CareTrust REIT (CTRE) AI Stock Analysis

• Market Cap: $5.52B
• Dividend Yield: 4.65%
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 31.4
• Beta (1Y): 0.23
• Revenue Growth: 43.27%
• EPS Growth: 80.97%
• Country: US
• Employees: 21
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.35
• Shares Outstanding: 191,689,000
• 10 Day Avg. Volume: 1,109,578
• 30 Day Avg. Volume: 1,285,166
• PEG Ratio: -3.49
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.10
• Enterprise Value/Market Cap: 0.45
• Enterprise Value/Revenue: 2.76
• Enterprise Value/Gross Profit: 10.74
• Enterprise Value/Ebitda: 2.96
• 1Y Price Target: $31.80
• Price Target Upside: 10.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 80 Outperform
• Price Target: $33.00 ▲(14.54%Upside)

CareTrust REIT's solid financial performance and strategic acquisitions are significant strengths, driving the stock's strong overall score. Concerns about rising debt and potential Medicaid cuts are moderated by a robust investment pipeline and positive corporate developments.

Positive Factors

Financial Health

CTRE maintains a very strong balance sheet and benefits from management's deep industry experience, which supports positive growth prospects.

Portfolio Diversification

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

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.

Financial Guidance

Raised guidance figures are below Street and BMO expectations.

Leverage

Leverage is expected to rise to 1.7x (midpoint) from the current 0.5x.

CareTrust REIT Business Overview & Revenue Model

Company Description

CareTrust REIT, Inc. (CTRE) is a real estate investment trust specializing in the ownership, acquisition, and leasing of healthcare-related properties, primarily focused on skilled nursing facilities, assisted living facilities, and independent living facilities. The company operates across the United States, providing capital and operational support to healthcare operators, thereby facilitating the delivery of healthcare services to the aging population.

How the Company Makes Money

CareTrust REIT generates revenue primarily through leasing its portfolio of healthcare-related properties to third-party operators. The company enters into long-term, triple-net lease agreements, where tenants are responsible for property-related expenses such as maintenance, insurance, and taxes. This structure provides CareTrust REIT with a steady stream of rental income. Additionally, the company may engage in strategic acquisitions and sales of properties to optimize its portfolio and enhance returns. Partnerships with healthcare operators are crucial, as they help maintain high occupancy rates and ensure reliable rental payments, contributing to the company's financial performance.

CareTrust REIT Financial Statement Overview

Summary

CareTrust REIT displays robust profitability with high profit margins and consistent revenue growth. The balance sheet shows financial stability, although rising debt levels need monitoring. Strong cash flow generation further supports its solid financial position.

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
246.41M	228.26M	217.77M	187.51M	190.19M	175.69M
	Gross Profit
233.14M	214.71M	208.18M	178.13M	186.62M	170.98M
	EBIT
135.91M	124.06M	186.37M	112.44M	106.56M	104.56M
	EBITDA
250.82M	211.54M	145.80M	162.81M	161.96M	157.38M
	Net Income Common Stockholders
162.14M	125.08M	53.73M	42.87M	48.30M	57.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.51M	213.82M	294.45M	13.18M	19.89M	18.92M
	Total Assets
3.88B	3.44B	2.08B	1.62B	1.64B	1.50B
	Total Debt
822.15M	396.93M	595.60M	719.50M	673.40M	545.59M
	Net Debt
795.64M	183.10M	301.15M	706.32M	653.50M	526.67M
	Total Liabilities
936.27M	507.63M	666.12M	771.41M	725.09M	589.42M
	Stockholders Equity
2.93B	2.91B	1.42B	849.37M	915.76M	914.14M
Cash Flow		Free Cash Flow
256.88M	236.20M	143.79M	137.12M	150.86M	137.44M
	Operating Cash Flow
266.81M	244.25M	154.77M	144.41M	156.87M	145.74M
	Investing Cash Flow
-1.43B	-1.51B	-267.81M	-127.40M	-192.63M	-41.58M
	Financing Cash Flow
1.34B	1.19B	394.32M	-23.73M	36.74M	-105.56M

CareTrust REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.81
• 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 28.81 is below the 20-day moving average (MA) of 28.91, above the 50-day MA of 28.60, and above the 200-day MA of 28.28, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 50.21 is Neutral, neither overbought nor oversold. The STOCH value of 51.71 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	$5.52B	31.39	7.02%	4.65%	43.27%	80.97%
SBRA	77 Outperform	$4.33B	30.82	5.15%	6.59%	7.81%	179.16%
NHI	72 Outperform	$3.31B	22.51	10.56%	5.08%	7.44%	4.23%
AHR	64 Neutral	$5.72B	―	-1.93%	2.82%	11.30%	―
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
HR	49 Neutral	$5.25B	―	-6.83%	8.30%	-7.26%	18.45%
MPW	44 Neutral	$2.65B	―	-28.86%	7.26%	19.56%	-12.73%

CareTrust REIT Corporate Events

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.

CareTrust REIT Completes Acquisition of Care REIT plc

On May 8, 2025, CareTrust REIT, Inc. completed the acquisition of Care REIT plc through a court-sanctioned scheme of arrangement. The acquisition, valued at approximately $840.5 million, was funded through cash and borrowing under an existing credit facility, enhancing CareTrust’s portfolio in 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 Q1 2025 Results and Acquisition News

CareTrust REIT reported its first quarter 2025 results, highlighting a net income of $65.8 million and a planned acquisition of Care REIT plc, which was approved by Care REIT’s shareholders. The acquisition is expected to enhance CareTrust’s portfolio diversification and growth potential. The company also increased its quarterly dividend and announced plans to upsize its credit facility, reflecting a strong financial position and commitment to shareholder returns.