CareTrust REIT (CTRE) AI Stock Analysis

• Market Cap: $8.16B
• Dividend Yield: 3.56%
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): 27.4
• Beta (1Y): 0.20
• Revenue Growth: 59.25%
• EPS Growth: 88.37%
• Country: US
• Employees: 21
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.35
• Shares Outstanding: 223,300,320
• 10 Day Avg. Volume: 2,411,445
• 30 Day Avg. Volume: 1,927,225
• PEG Ratio: 0.54
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 18.34
• P/FCF Ratio: 17.73
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 23.34
• Enterprise Value/Gross Profit: 24.17
• Enterprise Value/Ebitda: 19.82
• 1Y Price Target: $40.50
• Price Target Upside: 10.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.42
• Revenue Forecast (FY): $375.11M

• Rating: 80 Outperform
• Price Target: $43.00 ▲(17.10% Upside)

CareTrust REIT's strong financial performance and strategic growth initiatives are the most significant factors driving its score. The company's robust revenue growth, low leverage, and strategic expansions in the U.K. and SHOP segment are key strengths. However, the relatively high P/E ratio and potential overbought technical indicators slightly temper the overall score.

Positive Factors

Revenue Growth

Strong revenue growth reflects effective business strategies and market demand, supporting long-term financial health and expansion.

Balance Sheet Strength

A strong balance sheet with low leverage and no near-term debt maturities enhances financial stability and flexibility for future investments.

Strategic Expansion

Strategic expansion into the U.K. and SHOP segment diversifies revenue streams and strengthens the company's market position.

Negative Factors

Increased G&A Expenses

Higher G&A expenses can pressure margins and profitability, potentially impacting cash flow and financial performance over time.

Timing Mismatch in Equity Issuance

Timing mismatches in funding and investments can lead to inefficiencies and temporary cash flow disruptions, affecting short-term operations.

Leadership Transition

Leadership transitions, such as the CFO retirement, can introduce uncertainty and require time for new executives to align with company strategy.

CareTrust REIT Business Overview & Revenue Model

Company Description

CareTrust REIT (CTRE) is a real estate investment trust focused on the ownership, acquisition, and leasing of healthcare-related properties. The company primarily invests in skilled nursing facilities, assisted living facilities, and other healthcare properties across the United States. CareTrust REIT aims to provide high-quality, stable income to its shareholders through a diverse portfolio of properties, which are leased to experienced operators who manage the day-to-day operations of the facilities.

How the Company Makes Money

CareTrust REIT generates revenue primarily through long-term leases with skilled nursing and assisted living operators. The company enters into triple-net leases, where the operators are responsible for property expenses such as maintenance, taxes, and insurance, allowing CareTrust to focus on rental income. Key revenue streams include monthly rental payments from tenants, which are typically structured to provide predictable cash flow. Additionally, CareTrust may benefit from rent escalations tied to inflation or other factors, enhancing its revenue potential. The company also engages in strategic partnerships with experienced healthcare operators, which helps ensure stable occupancy rates and enhances the value of its properties. Overall, CareTrust REIT's revenue model is built on the stability and predictability of lease income in the growing healthcare real estate sector.

CareTrust REIT Financial Statement Overview

Summary

CareTrust REIT demonstrates strong financial health with robust revenue growth and profitability. The balance sheet reflects financial stability with low leverage, while cash flow generation is solid. Continued focus on cost management and maintaining cash flow efficiency will be crucial for sustaining growth.

Income Statement

CareTrust REIT demonstrates strong profitability with a high gross profit margin of 97.61% and a net profit margin of 68.96% in the TTM period. Revenue growth is robust at 24.81%, indicating a positive trajectory. However, the EBIT margin has decreased compared to previous years, suggesting potential cost management issues.

Balance Sheet

The company maintains a solid equity base with a low debt-to-equity ratio of 0.22 in the TTM period, reflecting financial stability. Return on equity is moderate at 7.96%, indicating efficient use of equity. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow performance is strong with a free cash flow growth rate of 11.06% in the TTM period. The free cash flow to net income ratio is high at 95.70%, indicating effective cash generation relative to earnings. However, the operating cash flow to net income ratio is not available, which could provide additional insights into cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	324.14M	228.26M	198.60M	187.51M	190.19M	175.69M
Gross Profit	313.05M	214.71M	189.01M	178.13M	186.62M	170.98M
EBITDA	381.80M	211.54M	145.80M	72.88M	151.05M	157.35M
Net Income	261.38M	125.08M	53.73M	-7.51M	71.98M	80.87M
Balance Sheet
Total Assets	5.09B	3.44B	2.08B	1.62B	1.64B	1.50B
Cash, Cash Equivalents and Short-Term Investments	712.48M	213.82M	294.45M	13.18M	19.89M	18.92M
Total Debt	893.79M	396.93M	595.60M	719.50M	673.40M	545.59M
Total Liabilities	1.07B	507.63M	666.12M	771.41M	725.09M	589.42M
Stockholders Equity	3.99B	2.91B	1.42B	849.37M	915.76M	914.14M
Cash Flow
Free Cash Flow	334.41M	236.20M	143.79M	137.12M	150.86M	137.44M
Operating Cash Flow	348.28M	244.25M	154.77M	144.41M	156.87M	145.74M
Investing Cash Flow	-1.59B	-1.49B	-267.81M	-127.40M	-192.63M	-41.58M
Financing Cash Flow	1.57B	1.17B	394.32M	-23.73M	36.74M	-105.56M

CareTrust REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTRE, the sentiment is Positive. The current price of 36.72 is below the 20-day moving average (MA) of 36.95, above the 50-day MA of 35.95, and above the 200-day MA of 31.74, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 50.45 is Neutral, neither overbought nor oversold. The STOCH value of 24.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTRE.

CareTrust REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTRE	80 Outperform	$8.16B	27.36	8.13%	3.56%	59.25%	88.37%
NHI	77 Outperform	$3.64B	24.14	10.87%	4.74%	8.04%	9.20%
SBRA	77 Outperform	$4.62B	25.50	6.29%	6.47%	8.12%	75.95%
OHI	76 Outperform	$12.89B	24.64	11.28%	6.11%	13.50%	31.56%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AHR	64 Neutral	$9.09B	343.39	1.12%	2.10%	11.81%	―
HR	56 Neutral	$5.90B	-15.84	-7.26%	6.55%	-6.59%	33.35%

CareTrust REIT Corporate Events

CareTrust REIT Updates Operating Partnership Agreement

On December 11, 2025, CareTrust REIT, Inc. announced amendments to its Operating Partnership Agreement, introducing a new class of ‘LTIP Units’ that include sub-classes such as Basic and Performance LTIP Units. These changes enhance compensation flexibility for directors, executives, and employees with equity awards based on service and performance requirements tied to shareholder returns. The updated structure aims to maintain U.S. tax benefits, provide employees with convertible equity incentives, and incorporate broader changes, reflecting a reduction in the company’s ownership stake in its operating partnerships. This development impacts both the company’s internal operations and its competitive positioning in attracting and retaining talent.

CareTrust REIT Reports Strong Q3 2025 Financial Results

CareTrust REIT reported strong financial results for the third quarter of 2025, with significant increases in net income, normalized FFO, and normalized FAD compared to the previous year. The company closed $59.4 million in investments and raised $736 million through a public stock offering, enhancing its liquidity and investment pipeline. CareTrust’s strategic moves, including the integration of UK acquisitions and maintaining a 100% rent collection rate, position it for continued growth into 2026, as highlighted by its updated guidance and robust investment pipeline.

CareTrust REIT Expands Board with New Director

On October 21, 2025, CareTrust REIT‘s Board of Directors expanded from five to six members, appointing Gregory K. Stapley as a director effective January 1, 2026. Stapley, a former President and CEO of CareTrust, brings extensive leadership and expertise in the healthcare real estate sector, which is expected to benefit the company’s growth strategy. Additionally, the Board approved amendments to the company’s bylaws to align with SEC universal proxy rules and update nomination procedures, enhancing governance and operational efficiency.

CareTrust REIT Announces CFO Retirement Plan

On September 19, 2025, CareTrust REIT announced the planned retirement of its Chief Financial Officer, William M. Wagner, effective December 31, 2025. Derek Bunker, who has been with the company since June 2025, will succeed Mr. Wagner as CFO starting January 1, 2026. Mr. Bunker brings over a decade of experience in healthcare leadership and finance, aligning with CareTrust’s mission and strategy for future growth. The transition is part of a broader plan to strengthen the company’s leadership, with Lauren Beale, the Chief Accounting Officer, taking on expanded responsibilities.