Extendicare (EXE) AI Stock Analysis

• Market Cap: C$1.72B
• Dividend Yield: 2.5%
• Average Volume (3M): 175.59K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.59
• Revenue Growth: 11.59%
• EPS Growth: 41.99%
• Country: CA
• Employees: 23,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.28
• Shares Outstanding: 83,817,900
• 10 Day Avg. Volume: 108,359
• 30 Day Avg. Volume: 175,588
• PEG Ratio: 0.08
• Price to Book (P/B): 7.20
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 8.80
• 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$18.00
• Price Target Upside: -12.41% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: C$17.50 ▼(-14.84% Downside)

Extendicare's strong earnings call performance and positive technical indicators are the most significant factors driving the score. Financial performance is solid, though high leverage is a concern. Valuation is reasonable, and the dividend yield is attractive.

Positive Factors

Revenue Growth

The significant revenue growth, driven by organic expansion and strategic acquisitions, indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Cash Flow Management

Robust cash flow performance ensures liquidity and financial flexibility, allowing the company to invest in growth opportunities and manage debt effectively over the long term.

Strategic Expansion

The expansion in the Long-Term Care segment through new constructions will increase capacity and market presence, supporting sustained growth and competitive positioning.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting the company's ability to invest in growth and potentially impacting its creditworthiness over time.

Managed Services Segment Decline

The decline in the Managed Services segment indicates challenges in maintaining contracts and revenue streams, which could affect overall profitability and diversification.

Construction Delays

Delays in construction projects can lead to increased costs and postponed revenue generation, impacting the company's growth timeline and financial projections.

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 government funding and private pay for its healthcare services. The majority of its income comes from long-term care facilities, where it receives per diem funding from provincial governments based on the level of care required by residents. Additionally, the company earns revenue from home health care services, which are often funded through a combination of public health insurance and private payments. Extendicare also has partnerships with various healthcare organizations and agencies, which help to expand its service offerings and enhance its market reach. These partnerships can lead to additional contracts and revenue opportunities. Furthermore, the company may benefit from economies of scale and operational efficiencies, which can improve profit margins across its service lines.

Extendicare Financial Statement Overview

Summary

Extendicare demonstrates solid financial performance with consistent revenue growth and strong operational margins. While the company effectively generates returns on equity, the high leverage poses potential risks. Cash flow metrics are positive, reflecting good cash management. Overall, Extendicare is in a stable financial position with opportunities to enhance profitability and reduce leverage.

Income Statement

Extendicare has shown consistent revenue growth, with a TTM revenue growth rate of 2.37%. The company maintains a strong gross profit margin of 77.05% in the TTM period, indicating efficient cost management. However, the net profit margin is relatively low at 5.23%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are stable, reflecting solid operational performance.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.29 in the TTM period, indicating significant leverage, which could pose financial risks. However, the return on equity is strong at 65.66%, demonstrating effective use of equity to generate profits. The equity ratio is relatively low, suggesting a reliance on debt financing.

Cash Flow

Extendicare's cash flow performance is robust, with a positive free cash flow growth rate of 5.79% in the TTM period. The operating cash flow to net income ratio is 0.44, indicating that operating cash flows are adequately covering net income. The free cash flow to net income ratio of 0.61 suggests efficient cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.51B	1.47B	1.30B	1.22B	1.17B	1.10B
Gross Profit	1.16B	168.00M	167.62M	76.83M	115.61M	201.16M
EBITDA	165.43M	155.27M	98.63M	48.90M	67.46M	125.79M
Net Income	83.18M	75.21M	33.98M	69.55M	11.50M	54.19M
Balance Sheet
Total Assets	777.83M	719.79M	672.73M	781.58M	900.32M	963.13M
Cash, Cash Equivalents and Short-Term Investments	72.61M	121.85M	75.91M	167.28M	104.63M	179.96M
Total Debt	284.12M	292.49M	334.52M	383.97M	536.85M	564.60M
Total Liabilities	628.92M	595.44M	584.81M	680.88M	798.40M	834.94M
Stockholders Equity	148.91M	124.35M	87.92M	100.70M	101.92M	128.19M
Cash Flow
Free Cash Flow	78.93M	101.69M	-106.13M	-2.76M	-6.10M	88.17M
Operating Cash Flow	131.43M	143.64M	23.28M	98.87M	59.08M	121.27M
Investing Cash Flow	-105.66M	-9.11M	-84.45M	155.64M	-59.39M	2.00M
Financing Cash Flow	-89.56M	-87.87M	-30.93M	-191.86M	-74.84M	-38.16M

Extendicare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 20.55 is above the 20-day moving average (MA) of 18.73, above the 50-day MA of 16.51, and above the 200-day MA of 13.92, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 74.44 is Negative, neither overbought nor oversold. The STOCH value of 81.79 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	72 Outperform	C$1.72B	19.08	65.57%	2.50%	11.59%	41.99%
DR	67 Neutral	$269.83M	2.05	39.85%	2.22%	-40.05%	558.77%
SIA	63 Neutral	C$1.75B	47.54	7.07%	4.52%	11.47%	6.45%
CRRX	52 Neutral	C$229.69M	3,650.00	0.11%	0.56%	0.19%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
WELL	46 Neutral	C$1.26B	-9.60	-5.11%	―	26.20%	-156.86%

Extendicare Corporate Events

Extendicare’s Q3 2025 Results Show Strong Growth and Strategic Acquisition Impact

Extendicare reported strong financial results for the third quarter of 2025, highlighted by a significant increase in adjusted EBITDA and revenue, driven by the acquisition of Closing the Gap and growth in the home health care segment. The acquisition of Closing the Gap, a provider of nursing and allied health services, enhances Extendicare’s home health services and is expected to generate cost synergies and additional revenue, positioning the company for further growth in the seniors care market.

The most recent analyst rating on (TSE:EXE) stock is a Hold with a C$17.50 price target. To see the full list of analyst forecasts on Extendicare stock, see the TSE:EXE Stock Forecast page.

Extendicare Declares October 2025 Dividend

Extendicare Inc. announced a cash dividend of C$0.042 per common share for October 2025, payable on November 17, 2025, to shareholders of record as of October 31, 2025. This announcement reflects Extendicare’s ongoing commitment to providing shareholder value and maintaining its position as a key player in the senior care industry in Canada.

The most recent analyst rating on (TSE:EXE) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on Extendicare stock, see the TSE:EXE Stock Forecast page.

Extendicare Schedules Q3 2025 Financial Results Announcement and Conference Call

Extendicare Inc. has announced the release of its third-quarter financial results for 2025, scheduled for November 11, with a subsequent conference call on November 12. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic positioning in the senior care industry, potentially impacting investor decisions and market perceptions.

The most recent analyst rating on (TSE:EXE) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on Extendicare stock, see the TSE:EXE Stock Forecast page.

Extendicare Declares September 2025 Dividend

Extendicare Inc. has announced a cash dividend of C$0.042 per common share for September 2025, payable on October 15, 2025, to shareholders on record as of September 30, 2025. This announcement reflects the company’s ongoing commitment to providing value to its shareholders and maintaining its position as a key player in the senior care industry in Canada.

The most recent analyst rating on (TSE:EXE) stock is a Hold with a C$14.50 price target. To see the full list of analyst forecasts on Extendicare stock, see the TSE:EXE Stock Forecast page.

Extendicare Inc. Earnings Call Highlights Growth and Challenges

Extendicare Inc. recently held its earnings call, revealing a generally positive sentiment despite some challenges. The company reported strong growth in key areas like Adjusted EBITDA and home health care volumes, alongside successful acquisitions. However, it faced hurdles with revenue losses from closed Class C homes and a decline in Managed Services revenue. Overall, the positive developments and strategic acquisitions suggest a robust position for future growth.