Extendicare (EXE) AI Stock Analysis

• Market Cap: C$1.13B
• Dividend Yield: 3.78%
• Average Volume (3M): 204.00K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.63
• Revenue Growth: 8.68%
• EPS Growth: 39.93%
• Country: CA
• Employees: 23,500
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Care Facilities
• EPS (TTM): 0.37
• Shares Outstanding: 83,817,900
• 10 Day Avg. Volume: 213,908
• 30 Day Avg. Volume: 203,998
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• 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: C$15.42
• Price Target Upside: 15.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: C$14.50 ▲(8.29% Upside)

Extendicare's strong earnings call performance and reasonable valuation are the most significant factors contributing to its score. The company's financial performance shows robust profitability, though high leverage and technical indicators suggest caution. Overall, Extendicare presents a balanced investment opportunity with potential for growth, supported by strategic acquisitions and operational efficiency.

Positive Factors

Market Demand

Given aging demographics and a significant LTC waitlist in Ontario, Extendicare should benefit from demand tailwinds ahead.

Operational Performance

Extendicare continues to deliver strong operational results and growth across its business lines.

Strategic Acquisition

The company has been putting its under-levered balance sheet to work with the recent announcement of the agreement to acquire Closing the Gap, a business that fits nicely into the existing home health platform and will drive accretion into 2026.

Negative Factors

Integration Risks

The acquisition of Closing the Gap, while promising, carries potential risks related to the integration and realization of expected synergies.

Extendicare Business Overview & Revenue Model

Company Description

Extendicare Inc., through its subsidiaries, provides care and services for seniors in Canada. The company offers long term care (LTC) services; retirement living services; and home health care services, such as nursing care, occupational, physical and speech therapy, and assistance with daily activities, as well as contract and consulting services to third parties. It operates a network of 119 LTC homes and retirement communities, as well as home health care operations under the Extendicare, Esprit Lifestyle Communities, ParaMed, Extendicare Assist, and SGP Purchasing Partner Network brands. Extendicare Inc. was founded in 1968 and is based in Markham, Canada.

How the Company Makes Money

Extendicare generates revenue primarily through its long-term care services, which include providing accommodation, meals, and healthcare services to residents in its facilities. The company also earns income through its retirement living operations, offering independent and assisted living arrangements. Another significant revenue stream comes from its home healthcare services, where Extendicare provides in-home nursing care, personal support, and therapy services. Additionally, Extendicare has partnerships and contracts with government entities and healthcare organizations that contribute to its financial performance. These partnerships often involve funding arrangements or service agreements that help stabilize revenue streams and support business growth.

Extendicare Financial Statement Overview

Summary

Extendicare shows strong profitability and operational efficiency, with steady revenue growth. However, the high debt-to-equity ratio and negative free cash flow growth suggest caution. The company is well-positioned in terms of cash flow generation, but reliance on debt poses potential financial risks.

Income Statement

Extendicare has shown a consistent improvement in profitability with gross profit margin at 56.4% and net profit margin at 5.2% in TTM. Revenue growth is steady at 0.5% compared to the previous year. EBIT and EBITDA margins are healthy at 8.5% and 10.5%, respectively, indicating efficient operational performance.

Balance Sheet

The balance sheet reflects moderate stability with a debt-to-equity ratio of 2.29, indicating a high reliance on debt. Return on equity stands at 61.6%, and the equity ratio is 17.5%, suggesting potential risks due to leverage but also strong returns on equity.

Cash Flow

Cash flow analysis shows robust operational cash flow to net income ratio of 1.59, and free cash flow to net income ratio of 0.97, pointing towards strong cash generation capabilities. However, free cash flow growth rate is negative, indicating a decline from previous levels.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.47B	1.30B	1.22B	1.17B	1.10B
Gross Profit	168.00M	167.62M	76.83M	115.61M	201.16M
EBITDA	152.52M	98.63M	48.90M	67.46M	125.08M
Net Income	75.21M	33.98M	69.55M	11.50M	54.19M
Balance Sheet
Total Assets	719.79M	672.73M	781.58M	900.32M	963.13M
Cash, Cash Equivalents and Short-Term Investments	121.85M	75.91M	167.28M	104.63M	179.96M
Total Debt	292.49M	334.52M	383.97M	536.85M	564.60M
Total Liabilities	595.44M	584.81M	680.88M	798.40M	834.94M
Stockholders Equity	124.35M	87.92M	100.70M	101.92M	128.19M
Cash Flow
Free Cash Flow	101.69M	-106.13M	-2.76M	-6.10M	88.17M
Operating Cash Flow	143.64M	23.28M	98.87M	59.08M	121.27M
Investing Cash Flow	-9.11M	-84.45M	155.64M	-59.39M	2.00M
Financing Cash Flow	-87.87M	-30.93M	-191.86M	-74.84M	-38.16M

Extendicare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.39
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EXE, the sentiment is Positive. The current price of 13.39 is above the 20-day moving average (MA) of 12.82, above the 50-day MA of 13.38, and above the 200-day MA of 12.03, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.57 is Neutral, neither overbought nor oversold. The STOCH value of 87.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EXE.

Extendicare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXE	73 Outperform	C$1.13B	13.68	65.09%	3.78%	8.68%	39.93%
WELL	70 Outperform	C$1.19B	30.45	-14.61%	―	17.19%	-191.01%
SIA	67 Neutral	C$1.71B	46.29	6.94%	5.09%	10.13%	1.30%
CRRX	53 Neutral	C$183.36M	―	-2.17%	―	-0.16%	75.25%
Sector *	51 Neutral	$7.46B	-0.16	-46.00%	2.25%	22.76%	-2.28%
MFCSF	―	$197.45M	2.12	41.13%	2.44%	―	―
MEDI	―	$189.99M	―		―	―	―

Extendicare Corporate Events

Extendicare Reports Strong Q2 2025 Results and Strategic Acquisitions

Extendicare Inc. reported a 15.4% increase in adjusted EBITDA for Q2 2025, driven by growth in its home health care segment and improvements in long-term care, including the acquisition of nine Class C LTC homes. The company completed several strategic transactions, including the sale of three LTC projects and the acquisition of Closing the Gap, which is expected to enhance its service offerings and operational scale. These moves, along with increased credit facilities, position Extendicare for future growth and improved market positioning.

The most recent analyst rating on (TSE:EXE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Extendicare stock, see the TSE:EXE Stock Forecast page.

Extendicare Declares July 2025 Dividend of C$0.042 per Share

Extendicare Inc. has declared a cash dividend of C$0.042 per common share for July 2025, payable on August 15, 2025, to shareholders of record as of July 31, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, reinforcing its stable financial position and dedication to maintaining investor confidence.

The most recent analyst rating on (TSE:EXE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Extendicare stock, see the TSE:EXE Stock Forecast page.

Extendicare Schedules Q2 2025 Financial Results Release and Conference Call

Extendicare Inc. announced the release of its second quarter 2025 financial results scheduled for August 6, 2025, followed by a conference call on August 7, 2025, led by its top executives. This announcement is part of Extendicare’s ongoing communication strategy with stakeholders, reflecting its commitment to transparency and engagement in the senior care industry.

The most recent analyst rating on (TSE:EXE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Extendicare stock, see the TSE:EXE Stock Forecast page.

Extendicare Expands with Acquisition and Credit Facility Increase

Extendicare has completed the acquisition of Closing the Gap Healthcare Group through its subsidiary ParaMed Inc., enhancing its capabilities in rehabilitation services and integrated care models. This acquisition, valued at $75.5 million with potential earnouts, is expected to strengthen Extendicare’s home healthcare platform. Additionally, Extendicare has increased its Senior Secured Credit Facility to $375 million, positioning itself for further strategic acquisitions and growth, supported by a $100 million increase in its credit facilities.

The most recent analyst rating on (TSE:EXE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Extendicare stock, see the TSE:EXE Stock Forecast page.

Extendicare Declares June 2025 Dividend, Reinforcing Commitment to Shareholders

Extendicare Inc. has announced a cash dividend of C$0.042 per common share for June 2025, payable on July 15, 2025, to shareholders recorded by June 30, 2025. This move reflects the company’s ongoing commitment to providing returns to its investors while maintaining its focus on delivering quality care services to Canada’s growing senior population. The announcement may positively impact shareholder value and reinforce Extendicare’s position in the senior care industry.

The most recent analyst rating on (TSE:EXE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Extendicare stock, see the TSE:EXE Stock Forecast page.

Extendicare Expands Senior Care Services with Acquisition of Nine Long-Term Care Homes

Extendicare Inc. has completed the acquisition of nine ‘Class C’ long-term care homes from Revera Inc. in Ontario and Manitoba, along with a parcel of vacant land in Ontario, for approximately $60.3 million. This strategic acquisition, funded by cash on hand, expands Extendicare’s footprint in the senior care industry, enhancing its capacity to provide quality care to a growing senior population. The transaction underscores Extendicare’s commitment to meeting the increasing demand for senior care services and strengthens its market position in Canada.

The most recent analyst rating on (TSE:EXE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Extendicare stock, see the TSE:EXE Stock Forecast page.

Extendicare Announces 2025 Shareholder Meeting Results

Extendicare Inc. announced the results of its 2025 Annual and Special Meeting of Shareholders, where key decisions included the election of nine directors, the appointment of KPMG LLP as auditors, approval of unallocated entitlements under the Long Term Incentive Plan, and acceptance of the company’s approach to executive compensation. These decisions reflect strong shareholder support and are expected to reinforce Extendicare’s strategic direction and operational stability, impacting its positioning in the senior care industry and providing assurance to stakeholders about the company’s governance and financial oversight.

The most recent analyst rating on (TSE:EXE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Extendicare stock, see the TSE:EXE Stock Forecast page.