SABRA HEALTH CARE REIT INC (SBRA) Stock Fundamental Analysis
NASDAQ:SBRA - US78573L1061 - REIT
18.93 USD
-0.15 (-0.79%)
18.96 USD
+0.03 (+0.16%)
We assign a fundamental rating of 6 out of 10 to SBRA. SBRA was compared to 129 industry peers in the Diversified REITs industry. Both the profitability and the financial health of SBRA get a neutral evaluation. Nothing too spectacular is happening here. SBRA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SBRA had positive earnings in the past year.
SBRA had a positive operating cash flow in the past year.
In multiple years SBRA reported negative net income over the last 5 years.
Each year in the past 5 years SBRA had a positive operating cash flow.
1.2 Ratios
SBRA's Return On Assets of 3.42% is amongst the best of the industry. SBRA outperforms 80.62% of its industry peers.
Looking at the Return On Equity, with a value of 6.72%, SBRA is in the better half of the industry, outperforming 78.29% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.11%, SBRA is doing good in the industry, outperforming 76.74% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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
With a decent Profit Margin value of 24.87%, SBRA is doing good in the industry, outperforming 77.52% of the companies in the same industry.
In the last couple of years the Profit Margin of SBRA has grown nicely.
SBRA has a Operating Margin of 37.04%. This is in the better half of the industry: SBRA outperforms 79.07% of its industry peers.
In the last couple of years the Operating Margin of SBRA has declined.
SBRA has a Gross Margin (69.46%) which is in line with its industry peers.
SBRA's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
SBRA has a worse debt/assets ratio than last year.
2.2 Solvency
SBRA has an Altman-Z score of 0.87. This is a bad value and indicates that SBRA is not financially healthy and even has some risk of bankruptcy.
SBRA has a better Altman-Z score (0.87) than 69.77% 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.
SBRA has a better Debt to FCF ratio (13.98) than 85.27% of its industry peers.
SBRA has a Debt/Equity ratio of 0.91. This is a neutral value indicating SBRA is somewhat dependend on debt financing.
SBRA has a better Debt to Equity ratio (0.91) than 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 13.98 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.6
WACC6.88%
2.3 Liquidity
A Current Ratio of 2.15 indicates that SBRA has no problem at all paying its short term obligations.
SBRA has a better Current ratio (2.15) than 83.72% of its industry peers.
A Quick Ratio of 2.15 indicates that SBRA has no problem at all paying its short term obligations.
SBRA's Quick ratio of 2.15 is amongst the best of the industry. SBRA outperforms 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.
The Earnings Per Share has been growing by 9.28% on average over the past years. This is quite good.
Looking at the last year, SBRA shows a quite strong growth in Revenue. The Revenue has grown by 9.75% in the last year.
The Revenue has been growing slightly by 3.41% on average over the past years.
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 15.63% 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 Y39.85%
EPS Next 2Y22.13%
EPS Next 3Y15.63%
EPS Next 5YN/A
Revenue Next Year6.59%
Revenue Next 2Y7.04%
Revenue Next 3Y8.21%
Revenue Next 5Y7.46%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.91, which indicates a rather expensive current valuation of SBRA.
Based on the Price/Earnings ratio, SBRA is valued a bit cheaper than the industry average as 75.97% 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 27.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.95, SBRA is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SBRA indicates a rather cheap valuation: SBRA is cheaper than 86.05% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.54. SBRA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.91 | ||
| Fwd PE | 23.95 |
4.2 Price Multiples
SBRA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SBRA is valued a bit cheaper than the industry average as 71.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.59 | ||
| EV/EBITDA | 15.61 |
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)0.63
PEG (5Y)2.68
EPS Next 2Y22.13%
EPS Next 3Y15.63%
5. Dividend
5.1 Amount
SBRA has a Yearly Dividend Yield of 6.29%, which is a nice return.
SBRA's Dividend Yield is a higher than the industry average which is at 6.63.
SBRA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
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 155.77% of its income as dividend. This is not a sustainable payout ratio.
DP155.77%
EPS Next 2Y22.13%
EPS Next 3Y15.63%
18.93
-0.15 (-0.79%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners99.82%
Inst Owner Change2.05%
Ins Owners1.03%
Ins Owner Change3.51%
Market Cap4.54B
Analysts76.84
Price Target20.68 (9.24%)
Short Float %7.63%
Short Ratio7.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
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)2.29%
PT rev (3m)3.08%
EPS NQ rev (1m)0.94%
EPS NQ rev (3m)0%
EPS NY rev (1m)3.07%
EPS NY rev (3m)2.76%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.91 | ||
| Fwd PE | 23.95 | ||
| P/S | 6.19 | ||
| P/FCF | 25.59 | ||
| P/OCF | 13.4 | ||
| P/B | 1.67 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 15.61 |
EPS(TTM)0.76
EY4.01%
EPS(NY)0.79
Fwd EY4.18%
FCF(TTM)0.74
FCFY3.91%
OCF(TTM)1.41
OCFY7.46%
SpS3.06
BVpS11.31
TBVpS11.2
PEG (NY)0.63
PEG (5Y)2.68
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 | 0.87 |
F-Score6
WACC6.88%
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 Y39.85%
EPS Next 2Y22.13%
EPS Next 3Y15.63%
EPS Next 5YN/A
Revenue 1Y (TTM)9.75%
Revenue growth 3Y7.31%
Revenue growth 5Y3.41%
Sales Q2Q%7.39%
Revenue Next Year6.59%
Revenue Next 2Y7.04%
Revenue Next 3Y8.21%
Revenue Next 5Y7.46%
EBIT growth 1Y14.09%
EBIT growth 3Y6.29%
EBIT growth 5Y-1.21%
EBIT Next Year83.21%
EBIT Next 3Y26.94%
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%