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Medical Properties (MPW)
NYSE:MPW
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Medical Properties
(NYSE:MPW)56Neutral
Positive Factors
Debt Management
The company has solved their near-term debt maturity issues with no debt maturing until 2027.
Tenant Resolution
The company is starting to reach resolution on their tenant problems.
Negative Factors
Bankruptcy Impact
Prospect Medical Holdings has recently filed for Chapter 11 bankruptcy protection, impacting MPW's financial situation.
Medical Properties (MPW) vs. S&P 500 (SPY)
Market Cap
$3.39B
Dividend Yield7.96%
Average Volume (3M)13.23M
Price to Earnings (P/E)―
Beta (1Y)1.71
Revenue Growth14.19%
EPS Growth-331.18%
CountryUS
Employees121
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)-4.02
Shares Outstanding600,600,000
10 Day Avg. Volume15,077,763
30 Day Avg. Volume13,225,201
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.41
Price to Cash Flow (P/CF)14.70
P/FCF Ratio5.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.83Price Target Upside-14.36% Downside
Rating ConsensusHold
Number of Analyst Covering5
Medical Properties Business Overview & Revenue Model
Company DescriptionMedical Properties Trust, Inc. is a self-advised real estate investment trust, which engages in the investment, acquisition, and development of net-leased healthcare facilities. Its property portfolio includes rehabilitation hospitals; long-term acute care hospitals; ambulatory surgery centers; hospitals for women and children; regional and community hospitals; medical office buildings; and other single-discipline facilities. The company was founded by Edward K. Aldag Jr., R. Steven Hamner, Emmett E. McLean, and William Gilliard McKenzie on August 27, 2003 and is headquartered in Birmingham, AL.
How the Company Makes MoneyMedical Properties Trust, Inc. generates revenue primarily through leasing its healthcare facilities to hospital operators under long-term net leases. The company earns rental income as its primary revenue stream, which is typically structured with annual rent escalations. These leases often require the tenant to cover property-related expenses such as maintenance, insurance, and taxes, ensuring a stable and predictable income stream for MPW. Additionally, the company may engage in strategic acquisitions and partnerships to expand its portfolio and enhance its revenue potential, focusing on properties that align with its investment strategy.
Medical Properties Financial Statement Overview
Summary
Medical Properties is facing several financial challenges, including declining revenue, profitability issues, and high leverage. The company needs to address its negative cash flow situation and improve operational efficiency to stabilize its financial health. Despite some improvements in debt levels, the overall financial trajectory suggests a need for strategic adjustments to achieve sustainable growth.Income Statement
Medical Properties has experienced declining revenue growth with a decrease in total revenue from 2022 to 2024. Gross profit margin has significantly decreased in the TTM compared to previous years. The company faced a substantial net loss in the TTM, negatively impacting the net profit margin. Despite these challenges, EBIT margin showed some improvement in the TTM, though EBITDA margin turned negative, indicating operational difficulties.45
Neutral
Balance Sheet
The company's debt-to-equity ratio has improved due to a decrease in total debt, but remains relatively high, suggesting leverage risk. Return on Equity (ROE) is negative in the TTM due to net losses, but equity ratio remains stable. The balance sheet reflects a decline in total assets and stockholders' equity, indicating a need for better asset management and profitability.50
Neutral
Cash Flow
Operating cash flow has significantly decreased in the TTM, reflecting weaker cash generation capabilities. The free cash flow turned negative, showing cash flow difficulties. The free cash flow to net income ratio is unfavorable due to negative net income, and the operating cash flow to net income ratio reflects challenges in converting earnings into cash.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 995.55M | 871.80M | 1.54B | 1.54B | 1.25B | Gross Profit |
| 995.55M | 830.23M | 1.50B | 1.51B | 1.22B | EBIT |
| 861.76M | 81.28M | 1.00B | 1.04B | 828.44M | EBITDA |
| -1.92B | 684.64M | 1.34B | 1.36B | 1.09B | Net Income Common Stockholders |
| -2.32B | -556.48M | 902.60M | 656.02M | 431.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 332.33M | 250.02M | 235.67M | 459.23M | 549.88M | Total Assets |
| 14.29B | 18.30B | 19.66B | 20.52B | 16.83B | Total Debt |
| 129.04M | 10.22B | 11.34B | 11.44B | 9.01B | Net Debt |
| -203.29M | 9.97B | 11.11B | 10.98B | 8.46B | Total Liabilities |
| 9.46B | 10.67B | 11.06B | 12.07B | 9.49B | Stockholders Equity |
| 4.83B | 7.63B | 8.59B | 8.44B | 7.34B |
| Cash Flow | Free Cash Flow | |||
| 245.48M | 505.79M | -801.35M | 746.11M | -3.67B | Operating Cash Flow |
| 245.48M | 505.79M | 739.01M | 811.66M | 617.64M | Investing Cash Flow |
| 1.32B | 517.56M | 396.06M | -3.86B | -2.95B | Financing Cash Flow |
| -1.48B | -1.02B | -1.34B | 2.95B | 1.40B |
Medical Properties Technical Analysis
Positive
5.64
Price Trends
4.49
Positive
4.44
Positive
4.63
Positive
Market Momentum
0.30
Negative
69.05
Neutral
83.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPW, the sentiment is Positive. The current price of 5.64 is above the 20-day moving average (MA) of 5.02, above the 50-day MA of 4.49, and above the 200-day MA of 4.63, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 69.05 is Neutral, neither overbought nor oversold. The STOCH value of 83.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MPW.
Medical Properties Risk Analysis
Medical Properties disclosed 53 risk factors in its most recent earnings report. Medical Properties 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
Medical Properties Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $98.70B | 186.70 | 1.65% | 1.67% | 20.40% | 57.80% | |
76 Outperform | $10.54B | 24.88 | 8.96% | 7.12% | 9.90% | 56.41% | |
73 Outperform | $14.60B | 57.09 | 2.89% | 5.91% | 23.82% | -37.59% | |
65 Neutral | $5.83B | ― | -10.95% | 7.38% | -5.62% | -140.10% | |
63 Neutral | $31.32B | 358.18 | 0.75% | 2.56% | 9.48% | ― | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
56 Neutral | $3.39B | ― | -47.99% | 7.96% | 14.19% | -331.18% |
* Real Estate Sector Average
Performance Comparison
MPW
Medical Properties
5.64
1.54
37.56%
DOC
Healthpeak Properties
20.25
3.69
22.28%
WELL
Welltower
153.90
63.77
70.75%
OHI
Omega Healthcare
37.38
8.65
30.11%
VTR
Ventas
69.81
27.82
66.25%
HR
Healthcare Realty Trust
16.62
3.84
30.05%
Medical Properties Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 18.24% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
Despite significant challenges such as the Prospect Medical Group bankruptcy and a substantial net loss for the year, Medical Properties Trust demonstrated resilience by exceeding liquidity targets, securing future debt coverage, and successfully integrating new operators into its portfolio. The performance of international assets and strengthening hospital fundamentals also contribute positively, balancing the negative aspects.Highlights
Exceeding Liquidity Targets
Medical Properties Trust executed approximately $3 billion in liquidity transactions in 2024, significantly outperforming the initial target of $2 billion.
Successful Bond Issuance
The company issued over $2.5 billion of seven-year secured bonds at a blended coupon of 7.88%, securing liquidity to cover all upcoming debt maturities through 2026.
New Operator Success
Six new operators were added to the portfolio, with contractual cash rent ramping up to a quarterly run rate of about $40 million by October 2026. The largest tenant paid rent early.
International Performance
Circle Health in the U.K. and Swiss Medical Network in Switzerland reported strong performance, with double-digit revenue and EBITDARM growth.
Hospital Fundamentals Strengthening
Admissions and surgical volumes are growing, and all asset types in the portfolio showed continued improvement in coverage on both a sequential and year-over-year basis.
Lowlights
Prospect Medical Group Bankruptcy
Prospect Medical Group filed for Chapter 11 bankruptcy, citing COVID-19 impacts, labor cost inflation, reimbursement challenges, and pension obligations.
Significant GAAP Net Loss
Reported a GAAP net loss of $413 million for Q4 2024 and a full-year net loss of $2.4 billion, impacted by Prospect's bankruptcy and adjustments.
Colombian Mortgage Impairment
Impaired mortgage investments in Colombia by approximately $19 million due to government reimbursement limitations.
Company Guidance
During the Q4 2024 earnings call, Medical Properties Trust (MPT) provided a comprehensive update on its financial performance and strategic initiatives. The company exceeded its initial target of $2 billion in liquidity transactions by achieving approximately $3 billion, bolstering its financial flexibility. Additionally, MPT issued over $2.5 billion in seven-year secured bonds at a blended coupon of 7.88%, ensuring sufficient liquidity to cover all debt maturities through 2026. The CEO, Ed Aldag, highlighted the resilience of MPT’s business model, underpinned by a diverse global portfolio of hospital real estate. The company expects total annualized cash rent of over $1 billion once new tenants are fully operational. Despite a challenging year, MPT improved its balance sheet and operator mix, with 2024 marking a period of strategic achievement. Looking ahead, the company remains confident in its ability to execute its strategy and capitalize on opportunities within the healthcare real estate sector.Medical Properties Corporate Events
Private Placements and FinancingLegal ProceedingsBusiness Operations and Strategy
Medical Properties Trust Strengthens Financial Position in 2025
Positive
Jan 29, 2025
On January 29, 2025, Medical Properties Trust announced a private offering of up to $2.0 billion in senior secured notes due 2032, alongside €500 million of similar notes, aimed at enhancing its financial positioning. Throughout 2024, the company strategically disposed of several properties, realizing significant financial gains and cash proceeds, which bolstered its financial strength and allowed for substantial debt repayments. The company also settled a major legal and operational restructuring with Steward Health Care, which included re-tenanting properties and resolving bankruptcy-related issues, reflecting a proactive approach to managing financial challenges and optimizing its portfolio.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.