Sabra Healthcare REIT (SBRA) AI Stock Analysis

• Market Cap: $4.65B
• Dividend Yield: 6.46%
• Average Volume (3M): 3.26M
• Price to Earnings (P/E): 25.6
• Beta (1Y): 0.19
• Revenue Growth: 8.12%
• EPS Growth: 75.95%
• Country: US
• Employees: 50
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.09
• Shares Outstanding: 249,349,670
• 10 Day Avg. Volume: 3,805,422
• 30 Day Avg. Volume: 3,257,455
• PEG Ratio: 0.04
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 5.75
• P/FCF Ratio: 13.02
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 9.34
• Enterprise Value/Gross Profit: 14.06
• Enterprise Value/Ebitda: 14.67
• 1Y Price Target: $20.33
• Price Target Upside: 9.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.76
• Revenue Forecast (FY): $710.72M

• Rating: 74 Outperform
• Price Target: $21.00 ▲(12.96% Upside)

Sabra Healthcare REIT demonstrates strong financial performance and positive earnings call outcomes, with robust growth in key areas like the SHOP portfolio. The stock's valuation is reasonable, and the technical indicators suggest moderate bullish momentum. However, challenges with certain properties and increased borrowing costs are concerns to monitor.

Positive Factors

Strong Cash Flow

Strong cash flow generation enhances Sabra's ability to invest in growth opportunities and service debt, supporting long-term financial stability.

SHOP Portfolio Growth

The expansion of the SHOP portfolio indicates strategic growth in high-demand sectors, potentially increasing revenue and market competitiveness.

Credit Rating Upgrade

An improved credit rating reflects financial health and can lower borrowing costs, enhancing Sabra's ability to fund future growth.

Negative Factors

Decreased Cash Rental Income

A decline in cash rental income may indicate challenges in maintaining occupancy or rental rates, potentially impacting revenue stability.

Higher Borrowings and Interest Expenses

Increased borrowing costs can strain cash flow and limit financial flexibility, affecting Sabra's ability to invest in growth initiatives.

Limited Growth in Behavioral Portfolio

Limited growth in the behavioral portfolio suggests fewer expansion opportunities in this segment, potentially affecting diversification and revenue growth.

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, net leases. These leases require operators to cover property expenses, including maintenance and taxes, providing Sabra with a predictable income stream. The company also earns revenue from mortgage loans and financing arrangements that support operators in improving or expanding their facilities. Key revenue streams include rental income from skilled nursing facilities and senior housing, as well as interest income from loans made to operators. Sabra's partnerships with experienced operators in the healthcare sector are crucial, as they help ensure high occupancy rates and effective management of the properties, further contributing to the company's earnings stability and growth potential.

Sabra Healthcare REIT Financial Statement Overview

Summary

Sabra Healthcare REIT shows strong profitability with high gross and net profit margins, and robust EBIT and EBITDA margins. The cash flow is strong with significant free cash flow growth. However, the revenue growth rate has slowed, and the return on equity is relatively low, indicating areas for improvement.

Income Statement

Sabra Healthcare REIT demonstrates strong profitability with a TTM gross profit margin of 68.71% and a net profit margin of 24.87%. The revenue growth rate of 1.47% in the TTM indicates steady growth. The EBIT and EBITDA margins are robust at 41.37% and 64.85% respectively, showcasing efficient operational management. However, the growth rate has slowed compared to previous years, which could be a concern if it continues.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio of 0.65 in the TTM, indicating a balanced approach to leveraging. The return on equity is relatively low at 6.69%, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 50.89%, highlighting a solid equity base. While the debt levels have decreased, the ROE needs attention to enhance shareholder value.

Cash Flow

Sabra Healthcare REIT's cash flow is strong, with a significant free cash flow growth rate of 24.6% in the TTM. The operating cash flow to net income ratio is 1.86, and the free cash flow to net income ratio is 1.0, indicating efficient cash generation relative to net income. The company has shown consistent free cash flow generation, which is a positive indicator for future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	745.08M	703.24M	647.51M	624.81M	569.54M	598.57M
Gross Profit	494.55M	476.15M	452.27M	462.20M	428.34M	467.02M
EBITDA	474.04M	412.61M	311.81M	216.89M	166.21M	416.29M
Net Income	175.08M	126.71M	13.76M	-77.61M	-113.26M	138.42M
Balance Sheet
Total Assets	5.56B	5.30B	5.39B	5.75B	5.97B	5.99B
Cash, Cash Equivalents and Short-Term Investments	200.60M	60.47M	41.28M	49.31M	112.00M	65.52M
Total Debt	1.26B	2.44B	2.45B	2.55B	2.44B	2.43B
Total Liabilities	2.74B	2.56B	2.58B	2.69B	2.59B	2.58B
Stockholders Equity	2.82B	2.74B	2.80B	3.06B	3.38B	3.41B
Cash Flow
Free Cash Flow	341.15M	310.54M	300.57M	315.73M	322.78M	249.26M
Operating Cash Flow	341.15M	310.54M	300.57M	315.73M	356.39M	354.85M
Investing Cash Flow	-242.85M	-109.00M	103.13M	-216.25M	-336.20M	-136.45M
Financing Cash Flow	40.69M	-181.56M	-410.30M	-161.71M	30.14M	-202.11M

Sabra Healthcare REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 18.59 is above the 20-day moving average (MA) of 18.31, above the 50-day MA of 18.37, and above the 200-day MA of 17.63, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 53.74 is Neutral, neither overbought nor oversold. The STOCH value of 62.04 is Neutral, 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
OHI	76 Outperform	$12.99B	24.70	11.28%	6.07%	13.50%	31.56%
NHI	75 Outperform	$3.68B	24.32	10.87%	4.81%	8.04%	9.20%
SBRA	74 Outperform	$4.65B	25.65	6.29%	6.46%	8.12%	75.95%
LTC	74 Outperform	$1.72B	49.39	3.49%	6.32%	11.89%	-68.41%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DHC	56 Neutral	$1.12B	―	-18.84%	0.86%	4.10%	8.96%
MPW	54 Neutral	$2.98B	―	-14.02%	6.46%	45.56%	73.44%

Sabra Healthcare REIT Corporate Events

Sabra Health Care REIT Reports Strong Q3 2025 Results

Sabra Health Care REIT, Inc. is a real estate investment trust specializing in the healthcare sector, with a diverse portfolio including skilled nursing, senior housing, and behavioral health facilities across the United States and Canada.

Sabra Healthcare REIT’s Optimistic Earnings Call Analysis

Sabra Healthcare REIT’s recent earnings call presented a balanced yet optimistic outlook for the future. The company reported strong growth in its SHOP portfolio, robust financial metrics, and a successful investment pipeline. However, challenges with the Holiday properties, decreased cash rental income, and increased borrowing costs were notable concerns. Overall, the sentiment was one of cautious optimism, with a focus on future growth prospects.

Sabra Healthcare REIT Reports Q3 Results and Upgraded Rating

On November 5, 2025, Sabra Healthcare REIT announced its third-quarter results, reporting a net income of $0.09 per diluted share and a notable increase in same-store managed senior housing Cash NOI by 13.3% year-over-year. The company acquired multiple senior housing properties and issued shares to raise capital, resulting in net proceeds of $165 million. Moody’s upgraded Sabra’s senior unsecured notes rating to ‘Baa3’, reflecting improved financial performance and a positive outlook for senior housing. Sabra updated its 2025 earnings guidance, projecting continued growth in its managed senior housing portfolio and exceeding its previous investment target of $500 million.

The most recent analyst rating on (SBRA) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Sabra Healthcare REIT stock, see the SBRA Stock Forecast page.