Medical Properties (MPW) AI Stock Analysis

• Market Cap: $2.73B
• Dividend Yield: 8.59%
• Average Volume (3M): 8.97M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 19.56%
• EPS Growth: -12.73%
• Country: US
• Employees: 118
• Sector: Real Estate
• Sector Strength: 60
• Industry: REIT - Healthcare Facilities
• EPS (TTM): -0.20
• Shares Outstanding: 600,800,000
• 10 Day Avg. Volume: 7,744,543
• 30 Day Avg. Volume: 8,968,163
• PEG Ratio: -0.07
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 63.58
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 9.50
• Enterprise Value/Ebitda: 1.30
• 1Y Price Target: $6.67
• Price Target Upside: 47.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 44 Neutral
• Price Target: $4.50 ▼(-0.22%Downside)

Medical Properties Trust is under financial pressure, evidenced by significant net losses and high leverage. Technical indicators suggest bearish momentum, while the valuation is compromised by a negative P/E ratio. Despite these challenges, there are positive international operational improvements, and strategic actions like bond issuance provide some optimism.

Positive Factors

Asset Sales

MPW completed the disposition of three hospitals in Florida, generating $440 million in total proceeds.

Debt Management

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

Settlement Agreement

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

Negative Factors

Bankruptcy Impact

Prospect Medical Holdings has recently filed for Chapter 11 bankruptcy protection, impacting MPW's financial situation.

Debt Maturity

MPW faces a significant debt maturity wall with $1.3 billion due in 2025, $2.1 billion in 2026, and $1.6 billion in 2027, necessitating asset sales and refinancing.

Tenant Issues

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. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world's largest owners of hospital real estate with 441 facilities and approximately 44,000 licensed beds as of September 30, 2023. Since the end of the third quarter, the Company has sold four facilities and now owns approximately 43,000 licensed beds in nine countries across three continents. MPT's financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations.

How the Company Makes Money

Medical Properties Trust generates revenue primarily through leasing its healthcare facilities to hospital operators and healthcare providers. The company enters into long-term, triple-net lease agreements, where the tenant is responsible for paying property taxes, insurance, and maintenance expenses in addition to rent. This structure provides MPW with stable and predictable cash flows. Additionally, MPW may engage in sale-leaseback transactions, where they purchase facilities from healthcare operators and then lease it back to them, providing operators with immediate capital while MPW benefits from rental income. Strategic partnerships and investments in healthcare operators may also contribute to MPW's revenue, diversifying its income streams and enhancing its financial stability.

Medical Properties Financial Statement Overview

Summary

Medical Properties is facing financial challenges, including declining revenue and profitability issues. Despite improvements in debt levels, high leverage and negative cash flow indicate the need for strategic adjustments.

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.

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.

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.

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
968.29M	830.23M	1.50B	1.51B	1.22B
	EBIT
386.85M	81.28M	1.00B	1.04B	828.44M
	EBITDA
840.60M	684.64M	1.34B	1.36B	1.09B
	Net Income Common Stockholders
-2.41B	-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
8.98B	10.22B	11.34B	11.44B	9.01B
	Net Debt
8.64B	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

• Technical Analysis Sentiment: Negative
• Last Price: 4.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPW, the sentiment is Negative. The current price of 4.51 is below the 20-day moving average (MA) of 4.71, below the 50-day MA of 5.12, and below the 200-day MA of 4.82, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 36.44 is Neutral, neither overbought nor oversold. The STOCH value of 35.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MPW.

Medical Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBRA	76 Outperform	$4.25B	30.21	5.15%	6.72%	7.81%	179.16%
LTC	72 Outperform	$1.60B	18.00	9.39%	6.53%	4.46%	2.24%
NHI	72 Outperform	$3.39B	23.01	10.56%	4.96%	7.44%	4.23%
SILA	66 Neutral	$1.34B	38.35	2.46%	6.02%	-2.94%	46.24%
Sector *	61 Neutral	$2.83B	10.98	0.41%	8438.90%	5.81%	-21.06%
GMRE	56 Neutral	$462.82M	203.83	1.45%	13.17%	-1.66%	-86.24%
MPW	44 Neutral	$2.73B	―	-28.86%	8.59%	19.56%	-12.73%

Medical Properties Corporate Events

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.

The most recent analyst rating on (MPW) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Medical Properties stock, see the MPW Stock Forecast page.