Sienna Senior Living (SIA) AI Stock Analysis

• Market Cap: C$1.66B
• Dividend Yield: 5.2%
• Average Volume (3M): 269.10K
• Price to Earnings (P/E): 42.5
• Beta (1Y): 0.65
• Revenue Growth: 8.76%
• EPS Growth: 14.05%
• Country: CA
• Employees: 12,000
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Care Facilities
• EPS (TTM): 0.18
• Shares Outstanding: 92,117,775
• 10 Day Avg. Volume: 286,805
• 30 Day Avg. Volume: 269,103
• PEG Ratio: -2.59
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -24.00
• 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$19.30
• Price Target Upside: 7.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: C$20.00 ▲( 11.11% Upside)

Sienna Senior Living's stock benefits from strong revenue growth and positive earnings call sentiment, indicating solid operational performance and strategic expansions. However, financial concerns such as high leverage, negative free cash flow, and overvaluation weigh on the overall score. While technical analysis suggests positive momentum, the potential for being overbought requires caution.

Positive Factors

Acquisition Pipeline

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

Redevelopment Needs

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

Repositioning Challenges

Repositioning of five retirement properties aims to improve occupancy and NOI margins through renovations and additional services.

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 strong revenue growth and improved gross profit margins. However, the company faces challenges with low net profit margins, high leverage, and negative free cash flow, which are concerns for financial stability.

Income Statement

Sienna Senior Living shows solid revenue growth with a notable increase from $718.59M in 2022 to $896.45M in TTM 2025, reflecting a 24.75% growth rate over three years. Gross profit margins improved significantly from 10.55% in 2020 to 36.01% in TTM 2025. However, net profit margins remain low, with TTM 2025 at 3.84%, indicating challenges in translating revenue into higher net income. The EBIT margin has been stable, but there is room for improvement in profitability.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.58 in TTM 2025, indicating significant leverage. While stockholders' equity has grown to $618.87M in TTM 2025, the debt levels remain high. Return on equity improved to 5.57% in TTM 2025, showing better utilization of equity. The equity ratio increased to 31.71%, suggesting a stronger capital base. However, the high leverage poses potential financial risks.

Cash Flow

Operating cash flow decreased from $149.93M in 2024 to $95.76M in TTM 2025, impacting liquidity. Free cash flow turned negative in TTM 2025 at -$68.81M, reflecting high capital expenditures. The operating cash flow to net income ratio remains strong, indicating efficient cash generation relative to earnings. However, the negative free cash flow warrants caution, highlighting the need for better cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
896.45M	893.16M	785.37M	718.59M	668.49M	664.23M
	Gross Profit
322.85M	138.04M	96.68M	91.00M	81.85M	70.33M
	EBIT
84.60M	103.19M	65.77M	38.04M	56.83M	18.41M
	EBITDA
134.85M	142.29M	100.27M	106.11M	114.24M	83.19M
	Net Income Common Stockholders
34.47M	38.40M	7.04M	10.67M	20.65M	-24.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
137.15M	127.20M	24.40M	38.05M	29.05M	95.68M
	Total Assets
1.95B	1.86B	1.70B	1.68B	1.61B	1.68B
	Total Debt
979.33M	1.01B	1.01B	977.96M	950.28M	1.03B
	Net Debt
842.18M	885.14M	982.25M	939.91M	921.23M	936.95M
	Total Liabilities
1.33B	1.38B	1.32B	1.25B	1.20B	1.23B
	Stockholders Equity
618.87M	480.72M	373.77M	434.69M	405.85M	447.44M
Cash Flow		Free Cash Flow
-68.81M	-172.00K	62.60M	48.43M	56.69M	49.51M
	Operating Cash Flow
95.76M	149.93M	126.70M	106.08M	98.52M	69.24M
	Investing Cash Flow
-142.80M	-116.48M	-74.02M	-134.73M	-18.05M	-8.76M
	Financing Cash Flow
162.69M	69.35M	-66.34M	37.65M	-147.09M	14.43M

Sienna Senior Living Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 18 is above the 20-day moving average (MA) of 17.36, above the 50-day MA of 16.61, and above the 200-day MA of 15.92, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 69.58 is Neutral, neither overbought nor oversold. The STOCH value of 72.50 is Neutral, 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	75 Outperform	C$1.19B	15.64	71.61%	3.37%	9.38%	117.85%
SIA	72 Outperform	C$1.66B	42.48	6.93%	5.20%	8.76%	14.05%
CRRX	65 Neutral	C$186.31M	―	-4.48%	―	-0.69%	8.08%
Sector *	53 Neutral	$5.14B	3.03	-44.09%	2.83%	16.75%	-0.06%

Sienna Senior Living Corporate Events

Sienna Senior Living Declares May 2025 Dividend and Offers Reinvestment Plan

Sienna Senior Living Inc. announced a dividend of $0.078 per common share for May 2025, equating to $0.936 annually. The dividend will be paid on June 13, 2025, to shareholders recorded by May 30, 2025. The company offers a Dividend Reinvestment Plan (DRIP) allowing shareholders to reinvest dividends into additional shares at a 3% discount. This announcement reflects Sienna’s commitment to providing shareholder value and may influence investment decisions in the senior living sector.

The most recent analyst rating on (TSE:SIA) stock is a Hold with a C$17.00 price target. To see the full list of analyst forecasts on Sienna Senior Living stock, see the TSE:SIA Stock Forecast page.

Sienna Senior Living Reports Robust Q1 2025 Results and Strategic Expansion

Sienna Senior Living reported strong financial results for the first quarter of 2025, with a notable increase in occupancy rates and adjusted revenue. The company completed significant acquisitions and raised substantial equity, positioning itself for continued growth despite broader economic uncertainties. Sienna’s strategic expansion and acquisition activities are expected to positively impact its financial performance and market positioning, benefiting stakeholders and enhancing its operational capabilities.

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.

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.

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.