Brookdale Senior Living (BKD) AI Stock Analysis

• Market Cap: $1.66B
• Dividend Yield: N/A
• Average Volume (3M): 2.52M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: 3.88%
• EPS Growth: -34.30%
• Country: US
• Employees: 24,480
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Care Facilities
• EPS (TTM): -0.28
• Shares Outstanding: 234,347,850
• 10 Day Avg. Volume: 2,217,725
• 30 Day Avg. Volume: 2,524,029
• PEG Ratio: -0.02
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.69
• Enterprise Value/Market Cap: 3.01
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 4.13
• Enterprise Value/Ebitda: 3.19
• 1Y Price Target: $7.63
• Price Target Upside: 9.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 56 Neutral
• Price Target: $7.00 ▲(0.72%Upside)

Brookdale Senior Living's stock score reflects ongoing financial challenges due to high leverage and net losses, balanced by positive earnings call insights and strategic corporate events. Technical indicators show upward momentum, though valuation concerns persist.

Positive Factors

Demographic Tailwinds

The aging baby boomer population is expected to drive a significant increase in demand for senior housing units, benefiting BKD.

Occupancy and Revenue

Occupancy is trending ahead of typical seasonality patterns, which, together with emerging pricing power, should set up BKD for better-than-expected revenue and EBITDA throughout the year.

Negative Factors

Competitive Position

We reiterate our Underperform rating as we see BKD worse positioned vs peers to benefit from senior housing industry tailwinds.

Discounting Strategy

BKD plans to do more discounting at select communities to drive occupancy, which could be viewed negatively given the strong demand reported by peers.

Brookdale Senior Living Business Overview & Revenue Model

Company Description

Brookdale Senior Living Inc. owns, manages, and operates senior living communities in the United States. It operates in three segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs). The Independent Living segment owns or leases communities comprising independent and assisted living units in a single community that are primarily designed for middle to upper income seniors. The Assisted Living and Memory Care segment owns or leases communities consisting of freestanding multi-story communities and freestanding single-story communities, which offer housing and 24-hour assistance with activities of daily living for the Company's residents. This segment also operates memory care communities for residents with Alzheimer's and other dementias. The CCRCs segment owns or leases communities that provides various living arrangements, such as independent and assisted living, memory care, and skilled nursing; and services to accommodate various levels of physical ability and healthcare needs. It also manages communities on behalf of others. As of December 31, 2021, the company owned 347 communities, leased 299 communities, and managed 33 communities on behalf of others. Brookdale Senior Living Inc. was incorporated in 2005 and is headquartered in Brentwood, Tennessee.

How the Company Makes Money

Brookdale Senior Living generates revenue primarily through resident fees for its various care and living services. The company's key revenue streams include monthly service fees for independent and assisted living, charges for specialized memory care, and reimbursement from private pay sources and government programs for skilled nursing services. Brookdale also benefits from ancillary services such as therapy, home health, and hospice care. Strategic partnerships with healthcare providers and insurance companies, as well as initiatives to optimize occupancy rates and operational efficiencies, contribute to its financial performance.

Brookdale Senior Living Financial Statement Overview

Summary

Brookdale Senior Living faces significant financial challenges with negative net profit margins and high debt levels, posing risks. Despite revenue growth and improved cash flow, profitability and leverage remain concerning.

Income Statement

Brookdale Senior Living has experienced revenue growth with a TTM revenue of $3.16 billion, up from $3.13 billion annually, indicating a positive trend. However, the company has a negative net profit margin at -7.52% and a low EBIT margin of 1.79%, reflecting ongoing profitability challenges. Gross profit margin improved but remains modest at 38.44%.

Balance Sheet

The company has high leverage, with a debt-to-equity ratio of 38.15, indicating potential financial risk. Stockholders' equity has decreased over time, and the equity ratio is low at 2.36%, suggesting limited asset protection by equity. Return on equity is negative due to net losses.

Cash Flow

Brookdale's free cash flow improved to -$7.73 million in the TTM, a positive trend from -$35.07 million annually. Operating cash flow is stable, but the operating cash flow to net income ratio is negative due to losses, indicating inefficiencies in converting income to cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.16B	3.13B	3.01B	2.74B	2.75B	3.42B
	Gross Profit
1.21B	799.31M	737.63M	513.94M	488.58M	681.40M
	EBIT
56.61M	46.53M	18.41M	-85.10M	-185.74M	9.22M
	EBITDA
342.28M	421.21M	370.44M	268.79M	159.32M	374.88M
	Net Income Common Stockholders
-237.35M	-201.94M	-189.01M	-238.34M	-99.36M	82.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
239.73M	328.80M	307.73M	447.53M	529.42M	553.33M
	Total Assets
6.21B	6.34B	5.57B	5.94B	6.41B	6.90B
	Total Debt
5.60B	5.65B	4.73B	4.89B	5.23B	5.21B
	Net Debt
5.36B	5.34B	4.45B	4.49B	4.88B	4.83B
	Total Liabilities
6.06B	6.12B	5.17B	5.35B	5.71B	6.10B
	Stockholders Equity
146.72M	212.47M	403.66M	582.61M	697.40M	800.43M
Cash Flow		Free Cash Flow
-7.73M	-35.07M	-70.28M	-193.64M	-271.29M	19.78M
	Operating Cash Flow
190.72M	166.18M	162.92M	3.28M	-94.63M	205.65M
	Investing Cash Flow
-597.88M	-278.07M	-113.36M	-67.43M	181.46M	-425.11M
	Financing Cash Flow
327.64M	142.06M	-174.44M	100.38M	-113.66M	382.91M

Brookdale Senior Living Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKD, the sentiment is Positive. The current price of 6.95 is above the 20-day moving average (MA) of 6.65, above the 50-day MA of 6.42, and above the 200-day MA of 5.93, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 60.18 is Neutral, neither overbought nor oversold. The STOCH value of 69.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKD.

Brookdale Senior Living Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENSG	79 Outperform	$8.55B	27.94	17.66%	0.17%	16.80%	39.99%
NHC	76 Outperform	$1.61B	15.10	11.19%	2.34%	19.16%	31.92%
AMED	71 Outperform	$3.18B	35.85	7.85%	―	5.34%	―
PNTG	69 Neutral	$977.20M	36.07	11.28%	―	30.04%	43.47%
SNDA	57 Neutral	$474.09M	―	-70.23%	―	26.13%	37.38%
BKD	56 Neutral	$1.66B	―	-91.17%	―	3.88%	-34.30%
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%

Brookdale Senior Living Corporate Events

Brookdale Senior Living Reports Strong Q1 2025 Results

Brookdale Senior Living reported strong financial results for the first quarter of 2025, surpassing expectations and establishing a solid foundation for growth. The company achieved a 7.6% increase in same community operating income compared to the previous year, with a notable improvement in net cash provided by operating activities and adjusted free cash flow. The company also reported a rise in occupancy rates and revenue per available room, indicating favorable market conditions and effective operational strategies. Brookdale’s management expressed confidence in continued growth and shareholder value creation, supported by a strategic focus on meeting the needs of the aging population.

Brookdale Senior Living EVP George Hicks to Retire

George T. Hicks, the Executive Vice President – Finance and Treasurer of Brookdale Senior Living Inc., announced his retirement effective May 21, 2025, after a 40-year tenure with the company. In recognition of his service, the company’s Board of Directors waived the six-month notice requirement for his retirement, allowing his long-term incentive awards to continue vesting post-retirement, which reflects the company’s appreciation for his contributions.

Brookdale Senior Living Appoints New Independent Director

On April 23, 2025, Brookdale Senior Living‘s board temporarily increased its number of directors to nine, appointing Joshua Hausman as an independent director effective April 24, 2025. Hausman, with over 20 years of experience in healthcare investment, is expected to bring valuable insights to Brookdale’s strategic goals, including enhancing occupancy and revenue growth. The board’s refreshment, including Hausman’s appointment, reflects Brookdale’s commitment to integrating new expertise and perspectives, aiming to accelerate growth and shareholder value.

Brookdale Senior Living Announces Leadership Transition

On April 14, 2025, Brookdale Senior Living announced a significant leadership transition, with Lucinda M. Baier stepping down as President and CEO, effective April 13, 2025. Denise W. Warren was appointed as Interim CEO while the Board initiates a search for a new CEO. The company also established an Interim Office of the CEO to ensure business continuity. Additionally, Mark Fioravanti was appointed as a new independent director, while Frank M. Bumstead will not stand for reelection. Brookdale’s preliminary first quarter 2025 results exceeded expectations, indicating strong operational performance and potential for future growth.

Brookdale Senior Living Reports Record Occupancy Rates

In March 2025, Brookdale Senior Living reported a significant increase in its occupancy rates, with a weighted average occupancy of 79.5%, marking a 160 basis point rise year-over-year. The month-end occupancy reached 80.9%, the highest in five years, indicating strong performance and counter-seasonal strength. The first quarter of 2025 saw a 140 basis point year-over-year increase in weighted average occupancy, with move-in volumes exceeding historical averages by 12% and move-out volumes improving by 3%, reflecting positive trends in the company’s operations.