SABRA HEALTH CARE REIT INC (SBRA) Stock Fundamental Analysis
USA - NASDAQ:SBRA - US78573L1061 - REIT
18.7 USD
-0.17 (-0.9%)
18.6523 USD
-0.05 (-0.26%)
Taking everything into account, SBRA scores 6 out of 10 in our fundamental rating. SBRA was compared to 130 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 decent growth rate and is not valued too expensively.
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.
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
The Return On Assets of SBRA (3.42%) is better than 80.77% of its industry peers.
SBRA has a Return On Equity of 6.72%. This is in the better half of the industry: SBRA outperforms 78.46% of its industry peers.
SBRA has a better Return On Invested Capital (4.11%) than 76.15% 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 3.05%.
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 | 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
SBRA has a Profit Margin of 24.87%. This is in the better half of the industry: SBRA outperforms 77.69% of its industry peers.
SBRA's Profit Margin has improved in the last couple of years.
SBRA has a Operating Margin of 37.04%. This is in the better half of the industry: SBRA outperforms 79.23% of its industry peers.
In the last couple of years the Operating Margin of SBRA has declined.
With a Gross Margin value of 69.46%, SBRA perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
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
SBRA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for SBRA is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that SBRA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SBRA (0.87) is better than 70.77% 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.
With an excellent Debt to FCF ratio value of 13.98, SBRA belongs to the best of the industry, outperforming 85.38% of the companies in the same industry.
SBRA has a Debt/Equity ratio of 0.91. This is a neutral value indicating SBRA is somewhat dependend on debt financing.
The Debt to Equity ratio of SBRA (0.91) is better than 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 13.98 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.6
WACC6.84%
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 Current ratio of 2.15. This is amongst the best in the industry. SBRA outperforms 83.85% of its industry peers.
SBRA has a Quick Ratio of 2.15. This indicates that SBRA is financially healthy and has no problem in meeting its short term obligations.
SBRA's Quick ratio of 2.15 is amongst the best of the industry. SBRA outperforms 83.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 261.90% 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.
SBRA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.75%.
SBRA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.41% yearly.
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
The Earnings Per Share is expected to grow by 15.63% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.46% on average over the next years.
EPS Next Y39.85%
EPS Next 2Y22.13%
EPS Next 3Y15.63%
EPS Next 5YN/A
Revenue Next Year6.65%
Revenue Next 2Y7.24%
Revenue Next 3Y8.72%
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.
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
The Price/Earnings ratio is 24.61, which indicates a rather expensive current valuation of SBRA.
76.92% 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 27.20. SBRA is around the same levels.
Based on the Price/Forward Earnings ratio of 23.66, the valuation of SBRA can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SBRA is valued cheaper than 86.15% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, SBRA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.61 | ||
| Fwd PE | 23.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBRA is valued a bit more expensive than 60.00% of the companies in the same industry.
71.54% of the companies in the same industry are more expensive than SBRA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.28 | ||
| EV/EBITDA | 15.57 |
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.
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)0.62
PEG (5Y)2.65
EPS Next 2Y22.13%
EPS Next 3Y15.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.27%, SBRA is a good candidate for dividend investing.
SBRA's Dividend Yield is a higher than the industry average which is at 6.66.
SBRA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.27% |
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.
SBRA has decreased its dividend recently.
Dividend Growth(5Y)-7.34%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
155.77% of the earnings are spent on dividend by SBRA. This is not a sustainable payout ratio.
DP155.77%
EPS Next 2Y22.13%
EPS Next 3Y15.63%
18.7
-0.17 (-0.9%)
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 Cap4.48B
Analysts76.84
Price Target20.96 (12.09%)
Short Float %8.17%
Short Ratio7.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.27% |
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)3.67%
PT rev (3m)4.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)3.07%
EPS NY rev (3m)2.76%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.61 | ||
| Fwd PE | 23.66 | ||
| P/S | 6.12 | ||
| P/FCF | 25.28 | ||
| P/OCF | 13.23 | ||
| P/B | 1.65 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 15.57 |
EPS(TTM)0.76
EY4.06%
EPS(NY)0.79
Fwd EY4.23%
FCF(TTM)0.74
FCFY3.96%
OCF(TTM)1.41
OCFY7.56%
SpS3.06
BVpS11.31
TBVpS11.2
PEG (NY)0.62
PEG (5Y)2.65
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
WACC6.84%
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 Year6.65%
Revenue Next 2Y7.24%
Revenue Next 3Y8.72%
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%