Sabra Health Care REIT, Inc. Fundamental Analysis (NASDAQ: SBRA)
Sabra Health Care REIT, Inc. Fundamental Analysis (NASDAQ: SBRA)
Sabra Health Care REIT, Inc. (NASDAQ: SBRA) shows weak financial fundamentals with a PE ratio of 76.65, profit margin of 7.61%, and ROE of 2.34%. The company generates $0.9B in annual revenue with strong year-over-year growth of 10.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SBRA's fundamental strength across five key dimensions:
Efficiency Score
WeakSBRA struggles to generate sufficient returns from assets.
Valuation Score
ModerateSBRA shows balanced valuation metrics.
Growth Score
ExcellentSBRA delivers strong and consistent growth momentum.
Financial Health Score
ModerateSBRA shows balanced financial health with some risks.
Profitability Score
ModerateSBRA maintains healthy but balanced margins.
Key Financial Metrics
Is SBRA Expensive or Cheap?
P/E Ratio
SBRA trades at 76.65 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SBRA's PEG of -1.15 indicates potential undervaluation.
Price to Book
The market values Sabra Health Care REIT, Inc. at 1.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.49 times EBITDA. This is generally considered low.
How Well Does SBRA Make Money?
Net Profit Margin
For every $100 in sales, Sabra Health Care REIT, Inc. keeps $7.61 as profit after all expenses.
Operating Margin
Core operations generate 11.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.34 in profit for every $100 of shareholder equity.
ROA
Sabra Health Care REIT, Inc. generates $1.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sabra Health Care REIT, Inc. generates strong operating cash flow of $371.46M, reflecting robust business health.
Free Cash Flow
Sabra Health Care REIT, Inc. generates strong free cash flow of $346.30M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.37 in free cash annually.
FCF Yield
SBRA converts 6.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
76.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.96
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How SBRA Stacks Against Its Sector Peers
| Metric | SBRA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 76.65 | 23.73 | Worse (Expensive) |
| ROE | 2.34% | 762.00% | Weak |
| Net Margin | 7.61% | 2564.00% | Weak |
| Debt/Equity | 0.96 | -36.87 (disorted) | Distorted |
| Current Ratio | 0.29 | 38.39 | Weak Liquidity |
| ROA | 1.19% | 256.00% | Weak |
SBRA outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sabra Health Care REIT, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
10.60%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-3.93%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-16.04%
Industry Style: Income, Inflation Hedge, REIT
Declining