Brookdale Senior Living (BKD) AI Stock Analysis

• Market Cap: $1.98B
• Dividend Yield: N/A
• Average Volume (3M): 2.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: 3.99%
• EPS Growth: -14.74%
• Country: US
• Employees: 24,480
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): -0.18
• Shares Outstanding: 237,490,450
• 10 Day Avg. Volume: 3,197,853
• 30 Day Avg. Volume: 2,914,070
• PEG Ratio: -0.95
• Price to Book (P/B): 5.39
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -32.63
• Enterprise Value/Market Cap: 3.48
• Enterprise Value/Revenue: 2.23
• Enterprise Value/Gross Profit: 8.26
• Enterprise Value/Ebitda: 15.37
• 1Y Price Target: $8.83
• Price Target Upside: 5.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 46 Neutral
• Price Target: $7.00 ▼(-16.07% Downside)

Brookdale Senior Living's overall stock score reflects significant financial challenges, including high leverage and cash flow issues. While the earnings call showed operational improvements and positive momentum in occupancy and EBITDA, these are offset by ongoing profitability concerns and valuation challenges. Technical indicators provide a mixed outlook, with no strong momentum signals.

Positive Factors

Occupancy Growth

Improved occupancy rates indicate stronger demand and effective management, which can lead to better revenue generation and financial stability.

Adjusted EBITDA Growth

Significant growth in adjusted EBITDA reflects enhanced operational efficiency and cost management, contributing to long-term profitability.

Positive Adjusted Free Cash Flow

Positive free cash flow indicates improved cash generation ability, enhancing financial flexibility and reducing reliance on external financing.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and withstand economic downturns.

Negative Profit Margins

Negative profit margins indicate persistent profitability issues, which can hinder long-term growth and shareholder value creation.

Cash Flow Issues

Declining free cash flow growth suggests difficulties in cash generation, potentially impacting the company's ability to fund operations and growth initiatives.

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 monthly rental fees and service charges from its residents, which vary based on the level of care and services provided. Key revenue streams include occupancy fees from independent living and assisted living facilities, as well as additional charges for specialized memory care services. The company also earns revenue from ancillary services such as rehabilitation and skilled nursing care. Significant partnerships with healthcare providers and insurance companies enhance its service offerings and contribute to its earnings. Furthermore, Brookdale benefits from economies of scale, allowing it to manage operational costs effectively while maximizing revenue across its numerous locations.

Brookdale Senior Living Financial Statement Overview

Summary

Brookdale Senior Living faces significant financial challenges. Despite improvements in gross profit margins, the company struggles with profitability and high leverage. Cash flow issues further compound the financial risks, necessitating strategic adjustments to improve financial health and stability.

Income Statement

Brookdale Senior Living's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin improved to 29.02%, indicating better cost management. However, the net profit margin remains negative at -7.60%, reflecting ongoing profitability challenges. Revenue growth is modest at 1.12% TTM, suggesting slow market expansion. EBIT and EBITDA margins are relatively low, at 1.71% and 9.99% respectively, indicating limited operational efficiency.

Balance Sheet

The balance sheet reveals high leverage with a TTM debt-to-equity ratio of 11.07, posing significant financial risk. The return on equity is negative at -128.14%, indicating poor returns for shareholders. The equity ratio is low, suggesting a heavy reliance on debt financing, which could be risky in volatile markets.

Cash Flow

Cash flow analysis shows a concerning decline in free cash flow growth at -320.63% TTM, highlighting cash generation issues. The operating cash flow to net income ratio is 0.39, indicating some ability to convert income into cash. However, the free cash flow to net income ratio is 0.33, suggesting limited free cash flow relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.09B	2.98B	2.87B	2.60B	2.56B	3.02B
Gross Profit	835.27M	807.43M	744.71M	520.24M	501.16M	700.64M
EBITDA	448.88M	420.80M	369.29M	190.03M	130.98M	256.69M
Net Income	-242.65M	-201.94M	-189.01M	-238.34M	-99.36M	82.02M
Balance Sheet
Total Assets	6.14B	6.34B	5.57B	5.94B	6.41B	6.90B
Cash, Cash Equivalents and Short-Term Investments	251.89M	328.80M	307.73M	447.53M	529.42M	553.33M
Total Debt	1.17B	5.65B	4.73B	4.89B	5.23B	5.21B
Total Liabilities	6.03B	6.12B	5.17B	5.35B	5.71B	6.10B
Stockholders Equity	105.38M	212.47M	403.66M	582.61M	697.40M	800.43M
Cash Flow
Free Cash Flow	17.05M	-35.07M	-70.28M	-193.64M	-271.29M	19.78M
Operating Cash Flow	218.62M	166.18M	162.92M	3.28M	-94.63M	205.65M
Investing Cash Flow	-579.82M	-278.07M	-113.36M	-67.43M	181.46M	-425.11M
Financing Cash Flow	322.26M	142.06M	-174.44M	100.38M	-113.66M	382.91M

Brookdale Senior Living Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 8.34 is above the 20-day moving average (MA) of 7.82, above the 50-day MA of 7.65, and above the 200-day MA of 6.39, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 64.98 is Neutral, neither overbought nor oversold. The STOCH value of 88.10 is Negative, 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
ADUS	76 Outperform	2.16B	25.88	7.58%	―	14.29%	7.85%
PNTG	74 Outperform	877.87M	32.48	8.56%	―	30.58%	24.86%
NHC	69 Neutral	1.96B	18.23	10.26%	1.95%	25.19%	13.44%
ASTH	68 Neutral	1.48B	57.50	3.90%	―	51.97%	-64.10%
AVAH	59 Neutral	1.83B	116.36	-154.73%	―	11.53%	―
BKD	46 Neutral	$1.98B	―	-108.91%	―	3.99%	-14.74%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Brookdale Senior Living Corporate Events

Brookdale Senior Living Announces Executive Departure Agreement

On September 3, 2025, Brookdale Senior Living Inc. announced a mutual agreement with H. Todd Kaestner, the Executive Vice President – Corporate Development and President – CCRCs, to end his role effective September 30, 2025, as part of ongoing organizational restructuring. The separation agreement includes severance payments and benefits for Mr. Kaestner, reflecting the company’s commitment to its restructuring efforts and potential implications for its strategic direction.

Brookdale Senior Living Reports Strong Q2 2025 Results

Brookdale Senior Living announced its financial results for the second quarter of 2025, showing a significant improvement in occupancy rates and financial metrics compared to the previous year. The company reported a 200 basis point increase in occupancy to 80.1%, a critical threshold for cash flow generation, and raised its annual guidance for the second consecutive quarter, reflecting strong operational execution and momentum in occupancy performance.

Brookdale Senior Living Elects New Board Members

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.

Brookdale Senior Living Reports June 2025 Occupancy Rise

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.