SABRA HEALTH CARE REIT INC (SBRA)
US78573L1061 - REIT
SBRA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 127 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
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.
SBRA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SBRA has a Return On Assets (0.92%) which is in line with its industry peers.
SBRA's Return On Equity of 1.79% is in line compared to the rest of the industry. SBRA outperforms 52.80% of its industry peers.
With a decent Return On Invested Capital value of 3.80%, SBRA is doing good in the industry, outperforming 78.40% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SBRA is in line with the industry average of 2.97%.
The last Return On Invested Capital (3.80%) for SBRA is above the 3 year average (3.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 1.79% | ||
| ROIC | 3.8% |
ROA(3y)-1%
ROA(5y)0.09%
ROE(3y)-1.8%
ROE(5y)0.13%
ROIC(3y)3.52%
ROIC(5y)3.69%
1.3 Margins
Looking at the Profit Margin, with a value of 7.58%, SBRA is in line with its industry, outperforming 57.60% of the companies in the same industry.
In the last couple of years the Profit Margin of SBRA has declined.
The Operating Margin of SBRA (35.10%) is better than 78.40% of its industry peers.
In the last couple of years the Operating Margin of SBRA has declined.
With a decent Gross Margin value of 71.92%, SBRA is doing good in the industry, outperforming 63.20% of the companies in the same industry.
In the last couple of years the Gross Margin of SBRA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.1% | ||
| PM (TTM) | 7.58% | ||
| GM | 71.92% |
OM growth 3Y-7.7%
OM growth 5Y-7.03%
PM growth 3Y-54.88%
PM growth 5Y-45.25%
GM growth 3Y-4.04%
GM growth 5Y-4.63%
2. Health
2.1 Basic Checks
SBRA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SBRA remains at a similar level compared to 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
Based on the Altman-Z score of 0.60, 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 0.60, SBRA is in line with its industry, outperforming 52.00% of the companies in the same industry.
The Debt to FCF ratio of SBRA is 10.01, which is on the high side as it means it would take SBRA, 10.01 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SBRA (10.01) is better than 88.00% of its industry peers.
SBRA has a Debt/Equity ratio of 0.89. This is a neutral value indicating SBRA is somewhat dependend on debt financing.
SBRA has a better Debt to Equity ratio (0.89) than 64.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 10.01 | ||
| Altman-Z | 0.6 |
ROIC/WACC0.52
WACC7.32%
2.3 Liquidity
A Current Ratio of 1.75 indicates that SBRA should not have too much problems paying its short term obligations.
SBRA has a better Current ratio (1.75) than 67.20% of its industry peers.
SBRA has a Quick Ratio of 1.75. This is a normal value and indicates that SBRA is financially healthy and should not expect problems in meeting its short term obligations.
SBRA has a better Quick ratio (1.75) than 70.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
SBRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 135.71%, which is quite impressive.
SBRA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -49.55% yearly.
The Revenue has been growing slightly by 4.80% in the past year.
The Revenue has been growing slightly by 0.76% on average over the past years.
EPS 1Y (TTM)135.71%
EPS 3Y-57.9%
EPS 5Y-49.55%
EPS growth Q2Q375%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y2.65%
Revenue growth 5Y0.76%
Revenue growth Q2Q3.36%
3.2 Future
Based on estimates for the next years, SBRA will show a very strong growth in Earnings Per Share. The EPS will grow by 141.45% on average per year.
Based on estimates for the next years, SBRA will show a small growth in Revenue. The Revenue will grow by 6.97% on average per year.
EPS Next Y1076.41%
EPS Next 2Y264.14%
EPS Next 3Y141.45%
EPS Next 5YN/A
Revenue Next Year2.85%
Revenue Next 2Y4.03%
Revenue Next 3Y3.91%
Revenue Next 5Y6.97%
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
SBRA is valuated quite expensively with a Price/Earnings ratio of 72.40.
SBRA's Price/Earnings ratio is a bit more expensive when compared to the industry. SBRA is more expensive than 60.00% of the companies in the same industry.
SBRA is valuated expensively when we compare the Price/Earnings ratio to 28.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.84, SBRA is valued on the expensive side.
Based on the Price/Forward Earnings ratio, SBRA is valued cheaper than 88.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.47. SBRA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.4 | ||
| Fwd PE | 21.84 |
4.2 Price Multiples
SBRA's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SBRA indicates a rather cheap valuation: SBRA is cheaper than 83.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.62 | ||
| EV/EBITDA | 14.32 |
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.
A more expensive valuation may be justified as SBRA's earnings are expected to grow with 141.45% in the coming years.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y264.14%
EPS Next 3Y141.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.17%, SBRA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.70, SBRA pays a better dividend. On top of this SBRA pays more dividend than 85.60% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, SBRA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.17% |
5.2 History
The dividend of SBRA decreases each year by -8.03%.
SBRA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-8.03%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
560.72% of the earnings are spent on dividend by SBRA. This is not a sustainable payout ratio.
DP560.72%
EPS Next 2Y264.14%
EPS Next 3Y141.45%
SABRA HEALTH CARE REIT INC
NASDAQ:SBRA (5/16/2024, 7:16:12 PM)
After market: 14.48 0 (0%)14.48
-0.03 (-0.21%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.17% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.4 | ||
| Fwd PE | 21.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 1.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 35.1% | ||
| PM (TTM) | 7.58% | ||
| GM | 71.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)135.71%
EPS 3Y-57.9%
EPS 5Y
EPS growth Q2Q
EPS Next Y1076.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.8%
Revenue growth 3Y2.65%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y