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 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SBRA had positive earnings in the past year.
In the past year SBRA had a positive cash flow from operations.
In multiple years SBRA reported negative net income over the last 5 years.
SBRA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.69%, SBRA is in the better half of the industry, outperforming 73.64% of the companies in the same industry.
SBRA's Return On Equity of 5.21% is fine compared to the rest of the industry. SBRA outperforms 70.54% of its industry peers.
SBRA's Return On Invested Capital of 4.11% is fine compared to the rest of the industry. SBRA outperforms 77.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SBRA is in line with the industry average of 3.15%.
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
SBRA has a Profit Margin of 19.55%. This is in the better half of the industry: SBRA outperforms 75.19% of its industry peers.
SBRA's Profit Margin has improved in the last couple of years.
SBRA has a better Operating Margin (37.01%) than 81.40% of its industry peers.
In the last couple of years the Operating Margin of SBRA has declined.
SBRA has a Gross Margin (69.89%) which is comparable to the rest of the 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.
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 0.78, we must say that SBRA is in the distress zone and has some risk of bankruptcy.
SBRA has a better Altman-Z score (0.78) than 66.67% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 12.36, SBRA belongs to the top of the industry, outperforming 89.15% of the companies in the same industry.
SBRA has a Debt/Equity ratio of 0.89. This is a neutral value indicating SBRA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.89, 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 | 0.89 | ||
| Debt/FCF | 12.36 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.58
WACC7.14%
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.
SBRA's Current ratio of 1.27 is fine compared to the rest of the industry. SBRA outperforms 65.12% 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.
Looking at the Quick ratio, with a value of 1.27, SBRA is in the better half of the industry, outperforming 65.89% of the companies in the same industry.
| 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.
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.
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
Based on estimates for the next years, SBRA will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.71% on average per year.
SBRA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.19% yearly.
EPS Next Y36.09%
EPS Next 2Y22.3%
EPS Next 3Y15.71%
EPS Next 5YN/A
Revenue Next Year6.1%
Revenue Next 2Y5.6%
Revenue Next 3Y4.82%
Revenue Next 5Y7.19%
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
With a Price/Earnings ratio of 29.28, SBRA can be considered very expensive at the moment.
62.02% of the companies in the same industry are more expensive than SBRA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.03. SBRA is around the same levels.
The Price/Forward Earnings ratio is 21.79, which indicates a rather expensive current valuation of SBRA.
86.05% 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 21.94, SBRA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.28 | ||
| Fwd PE | 21.79 |
4.2 Price Multiples
SBRA's Enterprise Value to EBITDA ratio is in line with the industry average.
SBRA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SBRA is cheaper than 76.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.22 | ||
| EV/EBITDA | 14.84 |
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.
SBRA's earnings are expected to grow with 15.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.81
PEG (5Y)3.15
EPS Next 2Y22.3%
EPS Next 3Y15.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.76%, SBRA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.61, SBRA pays a bit more dividend than its industry peers.
SBRA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.76% |
5.2 History
The dividend of SBRA decreases each year by -7.34%.
SBRA has paid a dividend for at least 10 years, which is 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 2Y22.3%
EPS Next 3Y15.71%
NASDAQ:SBRA (5/22/2025, 12:51:07 PM)
17.275
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.84%
Inst Owner Change-0.38%
Ins Owners1.3%
Ins Owner Change11.09%
Market Cap4.11B
Analysts78
Price Target19.89 (15.14%)
Short Float %7.91%
Short Ratio7.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.76% |
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)-0.85%
PT rev (3m)-1.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.94%
EPS NY rev (1m)0%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.28 | ||
| Fwd PE | 21.79 | ||
| P/S | 5.71 | ||
| P/FCF | 21.22 | ||
| P/OCF | 12.16 | ||
| P/B | 1.52 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 14.84 |
EPS(TTM)0.59
EY3.42%
EPS(NY)0.79
Fwd EY4.59%
FCF(TTM)0.81
FCFY4.71%
OCF(TTM)1.42
OCFY8.22%
SpS3.03
BVpS11.36
TBVpS11.25
PEG (NY)0.81
PEG (5Y)3.15
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 | 0.78 |
F-Score6
WACC7.14%
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 Y36.09%
EPS Next 2Y22.3%
EPS Next 3Y15.71%
EPS Next 5YN/A
Revenue 1Y (TTM)10.28%
Revenue growth 3Y7.31%
Revenue growth 5Y3.41%
Sales Q2Q%10.07%
Revenue Next Year6.1%
Revenue Next 2Y5.6%
Revenue Next 3Y4.82%
Revenue Next 5Y7.19%
EBIT growth 1Y16.27%
EBIT growth 3Y6.29%
EBIT growth 5Y-1.21%
EBIT Next Year81.5%
EBIT Next 3Y23.63%
EBIT Next 5Y16.83%
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%