Sonida Senior Living, Inc. (SNDA) AI Stock Analysis

• Market Cap: $412.18M
• Dividend Yield: N/A
• Average Volume (3M): 30.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 19.19%
• EPS Growth: N/A
• Country: US
• Employees: 3,415
• Sector: Healthcare
• Sector Strength: 74
• Industry: Medical - Care Facilities
• EPS (TTM): -0.04
• Shares Outstanding: 18,915,937
• 10 Day Avg. Volume: 27,215
• 30 Day Avg. Volume: 30,568
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.46
• Price to Cash Flow (P/CF): -35.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $25.00
• Price Target Upside: 21.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Sonida Senior Living, Inc. scores a 51, reflecting a challenging financial position with declining revenues and high leverage. Despite these challenges, positive earnings call insights and recent strategic acquisitions provide a brighter outlook. Technical indicators suggest mixed signals, while valuation remains weak due to negative earnings and lack of dividends.

Positive Factors

Financial Performance

Adjusted EBITDA of $12.3M modestly beat MSe of $11.7M.

Growth Potential

Management noted early trends point to continued year-over-year growth in occupancy and strong rate improvement.

Market Demand

Strong demand driven by a powerful demographic story with an aging population.

Negative Factors

Competition

Concentrated exposure to high-growth senior housing operations could sustain growth above diversified healthcare REIT competitors.

Debt Management

Focus on long-term strategy of delevering with a target of 7x based on acquisition NOI stabilization, same-store growth, and responsible debt management.

Price Reflection

Sonida Senior Living, Inc. is a pure-play senior housing owner and operator with best-in-class growth likely reflected in the price.

Sonida Senior Living, Inc. Business Overview & Revenue Model

Company Description

Sonida Senior Living, Inc. develops, owns, operates, and manages senior housing communities in the United States. The company provides independent living services, which include daily meals, transportation, social and recreational activities, laundry, housekeeping, and 24-hour staffing; and access to health screenings, periodic special services, and dietary and similar programs, as well as exercise and fitness classes. It also offers assisted living services consist of personal care services, such as assistance with activities of daily living, including ambulation, bathing, dressing, eating, grooming, personal hygiene, and monitoring or assistance with medications; support services, such as meals, assistance with social and recreational activities, laundry, general housekeeping, maintenance, and transportation services; and supplemental services, which include extra transportation, personal maintenance, and extra laundry services, as well as special care services for residents with various forms of dementia. In addition, the company provides memory care services; and home care services through third-party providers. As of December 31, 2021, it operated 75 senior housing communities in 18 states with an aggregate capacity of approximately 9,500 residents, including 60 senior housing communities. The company was formerly known as Capital Senior Living Corporation and changed its name to Sonida Senior Living, Inc. in November 2021. Sonida Senior Living, Inc. was founded in 1990 and is based in Addison, Texas.

How the Company Makes Money

Sonida Senior Living, Inc. makes money primarily through the fees and rents collected from its senior living facilities. These facilities include independent living, assisted living, and memory care communities. The company generates revenue by providing housing, meals, healthcare services, and other amenities tailored to the needs of seniors. Additionally, Sonida may engage in partnerships with healthcare providers to offer specialized services that further enhance its value proposition. The company's earnings are influenced by occupancy rates, pricing strategies, and its ability to manage operational costs effectively.

Sonida Senior Living, Inc. Financial Statement Overview

Summary

Sonida Senior Living, Inc. is facing significant financial challenges, marked by declining revenues, consistent losses, and heavy reliance on debt, leading to negative equity and cash flow issues. Attempts to improve liquidity through financing are noted, but high leverage and operational inefficiencies pose substantial risks.

Income Statement

The income statement shows declining revenue over the years with a significant drop from 2019 to the TTM period. The company has struggled to maintain profitability, reflected in negative net income across multiple years. Gross profit margin has turned negative in the TTM, indicating cost management issues. The company had a positive EBIT in 2023, but it deteriorated to zero in the TTM period. Overall, the income statement suggests weak financial performance and challenges in achieving sustainable revenue growth.

Balance Sheet

The balance sheet reflects high leverage, with a debt-to-equity ratio that indicates significant reliance on debt financing. The company has a negative stockholders' equity, which suggests financial instability and potential risk to creditors. Although total assets have increased in the TTM, the equity ratio remains low, further highlighting financial vulnerability. Overall, the balance sheet demonstrates a precarious financial position with high financial risk.

Cash Flow

Cash flow analysis reveals inconsistent performance with negative free cash flow in recent years, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is negative in the TTM, pointing towards operational inefficiencies. Financing activities have provided some liquidity relief, as seen in the positive cash flow from financing in the TTM. However, the reliance on financing rather than operational improvements poses a risk to long-term sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
304.33M	255.32M	238.43M	234.72M	383.86M
	Gross Profit
271.23M	234.22M	39.43M	36.55M	104.29M
	EBIT
-14.83M	24.80M	-19.06M	-24.94M	-13.76M
	EBITDA
78.00M	55.15M	9.14M	12.93M	46.55M
	Net Income Common Stockholders
-2.06M	-21.11M	-54.40M	125.61M	-295.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.99M	4.08M	16.91M	78.69M	17.89M
	Total Assets
841.92M	621.46M	661.27M	728.55M	702.83M
	Total Debt
651.39M	629.42M	671.03M	683.68M	909.85M
	Net Debt
634.40M	625.34M	654.12M	604.99M	891.96M
	Total Liabilities
712.31M	688.01M	719.43M	775.36M	982.10M
	Stockholders Equity
71.78M	-66.55M	-58.16M	-46.81M	-279.26M
Cash Flow		Free Cash Flow
-26.95M	-7.25M	-27.14M	-38.71M	-22.43M
	Operating Cash Flow
-1.78M	10.68M	-2.58M	-28.27M	-6.79M
	Investing Cash Flow
-208.92M	-16.56M	-36.90M	-10.44M	8.51M
	Financing Cash Flow
232.04M	-7.11M	-22.65M	99.42M	-15.92M

Sonida Senior Living, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNDA, the sentiment is Negative. The current price of 20.5 is below the 20-day moving average (MA) of 22.75, below the 50-day MA of 23.73, and below the 200-day MA of 25.51, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 28.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNDA.

Sonida Senior Living, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENSG	78 Outperform	$7.43B	25.27	17.90%	0.20%	15.52%	40.29%
NHI	77 Outperform	$3.33B	22.86	10.53%	5.04%	4.88%	0.41%
OHI	74 Outperform	$10.59B	25.00	10.02%	7.13%	9.90%	56.41%
VTR	63 Neutral	$29.46B	336.53	0.80%	2.79%	9.48%	―
BKD	57 Neutral	$1.18B	―	-65.55%	―	3.95%	-5.53%
SNDA	51 Neutral	$412.18M	―	-17.38%	―	19.19%	―
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%

Sonida Senior Living, Inc. Corporate Events

Sonida Senior Living Expands with Strategic Acquisitions

In 2024, Sonida Senior Living, Inc. achieved significant growth through both organic and inorganic means, including the acquisition of 20 high-quality communities. The company reported a notable improvement in financial performance, with a $19 million reduction in net loss and a 27.4% increase in adjusted EBITDA. Key highlights include increased occupancy and revenue per unit, as well as strategic acquisitions in Cincinnati and Atlanta. Additionally, Sonida extended its loan agreements with Fannie Mae and expanded its credit facility, positioning the company for accelerated growth in 2025.