Sonida Senior Living (SNDA) AI Stock Analysis

• Market Cap: $577.93M
• Dividend Yield: N/A
• Average Volume (3M): 56.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: 34.99%
• EPS Growth: -68.73%
• Country: US
• Employees: 3,415
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): -1.56
• Shares Outstanding: 18,770,006
• 10 Day Avg. Volume: 42,808
• 30 Day Avg. Volume: 56,397
• PEG Ratio: 1.84
• Price to Book (P/B): 2.65
• Price to Sales (P/S): 1.07
• P/FCF Ratio: -12.08
• Enterprise Value/Market Cap: 2.09
• Enterprise Value/Revenue: 3.21
• Enterprise Value/Gross Profit: 3.52
• Enterprise Value/Ebitda: 26.68
• 1Y Price Target: $28.00
• Price Target Upside: -9.06% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): -2.44
• Revenue Forecast (FY): $334.06M

• Rating: 53 Neutral
• Price Target: $31.00 ▲(0.68% Upside)

Sonida Senior Living's overall stock score is primarily influenced by its financial challenges, including high debt and negative profitability. However, the positive outlook from the earnings call, driven by strategic mergers and operational improvements, provides some optimism. Technical indicators suggest moderate strength, but valuation concerns persist due to negative earnings.

Positive Factors

Strategic Merger

The merger is expected to significantly enhance Sonida's growth profile and market position, creating a $3 billion pure-play senior housing owner-operator.

Occupancy Improvement

Rising occupancy rates indicate strong demand and effective management, which should support revenue growth and operational efficiency.

Operational Performance

The significant NOI growth reflects effective cost management and strategic acquisitions, bolstering long-term financial performance.

Negative Factors

High Debt Levels

Excessive leverage can strain financial flexibility and increase vulnerability to economic downturns, impacting long-term stability.

Negative Profitability

Ongoing profitability challenges suggest operational inefficiencies and could hinder reinvestment in growth and innovation.

Cash Flow Challenges

Declining cash flow limits the company's ability to fund operations and growth initiatives, posing a risk to long-term sustainability.

Sonida Senior Living 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 generates revenue primarily through the leasing and management of its senior living facilities. The company charges residents monthly fees that cover rent, meals, healthcare services, and various amenities. Key revenue streams include occupancy rates in its communities, ancillary health services offered to residents, and additional fees for specialized care programs. Partnerships with healthcare providers and insurance companies also play a significant role in enhancing its service offerings and attracting residents. Additionally, the company may benefit from government funding and subsidies aimed at supporting senior living initiatives, contributing to its overall earnings.

Sonida Senior Living Financial Statement Overview

Summary

Sonida Senior Living is experiencing revenue growth, but profitability and cash flow challenges persist. High leverage and negative equity raise concerns about financial stability. The company must focus on improving operational efficiency and cash flow to enhance financial health and reduce risk.

Income Statement

Sonida Senior Living has shown a positive revenue growth rate of 7.09% TTM, indicating a recovery trend. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -9.47% and a negative EBIT margin of -1.99% TTM. The gross profit margin is strong at 95.57%, but the high operating expenses are impacting overall profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 6.28 TTM, indicating significant leverage and potential financial risk. The return on equity is negative at -28.40%, reflecting ongoing losses. The equity ratio is low, suggesting limited equity financing and potential solvency concerns.

Cash Flow

Operating cash flow is positive at $12.6 million TTM, but free cash flow remains negative, indicating cash outflows after capital expenditures. The free cash flow to net income ratio is -1.43, highlighting challenges in generating cash relative to net losses. The company needs to improve cash flow management to support operations and reduce financial strain.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	375.42M	304.33M	255.32M	238.43M	234.72M	383.86M
Gross Profit	343.23M	271.23M	234.22M	211.06M	193.82M	104.29M
EBITDA	45.24M	78.00M	55.15M	17.16M	201.29M	-190.11M
Net Income	-46.51M	-2.06M	-21.11M	-54.40M	125.61M	-295.37M
Balance Sheet
Total Assets	854.82M	841.92M	621.46M	661.27M	728.55M	702.83M
Cash, Cash Equivalents and Short-Term Investments	16.96M	16.99M	4.08M	16.91M	78.69M	17.89M
Total Debt	684.42M	651.39M	629.42M	671.03M	683.68M	909.85M
Total Liabilities	768.41M	712.31M	688.01M	719.43M	734.11M	982.10M
Stockholders Equity	81.02M	123.03M	-66.55M	-58.16M	-5.56M	-279.26M
Cash Flow
Free Cash Flow	-9.98M	-26.95M	-7.25M	-27.14M	-39.24M	-22.43M
Operating Cash Flow	21.63M	-1.78M	10.68M	-2.58M	-28.80M	-6.79M
Investing Cash Flow	-116.77M	-208.92M	-16.56M	-36.90M	-10.44M	8.51M
Financing Cash Flow	87.28M	232.04M	-7.11M	-22.65M	99.42M	-15.92M

Sonida Senior Living Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNDA, the sentiment is Positive. The current price of 30.79 is below the 20-day moving average (MA) of 31.94, above the 50-day MA of 28.79, and above the 200-day MA of 25.58, indicating a neutral trend. The MACD of 0.66 indicates Positive momentum. The RSI at 51.23 is Neutral, neither overbought nor oversold. The STOCH value of 15.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNDA.

Sonida Senior Living Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	74 Outperform	$2.09B	20.79	9.94%	1.86%	23.74%	-18.99%
PNTG	73 Outperform	$1.01B	38.61	10.87%	―	29.89%	10.33%
CYH	63 Neutral	$502.83M	1.50	―	―	0.74%	―
BKD	59 Neutral	$2.56B	―	-214.33%	―	3.93%	-42.22%
SNDA	53 Neutral	$577.93M	―	-44.33%	―	34.99%	-68.73%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CCRN	46 Neutral	$394.76M	-46.54	-3.76%	―	-22.14%	-787.87%

Sonida Senior Living Corporate Events

Sonida Senior Living Reports Q3 2025 Financial Results

Sonida Senior Living announced its third-quarter 2025 results, highlighting a 21% growth in total portfolio community NOI, driven by rent growth and acquisitions. The company achieved its highest post-COVID occupancy levels and continued its acquisition strategy with a new community in Dallas-Fort Worth. A strategic merger with CNL Healthcare Properties, valued at approximately $1.8 billion, is expected to close in early 2026, marking a significant step in Sonida’s growth strategy. Despite increased revenues, the company reported a net loss of $26.9 million for Q3 2025, attributed to higher operating expenses and recent acquisitions.

Sonida Senior Living Announces $1.8 Billion Merger Agreement

On November 4, 2025, Sonida Senior Living, Inc. announced a definitive merger agreement to acquire CNL Healthcare Properties, Inc. in a cash and stock transaction valued at approximately $1.8 billion. This strategic merger will create a $3 billion pure-play senior housing owner-operator, positioning Sonida as the eighth largest owner of U.S. senior living assets. The merger is expected to generate immediate per share earnings accretion and significant long-term value for shareholders, with estimated annual cost synergies of $16-20 million. The transaction will be funded with 66% stock and 34% cash, with committed financing from RBC, BMO, and equity commitments from Sonida’s largest shareholders. The merger will enhance Sonida’s balance sheet, deepen access to capital, and expand its portfolio to 153 owned senior living communities.