SABRA HEALTH CARE REIT INC (SBRA) Stock Fundamental Analysis
NASDAQ:SBRA - Nasdaq - US78573L1061 - REIT - Currency: USD
Overall SBRA gets a fundamental rating of 4 out of 10. We evaluated SBRA 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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.
SBRA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SBRA's Return On Assets of 1.81% is fine compared to the rest of the industry. SBRA outperforms 64.29% of its industry peers.
The Return On Equity of SBRA (3.54%) is better than 61.90% of its industry peers.
SBRA has a better Return On Invested Capital (4.06%) than 80.16% of its industry peers.
SBRA had an Average Return On Invested Capital over the past 3 years of 3.52%. This is in line with the industry average of 3.11%.
The 3 year average ROIC (3.52%) for SBRA is below the current ROIC(4.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.81% | ||
| ROE | 3.54% | ||
| ROIC | 4.06% |
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
SBRA has a Profit Margin of 14.20%. This is in the better half of the industry: SBRA outperforms 67.46% of its industry peers.
SBRA's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 35.67%, SBRA is doing good in the industry, outperforming 79.37% of the companies in the same industry.
SBRA's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 70.85%, SBRA is doing good in the industry, outperforming 61.11% of the companies in the same industry.
SBRA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.67% | ||
| PM (TTM) | 14.2% | ||
| GM | 70.85% |
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.
There is no outstanding debt for SBRA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 0.69, 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 0.69, SBRA is in line with its industry, outperforming 57.14% of the companies in the same industry.
The Debt to FCF ratio of SBRA is 15.62, which is on the high side as it means it would take SBRA, 15.62 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SBRA (15.62) is better than 77.78% of its industry peers.
A Debt/Equity ratio of 0.90 indicates that SBRA is somewhat dependend on debt financing.
SBRA's Debt to Equity ratio of 0.90 is fine compared to the rest of the industry. SBRA outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 15.62 | ||
| Altman-Z | 0.69 |
ROIC/WACC0.57
WACC7.11%
2.3 Liquidity
A Current Ratio of 1.44 indicates that SBRA should not have too much problems paying its short term obligations.
SBRA has a Current ratio of 1.44. This is in the better half of the industry: SBRA outperforms 61.11% of its industry peers.
SBRA has a Quick Ratio of 1.44. 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 (1.44) than 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
SBRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1300.00%, which is quite impressive.
The Earnings Per Share has been growing by 15.54% on average over the past years. This is quite good.
EPS 1Y (TTM)1300%
EPS 3YN/A
EPS 5Y15.54%
EPS Q2Q%414.29%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%11.6%
3.2 Future
SBRA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.82% yearly.
The Revenue is expected to grow by 7.01% on average over the next years.
EPS Next Y1.76%
EPS Next 2Y4.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.39%
Revenue Next 2Y6.73%
Revenue Next 3Y7.35%
Revenue Next 5Y7.01%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.70, 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 78.57% of the companies are valued more expensively.
SBRA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 22.31, SBRA is valued on the expensive side.
SBRA's Price/Forward Earnings ratio is rather cheap when compared to the industry. SBRA is cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. SBRA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.7 | ||
| Fwd PE | 22.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SBRA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, SBRA is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.77 | ||
| EV/EBITDA | 15.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SBRA does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SBRA may justify a higher PE ratio.
PEG (NY)12.92
PEG (5Y)1.46
EPS Next 2Y4.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.32%, SBRA is a good candidate for dividend investing.
SBRA's Dividend Yield is a higher than the industry average which is at 18.48.
SBRA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.32% |
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.
The dividend of SBRA decreased recently.
Dividend Growth(5Y)-8.03%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
SBRA pays out 286.65% of its income as dividend. This is not a sustainable payout ratio.
DP286.65%
EPS Next 2Y4.82%
EPS Next 3YN/A
15.89
-0.5 (-3.05%)
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 Change1.35%
Ins Owners1.3%
Ins Owner Change10.76%
Market Cap3.76B
Analysts78
Price Target20.23 (27.31%)
Short Float %7.59%
Short Ratio8.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.32% |
Yearly Dividend1.2
Dividend Growth(5Y)-8.03%
DP286.65%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.33%
Min EPS beat(2)-34.01%
Max EPS beat(2)-18.65%
EPS beat(4)0
Avg EPS beat(4)-30.93%
Min EPS beat(4)-48.9%
Max EPS beat(4)-18.65%
EPS beat(8)0
Avg EPS beat(8)-101.71%
EPS beat(12)1
Avg EPS beat(12)-106.59%
EPS beat(16)2
Avg EPS beat(16)-114.18%
Revenue beat(2)2
Avg Revenue beat(2)2.63%
Min Revenue beat(2)1.26%
Max Revenue beat(2)4.01%
Revenue beat(4)4
Avg Revenue beat(4)2.21%
Min Revenue beat(4)1.26%
Max Revenue beat(4)4.01%
Revenue beat(8)5
Avg Revenue beat(8)1.46%
Revenue beat(12)6
Avg Revenue beat(12)-0.87%
Revenue beat(16)6
Avg Revenue beat(16)-1.79%
PT rev (1m)-0.34%
PT rev (3m)2.72%
EPS NQ rev (1m)2.08%
EPS NQ rev (3m)2.08%
EPS NY rev (1m)-1.3%
EPS NY rev (3m)-4.72%
Revenue NQ rev (1m)1.19%
Revenue NQ rev (3m)1.97%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.7 | ||
| Fwd PE | 22.31 | ||
| P/S | 5.49 | ||
| P/FCF | 23.77 | ||
| P/OCF | 12.15 | ||
| P/B | 1.37 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 15.17 |
EPS(TTM)0.7
EY4.41%
EPS(NY)0.71
Fwd EY4.48%
FCF(TTM)0.67
FCFY4.21%
OCF(TTM)1.31
OCFY8.23%
SpS2.89
BVpS11.6
TBVpS11.48
PEG (NY)12.92
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.81% | ||
| ROE | 3.54% | ||
| ROCE | 4.65% | ||
| ROIC | 4.06% | ||
| ROICexc | 4.11% | ||
| ROICexgc | 4.14% | ||
| OM | 35.67% | ||
| PM (TTM) | 14.2% | ||
| GM | 70.85% | ||
| FCFM | 23.12% |
ROA(3y)-1%
ROA(5y)0.09%
ROE(3y)-1.8%
ROE(5y)0.13%
ROIC(3y)3.52%
ROIC(5y)3.69%
ROICexc(3y)3.56%
ROICexc(5y)3.73%
ROICexgc(3y)3.58%
ROICexgc(5y)3.77%
ROCE(3y)4.03%
ROCE(5y)4.22%
ROICexcg growth 3Y-2.17%
ROICexcg growth 5Y-2.37%
ROICexc growth 3Y-1.9%
ROICexc growth 5Y-2%
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%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 15.62 | ||
| Debt/EBITDA | 5.96 | ||
| Cap/Depr | 88.8% | ||
| Cap/Sales | 22.09% | ||
| Interest Coverage | 2.41 | ||
| Cash Conversion | 74.67% | ||
| Profit Quality | 162.79% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 0.69 |
F-Score5
WACC7.11%
ROIC/WACC0.57
Cap/Depr(3y)49.18%
Cap/Depr(5y)45.66%
Cap/Sales(3y)14.79%
Cap/Sales(5y)13.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1300%
EPS 3YN/A
EPS 5Y15.54%
EPS Q2Q%414.29%
EPS Next Y1.76%
EPS Next 2Y4.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%11.6%
Revenue Next Year7.39%
Revenue Next 2Y6.73%
Revenue Next 3Y7.35%
Revenue Next 5Y7.01%
EBIT growth 1Y7.3%
EBIT growth 3Y-5.25%
EBIT growth 5Y-6.32%
EBIT Next Year89.02%
EBIT Next 3Y28.64%
EBIT Next 5Y18.44%
FCF growth 1Y-29.62%
FCF growth 3Y-5.37%
FCF growth 5Y17.51%
OCF growth 1Y-10.62%
OCF growth 3Y-5.39%
OCF growth 5Y-3.58%