Brookdale Senior Living (BKD) AI Stock Analysis

• Market Cap: $2.61B
• Dividend Yield: N/A
• Average Volume (3M): 3.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: 3.93%
• EPS Growth: -42.22%
• Country: US
• Employees: 24,480
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): -0.48
• Shares Outstanding: 237,655,400
• 10 Day Avg. Volume: 3,080,976
• 30 Day Avg. Volume: 3,669,173
• 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: 1.10
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 3.40
• Enterprise Value/Ebitda: 6.53
• 1Y Price Target: $13.50
• Price Target Upside: 23.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -1.13
• Revenue Forecast (FY): $3.19B

• Rating: 61 Neutral
• Price Target: $11.50 ▲(5.60% Upside)

Brookdale Senior Living's overall stock score reflects a mix of challenges and opportunities. The most significant factor is the company's financial performance, which is weighed down by high leverage and weak profitability. However, positive technical indicators and strategic corporate changes, including new leadership and improved occupancy rates, provide a more optimistic outlook. The raised financial guidance and operational improvements highlighted in the earnings call further contribute to a balanced view, despite valuation concerns.

Positive Factors

Occupancy Growth

Improved occupancy rates indicate strong demand and effective management strategies, enhancing revenue potential and operational efficiency.

New Leadership

The appointment of experienced leadership is expected to enhance operational performance and strategic decision-making, supporting long-term growth.

Adjusted EBITDA Growth

Significant growth in adjusted EBITDA reflects strong operational performance and effective cost management, improving financial stability.

Negative Factors

High Leverage

High leverage levels pose financial risks and may limit the company's ability to invest in growth opportunities, affecting long-term stability.

Negative Profit Margins

Persistent negative profit margins highlight ongoing profitability challenges, which could hinder reinvestment and long-term financial health.

Financial Instability

Financial instability, indicated by high leverage and negative equity, may constrain the company's ability to navigate economic downturns.

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 the fees charged for its various senior living services. The company operates on a rental model where residents pay monthly fees that cover accommodations, amenities, and care services. Key revenue streams include independent living, assisted living, memory care, and skilled nursing facilities. Additionally, Brookdale may earn revenue from ancillary services such as rehabilitation and therapy. The company also benefits from partnerships with healthcare providers, insurance companies, and government programs, which can enhance its service offerings and patient referrals, contributing to its overall earnings.

Brookdale Senior Living Financial Statement Overview

Summary

Brookdale Senior Living faces significant financial challenges, particularly in profitability and leverage. The income statement shows weak profitability with a negative net profit margin and declining gross profit margin. The balance sheet reveals high financial leverage and negative stockholders' equity, indicating financial instability. Although cash flow management shows improvement with substantial free cash flow growth, overall financial health remains a concern.

Income Statement

Brookdale Senior Living's income statement shows a mixed performance. The TTM data indicates a slight revenue growth of 2.16%, but the company is struggling with profitability, as evidenced by a negative net profit margin of -9.73% and a declining gross profit margin. The EBIT margin is also low, indicating operational challenges. Despite a positive EBITDA margin, the overall profitability remains weak.

Balance Sheet

The balance sheet reveals significant financial leverage with a high debt-to-equity ratio of -171.10 in the TTM period, indicating potential financial risk. The negative stockholders' equity and return on equity suggest financial instability. The equity ratio is also concerning, reflecting a high reliance on debt financing.

Cash Flow

The cash flow statement shows some positive trends, with a substantial free cash flow growth rate of 381.44% in the TTM period. However, the operating cash flow to net income ratio is moderate at 0.36, and the free cash flow to net income ratio indicates limited cash generation relative to net losses. Overall, cash flow management shows improvement but remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.12B	2.98B	2.87B	2.74B	2.75B	3.02B
Gross Profit	847.98M	807.43M	744.71M	513.94M	488.58M	700.64M
EBITDA	441.27M	420.80M	369.29M	319.92M	425.07M	256.69M
Net Income	-306.65M	-201.94M	-189.01M	-238.43M	-99.29M	82.02M
Balance Sheet
Total Assets	6.01B	6.34B	5.57B	5.94B	6.41B	6.90B
Cash, Cash Equivalents and Short-Term Investments	253.45M	328.80M	307.73M	447.53M	529.42M	553.33M
Total Debt	5.50B	5.65B	4.73B	4.89B	5.23B	5.61B
Total Liabilities	6.02B	6.12B	5.17B	5.35B	5.71B	6.10B
Stockholders Equity	-6.73M	212.47M	403.66M	582.61M	697.40M	800.43M
Cash Flow
Free Cash Flow	40.50M	-35.07M	-70.28M	-193.64M	-271.29M	19.78M
Operating Cash Flow	228.69M	166.18M	162.92M	3.28M	-94.63M	205.65M
Investing Cash Flow	-555.90M	-278.07M	-113.36M	-67.43M	181.46M	-425.11M
Financing Cash Flow	326.49M	142.06M	-174.44M	100.38M	-113.66M	382.91M

Brookdale Senior Living Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 10.89 is above the 20-day moving average (MA) of 10.72, above the 50-day MA of 9.99, and above the 200-day MA of 7.78, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 65.52 is Neutral, neither overbought nor oversold. The STOCH value of 82.03 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	74 Outperform	$2.04B	23.68	8.58%	―	18.77%	6.88%
NHC	74 Outperform	$2.16B	21.48	9.94%	1.80%	23.74%	-18.99%
PNTG	73 Outperform	$1.02B	38.81	10.87%	―	29.89%	10.33%
BKD	61 Neutral	$2.61B	-8.36	-214.33%	―	3.93%	-42.22%
AVAH	58 Neutral	$1.82B	24.17	―	―	15.48%	―
ASTH	56 Neutral	$1.23B	128.63	1.29%	―	68.17%	-85.42%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Brookdale Senior Living Corporate Events

Brookdale Senior Living Appoints New COO

Brookdale Senior Living announced the appointment of Mary Sue Patchett as Executive Vice President and Chief Operating Officer, effective December 1, 2025. Patchett, who has 40 years of experience in senior living operations, previously held various leadership roles within the company and was instrumental in redesigning its regional operating structure. Her appointment is seen as a strategic move to enhance Brookdale’s operational performance and agility, with a focus on improving decision-making and resource allocation closer to residents, thereby enriching the lives of seniors and their families.

Brookdale Senior Living Reports Q3 2025 Financial Results

Brookdale Senior Living reported its third-quarter 2025 results, showing a significant increase in occupancy rates and adjusted EBITDA. Despite a net loss of $114.7 million due to a non-cash impairment charge, the company experienced a 20.4% growth in adjusted EBITDA and improved cash flow, reflecting strong demand for senior living services and strategic focus on profitability.

Brookdale Senior Living Reports September Occupancy Growth

Brookdale Senior Living reported an increase in occupancy rates for September 2025, with a weighted average occupancy of 82.5%, marking a 330 basis point increase year-over-year and a 70 basis point rise sequentially. The month-end consolidated occupancy reached 83.8%, reflecting a 60 basis point sequential increase, while the third quarter weighted average occupancy improved by 290 basis points year-over-year, indicating strong growth in the senior living sector.

Brookdale Senior Living Appoints New CEO Nikolas Stengle

On October 2, 2025, Brookdale Senior Living announced the appointment of Nikolas W. Stengle as the new Chief Executive Officer, effective October 6, 2025. Stengle, who brings extensive experience in senior living, healthcare, and hospitality, is expected to drive operational excellence and enhance the company’s industry leadership. His appointment follows a comprehensive search and is seen as a strategic move to capitalize on growth opportunities and increase shareholder value.