EBITDA | 5.48 | ||
| Cap/Depr | 84.77% | ||
| Cap/Sales | 20.04% | ||
| Interest Coverage | 2.54 | ||
| Cash Conversion | 77.4% | ||
| Profit Quality | 137.63% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 0.82 |
F-Score6
WACC7.07%
ROIC/WACC0.58
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)195%
EPS 3YN/A
EPS 5Y9.28%
EPS Q2Q%54.55%
EPS Next Y35.68%
EPS Next 2Y21.6%
EPS Next 3Y15.63%
EPS Next 5YN/A
Revenue 1Y (TTM)10.28%
Revenue growth 3Y7.31%
Revenue growth 5Y3.41%
Sales Q2Q%10.07%
Revenue Next Year6.44%
Revenue Next 2Y6.78%
Revenue Next 3Y8.21%
Revenue Next 5Y7.46%
EBIT growth 1Y16.27%
EBIT growth 3Y6.29%
EBIT growth 5Y-1.21%
EBIT Next Year82.22%
EBIT Next 3Y24.5%
EBIT Next 5Y17.7%
FCF growth 1Y-7.59%
FCF growth 3Y-12.17%
FCF growth 5Y-11.54%
OCF growth 1Y5.33%
OCF growth 3Y-4.49%
OCF growth 5Y-3.57%