CareTrust REIT (CTRE)
NYSE:CTRE
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CareTrust REIT
(NYSE:CTRE)
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Rating:77Outperform
Price Target:
$41.00
▲(9.07% Upside)
Action:ReiteratedDate:03/21/26
The score is driven primarily by strong financial performance (growth, cash flow improvement, and a much less leveraged balance sheet) and a positive earnings outlook with guided 2026 per-share growth. Offsetting factors are weaker near-term technicals (trading below key short/mid-term moving averages) and execution/market risks noted on the call, including competitive cap-rate pressure and potential equity dilution.
Positive Factors
De-levered balance sheet (zero debt in 2025)
CareTrust's move to effectively zero reported debt in 2025 materially reduces financial risk and increases balance-sheet optionality. A lower leverage profile supports durable dividend coverage, lowers default sensitivity during cycles, and gives capacity to fund accretive acquisitions or weather operational shocks while management remains cautious about re-levering.
Negative Factors
Sub-peak skilled nursing occupancy (~79–80%)
Below-peak SNF occupancy creates structural revenue sensitivity for operators and landlords: prolonged sub-par occupancy can compress operator cashflow and rent coverage over multiple quarters, raising tenant credit risk and limiting the REIT's ability to sustain long-term rent growth without placing more capital into operator support or concessions.
Read all positive and negative factors
Positive Factors
Negative Factors
De-levered balance sheet (zero debt in 2025)
CareTrust's move to effectively zero reported debt in 2025 materially reduces financial risk and increases balance-sheet optionality. A lower leverage profile supports durable dividend coverage, lowers default sensitivity during cycles, and gives capacity to fund accretive acquisitions or weather operational shocks while management remains cautious about re-levering.
Read all positive factors
CareTrust REIT (CTRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.39B
Dividend Yield3.56%
Average Volume (3M)3.40M
Price to Earnings (P/E)18.1
Beta (1Y)0.23
Revenue Growth59.25%
EPS Growth88.37%
CountryUS
Employees21
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.50
Shares Outstanding223,237,230
10 Day Avg. Volume6,440,628
30 Day Avg. Volume3,403,325
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)1.82
Price to Sales (P/S)15.45
P/FCF Ratio19.43
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue20.03
Enterprise Value/Gross Profit23.84
Enterprise Value/Ebitda17.21
Forecast
1Y Price Target
$44.29Price Target Upside17.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.49
Revenue Forecast (FY)$483.90M
CareTrust REIT Business Overview & Revenue Model
Company Description
CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide...
How the Company Makes Money
CareTrust REIT primarily makes money by collecting rental income from healthcare operators that lease its properties. Its core revenue stream is contractual rent earned under long-term net-lease agreements (commonly structured so the tenant/operat...
CareTrust REIT Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveys a strongly positive operational and financial momentum: record investments ($1.8B), meaningful FFO/FAD growth (FFO per share +17.3% YoY), robust liquidity, low leverage, an active pipeline (~$500M) and constructive 2026 guidance (+9.4% midpoint). Key risks include heightened competition and cap-rate compression in SHOP, UK withholding tax impacts on yields, sub-peak SNF occupancy (~79–80%), and potential equity dilution from forward share sales. Overall, the positives—organic and external growth execution, conservative balance sheet, and clear pipeline—outweigh the highlighted market and execution risks.Positive Updates
Record Annual Investments
Total investments of $1.8 billion in 2025, surpassing the prior record year and supporting portfolio diversification into UK care homes and SHOP.
Negative Updates
Increased Competition and Cap Rate Compression in SHOP
SHOP has become the most competitive segment with cap rate compression and more capital pursuing deals; managers noted yields in seniors housing are increasingly variable and SHOP cap rates are compressing versus prior periods.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Investments
Total investments of $1.8 billion in 2025, surpassing the prior record year and supporting portfolio diversification into UK care homes and SHOP.
Read all positive updates
Company Guidance
Management provided initial FY-2026 guidance for normalized FFO per share and normalized FAD per share of $1.90–$1.95 (midpoint $1.925), representing a ~9.4% increase versus 2025 normalized FFO/FAD per share of $1.76; the guidance explicitly excludes any new investments, dispositions, debt repayments or issuances beyond announced items and assumes unsettled equity forwards will settle at year‑end. For context, Q4 normalized FFO was $104.1M (+42.7% QoQ) and normalized FAD was $103.0M (+38.7% QoQ), with Q4 normalized FFO per share $0.47 (+17.5% QoQ) and normalized FAD per share $0.46 (+12.2% QoQ), and full‑year normalized FFO per share of $1.76 (+17.3% YoY). Management said it will fund growth from available liquidity — roughly $100M cash on hand (as of 2/11/2026), full capacity on a $1.2B revolver, and ~$372M of gross proceeds pending from unsettled equity forwards (6.5M shares for ~$242.5M and 3.5M shares for ~$129.5M) — while maintaining low leverage (net debt/EBITDA 0.7x, net debt/enterprise value 3.7%) and strong coverage (fixed‑charge coverage ~10.5x); the company noted a current acquisition pipeline of ~ $500M and ~$215M of investments closed since year‑end.CareTrust REIT Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
82
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 476.59M | 228.26M | 198.60M | 187.51M | 190.19M |
| Gross Profit | 281.79M | 214.71M | 189.01M | 178.13M | 186.62M |
| EBITDA | 462.08M | 211.54M | 145.80M | 72.88M | 151.05M |
| Net Income | 320.54M | 125.08M | 53.73M | -7.51M | 71.98M |
Balance Sheet | |||||
| Total Assets | 5.15B | 3.44B | 2.08B | 1.62B | 1.64B |
| Cash, Cash Equivalents and Short-Term Investments | 198.04M | 213.82M | 294.45M | 13.18M | 19.89M |
| Total Debt | 894.22M | 396.93M | 595.60M | 719.50M | 673.40M |
| Total Liabilities | 1.09B | 507.63M | 666.12M | 771.41M | 725.09M |
| Stockholders Equity | 4.04B | 2.91B | 1.42B | 849.37M | 915.76M |
Cash Flow | |||||
| Free Cash Flow | 379.04M | 236.20M | 143.79M | 137.12M | 150.86M |
| Operating Cash Flow | 394.03M | 244.25M | 154.77M | 144.41M | 156.87M |
| Investing Cash Flow | -1.46B | -1.49B | -267.81M | -127.40M | -192.63M |
| Financing Cash Flow | 1.05B | 1.17B | 394.32M | -23.73M | 36.74M |
CareTrust REIT Technical Analysis
Negative
37.59
Price Trends
38.75
Negative
37.66
Negative
35.05
Positive
Market Momentum
-0.43
Positive
40.94
Neutral
32.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTRE, the sentiment is Negative. The current price of 37.59 is below the 20-day moving average (MA) of 39.41, below the 50-day MA of 38.75, and above the 200-day MA of 35.05, indicating a neutral trend. The MACD of -0.43 indicates Positive momentum. The RSI at 40.94 is Neutral, neither overbought nor oversold. The STOCH value of 32.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTRE.
CareTrust REIT Risk Analysis
CareTrust REIT disclosed 49 risk factors in its most recent earnings report. CareTrust REIT 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 0 New Risks
CareTrust REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.39B | 18.09 | 8.99% | 3.56% | 59.25% | 88.37% | |
74 Outperform | $13.22B | 22.25 | 11.83% | 6.11% | 13.50% | 31.56% | |
70 Outperform | $4.03B | 25.18 | 9.63% | 4.73% | 8.04% | 9.20% | |
70 Outperform | $5.00B | 29.37 | 5.63% | 6.47% | 8.12% | 75.95% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $6.01B | -24.09 | -5.13% | 6.56% | -6.59% | 33.35% | |
64 Neutral | $9.11B | 111.95 | 2.61% | 2.10% | 11.81% | ― |
* Real Estate Sector Average
CTRE
CareTrust REIT
37.59
9.94
35.96%
NHI
National Health Investors
83.12
11.99
16.85%
OHI
Omega Healthcare
44.73
9.63
27.44%
SBRA
Sabra Healthcare REIT
19.84
3.55
21.77%
HR
Healthcare Realty Trust
17.23
1.47
9.31%
AHR
American Healthcare REIT, Inc.
47.94
18.64
63.62%
CareTrust REIT Corporate Events
Business Operations and Strategy
CareTrust REIT Releases Updated Investor Presentation Materials
Neutral
Mar 2, 2026
CareTrust REIT, Inc., a healthcare-focused real estate investment trust specializing in post-acute and senior housing properties, provides capital to operating partners in the long-term care and related healthcare segments. Its portfolio strategy ...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
CareTrust REIT Launches New $1 Billion ATM Program
Neutral
Feb 18, 2026
On February 17, 2026, CareTrust REIT, Inc. and its operating partnership entered into a new equity distribution agreement establishing a $1 billion at-the-market equity offering program for its common stock with a syndicate of major banks acting a...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
CareTrust REIT Posts Strong Quarter and Upbeat 2026 Outlook
Positive
Feb 12, 2026
CareTrust REIT reported strong results for the quarter and year ended Dec. 31, 2025, highlighted by full-year net income of $320.5 million, or $1.57 per diluted share, nearly doubling year on year. Normalized FFO per share rose 17% to $1.76 and No...
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.