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 130 industry peers in the Diversified REITs industry. SBRA has only an average score on both its financial health and profitability. 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.
SBRA had a positive operating cash flow in the past year.
In multiple years SBRA reported negative net income over the last 5 years.
In the past 5 years SBRA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SBRA (2.39%) is better than 73.08% of its industry peers.
The Return On Equity of SBRA (4.62%) is better than 69.23% of its industry peers.
SBRA's Return On Invested Capital of 3.92% is fine compared to the rest of the industry. SBRA outperforms 73.08% 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 3.19%.
The last Return On Invested Capital (3.92%) for SBRA is above the 3 year average (3.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 4.62% | ||
| ROIC | 3.92% |
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 18.02%. This is in the better half of the industry: SBRA outperforms 71.54% of its industry peers.
SBRA's Profit Margin has improved in the last couple of years.
SBRA's Operating Margin of 36.55% is amongst the best of the industry. SBRA outperforms 80.77% of its industry peers.
In the last couple of years the Operating Margin of SBRA has declined.
SBRA has a Gross Margin of 70.14%. This is comparable to the rest of the industry: SBRA outperforms 60.00% of its industry peers.
In the last couple of years the Gross Margin of SBRA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.55% | ||
| PM (TTM) | 18.02% | ||
| GM | 70.14% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
Based on the Altman-Z score of 0.81, we must say that SBRA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SBRA (0.81) is better than 66.92% of its industry peers.
SBRA has a debt to FCF ratio of 13.89. This is a negative value and a sign of low solvency as SBRA would need 13.89 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.89, SBRA belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
A Debt/Equity ratio of 0.88 indicates that SBRA is somewhat dependend on debt financing.
The Debt to Equity ratio of SBRA (0.88) is better than 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 13.89 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.56
WACC7.01%
2.3 Liquidity
A Current Ratio of 1.57 indicates that SBRA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.57, SBRA is in the better half of the industry, outperforming 66.92% of the companies in the same industry.
A Quick Ratio of 1.57 indicates that SBRA should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.57, SBRA is doing good in the industry, outperforming 67.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 960.00% 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 8.61% in the past year. This is quite good.
Measured over the past years, SBRA shows a small growth in Revenue. The Revenue has been growing by 3.41% on average per year.
EPS 1Y (TTM)960%
EPS 3YN/A
EPS 5Y9.28%
EPS Q2Q%171.43%
Revenue 1Y (TTM)8.61%
Revenue growth 3Y7.31%
Revenue growth 5Y3.41%
Sales Q2Q%11.6%
3.2 Future
The Earnings Per Share is expected to grow by 15.71% on average over the next years. This is quite good.
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 Year6.08%
Revenue Next 2Y5.62%
Revenue Next 3Y4.79%
Revenue Next 5Y7.19%
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
SBRA is valuated quite expensively with a Price/Earnings ratio of 33.25.
SBRA's Price/Earnings is on the same level as the industry average.
SBRA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.33, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.43, 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 83.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.37. SBRA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.25 | ||
| Fwd PE | 24.43 |
4.2 Price Multiples
SBRA's Enterprise Value to EBITDA 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's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SBRA is cheaper than 72.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.08 | ||
| EV/EBITDA | 15.52 |
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)0.92
PEG (5Y)3.58
EPS Next 2Y22.3%
EPS Next 3Y15.71%
5. Dividend
5.1 Amount
SBRA has a Yearly Dividend Yield of 6.62%, which is a nice return.
Compared to an average industry Dividend Yield of 16.87, SBRA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, SBRA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
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 221.09% of its income as dividend. This is not a sustainable payout ratio.
DP221.09%
EPS Next 2Y22.3%
EPS Next 3Y15.71%
17.62
-0.3 (-1.67%)
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-0.08%
Ins Owners1.3%
Ins Owner Change11.09%
Market Cap4.19B
Analysts78
Price Target20.06 (13.85%)
Short Float %7.26%
Short Ratio7.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
Yearly Dividend1.2
Dividend Growth(5Y)-7.34%
DP221.09%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.3%
Min EPS beat(2)-18.65%
Max EPS beat(2)14.05%
EPS beat(4)1
Avg EPS beat(4)-15.2%
Min EPS beat(4)-34.01%
Max EPS beat(4)14.05%
EPS beat(8)1
Avg EPS beat(8)-51.18%
EPS beat(12)2
Avg EPS beat(12)-90.45%
EPS beat(16)2
Avg EPS beat(16)-113.49%
Revenue beat(2)2
Avg Revenue beat(2)0.86%
Min Revenue beat(2)0.46%
Max Revenue beat(2)1.26%
Revenue beat(4)4
Avg Revenue beat(4)1.99%
Min Revenue beat(4)0.46%
Max Revenue beat(4)4.01%
Revenue beat(8)5
Avg Revenue beat(8)1.02%
Revenue beat(12)7
Avg Revenue beat(12)0.14%
Revenue beat(16)7
Avg Revenue beat(16)-1.63%
PT rev (1m)-0.42%
PT rev (3m)-0.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.66%
EPS NY rev (1m)1.26%
EPS NY rev (3m)3.23%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.25 | ||
| Fwd PE | 24.43 | ||
| P/S | 5.96 | ||
| P/FCF | 24.08 | ||
| P/OCF | 13.5 | ||
| P/B | 1.53 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 15.52 |
EPS(TTM)0.53
EY3.01%
EPS(NY)0.72
Fwd EY4.09%
FCF(TTM)0.73
FCFY4.15%
OCF(TTM)1.31
OCFY7.41%
SpS2.96
BVpS11.52
TBVpS11.41
PEG (NY)0.92
PEG (5Y)3.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 4.62% | ||
| ROCE | 4.96% | ||
| ROIC | 3.92% | ||
| ROICexc | 3.96% | ||
| ROICexgc | 3.98% | ||
| OM | 36.55% | ||
| PM (TTM) | 18.02% | ||
| GM | 70.14% | ||
| FCFM | 24.76% |
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 Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 13.89 | ||
| Debt/EBITDA | 5.67 | ||
| Cap/Depr | 80.43% | ||
| Cap/Sales | 19.4% | ||
| Interest Coverage | 2.44 | ||
| Cash Conversion | 72.79% | ||
| Profit Quality | 137.41% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 0.81 |
F-Score6
WACC7.01%
ROIC/WACC0.56
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)960%
EPS 3YN/A
EPS 5Y9.28%
EPS Q2Q%171.43%
EPS Next Y36.09%
EPS Next 2Y22.3%
EPS Next 3Y15.71%
EPS Next 5YN/A
Revenue 1Y (TTM)8.61%
Revenue growth 3Y7.31%
Revenue growth 5Y3.41%
Sales Q2Q%11.6%
Revenue Next Year6.08%
Revenue Next 2Y5.62%
Revenue Next 3Y4.79%
Revenue Next 5Y7.19%
EBIT growth 1Y16.03%
EBIT growth 3Y6.29%
EBIT growth 5Y-1.21%
EBIT Next Year81.5%
EBIT Next 3Y23.63%
EBIT Next 5Y16.83%
FCF growth 1Y-21.59%
FCF growth 3Y-12.17%
FCF growth 5Y-11.54%
OCF growth 1Y3.32%
OCF growth 3Y-4.49%
OCF growth 5Y-3.57%