Regional Health Properties (RHEP) AI Stock Analysis

• Market Cap: $4.76M
• Dividend Yield: N/A
• Average Volume (3M): 4.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: 121.82%
• EPS Growth: 52.08%
• Country: US
• Employees: 256
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 1.17
• Shares Outstanding: 3,837,639
• 10 Day Avg. Volume: 4,668
• 30 Day Avg. Volume: 4,184
• PEG Ratio: <0.01
• Price to Book (P/B): -0.99
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 2.05
• Enterprise Value/Market Cap: 15.13
• Enterprise Value/Revenue: 1.89
• Enterprise Value/Gross Profit: 9.90
• Enterprise Value/Ebitda: 12.86
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $1.50 ▲(8.70% Upside)

The overall stock score for RHEP is primarily influenced by its financial performance, which shows strong revenue growth but significant profitability and leverage challenges. Technical analysis indicates a bearish trend with potential overbought conditions. Valuation concerns are highlighted by the negative P/E ratio and lack of dividend yield.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective leasing strategies, enhancing long-term financial stability.

Cash Generation

Positive cash flow trends suggest efficient operations and the ability to reinvest in growth opportunities, supporting long-term sustainability.

Tax Efficiency

REIT status provides tax efficiency, allowing more income to be distributed to shareholders, enhancing investment attractiveness.

Negative Factors

High Debt Levels

Significant leverage poses financial risk, potentially limiting flexibility and increasing vulnerability to interest rate changes.

Profitability Challenges

Operational challenges and cost pressures impact profitability, necessitating strategic improvements for long-term viability.

Negative Equity Position

A negative equity position highlights a weak capital structure, raising concerns about the company's financial health and resilience.

Regional Health Properties Business Overview & Revenue Model

Company Description

Regional Health Properties, Inc. (RHEP) is a real estate investment trust (REIT) that primarily focuses on acquiring, owning, and leasing healthcare-related properties, including skilled nursing facilities and assisted living communities. The company operates primarily in the United States, providing essential housing and care for the elderly and individuals requiring medical assistance. RHEP aims to enhance the quality of life for its residents while delivering attractive returns to its investors through strategic property acquisitions and management.

How the Company Makes Money

Regional Health Properties generates revenue primarily through leasing its healthcare properties to operators of skilled nursing and assisted living facilities. The company enters into long-term lease agreements, which provide a stable and predictable cash flow. Additionally, RHEP may receive rental income that is indexed to inflation or tied to the performance of the underlying properties, further enhancing its revenue potential. The company also benefits from tax advantages associated with its REIT status, which allows it to avoid federal income tax by distributing a significant portion of its taxable income to shareholders. Partnerships with experienced operators of healthcare facilities are crucial as they ensure that the properties are well-managed, which contributes to higher occupancy rates and rental income. Overall, RHEP's revenue model is centered on sustainable leasing arrangements, strategic property management, and tax efficiency.

Regional Health Properties Financial Statement Overview

Summary

Regional Health Properties shows strong revenue growth but struggles with profitability and leverage. High debt levels and negative equity indicate financial risk, while cash flow metrics show some resilience. Improvements in cost management and capital structure are needed.

Income Statement

The income statement shows a mixed performance. The company has a strong revenue growth rate of 26.79% in the TTM, indicating positive sales momentum. However, profitability metrics are concerning, with a negative net profit margin of -16.36% and negative EBIT margin, reflecting operational challenges. The gross profit margin has decreased from previous periods, suggesting increased cost pressures.

Balance Sheet

The balance sheet reveals significant financial leverage, with a high debt-to-equity ratio of -12.38 in the TTM, indicating potential financial risk. The negative stockholders' equity and high return on equity suggest financial instability. The equity ratio is also negative, highlighting a weak capital structure.

Cash Flow

Cash flow analysis shows some positive trends, with a free cash flow growth rate of 10.46% in the TTM. The free cash flow to net income ratio is relatively strong at 0.66, indicating efficient cash generation relative to net income. However, the operating cash flow to net income ratio is zero, pointing to potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.05M	18.34M	17.16M	35.92M	26.69M	17.58M
Gross Profit	7.28M	8.30M	8.00M	9.98M	10.31M	10.35M
EBITDA	5.60M	2.22M	1.12M	-1.93M	4.08M	5.07M
Net Income	381.00K	-3.22M	-3.89M	-6.87M	-1.18M	-688.00K
Balance Sheet
Total Assets	72.15M	60.47M	62.18M	68.58M	105.70M	108.03M
Cash, Cash Equivalents and Short-Term Investments	994.00K	582.00K	953.00K	843.00K	6.79M	4.19M
Total Debt	0.00	43.96M	45.68M	55.40M	84.94M	90.32M
Total Liabilities	69.00M	63.38M	62.00M	64.86M	95.30M	96.92M
Stockholders Equity	-1.54M	-2.92M	185.00K	3.72M	10.40M	11.10M
Cash Flow
Free Cash Flow	-784.00K	1.41M	2.75M	-3.88M	4.77M	845.00K
Operating Cash Flow	-41.00K	1.94M	3.71M	-3.60M	4.89M	1.29M
Investing Cash Flow	5.23M	-530.00K	-958.00K	-281.00K	-123.00K	-450.00K
Financing Cash Flow	-4.70M	-2.13M	-2.48M	-2.06M	-2.42M	-1.39M

Regional Health Properties Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.38
• 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 RHEP, the sentiment is Neutral. The current price of 1.38 is above the 20-day moving average (MA) of 1.35, below the 50-day MA of 1.43, and below the 200-day MA of 1.90, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 24.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RHEP.

Regional Health Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNTG	76 Outperform	$1.01B	38.61	10.87%	―	29.89%	10.33%
NHC	72 Outperform	$2.12B	21.24	9.94%	1.83%	23.74%	-18.99%
SNDA	58 Neutral	$577.93M	―	-44.33%	―	34.99%	-68.73%
BKD	57 Neutral	$2.53B	―	-214.33%	―	3.93%	-42.22%
CYH	56 Neutral	$502.83M	1.50	―	―	0.74%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
RHEP	46 Neutral	$4.76M	-0.51	―	―	121.82%	52.08%

Regional Health Properties Corporate Events

Regional Health Properties Completes Merger with SunLink

On August 14, 2025, Regional Health Properties, Inc. completed its merger with SunLink Health Systems, Inc., integrating SunLink’s pharmacy and healthcare services with Regional’s real estate platform. This merger, which resulted in the issuance of approximately 1,595,400 shares of Regional common stock and 1,408,120 shares of Regional Series D preferred stock, aims to create a vertically integrated company poised for growth and improved efficiency. The leadership team of the newly combined company includes Brent S. Morrison as President and CEO, with a board of directors composed of members from both Regional and SunLink.