Medical Properties (MPW) AI Stock Analysis

• Market Cap: $2.55B
• Dividend Yield: 7.39%
• Average Volume (3M): 9.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: 27.66%
• EPS Growth: 18.03%
• Country: US
• Employees: 118
• Sector: Real Estate
• Sector Strength: 46
• Industry: REIT - Healthcare Facilities
• EPS (TTM): -0.16
• Shares Outstanding: 601,100,000
• 10 Day Avg. Volume: 8,431,540
• 30 Day Avg. Volume: 9,181,556
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.60
• Enterprise Value/Revenue: 12.37
• Enterprise Value/Gross Profit: 12.77
• Enterprise Value/Ebitda: 7.37
• 1Y Price Target: $4.50
• Price Target Upside: 3.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 49 Neutral
• Price Target: $4.00 ▼(-7.62% Downside)

The overall stock score is driven primarily by financial challenges, including declining revenue and high leverage, which are major concerns. While there are positive developments in earnings and refinancing, the technical indicators and valuation suggest caution. The high dividend yield is attractive but may not be sustainable.

Positive Factors

Debt Maturity

The company has solved their near-term debt maturity issues with no debt maturing until 2027.

Facility Upgrades

New operators appear to be investing in facility upgrades, and management guided to rent payments reaching $160 million annualized run-rate by October 2026.

Settlement Agreement

MPW received a court approval for its settlement agreement with Prospect, which is a positive.

Negative Factors

Impairment Charges

The company took an $11 million impairment charge on mortgage investments in Colombia.

Net Loss

MPW reported a net loss of $0.69 per share attributed to impairment charges related to Prospect Medical Group and PHP Holdings.

Tenant Uncertainty

Concerns remain around problem tenants, uncertainty on legacy-Steward recovery ramp, and upcoming interest expense headwinds.

Medical Properties Business Overview & Revenue Model

Company Description

Medical Properties Trust, Inc. (MPW) is a real estate investment trust (REIT) that specializes in acquiring and managing healthcare facilities. The company focuses on investing in hospitals and other medical properties across the United States and internationally. MPW's portfolio includes a diverse range of healthcare facilities, primarily acute care hospitals, rehabilitation hospitals, and long-term care facilities, providing essential services to communities while generating stable rental income.

How the Company Makes Money

Medical Properties Trust generates revenue primarily through long-term leases with healthcare operators. The company purchases healthcare facilities and then leases them back to operators under triple-net leases, meaning the tenants are responsible for property taxes, insurance, and maintenance costs. This revenue model provides MPW with a steady stream of rental income. Additionally, MPW benefits from rental escalations built into its leases, which can enhance revenue over time. The company's strategic partnerships with leading healthcare providers and operators also play a crucial role in its success, as they help secure high occupancy rates and reliable cash flow. Moreover, MPW's focus on acquiring properties in growing markets and its expertise in the healthcare sector contribute to its ability to generate consistent earnings.

Medical Properties Financial Statement Overview

Summary

Medical Properties faces significant financial challenges, with declining revenue and profitability, high leverage, and cash flow management issues. While positive operating cash flow is a strength, the company's overall financial health is concerning and requires improvement in debt levels and operational efficiency.

Income Statement

Medical Properties shows declining revenue and profitability. The TTM revenue has decreased compared to the previous year, and the net income remains negative, indicating ongoing financial challenges. The gross profit margin is relatively high, but the net profit margin is negative due to significant net losses. EBIT and EBITDA margins have also deteriorated, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage. The equity ratio has decreased over time, suggesting reduced financial stability. However, the company maintains a reasonable level of total assets, which provides some buffer against liabilities. The return on equity is negative due to net losses, highlighting profitability issues.

Cash Flow

Operating cash flow is positive, but free cash flow has declined, indicating cash management challenges. The operating cash flow to net income ratio is favorable, suggesting that cash generation is better than reported earnings. However, the free cash flow to net income ratio is negative, reflecting insufficient cash to cover net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	948.03M	995.55M	871.80M	1.54B	1.54B	1.25B
Gross Profit	918.56M	968.29M	830.23M	1.50B	1.51B	1.22B
EBITDA	1.59B	840.60M	697.41M	1.35B	1.37B	1.10B
Net Income	-1.65B	-2.41B	-556.48M	902.60M	656.02M	431.45M
Balance Sheet
Total Assets	14.85B	14.29B	18.30B	19.66B	20.52B	16.83B
Cash, Cash Equivalents and Short-Term Investments	673.48M	332.33M	250.02M	235.67M	459.23M	549.88M
Total Debt	9.47B	8.93B	10.22B	11.34B	11.44B	9.01B
Total Liabilities	10.09B	9.46B	10.67B	11.06B	12.07B	9.49B
Stockholders Equity	4.76B	4.83B	7.63B	8.59B	8.44B	7.34B
Cash Flow
Free Cash Flow	171.53M	245.48M	505.79M	-801.35M	746.11M	-3.67B
Operating Cash Flow	171.53M	245.48M	505.79M	739.01M	811.66M	617.64M
Investing Cash Flow	1.35B	1.32B	517.56M	396.06M	-3.86B	-2.95B
Financing Cash Flow	-1.08B	-1.48B	-1.02B	-1.34B	2.95B	1.40B

Medical Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.33
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 4.33 is above the 20-day moving average (MA) of 4.16, above the 50-day MA of 4.24, and below the 200-day MA of 4.58, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.92 is Neutral, neither overbought nor oversold. The STOCH value of 85.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MPW.

Medical Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHI	79 Outperform	$3.61B	24.31	10.49%	4.68%	6.87%	7.23%
SBRA	74 Outperform	$4.53B	24.87	6.66%	6.17%	6.89%	240.70%
LTC	73 Outperform	$1.66B	19.70	8.94%	6.29%	8.18%	-16.83%
SILA	71 Outperform	$1.37B	34.91	2.71%	6.35%	0.43%	58.57%
GMRE	64 Neutral	$512.95M	104.75	1.94%	11.16%	0.90%	―
Sector *	62 Neutral	AU$3.09B	14.60	3.06%	4.99%	25.15%	80.76%
MPW	49 Neutral	$2.55B	―	-25.97%	7.39%	27.66%	18.03%

Medical Properties Corporate Events

Medical Properties Announces $500 Million Equity Agreement

On August 11, 2025, Medical Properties entered into an equity distribution agreement with several financial institutions to offer and sell up to $500 million in common stock. This agreement allows for various types of transactions, including at-the-market offerings and forward sale transactions, with the company potentially receiving proceeds upon settlement. The company may choose different settlement options, which could impact the proceeds received.

Medical Properties Updates REIT Tax Considerations

On June 2, 2025, Medical Properties, along with its subsidiaries, filed a Registration Statement with the SEC, updating the U.S. Federal Income Tax Considerations for its REIT status. The filing outlines the tax implications for the company and its stakeholders, emphasizing the benefits and potential liabilities associated with its REIT classification, including the avoidance of double taxation and the conditions under which it may incur federal taxes.

Medical Properties Elects New Board of Directors

Medical Properties Trust, Inc. held its annual meeting of stockholders on May 29, 2025. During this meeting, nine directors were elected to the board, PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and a non-binding advisory vote on executive compensation was approved.