CareTrust REIT (CTRE) AI Stock Analysis

• Market Cap: $7.61B
• Dividend Yield: 3.68%
• Average Volume (3M): 2.84M
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.17
• Revenue Growth: 50.84%
• EPS Growth: 104.44%
• Country: US
• Employees: 21
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.35
• Shares Outstanding: 223,300,320
• 10 Day Avg. Volume: 1,877,971
• 30 Day Avg. Volume: 2,840,807
• 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: 0.89
• Enterprise Value/Revenue: 22.33
• Enterprise Value/Gross Profit: 25.26
• Enterprise Value/Ebitda: 22.10
• 1Y Price Target: $36.63
• Price Target Upside: 7.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 80 Outperform
• Price Target: $39.00 ▲(14.91% Upside)

CareTrust REIT's overall stock score of 80 reflects its strong financial performance, strategic growth initiatives, and positive earnings outlook. The company's robust profitability and efficient cash flow management are significant strengths. However, high valuation metrics and potential regulatory risks are areas to watch.

Positive Factors

Acquisition Impact

The acquisition of Care REIT diversifies CTRE's portfolio and strengthens earnings growth by expanding into the UK and reducing US Medicaid exposure.

Pipeline and Deal Execution

The pipeline and deal execution remain robust with a current pipeline of $600M and 2Q25 deals executed at $1.1B at an 8.4% rate.

Strategic Expansion

The strategic expansion in the UK is viewed positively.

Negative Factors

Acquisition Uncertainty

The acquisition is contingent on a shareholder vote and could be terminated if not completed by July 9, 2025, creating uncertainty.

Earnings Miss

Normalized FFO of $0.43 per share missed the Street's expectation of $0.45.

Guidance Shortfall

FAD guidance was increased by 1.7%, but it remains below the Street's expectations.

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 portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States.

How the Company Makes Money

CareTrust REIT generates revenue primarily through long-term leases with skilled nursing and senior housing operators. The company acquires properties and then leases them to operators under triple-net lease agreements, where the operators are responsible for property expenses such as maintenance, taxes, and insurance. This structure allows CareTrust to earn steady rental income while minimizing its operational liabilities. Additionally, CareTrust may benefit from rent escalators built into its leases, which provide incremental revenue growth over time. Significant partnerships with well-established healthcare operators enhance its portfolio's stability and performance, contributing to consistent cash flow and dividends for shareholders.

CareTrust REIT Financial Statement Overview

Summary

CareTrust REIT demonstrates strong financial performance with robust profitability, consistent revenue growth, and efficient cash flow management. The income statement shows excellent profit margins, while the balance sheet reflects financial stability with a strong equity base. However, rising debt levels require monitoring.

Income Statement

CareTrust REIT demonstrates strong income statement metrics with a solid gross profit margin and consistent revenue growth. The TTM data highlights a gross profit margin of 94.62% and a net profit margin of 65.78%, indicating excellent profitability. Revenue has grown from $187.51 million in 2022 to $246.41 million in TTM 2025, reflecting a robust growth rate. The company also maintains healthy EBIT and EBITDA margins, at 55.15% and 101.80%, respectively. Overall, the income statement reflects a strong financial performance with stable and growing profitability.

Balance Sheet

The balance sheet of CareTrust REIT reveals financial stability with a manageable debt-to-equity ratio of 0.28 in TTM 2025. The equity ratio stands at 75.36%, indicating a strong equity position relative to total assets. Return on equity is impressive at 5.54%, showcasing efficient utilization of equity to generate profits. However, the increasing total debt from $545.59 million in 2020 to $822.15 million in TTM 2025 presents a potential risk if not managed carefully. Overall, the balance sheet reflects a solid financial position with a strong equity base but a rising debt trend that warrants monitoring.

Cash Flow

CareTrust REIT shows a positive cash flow scenario with a substantial operating cash flow of $266.81 million in TTM 2025, indicating strong cash generation capability. The free cash flow growth rate from 2024 to TTM 2025 is 8.75%, reflecting a healthy increase. The operating cash flow to net income ratio is 1.65, and the free cash flow to net income ratio is 1.58, both indicating efficient cash flow management relative to earnings. The cash flow analysis highlights robust cash generation and efficient handling of operating activities, contributing to overall financial strength.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	303.47M	228.26M	217.77M	187.51M	190.19M	175.69M
Gross Profit	268.17M	214.71M	208.18M	178.13M	186.62M	170.98M
EBITDA	306.53M	211.54M	145.80M	162.81M	161.96M	157.38M
Net Income	219.74M	125.08M	53.73M	42.87M	48.30M	57.21M
Balance Sheet
Total Assets	4.66B	3.44B	2.08B	1.62B	1.64B	1.50B
Cash, Cash Equivalents and Short-Term Investments	306.05M	213.82M	294.45M	13.18M	19.89M	18.92M
Total Debt	0.00	396.93M	595.60M	719.50M	673.40M	545.59M
Total Liabilities	1.33B	507.63M	666.12M	771.41M	725.09M	589.42M
Stockholders Equity	3.30B	2.91B	1.42B	849.37M	915.76M	914.14M
Cash Flow
Free Cash Flow	301.10M	236.20M	143.79M	137.12M	150.86M	137.44M
Operating Cash Flow	314.61M	244.25M	154.77M	144.41M	156.87M	145.74M
Investing Cash Flow	-1.86B	-1.51B	-267.81M	-127.40M	-192.63M	-41.58M
Financing Cash Flow	1.36B	1.19B	394.32M	-23.73M	36.74M	-105.56M

CareTrust REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.94
• 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 33.94 is above the 20-day moving average (MA) of 33.92, above the 50-day MA of 32.24, and above the 200-day MA of 28.66, indicating a bullish trend. The MACD of 0.59 indicates Positive momentum. The RSI at 58.26 is Neutral, neither overbought nor oversold. The STOCH value of 32.15 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	$7.61B	28.43	8.36%	3.68%	50.84%	104.44%
NHI	79 Outperform	$3.72B	25.03	10.49%	4.59%	6.87%	7.23%
OHI	76 Outperform	$12.73B	26.91	10.47%	6.21%	12.73%	23.51%
SBRA	74 Outperform	$4.56B	25.03	6.66%	6.31%	6.89%	240.70%
AHR	70 Neutral	$7.29B	―	-1.51%	2.34%	11.62%	―
HR	61 Neutral	$6.35B	―	-7.59%	6.48%	-7.16%	23.40%
Sector *	53 Neutral	$1.22B	3.15	-6.08%	5.81%	-8.21%	-81.31%

CareTrust REIT Corporate Events

CareTrust REIT Completes Major Stock Issuance

On August 12, 2025, CareTrust REIT, Inc. entered into an underwriting agreement with major financial institutions to sell 20,000,000 shares of its common stock at $32.00 per share, with an option for an additional 3,000,000 shares, which was fully exercised the next day. The issuance of these shares, completed on August 14, 2025, was part of a strategic move to enhance the company’s financial positioning and potentially expand its operations within the healthcare real estate sector.

The most recent analyst rating on (CTRE) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on CareTrust REIT stock, see the CTRE Stock Forecast page.

CareTrust REIT Expands with $1.1 Billion Investments

CareTrust REIT reported its second quarter 2025 results, highlighting significant investments totaling $1.1 billion, including the acquisition of Care REIT plc, and an upsized credit facility. The company achieved a net income of $68.5 million and maintained a strong financial position with a net debt-to-annualized normalized run rate EBITDA of 2.0x. CareTrust also increased its 2025 financial guidance, projecting higher net income and FFO per share, while maintaining a quarterly dividend payout ratio of approximately 78%. The strategic acquisition of Care REIT marked CareTrust’s entry into the UK market, broadening its operator bench and diversifying its asset mix, payor base, and geographic reach.

The most recent analyst rating on (CTRE) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on CareTrust REIT stock, see the CTRE Stock Forecast page.

CareTrust REIT Secures $500 Million Term Loan Facility

On May 30, 2025, CareTrust REIT, Inc. entered into an amendment to its credit and guaranty agreement, introducing a $500 million unsecured term loan facility alongside its existing $1.2 billion revolving credit facility. This move is expected to help the company pay off existing debt, fund acquisitions, and support general corporate purposes, potentially enhancing its financial flexibility and positioning in the healthcare real estate market.

The most recent analyst rating on (CTRE) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on CareTrust REIT stock, see the CTRE Stock Forecast page.

CareTrust REIT Updates Investor Presentation

CareTrust REIT, Inc. has released an updated investor presentation available on their website. The company clarifies that this update is not mandated by securities laws and does not include undisclosed material investor information.

The most recent analyst rating on (CTRE) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on CareTrust REIT stock, see the CTRE Stock Forecast page.