CareTrust REIT (CTRE)
NYSE:CTRE
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CareTrust REIT
(NYSE:CTRE)
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Rating:83Outperform
Price Target:
$48.00
▲(21.52% Upside)
Action:ReiteratedDate:05/09/26
CTRE scores well primarily due to strong financial performance (high profitability and cash generation) and a very constructive earnings update (raised 2026 guidance, strong Q1 growth, and solid liquidity/leverage). Technicals are supportive with clear upward trend momentum, while valuation is the main moderating factor given the ~25.5 P/E despite a solid ~3.35% dividend yield.
Positive Factors
Strong Cash Generation
High operating and free cash flow with near‑one-to-one conversion to net income demonstrates durable earnings quality. This cash generation underpins dividends, funds acquisitions and loan activity, and provides a buffer for operator stress, supporting sustainable capital allocation over the medium term.
Negative Factors
SHOP Cap‑Rate Compression
Compressed SHOP cap rates force higher acquisition prices or lower initial yields, pressuring long‑term return on invested capital. Persistently tighter pricing can erode future FFO accretion from growth initiatives and require stricter underwriting or reduced volume to maintain returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
High operating and free cash flow with near‑one-to-one conversion to net income demonstrates durable earnings quality. This cash generation underpins dividends, funds acquisitions and loan activity, and provides a buffer for operator stress, supporting sustainable capital allocation over the medium term.
Read all positive factors
CareTrust REIT (CTRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.83B
Dividend Yield3.56%
Average Volume (3M)3.49M
Price to Earnings (P/E)25.5
Beta (1Y)0.23
Revenue Growth58.48%
EPS Growth70.32%
CountryUS
Employees21
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)1.57
Shares Outstanding236,240,230
10 Day Avg. Volume2,028,937
30 Day Avg. Volume3,486,320
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 Cap1.07
Enterprise Value/Revenue22.43
Enterprise Value/Gross Profit25.83
Enterprise Value/Ebitda21.22
Forecast
1Y Price Target
$43.67Price Target Upside10.55% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.49
Revenue Forecast (FY)$479.94M
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:May 07, 2026
(Q1-2026)
| Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: substantial year-to-date investment activity (~$1.1B), double-digit per-share FFO/FAD growth, raised guidance, an investment-grade rating, strong rent coverage, and ample liquidity. The primary headwinds are competitive pressure and cap-rate compression in SHOP and selective pricing pressure on larger SNF deals, as well as modest near-term increases in G&A and accounting complexity around loans. Overall, the positives (accelerating investment activity, upgraded rating, raised guidance, strong earnings and coverage, and healthy liquidity) materially outweigh the challenges described.Positive Updates
Strong Investment Activity and Scale-Up
Closed approximately $245M of investments in Q1 and, since April, an additional 12 transactions totaling ~ $865M; year-to-date closed ~ $1.1B of investments at a blended stabilized yield of ~8.9% (Q1 blended yield 8.8%). Current quoted pipeline ~ $360M (over half UK care homes, ~20% SHOP).
Negative Updates
Increased Competition and Cap Rate Compression in SHOP
SHOP market is highly competitive with cap-rate compression (management estimates ~50 bps compression over the past six months); class-A primary SHOP cap rates described as roughly in the mid-5% range, making it harder to win deals without stretching underwriting.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Investment Activity and Scale-Up
Closed approximately $245M of investments in Q1 and, since April, an additional 12 transactions totaling ~ $865M; year-to-date closed ~ $1.1B of investments at a blended stabilized yield of ~8.9% (Q1 blended yield 8.8%). Current quoted pipeline ~ $360M (over half UK care homes, ~20% SHOP).
Read all positive updates
Company Guidance
CareTrust raised its 2026 full‑year guidance, with normalized FAD now guided to $1.98–$2.02 and the midpoints of updated normalized FFO and FAD representing increases of 14.8% and 13.6%, respectively, versus 2025 (and +4.9% and +3.9% versus the company’s initial 2026 guidance); the guidance assumes a weighted average diluted share count of 234 million, no new investments/loans/dispositions or debt/equity issuances beyond year‑to‑date activity, 2.5% inflation‑based rent escalators on long‑term triple‑net leases, $145 million of loans to be repaid this year, and no material change in the sterling–dollar spot rate. The company noted strong Q1 operating results (normalized FFO $107.4M, +38% YoY; normalized FAD $107.6M, +33% YoY; normalized FFO/FAD per share $0.48, +14%/+12% YoY), and highlighted ample liquidity and conservative leverage as support for the guidance (≈$70M cash, $350M drawn on a $1.2B revolver with ≈$850M availability, ≈$879M ATM capacity, net debt/annualized normalized run‑rate EBITDA 0.6x and net debt/enterprise value ~3.6%).CareTrust REIT Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 468.13M | 476.59M | 228.26M | 198.60M | 187.51M | 190.19M |
| Gross Profit | 406.50M | 281.79M | 214.71M | 189.01M | 178.13M | 186.62M |
| EBITDA | 494.82M | 462.08M | 211.54M | 145.80M | 72.88M | 151.05M |
| Net Income | 334.95M | 320.54M | 125.08M | 53.73M | -7.51M | 71.98M |
Balance Sheet | ||||||
| Total Assets | 5.24B | 5.15B | 3.44B | 2.08B | 1.62B | 1.64B |
| Cash, Cash Equivalents and Short-Term Investments | 223.21M | 198.04M | 213.82M | 294.45M | 13.18M | 19.89M |
| Total Debt | 894.65M | 894.22M | 396.93M | 595.60M | 719.50M | 673.40M |
| Total Liabilities | 1.08B | 1.09B | 507.63M | 666.12M | 771.41M | 725.09M |
| Stockholders Equity | 4.13B | 4.04B | 2.91B | 1.42B | 849.37M | 915.76M |
Cash Flow | ||||||
| Free Cash Flow | 400.30M | 379.04M | 236.20M | 143.79M | 137.12M | 150.86M |
| Operating Cash Flow | 413.01M | 394.03M | 244.25M | 154.77M | 144.41M | 156.87M |
| Investing Cash Flow | -1.53B | -1.46B | -1.49B | -267.81M | -127.40M | -192.63M |
| Financing Cash Flow | 708.11M | 1.05B | 1.17B | 394.32M | -23.73M | 36.74M |
CareTrust REIT Technical Analysis
Positive
39.50
Price Trends
38.88
Positive
37.62
Positive
35.24
Positive
Market Momentum
0.32
Negative
56.64
Neutral
83.09
Negative
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 39.5 is above the 20-day moving average (MA) of 37.97, above the 50-day MA of 38.88, and above the 200-day MA of 35.24, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 56.64 is Neutral, neither overbought nor oversold. The STOCH value of 83.09 is Negative, 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 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $9.83B | 25.48 | 8.67% | 3.56% | 58.48% | 70.32% | |
76 Outperform | $14.05B | 21.54 | 12.40% | 6.11% | 13.95% | 27.68% | |
73 Outperform | $10.02B | 0.09 | 2.73% | 2.10% | 12.24% | ― | |
70 Outperform | $5.23B | 29.65 | 5.61% | 6.47% | 13.50% | 7.25% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $3.65B | 24.36 | 9.87% | 4.73% | 16.91% | -1.91% | |
60 Neutral | $6.98B | 70,273.67 | -5.13% | 6.56% | -6.92% | 60.09% |
* Real Estate Sector Average
CTRE
CareTrust REIT
41.60
14.08
51.17%
NHI
National Health Investors
75.26
3.22
4.47%
OHI
Omega Healthcare
47.19
13.47
39.93%
SBRA
Sabra Healthcare REIT
20.75
3.97
23.66%
HR
Healthcare Realty Trust
20.15
5.81
40.51%
AHR
American Healthcare REIT, Inc.
51.71
17.77
52.35%
CareTrust REIT Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
CareTrust REIT Raises 2026 Guidance After Strong Q1
Positive
May 7, 2026
CareTrust REIT reported strong first-quarter 2026 results on May 7, 2026, highlighted by net income of $80.2 million, or $0.36 per diluted share, and double-digit year-over-year growth in normalized funds from operations and funds available for di...
Executive/Board ChangesShareholder Meetings
CareTrust REIT Stockholders Back Board and Governance Plans
Positive
Apr 30, 2026
CareTrust REIT, Inc. held its 2026 annual meeting of stockholders on April 29, 2026, where investors voted on board composition, executive pay and auditor selection. The real estate investment trust focuses on healthcare-related properties such as...
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.