Regional Health Properties (RHEP) AI Stock Analysis

• Market Cap: $5.31M
• Dividend Yield: N/A
• Average Volume (3M): 3.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: 23.70%
• EPS Growth: -109.93%
• Country: US
• Employees: 256
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Care Facilities
• EPS (TTM): -0.94
• Shares Outstanding: 2,242,239
• 10 Day Avg. Volume: 3,988
• 30 Day Avg. Volume: 3,511
• PEG Ratio: 0.05
• Price to Book (P/B): -1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.29
• Enterprise Value/Market Cap: 9.96
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 6.50
• Enterprise Value/Ebitda: 7.53
• 1Y Price Target: $2.50
• Price Target Upside: 18.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: $2.50 ▲(18.48%Upside)

The overall stock score for Regional Health Properties is low due to critical financial challenges and the looming risk of delisting. Valuation concerns and corporate events, particularly the delisting proceedings, are significant negatives. While technical indicators show some positive trends, they are not enough to overshadow the financial and corporate challenges.

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 portfolio of healthcare and senior living facilities to third-party operators. The company's business model involves acquiring properties and leasing them under long-term agreements, which provides a steady stream of rental income. These leases often include annual rent escalations, contributing to revenue growth. Additionally, RHEP may engage in property sales or acquisitions as part of its strategy to optimize its portfolio, which can also impact earnings. The company's financial performance is influenced by the operational success of its tenants, occupancy rates of the facilities, and overall demand in the healthcare real estate market.

Regional Health Properties Financial Statement Overview

Summary

Regional Health Properties faces significant financial challenges, with weak profitability and a highly leveraged balance sheet. Despite some revenue recovery, sustained improvement in margins and cash flow generation is crucial. The company must address high debt levels to stabilize its financial position.

Income Statement

Regional Health Properties has shown volatile revenue trends with a notable decline in 2022. The TTM figures indicate some recovery with a revenue increase, but profitability remains weak with negative net income over multiple periods. Gross profit margin has improved slightly in the TTM, but EBIT and EBITDA margins are low, indicating operational challenges.

Balance Sheet

The company's financial position appears strained with a negative stockholders' equity and a high debt-to-equity ratio due to significant liabilities. Despite a reduction in total debt in the most recent period, the equity ratio is negative, reflecting a highly leveraged balance sheet and potential financial instability.

Cash Flow

Cash flow from operations has been inconsistent, with free cash flow improving in the TTM period. However, the operating cash flow to net income ratio is not favorable due to negative net income. The company has managed to generate positive free cash flow, but the underlying cash flow stability needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.51M	18.34M	17.16M	35.92M	26.69M	17.58M
Gross Profit	8.14M	8.30M	8.00M	9.98M	10.31M	10.35M
EBITDA	1.72M	2.22M	1.45M	-1.93M	4.08M	5.07M
Net Income	-3.52M	-3.22M	-3.89M	-6.87M	-1.18M	-688.00K
Balance Sheet
Total Assets	59.28M	60.47M	62.18M	68.58M	105.70M	108.03M
Cash, Cash Equivalents and Short-Term Investments	3.06M	582.00K	953.00K	843.00K	6.79M	4.19M
Total Debt	51.51M	43.96M	45.68M	55.40M	84.94M	90.32M
Total Liabilities	63.44M	63.38M	62.00M	64.86M	95.30M	96.92M
Stockholders Equity	-4.16M	-2.92M	185.00K	3.72M	10.40M	11.10M
Cash Flow
Free Cash Flow	1.04M	1.41M	2.75M	-3.88M	4.77M	845.00K
Operating Cash Flow	1.58M	1.94M	3.71M	-3.60M	4.89M	1.29M
Investing Cash Flow	-540.00K	-530.00K	-958.00K	-281.00K	-123.00K	-450.00K
Financing Cash Flow	-1.96M	-2.13M	-2.48M	-2.06M	-2.42M	-1.39M

Regional Health Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.11
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RHEP, the sentiment is Negative. The current price of 2.11 is below the 20-day moving average (MA) of 2.39, below the 50-day MA of 2.30, and above the 200-day MA of 1.92, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 44.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RHEP.

Regional Health Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	75 Outperform	$1.60B	14.94	11.19%	2.48%	19.16%	31.92%
PNTG	68 Neutral	$873.79M	31.91	11.28%	―	30.04%	43.47%
SNDA	55 Neutral	$482.20M	―	-70.23%	―	26.13%	37.38%
BKD	51 Neutral	$1.86B	―	-91.17%	―	3.88%	-34.30%
MODV	49 Neutral	$46.08M	―	-951.52%	―	-0.70%	-2.38%
Sector *	46 Neutral	C$201.03M	-3.36	-23.14%	2.62%	20.76%	-0.69%
RHEP	44 Neutral	$5.31M	―		―	23.70%	-109.93%

Regional Health Properties Corporate Events

Regional Health Properties Extends Merger Deadline to August

On April 14, 2025, Regional Health Properties and SunLink Health Systems entered into a merger agreement, with Regional set to be the surviving corporation. Due to outstanding shareholder approvals, the termination date for the merger was extended from June 30, 2025, to August 11, 2025, allowing more time for the necessary approvals to be obtained.

Regional Health Properties Faces NYSE Delisting Decision

Regional Health Properties, Inc. has faced a decision by the NYSE American LLC to delist its common stock and Series A Preferred Shares due to non-compliance with listing standards, with the delisting process initiated on June 11, 2025. Despite this setback, Regional remains committed to a proposed merger with SunLink Health Systems, Inc., although there is no guarantee that any securities issued in the merger will be approved by a national securities exchange.

Regional Health Faces NYSE Delisting Proceedings

Regional Health Properties, Inc. is facing delisting proceedings from the NYSE American due to non-compliance with listing standards, as affirmed by the exchange’s Committee for Review. Despite this challenge, the company remains committed to its planned merger with SunLink Health Systems, although the approval of any securities issued in the merger by a national securities exchange is not guaranteed.