NYSE:BKD

Stock Analysis Report

Brookdale Senior Living

Executive Summary

Brookdale Senior Living Inc. owns and operates senior living communities in the United States.

Snowflake

Fundamentals

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

How has Brookdale Senior Living's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.7%

BKD

5.8%

US Healthcare

0.4%

US Market


1 Year Return

-2.6%

BKD

-5.7%

US Healthcare

6.9%

US Market

Return vs Industry: BKD exceeded the US Healthcare industry which returned -5.7% over the past year.

Return vs Market: BKD underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

BKDIndustryMarket
7 Day6.7%5.8%0.4%
30 Day10.6%3.0%-1.2%
90 Day13.8%-1.6%-0.4%
1 Year-2.6%-2.6%-4.2%-5.7%9.3%6.9%
3 Year-44.6%-44.6%34.3%29.0%45.8%36.4%
5 Year-73.8%-73.8%65.1%55.2%62.9%45.1%

Price Volatility Vs. Market

How volatile is Brookdale Senior Living's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Brookdale Senior Living undervalued compared to its fair value and its price relative to the market?

1.87x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate BKD's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate BKD's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: BKD is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.

PE vs Market: BKD is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate BKD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BKD is good value based on its PB Ratio (1.9x) compared to the US Healthcare industry average (2.5x).


Next Steps

Future Growth

How is Brookdale Senior Living forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-21.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKD is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: BKD is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: BKD is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: BKD's revenue (3.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: BKD's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if BKD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Brookdale Senior Living performed over the past 5 years?

-19.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BKD is unprofitable, and losses have increased over the past 5 years at a rate of -19% per year.

Accelerating Growth: Unable to compare BKD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BKD is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (5.3%).


Return on Equity

High ROE: BKD has a negative Return on Equity (-0.49%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: BKD is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: BKD is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Brookdale Senior Living's financial position?


Financial Position Analysis

Short Term Liabilities: BKD's short term assets ($655.9M) do not cover its short term liabilities ($969.6M)

Long Term Liabilities: BKD's short term assets (655.9M) do not cover its long term liabilities (5.6B)


Debt to Equity History and Analysis

Debt Level: BKD's debt to equity ratio (412.4%) is considered high

Reducing Debt: BKD's debt to equity ratio has increased from 75.7% to 412.4% over the past 5 years.


Balance Sheet

Inventory Level: BKD has a high level of physical assets or inventory.

Debt Coverage by Assets: BKD's debt is not covered by short term assets (assets are 0.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BKD has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: BKD has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -67.6% each year


Next Steps

Dividend

What is Brookdale Senior Living's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate BKD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BKD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if BKD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BKD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BKD is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BKD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Brookdale Senior Living's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Cindy Baier (54yo)

1.7yrs

Tenure

US$4,674,255

Compensation

Ms. Lucinda M. Baier, also known as Cindy, has served as Brookdale’s President and Chief Executive Officer and as a member of the Board since February 28, 2018, after having served as Brookdale’s Chief Fin ...


CEO Compensation Analysis

Compensation vs. Market: Cindy has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Cindy's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.1yrs

Average Tenure

54yo

Average Age

Experienced Management: BKD's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

63yo

Average Age

Experienced Board: BKD's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$5,880,00027 Sep 19
Glenview Capital Management, LLC
EntityCompany
Shares800,000
Max PriceUS$7.35
BuyUS$61,21404 Jun 19
Frank Bumstead
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$6.12
BuyUS$32,78606 Mar 19
Denise Warren
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$6.56
BuyUS$4,99504 Mar 19
Rita Johnson-Mills
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares733
Max PriceUS$6.81
BuyUS$24,91504 Mar 19
Marcus Bromley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,695
Max PriceUS$6.74
BuyUS$33,80904 Mar 19
Denise Warren
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$6.83
BuyUS$24,91527 Feb 19
Marcus Bromley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,490
Max PriceUS$7.14
BuyUS$138,99027 Feb 19
Frank Bumstead
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$6.95
BuyUS$36,95020 Feb 19
Lee Wielansky
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman of the Board
Shares5,000
Max PriceUS$7.39
BuyUS$71,38620 Feb 19
James Seward
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$7.14
BuyUS$52,76920 Feb 19
Lucinda Baier
EntityIndividual
Role
Chief Executive Officer
President
Shares7,500
Max PriceUS$7.04
BuyUS$49,51220 Nov 18
Marcus Bromley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,300
Max PriceUS$7.86

Ownership Breakdown


Management Team

  • H. Kaestner (63yo)

    Executive VP of Asset Management & Division President of Entry Fee

    • Tenure: 0.2yrs
  • Cindy Baier (54yo)

    President

    • Tenure: 1.7yrs
    • Compensation: US$4.67m
  • Mary Patchett (56yo)

    Executive Vice President of Community Operations

    • Tenure: 3.9yrs
    • Compensation: US$1.76m
  • Kathy MacDonald (55yo)

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Anna-Gene O'Neal (52yo)

    Division President of Health Care Services

    • Tenure: 0.2yrs
  • Diane May (61yo)

    Executive Vice President of Human Resources

    • Tenure: 0.4yrs
  • Chad White (44yo)

    Executive VP

    • Tenure: 2.6yrs
    • Compensation: US$1.09m
  • Steve Swain (52yo)

    Executive VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$1.61m
  • Dawn Kussow (45yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 3.8yrs
  • Chris Bayham

    Chief Information Officer

    • Tenure: 0.2yrs

Board Members

  • Frank Bumstead (77yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$315.99k
  • Denise Warren (57yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$132.18k
  • Lee Wielansky (68yo)

    Non-Executive Chairman of the Board

    • Tenure: 1.7yrs
    • Compensation: US$553.58k
  • Marc Bromley (69yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$230.83k
  • Jim Seward (66yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$326.16k
  • Jackie Clegg (57yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$322.99k
  • Cindy Baier (54yo)

    President

    • Tenure: 1.7yrs
    • Compensation: US$4.67m
  • Rita Johnson-Mills (60yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$155.02k

Company Information

Brookdale Senior Living Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brookdale Senior Living Inc.
  • Ticker: BKD
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: US$1.606b
  • Shares outstanding: 185.48m
  • Website: https://www.brookdale.com

Number of Employees


Location

  • Brookdale Senior Living Inc.
  • 111 Westwood Place
  • Suite 400
  • Brentwood
  • Tennessee
  • 37027
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKDNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2005
B7SDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2005

Biography

Brookdale Senior Living Inc. owns and operates senior living communities in the United States. It operates through five segments: Independent Living, Assisted Living and Memory Care, CCRCs, Health Care Ser ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:52
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.