Extendicare (EXE) AI Stock Analysis

• Market Cap: C$1.85B
• Dividend Yield: 2.24%
• Average Volume (3M): 175.59K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 0.55
• 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$24.00
• Price Target Upside: 8.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$24.50 ▲(10.26% Upside)

Extendicare's overall stock score is driven by strong earnings performance and positive technical indicators. The company's robust revenue growth and strategic acquisitions are significant strengths. However, high leverage and challenges in the Managed Services segment pose risks. The valuation is fair, and the dividend yield adds moderate income potential.

Positive Factors

Revenue Growth

Strong revenue growth driven by organic expansion and strategic acquisitions indicates a robust market position and potential for sustained growth.

Cash Generation

Strong cash generation supports financial stability, enabling investment in growth opportunities and providing a buffer against economic downturns.

Strategic Acquisitions

Strategic acquisitions enhance service offerings and market reach, strengthening competitive advantage and supporting long-term growth.

Negative Factors

High Leverage

High leverage can increase financial risk, limit flexibility, and strain cash flow, potentially impacting long-term financial health.

Managed Services Segment Decline

Decline in Managed Services revenue suggests challenges in maintaining service contracts, which could affect overall profitability and market position.

Construction Delays

Construction delays can postpone revenue generation from new facilities, impacting growth plans and potentially increasing costs.

Extendicare Business Overview & Revenue Model

Company Description

Extendicare Inc. is a leading provider of senior healthcare services in Canada, specializing in long-term care, home health care, and rehabilitation services. With a commitment to enhancing the quality of life for seniors, Extendicare operates a network of facilities that offer a range of personalized care options, including nursing care, assisted living, and specialized support for individuals with cognitive impairments. The company focuses on delivering compassionate and comprehensive care, ensuring that seniors receive the support they need to live fulfilling lives.

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. The company effectively generates returns on equity, but 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	1.59B	1.47B	1.30B	1.22B	1.17B	1.10B
Gross Profit	859.13M	168.00M	167.62M	76.83M	115.61M	201.16M
EBITDA	177.36M	155.27M	98.63M	48.90M	67.46M	125.79M
Net Income	91.00M	75.21M	33.98M	69.55M	11.50M	54.19M
Balance Sheet
Total Assets	873.86M	719.79M	672.73M	781.58M	900.32M	963.13M
Cash, Cash Equivalents and Short-Term Investments	166.83M	121.85M	75.91M	167.28M	104.63M	179.96M
Total Debt	337.46M	292.49M	334.52M	383.97M	536.85M	564.60M
Total Liabilities	709.96M	595.44M	584.81M	680.88M	798.40M	834.94M
Stockholders Equity	163.90M	124.35M	87.92M	100.70M	101.92M	128.19M
Cash Flow
Free Cash Flow	99.69M	101.69M	-106.13M	-2.76M	-6.10M	88.17M
Operating Cash Flow	152.78M	143.64M	23.28M	98.87M	59.08M	121.27M
Investing Cash Flow	-105.92M	-9.11M	-84.45M	155.64M	-59.39M	2.00M
Financing Cash Flow	-35.44M	-87.87M	-30.93M	-191.86M	-74.84M	-38.16M

Extendicare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 22.22 is above the 20-day moving average (MA) of 21.79, above the 50-day MA of 18.89, and above the 200-day MA of 14.76, indicating a bullish trend. The MACD of 0.95 indicates Positive momentum. The RSI at 64.03 is Neutral, neither overbought nor oversold. The STOCH value of 46.04 is Neutral, 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	71 Outperform	C$1.85B	20.49	65.57%	2.24%	11.59%	41.99%
DR	71 Outperform	C$278.38M	2.15	39.85%	2.33%	-40.05%	558.77%
SIA	63 Neutral	C$1.98B	46.87	7.07%	4.44%	11.47%	6.45%
CRRX	59 Neutral	C$244.79M	3,900.00	0.11%	1.04%	0.19%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Extendicare Corporate Events

Extendicare Completes $200 Million Private Placement to Fund Strategic Acquisition

Extendicare has completed a $200 million private placement of common shares, issuing 10,640,000 shares at $18.80 each. The proceeds, approximately $192 million after fees, will be used to partially fund the acquisition of CBI Home Health by its subsidiary, ParaMed Inc. This acquisition is part of Extendicare’s strategy to expand its home health care services, positioning the company for growth in the Canadian senior care market.

Extendicare Expands Home Health Care Business with CBI Acquisition

Extendicare has announced the acquisition of CBI Home Health for $570 million, aiming to expand its home health care business and strengthen its national leadership position. This acquisition will diversify ParaMed’s geographic footprint, enhance its capabilities with innovative care models, and is expected to result in significant financial synergies and increased earnings per share, thereby delivering strong value for customers and shareholders.

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.

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.

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.

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.