Target Healthcare REIT (THRL) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 6.15%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.81
• Revenue Growth: 4.86%
• EPS Growth: -16.65%
• Country: UK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.03
• Shares Outstanding: 620,237,370
• 10 Day Avg. Volume: 1,213,923
• 30 Day Avg. Volume: 1,116,333
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £105.00
• Price Target Upside: 7.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: 103.00p ▲(5.86% Upside)

The overall stock score is driven by a solid valuation with a low P/E ratio and high dividend yield, despite concerns over declining cash flow growth and weak technical momentum.

Positive Factors

Stable Revenue Growth

Stable revenue growth indicates consistent demand for healthcare properties, supporting long-term income stability and potential capital appreciation.

Balanced Financial Structure

A balanced financial structure with moderate leverage enhances financial stability, providing flexibility for future investments and growth.

Strong Cash Generation

Strong cash generation supports the company's ability to fund operations, pay dividends, and invest in growth opportunities, ensuring long-term sustainability.

Negative Factors

Declining Cash Flow Growth

Declining cash flow growth may limit the company's ability to invest in new properties or return capital to shareholders, potentially impacting future growth.

Operational Efficiency Concerns

Declining margins suggest potential inefficiencies or cost pressures, which could affect profitability and competitiveness in the long term.

Declining Cash Flow Growth

Reduced cash flow growth and efficiency issues may hinder the company's ability to maintain its current financial performance and pursue strategic initiatives.

Target Healthcare REIT Business Overview & Revenue Model

Company Description

Target Healthcare REIT provide a range of tailored funding solutions to support operators to increase the provision of modern, purpose-built care homes across the UK.

How the Company Makes Money

Target Healthcare REIT generates revenue primarily through rental income from its portfolio of healthcare properties. The company leases these properties to experienced operators under long-term agreements, ensuring a stable and predictable income stream. Additionally, THRL benefits from property appreciation over time, which can enhance its overall asset value. The REIT may also engage in strategic partnerships with healthcare operators to optimize the performance of its properties, contributing to its financial performance. The demand for healthcare services and the growing need for specialized facilities further support the company's revenue potential.

Target Healthcare REIT Financial Statement Overview

Summary

Target Healthcare REIT shows stable revenue growth and profitability with a balanced financial structure. However, declining cash flow growth and operational efficiency are concerns.

Income Statement

The income statement shows a stable revenue growth rate of 3.07% in the latest year, with strong gross and net profit margins. However, there is a noticeable decline in EBIT and EBITDA margins compared to previous years, indicating potential pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced leverage position. The return on equity has been positive, although it has shown some fluctuations. The equity ratio remains healthy, suggesting a stable financial structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which could be a concern. However, the operating cash flow to net income ratio remains strong, indicating efficient cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.93M	72.93M	78.48M	67.75M	63.86M	49.98M
Gross Profit	64.84M	64.84M	78.48M	60.14M	56.55M	44.18M
EBITDA	59.59M	59.59M	58.00M	0.00	0.00	0.00
Net Income	60.84M	60.84M	73.02M	-6.57M	49.10M	43.88M
Balance Sheet
Total Assets	986.19M	986.19M	967.37M	908.26M	963.66M	718.39M
Cash, Cash Equivalents and Short-Term Investments	39.64M	39.64M	38.88M	15.37M	34.48M	21.11M
Total Debt	240.29M	240.29M	240.67M	227.05M	231.38M	127.90M
Total Liabilities	273.73M	273.73M	278.08M	253.45M	264.89M	153.21M
Stockholders Equity	712.46M	712.46M	689.29M	654.81M	698.77M	565.18M
Cash Flow
Free Cash Flow	41.10M	41.10M	42.34M	29.66M	30.39M	24.96M
Operating Cash Flow	41.10M	41.10M	42.34M	29.66M	30.39M	24.96M
Investing Cash Flow	-3.23M	-3.23M	3.42M	-3.55M	-202.63M	-43.58M
Financing Cash Flow	-37.11M	-37.11M	-22.24M	-45.23M	185.62M	3.29M

Target Healthcare REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 97.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:THRL, the sentiment is Positive. The current price of 97.3 is above the 20-day moving average (MA) of 95.81, above the 50-day MA of 94.78, and above the 200-day MA of 94.65, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 58.40 is Neutral, neither overbought nor oversold. The STOCH value of 68.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:THRL.

Target Healthcare REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WHR	77 Outperform	―	―	―	―	1.73%	21.53%
PRSR	75 Outperform	£623.95M	8.16	10.16%	3.87%	13.95%	-17.77%
PHP	74 Outperform	£2.53B	13.37	7.01%	7.28%	0.96%	―
AGR	73 Outperform	―	―	―	―	16.01%	―
THRL	71 Outperform	―	9.82	8.68%	6.15%	4.86%	-16.65%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Target Healthcare REIT Corporate Events

Target Healthcare REIT Updates Voting Rights Structure

Target Healthcare REIT PLC announced a change in its voting rights structure following an acquisition or disposal by Waverton Investment Management Limited. The notification indicates that Waverton now holds 3.04% of the voting rights, totaling 18,869,630 shares, which may impact the company’s governance and decision-making processes.

Spark’s Take on GB:THRL Stock

According to Spark, TipRanks’ AI Analyst, GB:THRL is a Outperform.

Target Healthcare REIT demonstrates strong financial performance and valuation metrics, with a stable dividend yield and attractive P/E ratio. The technical analysis suggests positive momentum, though caution is advised due to overbought indicators. Recent corporate activities further support a positive sentiment, positioning the company well for future growth.

To see Spark’s full report on GB:THRL stock, click here.

Target Healthcare REIT to Present Interim Results Live

Target Healthcare REIT PLC announced a live presentation of its Interim Results by Kenneth MacKenzie and James MacKenzie from Target Fund Managers. The presentation, scheduled for 1 April 2025, is accessible to all existing and potential shareholders, allowing them to engage and submit questions. This initiative aims to enhance transparency and engagement with stakeholders, potentially impacting investor relations positively.

Target Healthcare REIT Reports Strong Half-Year Results with Growth in Earnings and Portfolio Valuation

Target Healthcare REIT plc reported a strong performance for the six months ending December 2024, with a 1.8% increase in EPRA NTA per share and a 4.5% total accounting return. The company has maintained a robust balance sheet with long-term fixed-rate debt and a fully covered growing dividend. The portfolio’s market valuation rose by 1.8%, driven by rental uplifts and capital expenditure, while maintaining a high occupancy rate and strong rent collection. The company benefits from sectoral tailwinds such as an aging population and a trend towards quality care homes, positioning it well for future growth.

Target Healthcare REIT to Announce Half-Year Results

Target Healthcare REIT announced it will release its half-year results for the period ending 31 December 2024 on 14 March 2025. The company emphasizes its strategy of building supportive relationships with tenants to enhance care standards and ensure stable returns, reflecting its commitment to sustainable business practices.

Target Healthcare REIT Appoints Panmure Liberum as Joint Broker

Target Healthcare REIT has appointed Panmure Liberum Limited as a joint broker alongside its existing corporate broker, Stifel Nicolaus Europe Limited. This strategic move is expected to enhance the company’s market operations and potentially strengthen its industry positioning by leveraging the expertise of both brokers.

BlackRock Increases Stake in Target Healthcare REIT

Target Healthcare REIT PLC has announced that BlackRock, Inc. has increased its holdings in the company, crossing the 5% threshold of voting rights. This acquisition by a major global investment firm like BlackRock could signal confidence in Target Healthcare’s market position and potential for growth, potentially impacting investor sentiment positively.

BlackRock Adjusts Stake in Target Healthcare REIT Below 5%

The notification indicates that BlackRock, Inc. has adjusted its holdings in Target Healthcare REIT PLC, with its voting rights now falling below 5%. This change reflects BlackRock’s ongoing portfolio management strategy and may influence the market perception of Target Healthcare REIT’s stock, potentially affecting investor sentiment and trading activity.

Target Healthcare REIT Reports NAV Growth and Declares Dividend

Target Healthcare REIT announced a 0.9% increase in its EPRA Net Tangible Assets per share, driven by inflation-linked rent reviews, and declared a second interim dividend. The company maintains a positive outlook due to demographic trends and demand for modern care homes, with a stable rent cover and strong tenant base supporting its long-term returns.