Sabra Health Care REIT, Inc.
Sabra Health Care REIT, Inc. Fundamental Analysis
Sabra Health Care REIT, Inc. (SBRA) shows moderate financial fundamentals with a PE ratio of 33.54, profit margin of 19.21%, and ROE of 5.61%. The company generates $0.8B 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 52.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
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
WeakSBRA trades at a premium to fair value.
Growth Score
ExcellentSBRA delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSBRA maintains a strong and stable balance sheet.
Profitability Score
ModerateSBRA maintains healthy but balanced margins.
Key Financial Metrics
Is SBRA Expensive or Cheap?
P/E Ratio
SBRA trades at 33.54 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SBRA's PEG of 5.03 indicates potential overvaluation.
Price to Book
The market values Sabra Health Care REIT, Inc. at 1.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.09 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 $19.21 as profit after all expenses.
Operating Margin
Core operations generate 28.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.61 in profit for every $100 of shareholder equity.
ROA
Sabra Health Care REIT, Inc. generates $2.79 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 $366.79M, reflecting robust business health.
Free Cash Flow
Sabra Health Care REIT, Inc. generates strong free cash flow of $366.79M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.45 in free cash annually.
FCF Yield
SBRA converts 7.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.97
vs 25 benchmark
Current Ratio
Current assets to current liabilities
13.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How SBRA Stacks Against Its Sector Peers
| Metric | SBRA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.54 | 23.46 | Worse (Expensive) |
| ROE | 5.61% | 662.00% | Weak |
| Net Margin | 19.21% | 1977.00% | Weak |
| Debt/Equity | 0.97 | -16.98 (disorted) | Distorted |
| Current Ratio | 13.85 | 23.42 | Strong Liquidity |
| ROA | 2.79% | -758.00% (disorted) | Weak |
SBRA outperforms its industry in 1 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