Sabra Healthcare REIT (SBRA) AI Stock Analysis

• Market Cap: $4.34B
• Dividend Yield: 6.64%
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.27
• Revenue Growth: 6.89%
• EPS Growth: 240.70%
• Country: US
• Employees: 50
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.27
• Shares Outstanding: 239,792,180
• 10 Day Avg. Volume: 2,384,473
• 30 Day Avg. Volume: 2,748,482
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 9.35
• Enterprise Value/Gross Profit: 13.60
• Enterprise Value/Ebitda: 14.41
• 1Y Price Target: $20.57
• Price Target Upside: 13.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: $20.50 ▲(13.38% Upside)

Sabra Healthcare REIT's overall score is driven by strong financial performance and positive earnings call insights, despite technical indicators showing a lack of momentum. The company's high dividend yield and moderate valuation also contribute positively, although challenges in portfolio transitions and growth opportunities present risks.

Positive Factors

Strong Cash Flow

Sabra's strong cash flow and free cash flow growth indicate robust cash generation, supporting future investments and debt servicing, enhancing long-term financial stability.

Investment Activity

Active investment in senior housing expands Sabra's portfolio, potentially increasing revenue and market presence, aligning with demographic trends favoring healthcare services.

Medicaid and Medicare Adjustments

Positive adjustments in Medicaid and Medicare rates enhance revenue stability and profitability, supporting long-term financial health and competitive positioning.

Negative Factors

Slowed Revenue Growth

Slowed revenue growth and low ROE suggest potential challenges in maintaining growth momentum, which could impact long-term shareholder value and market competitiveness.

Holiday Transition Challenges

Challenges in transitioning the Holiday portfolio may affect occupancy rates and operational efficiency, potentially impacting revenue and profitability in the near term.

Limited Skilled Nursing Opportunities

Limited opportunities in skilled nursing could constrain growth in this segment, affecting Sabra's ability to capitalize on market demand and diversify its revenue streams.

Sabra Healthcare REIT Business Overview & Revenue Model

Company Description

Sabra Healthcare REIT (SBRA) is a real estate investment trust (REIT) that primarily focuses on acquiring, owning, and managing a diversified portfolio of healthcare-related real estate properties. The company operates in sectors such as skilled nursing facilities, senior housing, and other healthcare properties across the United States and Canada. Sabra aims to provide stable and growing cash flows through its investments in properties that are leased to operators of healthcare services, thereby supporting the needs of an aging population.

How the Company Makes Money

Sabra Healthcare REIT generates revenue primarily through leasing its properties to healthcare operators under long-term, triple-net leases. In this arrangement, the tenants are responsible for property expenses such as maintenance, taxes, and insurance, allowing Sabra to receive steady rental income with reduced operational responsibilities. Key revenue streams include rental income from its diversified portfolio of skilled nursing facilities, senior housing, and other healthcare properties. Additionally, Sabra may benefit from rent escalators and the potential for property appreciation over time. The company also engages in strategic partnerships with operators in the healthcare sector, which can enhance occupancy rates and improve financial performance. Factors contributing to its earnings include demographic trends driving demand for healthcare services, effective property management, and a focus on high-quality, well-located assets.

Sabra Healthcare REIT Financial Statement Overview

Summary

Sabra Healthcare REIT demonstrates strong profitability with robust EBIT and EBITDA margins, and efficient cash flow generation. 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	733.04M	703.24M	647.51M	624.81M	569.54M	598.57M
Gross Profit	503.68M	476.15M	269.18M	462.20M	428.34M	467.02M
EBITDA	475.39M	412.61M	311.81M	323.35M	166.21M	417.96M
Net Income	182.33M	126.71M	13.76M	-77.61M	-113.26M	138.42M
Balance Sheet
Total Assets	5.33B	5.30B	5.39B	5.75B	5.97B	5.99B
Cash, Cash Equivalents and Short-Term Investments	95.17M	60.47M	41.28M	49.31M	112.00M	59.08M
Total Debt	1.76B	2.44B	2.45B	2.70B	2.39B	2.37B
Total Liabilities	2.62B	2.56B	2.58B	2.69B	2.59B	2.58B
Stockholders Equity	2.71B	2.74B	2.80B	3.06B	3.38B	3.41B
Cash Flow
Free Cash Flow	338.84M	310.54M	300.57M	315.73M	322.78M	249.26M
Operating Cash Flow	338.84M	310.54M	300.57M	315.73M	356.39M	354.85M
Investing Cash Flow	-100.05M	-109.00M	103.13M	-216.25M	-336.20M	-136.45M
Financing Cash Flow	-179.44M	-181.56M	-410.30M	-161.71M	30.14M	-202.11M

Sabra Healthcare REIT Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.08
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 18.08 is above the 20-day moving average (MA) of 18.06, below the 50-day MA of 18.64, and above the 200-day MA of 17.44, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 46.71 is Neutral, neither overbought nor oversold. The STOCH value of 73.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SBRA.

Sabra Healthcare REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OHI	―	$11.94B	25.26	10.47%	6.62%	12.73%	23.51%
NHI	―	$3.57B	24.00	10.49%	4.82%	6.87%	7.23%
LTC	―	$1.63B	19.37	8.94%	6.45%	8.18%	-16.83%
SBRA	―	$4.34B	23.78	6.66%	6.64%	6.89%	240.70%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MPW	―	$3.08B	-2.15	-25.97%	6.24%	27.66%	18.03%
DHC	―	$1.04B	-3.59	-14.32%	0.93%	4.29%	18.89%

Sabra Healthcare REIT Corporate Events

Sabra Healthcare Reit: Positive Earnings Call Highlights

Sabra Healthcare Reit recently held its earnings call, presenting a generally positive outlook. The company reported strong financial performance, robust investment activity, and improved operational metrics. However, it also acknowledged challenges such as the transition of the Holiday portfolio and limited skilled nursing acquisition opportunities.

Sabra Healthcare REIT Maintains Stable Risk Outlook Amid 2024 Assessment

Sabra Healthcare REIT has reported that there have been no material changes in their assessment of risk factors as outlined in their 2024 Annual Report on Form 10-K. This suggests that the company perceives its risk environment to be stable, with no new significant threats identified. Investors and stakeholders should consider this stability in risk assessment when evaluating the company’s future performance. However, it remains crucial to monitor any potential developments that could alter this risk landscape.

Sabra Healthcare REIT Reports Strong Q2 2025 Results

Sabra Healthcare REIT, Inc. is a real estate investment trust specializing in healthcare properties, including skilled nursing facilities, senior housing, and behavioral health facilities, across the United States and Canada.

Sabra Healthcare REIT Announces New Equity Distribution

On August 5, 2025, Sabra Health Care REIT, Inc. entered into a new equity distribution agreement with several financial institutions to issue and sell common stock shares, aiming to raise up to $750 million. This move replaces a prior agreement from February 2023, which was terminated on the same date, and is intended to support the company’s financial strategies, including debt repayment and potential future investments.

The most recent analyst rating on (SBRA) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Sabra Healthcare REIT stock, see the SBRA Stock Forecast page.

Sabra Healthcare REIT Updates 2025 Earnings Guidance

In the second quarter of 2025, Sabra Health Care REIT reported a net income of $0.27 per diluted share and announced several strategic investments, including a $53 million acquisition of a senior housing property. The company also transitioned 21 senior housing properties to new operators, aiming to enhance asset value. Sabra closed a $500 million unsecured term loan to refinance existing debt, reducing interest costs. The company updated its 2025 earnings guidance, reflecting positive trends in Medicare and Medicaid reimbursement rates, which are expected to support its skilled nursing portfolio. Sabra’s liquidity stood at $1.2 billion as of June 30, 2025, and the company declared a quarterly dividend of $0.30 per share.

The most recent analyst rating on (SBRA) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Sabra Healthcare REIT stock, see the SBRA Stock Forecast page.

Sabra Healthcare REIT Redeems Senior Notes and Optimizes Capital

On July 30, 2025, Sabra Health Care REIT, Inc. and its subsidiaries entered into a $500 million unsecured credit agreement with several financial institutions, with the potential to increase borrowings to $1 billion. The agreement includes interest rate swaps that fix the SOFR portion of the interest rate, resulting in an effective rate of 4.64% through 2030. Additionally, Sabra redeemed its 5.125% Senior Notes due 2026 on July 31, 2025, at a cash redemption price of 100.575% of the principal, plus accrued interest. These financial maneuvers are expected to optimize Sabra’s capital structure and potentially enhance its financial flexibility.

The most recent analyst rating on (SBRA) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Sabra Healthcare REIT stock, see the SBRA Stock Forecast page.