Sabra Healthcare REIT (SBRA) AI Stock Analysis

• Market Cap: $4.07B
• Dividend Yield: 7.02%
• Average Volume (3M): 2.43M
• Price to Earnings (P/E): 28.9
• Beta (1Y): 0.36
• Revenue Growth: 7.81%
• EPS Growth: 179.16%
• Country: US
• Employees: 50
• Sector: Real Estate
• Sector Strength: 64
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.17
• Shares Outstanding: 237,936,460
• 10 Day Avg. Volume: 2,944,159
• 30 Day Avg. Volume: 2,429,944
• PEG Ratio: 2.77
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.80
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 2.16
• Enterprise Value/Gross Profit: 11.72
• Enterprise Value/Ebitda: 3.56
• 1Y Price Target: $19.20
• Price Target Upside: 10.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 76 Outperform
• Price Target: $19.00 ▲( 8.94% Upside)

Sabra Healthcare REIT's overall score is bolstered by strong financial performance and a positive outlook from recent earnings calls and strategic corporate events. Technical indicators point to short-term challenges, but the attractive dividend yield and valuation provide a solid investment case.

Positive Factors

Earnings

1Q25 FAD beat with solid SHOP SSNOI growth.

Financial Performance

Skilled nursing rent coverage ratios should continue to expand given the strong Medicaid rate environment.

Negative Factors

Earnings Guidance

Management's guidance is for Core FFO to be within a range of $1.43-$1.46 per share ($1.445 midpoint), slightly below consensus of $1.48 per share.

Investment Activity

No new investments announced, which may be a disappointment compared to peers.

Sabra Healthcare REIT Business Overview & Revenue Model

Company Description

As of March 31, 2022, Sabra's investment portfolio included 416 real estate properties held for investment. This consists of (i) 279 Skilled Nursing/Transitional Care facilities, (ii) 59 Senior Housing communities (Senior Housing - Leased), (iii) 50 Senior Housing communities operated by third-party property managers pursuant to property management agreements (Senior Housing - Managed), (iv) 13 Behavioral Health facilities and (v) 15 Specialty Hospitals and Other facilities), one asset held for sale, one investment in a sales-type lease, 16 investments in loans receivable (consisting of (i) two mortgage loans, (ii) one construction loan and (iii) 13 other loans), seven preferred equity investments and one investment in an unconsolidated joint venture. As of March 31, 2022, Sabra's real estate properties held for investment included 41,445 beds/units, spread across the United States and Canada.

How the Company Makes Money

Sabra Healthcare REIT generates revenue primarily through leasing its healthcare properties to operators under long-term, triple-net lease agreements. These leases require the operators to cover basic property expenses, including taxes, insurance, and maintenance, ensuring Sabra receives consistent rental income. Additionally, the company may engage in mortgage financing and sales-leaseback transactions, further diversifying its revenue streams. Strategic partnerships and acquisitions of new properties also contribute to Sabra's growth and earnings potential, as it expands its portfolio and increases rental income opportunities.

Sabra Healthcare REIT Financial Statement Overview

Summary

Sabra Healthcare REIT demonstrates strong financial performance with robust revenue growth, improved profitability, and effective debt management. The company's cash flow is solid, providing operational flexibility. However, historical profitability challenges and high debt levels present some risks.

Income Statement

Sabra Healthcare REIT has shown a strong revenue growth trajectory with a 13.29% increase from 2023 to 2024 and a 2.73% increase from 2024 to TTM. The gross profit margin remains solid, and the net profit margin has improved significantly from prior years. EBIT and EBITDA margins have also shown positive trends, indicating operational efficiency. However, the company faced challenges in profitability in earlier years, which slightly tempers the overall score.

Balance Sheet

The balance sheet of Sabra Healthcare REIT reflects a stable equity base with an equity ratio of 51.64% in TTM, indicating a strong capital structure. The debt-to-equity ratio has improved over recent periods, showcasing effective debt management. Return on equity has improved to 5.21% in TTM from earlier losses, enhancing shareholder value. Despite these strengths, the high level of total debt remains a potential risk factor.

Cash Flow

Cash flow statements reveal a robust free cash flow position, with consistent positive operating cash flow. The free cash flow to net income ratio is strong, reflecting efficient cash conversion. The operating cash flow to net income ratio is healthy, indicating strong cash-generating capabilities relative to reported earnings. There is positive free cash flow growth, suggesting solid cash flow management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
722.42M	703.24M	647.51M	624.81M	569.54M	598.57M
	Gross Profit
517.66M	476.15M	269.18M	462.20M	428.34M	467.02M
	EBIT
372.25M	257.03M	221.52M	135.57M	19.04M	241.22M
	EBITDA
419.10M	412.61M	311.81M	323.35M	166.21M	417.96M
	Net Income Common Stockholders
140.76M	126.71M	13.76M	-77.61M	-113.26M	138.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.65M	60.47M	41.28M	49.31M	112.00M	59.08M
	Total Assets
5.23B	5.30B	5.39B	5.75B	5.97B	5.99B
	Total Debt
1.76B	2.44B	2.45B	2.70B	2.39B	2.37B
	Net Debt
1.74B	2.38B	2.41B	2.65B	2.28B	2.31B
	Total Liabilities
2.53B	2.56B	2.58B	2.69B	2.59B	2.58B
	Stockholders Equity
2.70B	2.74B	2.80B	3.06B	3.38B	3.41B
Cash Flow		Free Cash Flow
338.01M	310.54M	300.57M	315.73M	322.78M	249.26M
	Operating Cash Flow
338.01M	310.54M	300.57M	315.73M	356.39M	354.85M
	Investing Cash Flow
-112.22M	-109.00M	103.13M	-216.25M	-336.20M	-136.45M
	Financing Cash Flow
-262.57M	-181.56M	-410.30M	-161.71M	30.14M	-202.11M

Sabra Healthcare REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBRA, the sentiment is Positive. The current price of 17.44 is below the 20-day moving average (MA) of 17.49, above the 50-day MA of 17.29, and above the 200-day MA of 16.94, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 12.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBRA.

Sabra Healthcare REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTRE	80 Outperform	$5.48B	31.16	7.02%	4.25%	43.27%	80.97%
SBRA	76 Outperform	$4.07B	28.93	5.15%	7.02%	7.81%	179.16%
NHI	76 Outperform	$3.38B	23.00	10.56%	4.99%	7.44%	4.23%
LTC	72 Outperform	$1.62B	18.18	9.39%	6.54%	4.46%	2.24%
AHR	72 Outperform	$5.54B	―	-1.93%	2.94%	11.66%	―
OHI	71 Outperform	$10.42B	22.57	10.53%	7.44%	10.56%	45.37%
Sector *	60 Neutral	$2.76B	10.33	0.49%	8508.28%	5.95%	-17.56%

Sabra Healthcare REIT Corporate Events

Sabra Healthcare REIT Expands Senior Housing Portfolio

In the first quarter of 2025, Sabra Healthcare REIT reported a net income of $0.17 per diluted share and continued to see growth in its senior housing managed portfolio, with a 16.9% increase in same-store cash NOI. The company exercised its option to acquire additional senior housing assets and was awarded over $200 million in new acquisition opportunities, reflecting its strategic focus on expanding its portfolio. Sabra’s liquidity position remains strong with $1.1 billion available, and Fitch Ratings affirmed its ‘BBB-‘ credit rating with a stable outlook, indicating confidence in its financial stability and growth prospects.