Login

or

By logging in, you are agreeing to the NanoVest, Inc. Terms of Service and Privacy Policy.

Or, sign up here.

Register

or
Registered! Check your email to acitvate.

  Announcements

Sabra Health Care REIT, Inc. (SRBA)

As of 10/23/17

 

Sabra Health Care REIT, Inc. is a real estate investment trust. The company, through its subsidiaries, owns and invests in real estate serving the healthcare industry. The company's segment includes investments in healthcare-related real estate properties. The company's primary business consists of acquiring, financing and owning real estate property to be leased to third-party tenants in the healthcare sector.

The company's investment portfolio consisted of 183 real estate properties held for investment (consisting of 97 skilled nursing/transitional care facilities, 85 senior housing facilities, and one acute care hospital); 10 investments in loans receivable (consisting of four mortgage loans, one construction loan, one mezzanine loan, three pre-development loans and one debtor-in-possession loan and 12 preferred equity investments. It has properties located in New Hampshire, Texas, Florida, Kentucky, Ohio, Maryland and Nebraska, among others.

 

Current Stock Price: $21.08
P/E: 18.023
P/B: 1.5821
EPS: $1.18
Beta: 0.83
Market Cap: $1.38B
Dividends paid quarterly: $0.36
Dividend Yield: 6.83%

 

Strategy

Most of the company’s real estate is nursing homes and assisted living facilities for elderly people. The U.S. economy has been witnessing significant demographic changes with an aging population and the baby-boomer generation retiring. The senior citizen population has been growing at a faster rate than any other generation. This should lead to significant increase in demand for healthcare services, especially for ones that provide services for elderly people. As a result, I think healthcare REIT’s are going to thrive. In fact, healthcare spending is projected to grow at an annual rate of 5.8% over the next seven years. The market is also relatively fragmented and there is room for growth.

  • FFO & revenue growth estimates: 163.6% and 49.1%

  • ROE of 8.72%, higher than the industry average of 5.96%

  • EPS over the next year is anticipated to increase to $1.58

  • The stock currently sports a Zacks Rank #1 (Strong Buy)

  • EPS for next quarter projected to increase to $0.46, an increase from $0.31

Stock is at a very low point right now, as it has dropped from ~$25 to ~$21 over the last year. I think that this is because they paid off $243M of long term debt this year, as their net change in cash still went up $70M.

http://markets.money.cnn.com/cgi-bin/upload.dll/file.png?z728f7c0aze2f4d9c5e4f645a6b4d1cfca617e0ea7

This chart shows CNN Money has forecasted the stock as only going up over the next year, and has 4 analysts saying to buy, while 7 are saying to hold. The Street is recommending to buy, while Ford Equity Research is advising to hold.

I think this is a slightly more risky investment than my last report, but I think that we should buy now while the stock price is super low. I believe that it will begin to go up by the end of the year and will continue to do so over the next five years because of the substantial amount of baby-boomers retiring and requiring health care services that Sabra owns. I think after a few years, right before that demand begins to die back down, to sell and collect the profit. I do not know what amount we should invest in this, but maybe a little bit less than for ARI, as I feel that stock has huge upside potential.

 

Recent News

  • ValuEngine and BidaskClub upgraded from hold rating to buy rating on 10/2

  • Vanguard Group Inc. grew its stake in shares by 6.4% in the second quarter, now owning 13,229,559 shares worth $318,832,000

  • BlackRock grew its stake in shares by 3.0% in the second quarter, now owning 9,570,432 shares worth $230,649,000

  • State Street Corp boosted its stake in shares by 3.8% during the second quarter, now owning 1,775,988 shares worth $42,795,000

  • LSV Asset Management boosted its stake in shares by 8.7% during the second quarter, now owning 3,019,936 shares worth $72,780,000

  • River Road Asset Management LLC boosted its stake in shares 30.2% during the second quarter, now owning 2,314,827 shares worth $55,787,000


Categories

Sabra Health Care REIT
Stock
Report
SRBA
  • Check back for new topics!