Brookdale Senior Living (BKD) AI Stock Analysis

• Market Cap: $1.82B
• Dividend Yield: N/A
• Average Volume (3M): 2.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: 3.99%
• EPS Growth: -14.74%
• Country: US
• Employees: 24,480
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Care Facilities
• EPS (TTM): -0.18
• Shares Outstanding: 237,490,450
• 10 Day Avg. Volume: 2,947,649
• 30 Day Avg. Volume: 2,680,492
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.80
• Enterprise Value/Revenue: 2.23
• Enterprise Value/Gross Profit: 8.26
• Enterprise Value/Ebitda: 15.37
• 1Y Price Target: $8.83
• Price Target Upside: 14.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 46 Neutral
• Price Target: $7.00 ▼(-8.97% 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

Financial Performance

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.

Market Demand

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

Strategic Direction

The CEO change and addition of a new Board member indicate a focus on positioning the company to capitalize on favorable market conditions.

Negative Factors

Competitive Positioning

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

Cost Challenges

BKD noted the typical seasonal items: more workdays, merit increases, and utility costs, which combined to be a $10M adj EBITDA headwind in Q2 vs Q1.

Industry Position

Analyst reiterates an Underperform rating as BKD is seen as worse positioned versus peers to benefit from senior housing industry tailwinds.

Brookdale Senior Living Business Overview & Revenue Model

Company Description

Brookdale Senior Living (BKD) is a leading national provider of senior living services, operating a diverse portfolio of communities across the United States. The company specializes in independent living, assisted living, Alzheimer's and dementia care, rehabilitation, and skilled nursing services. With a commitment to enhancing the quality of life for seniors, Brookdale focuses on creating vibrant communities that foster engagement, wellness, and social interaction among residents.

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: 7.69
• 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 7.69 is above the 20-day moving average (MA) of 7.49, above the 50-day MA of 7.48, and above the 200-day MA of 6.21, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 55.60 is Neutral, neither overbought nor oversold. The STOCH value of 56.96 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	76 Outperform	$9.98B	31.23	17.57%	0.14%	17.71%	41.83%
AMED	73 Outperform		―	7.26%	―	4.92%	-7.34%
PNTG	71 Outperform	$832.25M	31.06	11.44%	―	30.58%	24.86%
NHC	69 Neutral	$1.78B	17.17	10.65%	2.15%	25.19%	13.44%
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%
SNDA	51 Neutral	$486.20M	―	-53.33%	―	31.37%	34.94%
BKD	46 Neutral	$1.82B	―	-108.91%	―	3.99%	-14.74%

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.