Sienna Senior Living (SIA) AI Stock Analysis

• Market Cap: C$1.54B
• Dividend Yield: 5.58%
• Average Volume (3M): 391.64K
• Price to Earnings (P/E): 33.2
• Beta (1Y): 0.75
• Revenue Growth: 13.72%
• EPS Growth: 429.22%
• Country: CA
• Employees: 12,000
• Sector: Healthcare
• Sector Strength: 78
• Industry: Medical - Care Facilities
• EPS (TTM): 0.51
• Shares Outstanding: 91,933,440
• 10 Day Avg. Volume: 254,682
• 30 Day Avg. Volume: 391,636
• PEG Ratio: 0.08
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.48
• Price to Cash Flow (P/CF): 15.10
• 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$18.50
• Price Target Upside: 10.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Sienna Senior Living's overall score reflects strong revenue growth and improved profitability, coupled with positive earnings call outcomes including continuous NOI growth and strategic acquisitions. However, financial stability concerns due to high leverage and negative cash flow, along with an overvalued P/E ratio, temper the overall outlook. The high dividend yield offers a compensatory benefit for investors.

Positive Factors

Acquisition Strategy

Analysts believe Sienna is set up well to capitalize on the acquisition pipeline, given its Dec-31 liquidity of $435MM and a robust acquisition plan.

Retirement Segment Growth

Sienna expects significant growth in its retirement segment, with improvements in rent rates and occupancy expected to boost margins.

Valuation

Valuation is seen as attractive as Sienna trades at a discount relative to its historical average multiple and a 14% discount to NAV.

Negative Factors

Debt and Liquidity

A balanced approach to capital allocation is expected, with acquisition opportunities considered against redevelopment needs, supported by strong liquidity and manageable debt maturities.

Sienna Senior Living Business Overview & Revenue Model

Company Description

Sienna Senior Living Inc. (SIA) is a leading provider of senior living and long-term care services in Canada. The company operates in the healthcare and real estate sectors, offering a wide range of accommodations and services to meet the diverse needs of older adults. Its core offerings include independent living, assisted living, long-term care, and specialized programs for memory care. Sienna Senior Living is committed to enhancing the quality of life for its residents through personalized care and a supportive environment.

How the Company Makes Money

Sienna Senior Living generates revenue primarily through the provision of senior living and long-term care services. The company's key revenue streams include resident fees from its independent living, assisted living, and long-term care facilities. These fees typically cover accommodation, meals, personal care, and various support services. Additionally, Sienna may earn income through government funding and subsidies, particularly for its long-term care operations. The company benefits from strategic partnerships with healthcare providers and suppliers to enhance service delivery and maintain operational efficiency. Factors such as demographic trends, government policies, and real estate market conditions can significantly impact Sienna's earnings.

Sienna Senior Living Financial Statement Overview

Summary

Sienna Senior Living shows a promising revenue growth and improved net profit margin. However, the company's financial health is marred by negative free cash flow and high leverage, indicating potential risk areas despite improved ROE.

Income Statement

Sienna Senior Living showed strong revenue growth of 13.7% from 2023 to 2024. However, the gross profit margin for 2024 appears to be incorrectly calculated as 100%, indicating a possible data discrepancy. The net profit margin improved significantly from 0.9% in 2023 to 4.3% in 2024, showing enhanced profitability. However, EBIT margin is currently zero, suggesting operational challenges.

Balance Sheet

The debt-to-equity ratio is approximately 2.1, indicating high leverage which could be risky. The return on equity improved to 8% in 2024, indicating better returns for shareholders. However, the equity ratio is relatively low at 25.8%, suggesting a higher reliance on debt for asset financing.

Cash Flow

The free cash flow turned negative in 2024, a concerning shift from previous positive levels, indicating potential liquidity issues. The operating cash flow to net income ratio improved, reflecting better cash generation relative to net income, but the negative free cash flow remains a concern.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
893.16M	785.37M	718.59M	668.49M	664.23M
	Gross Profit
893.16M	96.68M	91.00M	81.85M	70.33M
	EBIT
0.00	65.77M	38.04M	56.83M	18.41M
	EBITDA
142.29M	100.27M	106.11M	114.24M	83.19M
	Net Income Common Stockholders
38.40M	7.04M	10.67M	20.65M	-24.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
127.20M	24.40M	38.05M	29.05M	95.68M
	Total Assets
1.86B	1.70B	1.68B	1.61B	1.68B
	Total Debt
1.01B	1.01B	977.96M	950.28M	1.03B
	Net Debt
885.14M	982.25M	939.91M	921.23M	936.95M
	Total Liabilities
1.38B	1.32B	1.25B	1.20B	1.23B
	Stockholders Equity
480.72M	373.77M	434.69M	405.85M	447.44M
Cash Flow		Free Cash Flow
-172.00K	62.60M	48.43M	56.69M	49.51M
	Operating Cash Flow
149.93M	126.70M	106.08M	98.52M	69.24M
	Investing Cash Flow
-116.48M	-74.02M	-134.73M	-18.05M	-8.76M
	Financing Cash Flow
69.35M	-66.34M	37.65M	-147.09M	14.43M

Sienna Senior Living Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.72
• 50DMA: Positive
• 100DMA: Positive
• 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:SIA, the sentiment is Positive. The current price of 16.72 is above the 20-day moving average (MA) of 16.06, above the 50-day MA of 15.76, and above the 200-day MA of 15.52, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 60.89 is Neutral, neither overbought nor oversold. The STOCH value of 80.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SIA.

Sienna Senior Living Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXE	74 Outperform	C$1.09B	14.56	70.86%	3.71%	12.36%	123.26%
ALC	73 Outperform	C$623.12M	6.72	10.92%	5.01%	-2.46%	4.75%
SIA	61 Neutral	C$1.54B	33.17	8.99%	5.58%	13.72%	429.22%
CSH.UN	59 Neutral	C$4.65B	194.19	2.36%	3.61%	15.38%	-84.98%
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%

Sienna Senior Living Corporate Events

Sienna Senior Living Declares March Dividend and Offers Reinvestment Plan

Sienna Senior Living has announced a March 2025 dividend of $0.078 per common share, equating to $0.936 annually. The dividend will be paid on April 15, 2025, to shareholders recorded by March 31, 2025. Sienna offers a Dividend Reinvestment Plan (DRIP) allowing shareholders to reinvest dividends into additional shares at a 3% discount, providing flexibility and potential growth benefits to investors.

Sienna Senior Living Raises $144 Million Through Share Offering

Sienna Senior Living has successfully closed a bought deal offering of common shares, raising approximately $144 million. The proceeds will be used to fund acquisitions of retirement and long-term care residences in Ontario and support strategic growth initiatives, positioning Sienna for future expansion in the senior living industry.

Sienna Senior Living Launches $125 Million Equity Offering for Strategic Acquisitions

Sienna Senior Living has announced a $125 million equity offering through a bought deal public equity offering led by TD Securities. The proceeds will be used to fund the acquisition of two properties, Wildpine Residence and Cawthra Gardens, and for other corporate purposes. These acquisitions are expected to be immediately accretive to Sienna’s AFFO per share and are being acquired at a significant discount to replacement cost, enhancing the company’s balance sheet flexibility and supporting its strategic growth objectives.

Sienna Senior Living Reports Strong Q4 Results and Announces Ontario Acquisitions

Sienna Senior Living Inc. reported significant financial growth in its fourth quarter of 2024, marking its eighth consecutive quarter of year-over-year adjusted same property net operating income growth. This has been driven by significant increases in both the retirement and long-term care segments, improved occupancy rates, and effective cost management strategies. The company also announced the acquisition of two properties in Ontario, valued at $81 million, which is expected to enhance its asset base and provide immediate accretive benefits to its financial metrics, further solidifying its market position and growth potential.

Sienna Senior Living Declares February 2025 Dividend and Reinvestment Opportunity

Sienna Senior Living has declared a dividend of $0.078 per common share for February 2025, which translates to an annualized amount of $0.936 per share. Eligible shareholders can reinvest their dividends into additional common shares at a 3% discount through the company’s Dividend Reinvestment Plan, potentially increasing their investment value. This announcement underscores Sienna’s commitment to providing value to its shareholders while maintaining a strong market position within the senior living industry.

Sienna Senior Living Declares January 2025 Dividend

Sienna Senior Living announced a monthly dividend of $0.078 per common share for January 2025, translating to an annualized dividend of $0.936 per share. The dividend will be paid on February 14, 2025, to shareholders recorded by January 31, 2025, and is eligible for Canadian tax purposes. Sienna offers a Dividend Reinvestment Plan allowing shareholders to reinvest dividends in additional shares at a 3% discount, potentially enhancing shareholder value while maintaining flexibility for those preferring cash dividends.

Sienna Senior Living to Announce Q4 2024 Financial Results

Sienna Senior Living Inc. has announced that it will release its fourth quarter results for 2024 on February 19, 2025, after the market closes. The following day, a conference call hosted by the company’s President and CEO, Nitin Jain, and CFO and EVP of Investments, David Hung, will take place to discuss these results with the investment community. This announcement could provide insights into the company’s financial performance and strategic direction, potentially impacting its positioning in the senior living industry and influencing stakeholder perceptions.