NYSE:GEN

Stock Analysis Report

Executive Summary

Genesis Healthcare, Inc., together with its subsidiaries, owns and operates skilled nursing facilities and assisted/senior living facilities in the United States.

Snowflake

Fundamentals

Slightly overvalued with weak fundamentals.


Similar Companies

Share Price & News

How has Genesis Healthcare's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

14.3%

GEN

7.0%

US Healthcare

1.0%

US Market


1 Year Return

7.4%

GEN

-8.8%

US Healthcare

8.0%

US Market

Return vs Industry: GEN exceeded the US Healthcare industry which returned -8.8% over the past year.

Return vs Market: GEN matched the US Market which returned 8% over the past year.


Shareholder returns

GENIndustryMarket
7 Day14.3%7.0%1.0%
30 Day21.2%1.8%-0.07%
90 Day33.3%-2.7%-1.0%
1 Year7.4%7.4%-7.3%-8.8%10.4%8.0%
3 Year-40.3%-40.3%33.7%27.7%46.2%36.7%
5 Yearn/a59.4%48.8%64.3%46.2%

Price Volatility Vs. Market

How volatile is Genesis Healthcare's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Genesis Healthcare undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GEN ($1.6) is trading below our estimate of fair value ($5.67)

Significantly Below Fair Value: GEN is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GEN has negative assets, so we can't compare its PB Ratio to the US Healthcare industry average.


Next Steps

Future Growth

How is Genesis Healthcare forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

31.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: GEN's revenue is expected to decline over the next 3 years (-2% per year).

High Growth Revenue: GEN's revenue is forecast to decline over the next 3 years (-2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Genesis Healthcare performed over the past 5 years?

-3.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GEN is unprofitable, and losses have increased over the past 5 years at a rate of -3% per year.

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

Earnings vs Industry: GEN is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (5.6%).


Return on Equity

High ROE: GEN's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Genesis Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: GEN has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: GEN has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: GEN has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: GEN's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: GEN has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: GEN has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if GEN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Genesis Healthcare's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate GEN'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 GEN's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GEN'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 Genesis Healthcare's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

George Hager (63yo)

4.7yrs

Tenure

US$2,227,878

Compensation

Mr. George V. Hager, Jr. has been the Chief Executive Officer of Genesis Healthcare, Inc. since February 2, 2015. From 2003 until 2015, Mr. Hager served as Chief Executive Officer of Genesis LLC. Prior to  ...


CEO Compensation Analysis

Compensation vs. Market: George's total compensation ($USD2.23M) is about average for companies of similar size in the US market ($USD1.18M).

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


Management Age and Tenure

4.7yrs

Average Tenure

60yo

Average Age

Experienced Management: GEN's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

65yo

Average Age

Experienced Board: GEN's board of directors are considered experienced (4.7 years average tenure).


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$8,66314 Jun 19
Stephen Young
EntityIndividual
Shares7,416
Max PriceUS$1.17
SellUS$9,01414 Jun 19
Michael Sherman
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares7,716
Max PriceUS$1.17
SellUS$12,54414 Jun 19
JoAnne Reifsnyder
EntityIndividual
Role
Senior Key Executive
Executive VP of Clinical Operations & Chief Nursing Officer
Shares10,738
Max PriceUS$1.17
SellUS$14,92314 Jun 19
Thomas DiVittorio
EntityIndividual
Role
Chief Financial Officer
CFO, Executive VP
Shares12,774
Max PriceUS$1.17
SellUS$14,50714 Jun 19
Paul Bach
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP
Shares12,418
Max PriceUS$1.17
SellUS$4,29605 Jun 19
Stephen Young
EntityIndividual
Shares3,706
Max PriceUS$1.16
SellUS$5,53805 Jun 19
Michael Sherman
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares4,777
Max PriceUS$1.16
SellUS$7,11305 Jun 19
JoAnne Reifsnyder
EntityIndividual
Role
Senior Key Executive
Executive VP of Clinical Operations & Chief Nursing Officer
Shares6,136
Max PriceUS$1.16
SellUS$8,93405 Jun 19
Thomas DiVittorio
EntityIndividual
Role
Chief Financial Officer
CFO, Executive VP
Shares7,706
Max PriceUS$1.16
SellUS$9,98905 Jun 19
Paul Bach
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP
Shares8,616
Max PriceUS$1.16
SellUS$6,73022 May 19
Stephen Young
EntityIndividual
Shares5,609
Max PriceUS$1.20
SellUS$7,67722 May 19
Michael Sherman
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares6,398
Max PriceUS$1.20
SellUS$9,58722 May 19
JoAnne Reifsnyder
EntityIndividual
Role
Senior Key Executive
Executive VP of Clinical Operations & Chief Nursing Officer
Shares7,990
Max PriceUS$1.20
SellUS$12,38122 May 19
Thomas DiVittorio
EntityIndividual
Role
Chief Financial Officer
CFO, Executive VP
Shares10,318
Max PriceUS$1.20
SellUS$13,84722 May 19
Paul Bach
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP
Shares11,540
Max PriceUS$1.20
SellUS$2,660,00029 Nov 18
David Reis
EntityIndividual
Shares2,000,000
Max PriceUS$1.33
SellUS$89,14909 Nov 18
David Reis
EntityIndividual
Shares53,369
Max PriceUS$1.68

Ownership Breakdown


Management Team

  • George Hager (63yo)

    CEO & Director

    • Tenure: 4.7yrs
    • Compensation: US$2.23m
  • Jim Tabak (60yo)

    Senior Vice President of Administration & Government Affairs

    • Tenure: 0yrs
  • Rich Castor (64yo)

    Chief Information Officer & Senior VP

    • Tenure: 0yrs
  • Tom DiVittorio (51yo)

    CFO, Executive VP

    • Tenure: 4.7yrs
    • Compensation: US$1.06m
  • Jason Feuerman

    Senior Vice President of Strategic Development & Managed Care

    • Tenure: 5.5yrs
  • Paul Bach (60yo)

    COO & Executive VP

    • Tenure: 2.8yrs
    • Compensation: US$1.06m
  • JoAnne Reifsnyder (60yo)

    Executive VP of Clinical Operations & Chief Nursing Officer

    • Tenure: 4.7yrs
    • Compensation: US$815.06k
  • Mike Sherman (50yo)

    Senior VP

    • Tenure: 4.7yrs
    • Compensation: US$729.74k
  • John Raley

    Senior Vice President of Human Resources

    • Tenure: 1.8yrs
  • Lori Mayer

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • George Hager (63yo)

    CEO & Director

    • Tenure: 4.7yrs
    • Compensation: US$2.23m
  • Jim McKeon (54yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$273.05k
  • Terry Rappuhn (62yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$268.05k
  • John DePodesta (74yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$278.39k
  • Jim Bloem (69yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$271.39k
  • Bob Fish (68yo)

    Chairman & Lead Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$350.89k
  • Arnie Whitman (67yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$246.39k
  • Robert Hartman (62yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$253.05k

Company Information

Genesis Healthcare, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Genesis Healthcare, Inc.
  • Ticker: GEN
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Implied Market Cap: US$250.463m
  • Market Cap: US$173.052m
  • Shares outstanding: 164.78m
  • Website: https://www.genesishcc.com

Number of Employees


Location

  • Genesis Healthcare, Inc.
  • 101 East State Street
  • Kennett Square
  • Pennsylvania
  • 19348
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GENNYSE (New York Stock Exchange)YesClass A Common StockUSUSDFeb 2015
SH11DB (Deutsche Boerse AG)YesClass A Common StockDEEURFeb 2015

Biography

Genesis Healthcare, Inc., together with its subsidiaries, owns and operates skilled nursing facilities and assisted/senior living facilities in the United States. The company operates through three segment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:03
End of Day Share Price2019/10/21 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.