Regional Health Properties (RHEP) AI Stock Analysis

• Market Cap: $5.31M
• Dividend Yield: N/A
• Average Volume (3M): 4.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• 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: 3,934,677
• 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: 13.56
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $1.00 ▼(-20.00% Downside)

The score is weighed down primarily by weak financial quality (negative equity and a recent turn back to cash burn despite revenue growth) and a bearish technical setup (below key moving averages with negative MACD). Valuation provides limited support due to a negative P/E and no dividend yield data.

Positive Factors

Revenue rebound

A sustained 40% TTM revenue increase provides durable top-line momentum that can improve leasing scale and bargaining leverage with operators. Over 2–6 months this supports higher occupancy and rental renegotiation opportunities, helping stabilize cash flows if margins can be preserved.

Predictable leasing model

The REIT model’s reliance on long-term leases, often with inflation indexing, gives predictable recurring revenue and cash yield durability. This structural income profile aids planning for debt service and distributions and reduces short-term sensitivity to tenant turnover.

Operator partnerships & healthcare focus

Concentrated exposure to healthcare properties plus partnerships with experienced operators supports occupancy and operational stability. Skilled operators can maintain resident levels and rent collection, a structural benefit for long-term rental income reliability in this niche asset class.

Negative Factors

Weak balance sheet

Negative equity and prior episodes of very high leverage (2024 total debt ~$43.9M) materially reduce financial flexibility. This elevates refinancing and covenant risk, limits the ability to fund capex or acquisitions internally, and increases reliance on external capital markets.

Deteriorating cash generation

A swing back to negative operating and free cash flow weakens liquidity and forces dependence on financing or asset sales to fund operations and distributions. For a REIT, persistent cash burn undermines sustainable payouts and heightens short-to-medium term refinancing pressure.

Thin, volatile profitability

Very narrow net margins and a slightly negative EBIT margin despite revenue growth indicate fragile unit economics. Repeated prior losses and compressed gross margins increase earnings volatility and weaken the company’s ability to self-fund maintenance, tenant improvements, or dividend stability.

Regional Health Properties Business Overview & Revenue Model

Company Description

Regional Health Properties, Inc., through its subsidiaries, operates as a self-managed real estate investment company that invests primarily in real estate purposed for long-term care and senior living. Its business principally consists of leasing and subleasing such facilities to third-party tenants, which operate the facilities. The company's facilities provide a range of healthcare services to patients and residents, including skilled nursing and assisted living services, social services, various therapy services, and other rehabilitative and healthcare services for long-term and short-stay patients and residents. As of December 31, 2021, it owned, leased, or managed 24 facilities primarily in the Southeastern United States of America. The company was incorporated in 1991 and is headquartered in Suwanee, Georgia.

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: 1.25
• 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 RHEP, the sentiment is Neutral. The current price of 1.25 is below the 20-day moving average (MA) of 1.31, below the 50-day MA of 1.34, and below the 200-day MA of 1.88, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.06 is Neutral, neither overbought nor oversold. The STOCH value of 90.48 is Negative, 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
NHC	74 Outperform	$2.13B	21.16	9.94%	1.80%	23.74%	-18.99%
PNTG	73 Outperform	$1.01B	38.53	10.87%	―	29.89%	10.33%
CYH	61 Neutral	$443.26M	1.32	―	―	0.74%	―
SNDA	54 Neutral	$594.43M	-11.05	-44.33%	―	34.99%	-68.73%
BKD	52 Neutral	$2.90B	-9.28	-214.33%	―	3.93%	-42.22%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
RHEP	41 Neutral	$5.31M	-1.82	―	―	121.82%	52.08%

Regional Health Properties Corporate Events

Regional Health Properties shareholders approve governance and compensation measures

At its 2025 Annual Meeting of Shareholders held on January 5, 2026 in Atlanta, Regional Health Properties, Inc. shareholders elected four directors representing common stockholders and three additional directors representing preferred stockholders in the Series B and Series D classes, all to serve until the 2026 annual meeting. Common shareholders also approved an amended and restated 2023 Omnibus Incentive Compensation Plan, endorsed executive compensation on an advisory basis, expressed a preference to hold Say-on-Pay votes every three years, and ratified the appointment of Cherry Bekaert, LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025, reinforcing continuity in the company’s governance, incentive structures, and audit oversight.

The most recent analyst rating on (RHEP) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Regional Health Properties stock, see the RHEP Stock Forecast page.

Regional Health Properties Adjourns 2025 Shareholder Meeting

On December 30, 2025, Regional Health Properties, Inc. convened its 2025 Annual Meeting of Shareholders but adjourned it without conducting any business because a quorum of outstanding shares was not present or represented by proxy. The company will reconvene the meeting on January 5, 2026, in Atlanta to vote on the previously disclosed proposals, keeping November 14, 2025 as the record date, and will use the adjournment period to solicit additional proxies, with all prior proxies remaining valid unless revoked and no changes made to the proposals or related proxy materials.

The most recent analyst rating on (RHEP) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Regional Health Properties stock, see the RHEP Stock Forecast page.