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Brookdale Senior Living (BKD)
NYSE:BKD
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Brookdale Senior Living (BKD) AI Stock Analysis

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BKD

Brookdale Senior Living

(NYSE:BKD)

Rating:51Neutral
Price Target:
$7.00
▼(-5.91%Downside)
Brookdale's score is primarily influenced by significant challenges in financial performance and valuation, offset by strong strategic execution and earnings outlook. Technical indicators suggest stable momentum, supporting the overall assessment.
Positive Factors
Market Demand
The aging baby boomer population is expected to drive a significant increase in demand for senior housing units, benefiting BKD.
Revenue and EBITDA Growth
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.
Negative Factors
Competitive Positioning
BKD is seen as worse positioned compared to peers to benefit from senior housing industry tailwinds, leading to an underperform rating.
Cost Challenges
Typical seasonal items like more workdays, merit increases, and utility costs combined to be a $10m adj EBITDA headwind for BKD in Q2 versus Q1.

Brookdale Senior Living (BKD) vs. SPDR S&P 500 ETF (SPY)

Brookdale Senior Living Business Overview & Revenue Model

Company DescriptionBrookdale Senior Living Inc. (BKD) is a leading operator of senior living communities in the United States. The company offers a range of services and care options, including independent living, assisted living, memory care, and skilled nursing. With a focus on enhancing the quality of life for its residents, Brookdale provides personalized care plans, health and wellness programs, and a variety of amenities to meet the diverse needs of seniors.
How the Company Makes MoneyBrookdale 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 Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 10.22%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
Brookdale Senior Living reported a strong start to 2025 with significant financial growth and operational improvements, exceeding expectations and raising annual guidance. Despite challenges in occupancy for some communities and macroeconomic uncertainty, the company's strategic initiatives, including portfolio optimization and community acquisitions, position it well for future growth.
Q1-2025 Updates
Positive Updates
Exceeded Expectations and Raised Guidance
Brookdale Senior Living exceeded expectations for RevPAR and adjusted EBITDA in Q1 2025, leading to a raise in annual guidance. Adjusted free cash flow was positive, marking a significant milestone.
Strong RevPAR Growth
Consolidated RevPAR grew 4.9% in Q1, driven by a 3% increase in RevPOR and a 140 basis point increase in occupancy to 79.3%.
Successful Community Acquisitions
Brookdale acquired 41 previously leased communities, enhancing financial growth opportunities and providing more flexibility in portfolio management.
Operational Improvements
Same community operating income grew 7.6% year-over-year, with operating income margin expanding 90 basis points to 29%, the highest in five years.
Positive Adjusted Free Cash Flow
First quarter adjusted free cash flow increased by $30 million over the prior year to a positive $4 million.
Strategic Portfolio Optimization
The company plans to exit 55 leased communities and divest 14 non-core owned communities, improving financial performance and focusing on core assets.
Board and Leadership Updates
Brookdale appointed two new independent directors, and initiated a CEO search to find a candidate with the right experience and strategic vision.
Negative Updates
Occupancy Challenges
143 communities were identified as having less than 70% occupancy, with efforts underway to improve performance.
Macroeconomic Uncertainty
The company acknowledged elevated near-term uncertainty associated with the global macroeconomic environment, which could impact future results.
Company Guidance
In the first quarter of 2025, Brookdale Senior Living reported a robust financial performance, exceeding expectations in both RevPAR and adjusted EBITDA, which led to a positive adjusted free cash flow. This encouraging start allowed the company to raise its annual guidance, with RevPAR growth now anticipated to be in the range of 5% to 5.75% year-over-year, and adjusted EBITDA expected to reach between $440 million and $450 million. The company also highlighted a significant improvement in same community weighted average occupancy, reaching 80%, and a 2.8% increase in RevPOR. Additionally, Brookdale's strategic initiatives, such as optimizing their real estate portfolio and deploying high opportunity response teams, are expected to further drive growth. The company remains focused on continuing operational improvements and reducing leverage, with a projected positive adjusted free cash flow for the year between $30 million and $50 million.

Brookdale Senior Living Financial Statement Overview

Summary
Brookdale Senior Living displays revenue growth but struggles with profitability and leverage issues. The negative net profit margin and high debt levels are significant risks, though improvements in cash flow signal some operational progress.
Income Statement
42
Neutral
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
35
Negative
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.13B3.01B2.74B2.75B3.42B
Gross Profit799.31M737.63M513.94M488.58M681.40M
EBITDA421.21M370.44M268.79M159.32M374.88M
Net Income-201.94M-189.01M-238.34M-99.36M82.02M
Balance Sheet
Total Assets6.34B5.57B5.94B6.41B6.90B
Cash, Cash Equivalents and Short-Term Investments328.80M307.73M447.53M529.42M553.33M
Total Debt5.65B4.73B4.89B5.23B5.21B
Total Liabilities6.12B5.17B5.35B5.71B6.10B
Stockholders Equity212.47M403.66M582.61M697.40M800.43M
Cash Flow
Free Cash Flow-35.07M-70.28M-193.64M-271.29M19.78M
Operating Cash Flow166.18M162.92M3.28M-94.63M205.65M
Investing Cash Flow-278.07M-113.36M-67.43M181.46M-425.11M
Financing Cash Flow142.06M-174.44M100.38M-113.66M382.91M

Brookdale Senior Living Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.44
Price Trends
50DMA
6.98
Positive
100DMA
6.54
Positive
200DMA
5.99
Positive
Market Momentum
MACD
0.23
Positive
RSI
53.53
Neutral
STOCH
28.17
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 7.44 is above the 20-day moving average (MA) of 7.38, above the 50-day MA of 6.98, and above the 200-day MA of 5.99, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 53.53 is Neutral, neither overbought nor oversold. The STOCH value of 28.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKD.

Brookdale Senior Living Risk Analysis

Brookdale Senior Living disclosed 37 risk factors in its most recent earnings report. Brookdale Senior Living reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
We may not be able to renew, extend, or restructure existing leases, or purchase communities subject to leases, at or prior to the end of their respective lease terms, which could impact our business, results of operations, and cash flow. Q4, 2024
2.
If the redesign and consolidation of certain technology platforms, including through the implementation of a core enterprise resource planning system, or ERP, does not proceed as expected or is not completed successfully, our business and financial results may be adversely impacted. Q4, 2024

Brookdale Senior Living Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$1.46B13.8311.19%2.61%19.16%31.92%
71
Outperform
$3.21B36.187.85%5.34%
69
Neutral
$8.01B26.1617.66%0.18%16.80%39.99%
64
Neutral
$796.23M30.1411.28%30.04%43.47%
52
Neutral
$7.61B0.10-63.03%2.08%16.34%0.32%
52
Neutral
$462.58M-70.23%26.13%37.38%
51
Neutral
$1.74B-91.17%3.88%-34.30%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BKD
Brookdale Senior Living
7.44
-0.55
-6.88%
AMED
Amedisys
97.83
-0.42
-0.43%
SNDA
Sonida Senior Living
24.52
-7.68
-23.85%
NHC
National Healthcare
94.48
-38.19
-28.79%
ENSG
The Ensign Group
137.77
-4.77
-3.35%
PNTG
Pennant Group
23.10
-6.21
-21.19%

Brookdale Senior Living Corporate Events

Executive/Board ChangesShareholder Meetings
Brookdale Senior Living Elects New Board Members
Neutral
Jul 15, 2025

At Brookdale Senior Living‘s annual meeting on July 11, 2025, Frank M. Bumstead concluded his term on the Board of Directors, having previously announced he would not seek re-election. The meeting resulted in the election of eight directors, including Jordan R. Asher and Claudia N. Drayton, each serving a one-year term. Additionally, stockholders approved executive compensation and ratified Ernst & Young LLP as the independent accounting firm for 2025.

The most recent analyst rating on (BKD) stock is a Sell with a $6.00 price target. To see the full list of analyst forecasts on Brookdale Senior Living stock, see the BKD Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Brookdale Senior Living Reports June 2025 Occupancy Rise
Positive
Jul 8, 2025

Brookdale Senior Living reported a significant improvement in its occupancy rates for June 2025, with a weighted average occupancy of 80.5%, marking an increase of 230 basis points year-over-year and 50 basis points sequentially. The month-end consolidated occupancy reached 82.2%, reflecting strong demand and effective sales execution, which indicates a positive trend for the company in the senior living industry.

The most recent analyst rating on (BKD) stock is a Sell with a $6.00 price target. To see the full list of analyst forecasts on Brookdale Senior Living stock, see the BKD Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Brookdale Senior Living Reports Strong Q1 2025 Results
Positive
May 6, 2025

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.

Executive/Board Changes
Brookdale Senior Living EVP George Hicks to Retire
Neutral
Apr 25, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025