Sienna Senior Living (SIA) AI Stock Analysis

• Market Cap: C$1.53B
• Dividend Yield: 5.63%
• Average Volume (3M): 281.81K
• Price to Earnings (P/E): 33.0
• Beta (1Y): 0.63
• Revenue Growth: 13.72%
• EPS Growth: 429.22%
• Country: CA
• Employees: 12,000
• Sector: Healthcare
• Sector Strength: 69
• Industry: Medical - Care Facilities
• EPS (TTM): 0.51
• Shares Outstanding: 92,029,640
• 10 Day Avg. Volume: 269,019
• 30 Day Avg. Volume: 281,813
• 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: 11.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Sienna Senior Living's overall score of 63 reflects strong revenue growth and positive earnings call sentiment. However, high leverage and negative free cash flow pose financial stability risks. The technical analysis shows positive momentum, while the valuation suggests the stock may be overvalued. Despite operational strengths and strategic growth plans, financial concerns weigh on the overall score.

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

The company is benefiting from attractive supply/demand dynamics, particularly within its retirement segment.

Negative Factors

Debt and Capital Allocation

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

Market Valuation

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

Sienna Senior Living Business Overview & Revenue Model

Company Description

Sienna Senior Living Inc., through its subsidiaries, provides senior living and long-term care (LTC) services in Canada. It operates through Retirement and LTC segments. The company offers a range of seniors' living options, including independent supportive and assisted living, memory care, and long-term care services, as well as specialized services comprising dementia care, continence management, skin and wound care, palliation, and end of life care; and provides management services. As of December 31, 2021, it owned and operated a total of 70 seniors' living residences comprising 27 retirement residences, 35 LTC residences, and eight seniors' living residences. The company was formerly known as Leisureworld Senior Care Corporation and changed its name to Sienna Senior Living Inc. in May 2015. Sienna Senior Living Inc. was founded in 1972 and is headquartered in Markham, Canada.

How the Company Makes Money

Sienna Senior Living generates revenue primarily through resident fees that vary based on the level of care and services provided. The company operates under a private-pay model for its retirement residences, where residents pay directly for their accommodation and care services. In its long-term care segment, Sienna receives funding from provincial government sources in addition to resident co-payments. This funding is crucial as it helps cover the costs associated with providing healthcare services in these facilities. Additionally, Sienna's strategic partnerships and joint ventures contribute to its revenue by expanding its service offerings and enhancing operational efficiencies, thereby attracting more residents and optimizing occupancy rates.

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: 16.65
• 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 16.65 is above the 20-day moving average (MA) of 16.36, above the 50-day MA of 16.01, and above the 200-day MA of 15.71, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 59.83 is Neutral, neither overbought nor oversold. The STOCH value of 88.69 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$1.11B	14.88	70.86%	3.63%	12.36%	123.26%
ALC	73 Outperform	C$620.28M	6.64	10.92%	5.07%	-2.46%	4.75%
SIA	63 Neutral	C$1.53B	33.02	8.99%	5.63%	13.72%	429.22%
Sector *	51 Neutral	$5.32B	3.32	-40.25%	2.90%	17.93%	2.14%
CSH.UN	51 Neutral	C$4.87B	195.35	2.36%	3.64%	15.38%	-84.98%

Sienna Senior Living Corporate Events

Sienna Senior Living Expands Ottawa Presence with $48 Million Acquisition

Sienna Senior Living has completed the acquisition of a 165-suite retirement residence in Ottawa for $48 million, enhancing its presence in a market with improving supply-demand fundamentals. The acquisition, financed through a combination of debt and cash, is expected to yield a 6.25% return in the first year and provide immediate synergies with nearby properties, contributing positively to the company’s financial performance.

Spark’s Take on TSE:SIA Stock

According to Spark, TipRanks’ AI Analyst, TSE:SIA is a Neutral.

Sienna Senior Living’s stock score reflects strong revenue growth and improved profitability, with positive momentum in technical analysis. However, high leverage, negative free cash flow, and a high P/E ratio raise concerns about financial stability and valuation. The positive earnings call indicates operational strength and future growth potential, slightly offsetting these risks.

To see Spark’s full report on TSE:SIA stock, click here.

Sienna Senior Living Announces April Dividend and Reinvestment Plan

Sienna Senior Living Inc. has declared a dividend of $0.078 per common share for April 2025, amounting to $0.936 annually. The dividend will be paid on May 15, 2025, to shareholders recorded by April 30, 2025. The company offers a Dividend Reinvestment Plan (DRIP) that allows shareholders to reinvest their dividends at a 3% discount. This announcement underscores Sienna’s commitment to providing value to its shareholders and could enhance shareholder engagement through the DRIP.

Spark’s Take on TSE:SIA Stock

According to Spark, TipRanks’ AI Analyst, TSE:SIA is a Neutral.

Sienna Senior Living’s stock score reflects strong revenue growth and improved profitability, with positive momentum in technical analysis. However, high leverage, negative free cash flow, and a high P/E ratio raise concerns about financial stability and valuation. The positive earnings call indicates operational strength and future growth potential, slightly offsetting these risks.

To see Spark’s full report on TSE:SIA stock, click here.

Sienna Senior Living to Announce Q1 2025 Results

Sienna Senior Living Inc. has announced that it will release its first quarter 2025 financial results on May 6, 2025, after market close. The company will host a conference call for investors on May 7, 2025, led by its President and CEO, Nitin Jain, and CFO, David Hung. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor relations.

Sienna Senior Living Expands with New Acquisitions in Alberta and British Columbia

Sienna Senior Living has completed the acquisition of four continuing care homes in Alberta, expanding its national presence and enhancing its operational scale and geographic diversity. The acquisition, valued at $181.6 million, is expected to yield a 6.5% return in the first year and was financed through a combination of CMHC debt and cash. This move follows Sienna’s recent full acquisition of Nicola Lodge in Metro Vancouver, reflecting the company’s strategic growth and investment in Western Canada.

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.