Sabra Healthcare REIT (SBRA) AI Stock Analysis

• Market Cap: $4.81B
• Dividend Yield: 6.24%
• Average Volume (3M): 3.07M
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.21
• 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: 2,598,297
• 30 Day Avg. Volume: 3,067,708
• 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: 1.45
• Enterprise Value/Revenue: 9.34
• Enterprise Value/Gross Profit: 14.06
• Enterprise Value/Ebitda: 14.67
• 1Y Price Target: $20.50
• Price Target Upside: 6.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.73
• Revenue Forecast (FY): $744.06M

• Rating: 77 Outperform
• Price Target: $22.00 ▲(14.35% Upside)

Sabra Healthcare REIT's overall stock score reflects strong financial performance and positive technical indicators. The company's robust cash flow and strategic growth in the SHOP portfolio are significant strengths. While valuation metrics are moderate, the high dividend yield adds to its attractiveness. The recent credit rating upgrade and successful capital raising further bolster confidence in its future prospects.

Positive Factors

Strong Financial Metrics

The strong cash NOI growth indicates effective cost management and operational efficiency, supporting long-term profitability and financial health.

Credit Rating Upgrade

The credit rating upgrade reflects improved financial performance and enhances the company's ability to secure favorable financing, supporting future growth.

SHOP Portfolio Growth

Expanding the SHOP portfolio diversifies income streams and reduces reliance on any single segment, enhancing revenue stability and growth potential.

Negative Factors

Challenges with Holiday Properties

Underperformance in Holiday properties can drag overall financial metrics, indicating potential operational challenges that need addressing for sustained growth.

Decreased Cash Rental Income

A decline in cash rental income could signal weakening demand or pricing power, impacting revenue consistency and financial stability.

Higher Borrowings and Interest Expenses

Increased borrowing costs can strain cash flow and reduce financial flexibility, potentially limiting investment and growth opportunities.

Sabra Healthcare REIT Business Overview & Revenue Model

Company Description

Sabra Healthcare REIT (SBRA) is a real estate investment trust that specializes in the acquisition, ownership, and management of healthcare-related properties across the United States and Canada. The company primarily invests in skilled nursing facilities, senior housing, and other healthcare properties, providing a diversified portfolio that caters to the growing demand for healthcare services driven by an aging population. Sabra focuses on long-term leases with operators of healthcare facilities, ensuring stable rental income and sustainable growth.

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 demonstrates strong financial health with robust profit margins and improved cash flow generation. The balance sheet shows a favorable debt-to-equity ratio, though return on equity could be enhanced. The company is well-positioned for future growth, but maintaining revenue growth momentum will be crucial.

Income Statement

Sabra Healthcare REIT shows a strong gross profit margin of 68.71% TTM, indicating efficient cost management. The net profit margin has improved significantly to 24.87% TTM, reflecting enhanced profitability. Revenue growth is modest at 1.64% TTM, but consistent growth over the years is a positive sign. EBIT and EBITDA margins are robust at 41.37% and 64.85% TTM, respectively, showcasing operational efficiency. However, the revenue growth rate is relatively low, which could limit future expansion.

Balance Sheet

The debt-to-equity ratio has improved to 0.65 TTM, indicating a healthier balance between debt and equity compared to previous years. Return on equity is modest at 6.69% TTM, suggesting moderate profitability from shareholders' investments. The equity ratio stands at 50.74% TTM, reflecting a stable financial structure. While the company has reduced its leverage, the overall return on equity remains an area for potential improvement.

Cash Flow

Free cash flow growth is strong at 68.3% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 1.95 TTM, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is stable at 1.0, reflecting consistent cash flow management. The company demonstrates solid cash flow performance, supporting its financial stability and potential for reinvestment.

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	2.61B	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: 19.24
• 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 19.24 is above the 20-day moving average (MA) of 18.98, above the 50-day MA of 18.43, and above the 200-day MA of 17.85, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 61.44 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
NHI	77 Outperform	$3.74B	24.72	10.87%	4.62%	8.04%	9.20%
SBRA	77 Outperform	$4.81B	26.52	6.29%	6.24%	8.12%	75.95%
OHI	76 Outperform	$13.51B	25.69	11.28%	5.92%	13.50%	31.56%
LTC	70 Neutral	$1.68B	48.17	3.49%	6.49%	11.89%	-68.41%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DHC	58 Neutral	$1.16B	―	-18.84%	0.84%	4.10%	8.96%
MPW	55 Neutral	$3.30B	―	-14.02%	5.87%	45.56%	73.44%

Sabra Healthcare REIT Corporate Events

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.