Sabra Healthcare REIT (SBRA) AI Stock Analysis

• Market Cap: $4.40B
• Dividend Yield: 6.49%
• Average Volume (3M): 2.42M
• Price to Earnings (P/E): 31.1
• Beta (1Y): 0.32
• Revenue Growth: 7.81%
• EPS Growth: 179.16%
• Country: US
• Employees: 50
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.17
• Shares Outstanding: 237,936,460
• 10 Day Avg. Volume: 2,128,352
• 30 Day Avg. Volume: 2,416,843
• PEG Ratio: 0.04
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.02
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 2.29
• Enterprise Value/Gross Profit: 12.42
• Enterprise Value/Ebitda: 3.78
• 1Y Price Target: $19.67
• Price Target Upside: 7.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 77 Outperform
• Price Target: $21.00 ▲(14.32%Upside)

Sabra Healthcare REIT shows strong financial performance with improving profitability and robust cash flow. Technical indicators suggest bullish momentum, although the stock's high P/E ratio indicates it may be overvalued. Positive earnings call highlights and strategic corporate events contribute to a favorable outlook, despite some external challenges.

Positive Factors

Earnings

1Q25 FAD beat with solid SHOP SSNOI growth, indicating strong financial performance.

Financial Performance

Net debt to adjusted EBITDA has improved to 5.3x versus 5.7x one year ago, reflecting better financial health.

Negative Factors

Guidance

Management's guidance for Core FFO is slightly below consensus, potentially causing concern among investors.

Investments

No new investments announced, which may be a disappointment compared to peers, indicating a lack of growth initiatives.

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 significant revenue growth and improving profitability, evidenced by a 13.29% revenue increase and enhanced profit margins. The balance sheet is stable with effective debt management, although high debt levels pose a risk. Robust cash flow supports operational flexibility.

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
EBITDA	419.10M	412.61M	311.81M	323.35M	166.21M	417.96M
Net Income	140.76M	126.71M	13.76M	-77.61M	-113.26M	138.42M
Balance Sheet
Total Assets	5.75B	5.30B	5.39B	5.75B	5.97B	5.99B
Cash, Cash Equivalents and Short-Term Investments	49.31M	60.47M	41.28M	49.31M	112.00M	59.08M
Total Debt	2.70B	2.44B	2.45B	2.70B	2.39B	2.37B
Total Liabilities	2.69B	2.56B	2.58B	2.69B	2.59B	2.58B
Stockholders Equity	3.06B	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: 18.37
• 50DMA: Positive
• 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 SBRA, the sentiment is Positive. The current price of 18.37 is above the 20-day moving average (MA) of 18.36, above the 50-day MA of 17.87, and above the 200-day MA of 17.24, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 53.95 is Neutral, neither overbought nor oversold. The STOCH value of 53.89 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
CTRE	78 Outperform	$5.93B	33.73	7.02%	4.33%	43.27%	80.97%
SBRA	77 Outperform	$4.40B	31.09	5.15%	6.49%	7.81%	179.16%
NHI	76 Outperform	$3.28B	22.30	10.56%	5.12%	7.44%	4.23%
OHI	75 Outperform	$10.53B	22.98	10.53%	7.37%	10.56%	45.37%
LTC	73 Outperform	$1.62B	18.17	9.39%	6.40%	4.46%	2.24%
AHR	68 Neutral	$5.77B	―	-1.93%	2.77%	11.30%	―
Sector *	54 Neutral	$1.17B	3.57	0.13%	7.12%	-2.13%	-128.06%

Sabra Healthcare REIT Corporate Events

Sabra Healthcare REIT Announces Senior Notes Redemption

On June 30, 2025, Sabra Health Care REIT, Inc. announced that its subsidiary, Sabra Health Care Limited Partnership, will redeem all $500 million of its outstanding 5.125% Senior Notes due 2026 on July 31, 2025. This redemption will be funded by issuing a $500 million term loan, and it will cease the accrual of interest on the Notes, impacting the company’s financial operations and potentially its market positioning.

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 Holds Annual Stockholders Meeting

On June 12, 2025, Sabra Healthcare REIT held its annual stockholders meeting where several key decisions were made. The stockholders elected seven directors to the board, ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor for 2025, and approved the executive compensation plan, reflecting continued confidence in the company’s leadership and strategic direction.

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 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.