SABRA HEALTH CARE REIT INC (SBRA) Stock Fundamental Analysis
NASDAQ:SBRA - Nasdaq - US78573L1061 - REIT - Currency: USD
SBRA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. SBRA has an average financial health and profitability rating. 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.
The reported net income has been mixed in the past 5 years: SBRA reported negative net income in multiple years.
Each year in the past 5 years SBRA had a positive operating cash flow.
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.
Looking at the Return On Equity, with a value of 5.21%, SBRA is in the better half of 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 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 | 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
The Profit Margin of SBRA (19.55%) is better than 76.15% of its industry peers.
In the last couple of years the Profit Margin of SBRA has grown nicely.
SBRA's Operating Margin of 37.01% is amongst the best of the industry. SBRA outperforms 83.08% 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 in line with its industry peers.
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.
Compared to 1 year ago, SBRA has more shares outstanding
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
SBRA has an Altman-Z score of 0.86. This is a bad value and indicates that SBRA is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.86, SBRA is in the better half of the industry, outperforming 68.46% of the companies in the same industry.
SBRA has a debt to FCF ratio of 12.36. This is a negative value and a sign of low solvency as SBRA would need 12.36 years to pay back of all of its debts.
SBRA's Debt to FCF ratio of 12.36 is amongst the best of the industry. SBRA outperforms 89.23% of its industry peers.
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 | 0.86 |
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.
Looking at the Current ratio, with a value of 1.27, SBRA is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
A Quick Ratio of 1.27 indicates that SBRA should not have too much problems paying 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
SBRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 195.00%, which is quite impressive.
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
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.
Based on estimates for the next years, SBRA will show a small growth in Revenue. The Revenue will grow by 7.46% on average per year.
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.
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 31.20, which means the current valuation is very expensive for SBRA.
63.08% of the companies in the same industry are more expensive than SBRA, based on the Price/Earnings ratio.
SBRA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 23.49, which indicates a rather expensive current valuation of SBRA.
SBRA's Price/Forward Earnings ratio is rather cheap when compared to the industry. SBRA is cheaper than 83.08% of the companies in the same industry.
SBRA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.2 | ||
| Fwd PE | 23.49 |
4.2 Price Multiples
60.77% of the companies in the same industry are cheaper than SBRA, based on the Enterprise Value to EBITDA ratio.
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 | 22.61 | ||
| EV/EBITDA | 15.65 |
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 15.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)3.36
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 6.44.
Compared to an average S&P500 Dividend Yield of 2.35, SBRA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.53% |
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 2Y21.6%
EPS Next 3Y15.63%
18.41
-0.35 (-1.87%)
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 Cap4.38B
Analysts78
Price Target20.06 (8.96%)
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 | 31.2 | ||
| Fwd PE | 23.49 | ||
| P/S | 6.08 | ||
| P/FCF | 22.61 | ||
| P/OCF | 12.96 | ||
| P/B | 1.62 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 15.65 |
EPS(TTM)0.59
EY3.2%
EPS(NY)0.78
Fwd EY4.26%
FCF(TTM)0.81
FCFY4.42%
OCF(TTM)1.42
OCFY7.72%
SpS3.03
BVpS11.36
TBVpS11.25
PEG (NY)0.87
PEG (5Y)3.36
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 | 0.86 |
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%