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CareTrust REIT (CTRE)
:CTRE
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CareTrust REIT
(NYSE:CTRE)
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Rating:79Outperform
Price Target:
$39.00
▲(12.07% Upside)
CareTrust REIT's strong financial performance and positive earnings call are the most significant factors driving the overall score. The company's robust profitability, revenue growth, and strategic investments support a positive outlook. While the technical analysis and valuation indicate some caution, the overall financial health and growth prospects make it a compelling investment opportunity.
Positive Factors
Revenue Growth
The significant revenue growth indicates strong demand and effective business operations, positioning CareTrust REIT for continued expansion and market strength.
Investment Pipeline
A robust investment pipeline ensures future growth opportunities, allowing CareTrust REIT to capitalize on market trends and expand its asset base.
Financial Stability
Strong liquidity and low leverage enhance financial stability, providing flexibility for strategic investments and resilience against economic fluctuations.
Negative Factors
Rising Debt Levels
Increasing debt levels could strain financial resources and limit future investment capacity, posing a risk to long-term financial health if not managed carefully.
Increased G&A Expenses
Rising G&A expenses could pressure profit margins, potentially impacting overall profitability if not offset by revenue growth or cost efficiencies.
Regulatory Uncertainty
Regulatory uncertainties, particularly around Medicaid, could impact revenue streams and operational costs, affecting long-term financial performance.
CareTrust REIT (CTRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.77B
Dividend Yield3.59%
Average Volume (3M)2.37M
Price to Earnings (P/E)29.0
Beta (1Y)0.16
Revenue Growth50.84%
EPS Growth104.44%
CountryUS
Employees21
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.35
Shares Outstanding223,300,320
10 Day Avg. Volume2,510,000
30 Day Avg. Volume2,366,311
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)1.44
Price to Sales (P/S)18.34
P/FCF Ratio17.73
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue22.33
Enterprise Value/Gross Profit25.26
Enterprise Value/Ebitda22.10
Forecast
1Y Price Target
$36.89Price Target Upside6.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
CareTrust REIT Business Overview & Revenue Model
Company DescriptionCareTrust 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 MoneyCareTrust 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 Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant investment growth, increased revenues, a strong financial performance, and a robust pipeline indicating a positive outlook. However, some concerns were noted regarding increased G&A expenses and potential regulatory uncertainties.Q2-2025 Updates
Positive Updates
Significant Investment Growth
Closed on approximately $1.1 billion of investments in the second quarter, with total investments of roughly $2.7 billion over the past 18 months, eclipsing the total amount invested in the prior 8 years.
Revenue and Dividend Increase
Total revenues increased by 63.3% in the second quarter over the prior year quarter. The quarterly dividend was increased by 15.5% year-over-year.
Strong Financial Performance
Normalized FFO increased by 19% and normalized FAD per share increased by 16% over the prior year quarter.
Robust Pipeline and Future Growth
Investment pipeline remains strong at approximately $600 million, with continued growth in both U.S and U.K markets.
Increased Liquidity and Low Leverage
Maintained a strong liquidity position with $1.14 billion available under the revolver and a net debt to annualized normalized EBITDA of 2x.
Negative Updates
Increased G&A Expenses
General and administrative expenses increased slightly, with expectations of continued increase due to team expansion.
Uncertainty in Regulatory Environment
Potential pressures on Medicaid reimbursement rates due to increased budget deficits and future regulatory changes.
Company Guidance
During CareTrust REIT's second quarter 2025 earnings call, significant financial guidance and metrics were highlighted. The company reported a 63.3% increase in total revenues compared to the prior year quarter, with normalized FFO and normalized FAD per share up by approximately 19% and 16%, respectively. A major milestone was the acquisition of Care REIT, marking CareTrust's entry into the U.K. care home market and contributing to approximately $1.1 billion of closed investments during the quarter. The company also announced a 15.5% year-over-year increase in its quarterly dividend while maintaining a comfortable payout ratio. Additionally, a robust $600 million investment pipeline was disclosed, predominantly composed of U.S. skilled nursing facilities, with some inclusion of seniors housing deals and a U.K. care home opportunity. Financial guidance for 2025 was raised, with projections of $1.77 to $1.79 for both normalized FFO and normalized FAD per share, supported by assumptions such as CPI rent escalations of 2.5% and interest income of approximately $87 million. The company maintained strong liquidity, with $1.14 billion available under its revolver and a net debt to annualized normalized EBITDA ratio of 2x.CareTrust REIT Financial Statement Overview
Summary
CareTrust REIT displays a strong financial profile with robust profitability and consistent revenue growth. The income statement shows excellent profit margins, while the balance sheet indicates financial stability with a strong equity base. However, rising debt levels should be monitored. The cash flow statement highlights efficient cash generation and management, contributing to overall financial strength.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.85
Very Positive
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.78
Positive
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.82
Very Positive
| 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 | -1.87B | -1.51B | -267.81M | -127.40M | -192.63M | -41.58M |
| Financing Cash Flow | 1.37B | 1.19B | 394.32M | -23.73M | 36.74M | -105.56M |
CareTrust REIT Technical Analysis
Positive
34.80
Price Trends
33.32
Positive
31.33
Positive
29.05
Positive
Market Momentum
0.31
Positive
59.76
Neutral
50.28
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 34.8 is above the 20-day moving average (MA) of 34.26, above the 50-day MA of 33.32, and above the 200-day MA of 29.05, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 59.76 is Neutral, neither overbought nor oversold. The STOCH value of 50.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTRE.
CareTrust REIT Risk Analysis
CareTrust REIT disclosed 41 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $7.77B | 29.03 | 8.36% | 3.59% | 50.84% | 104.44% | |
79 Outperform | $3.79B | 25.50 | 10.10% | 4.51% | 6.87% | 7.23% | |
76 Outperform | $12.34B | 26.10 | 9.44% | 6.41% | 12.73% | 23.51% | |
74 Outperform | $4.52B | 24.77 | 6.72% | 6.37% | 6.89% | 240.70% | |
70 Neutral | $7.19B | -192.03 | -1.35% | 2.37% | 11.62% | ― | |
60 Neutral | $6.28B | -15.48 | -8.38% | 6.55% | -7.16% | 23.40% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
CTRE
CareTrust REIT
34.80
4.96
16.62%
NHI
National Health Investors
79.85
-1.07
-1.32%
OHI
Omega Healthcare
41.84
3.87
10.19%
SBRA
Sabra Healthcare REIT
18.83
1.45
8.34%
HR
Healthcare Realty Trust
17.86
0.95
5.62%
AHR
American Healthcare REIT, Inc.
42.15
16.67
65.42%
CareTrust REIT Corporate Events
Business Operations and StrategyPrivate Placements and Financing
CareTrust REIT Completes Major Stock Issuance
Positive
Aug 14, 2025
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.
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.