OTCPK:LWSC.F

Stock Analysis Report

Executive Summary

Sienna Senior Living Inc., through its subsidiaries, provides senior housing and long-term care (LTC) services in Canada.

Rewards

Pays a reliable dividend of 4.97%

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 4.97% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (1%) are lower than last year (2.2%)

+ 1 more risk


Snowflake Analysis

Average dividend payer and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LWSC.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

LWSC.F

3.6%

US Healthcare

1.2%

US Market


1 Year Return

14.0%

LWSC.F

15.0%

US Healthcare

24.2%

US Market

Return vs Industry: LWSC.F matched the US Healthcare industry which returned 15.3% over the past year.

Return vs Market: LWSC.F underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

LWSC.FIndustryMarket
7 Day0.8%3.6%1.2%
30 Day4.6%3.1%3.5%
90 Day-2.8%17.8%11.7%
1 Year19.8%14.0%17.0%15.0%26.9%24.2%
3 Year33.8%14.7%52.9%46.2%53.0%43.2%
5 Year59.0%21.9%65.9%54.5%75.3%56.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

188.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LWSC.F ($14.37) is trading above our estimate of fair value ($5.88)

Significantly Below Fair Value: LWSC.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LWSC.F is poor value based on its PE Ratio (185.1x) compared to the Healthcare industry average (23.1x).

PE vs Market: LWSC.F is poor value based on its PE Ratio (185.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LWSC.F is good value based on its PB Ratio (2.3x) compared to the US Healthcare industry average (3.1x).


Next Steps

Future Growth

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

1.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if LWSC.F's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if LWSC.F's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LWSC.F's revenue (1.3% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: LWSC.F's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

44.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LWSC.F has a large one-off loss of CA$8.2M impacting its September 30 2019 financial results.

Growing Profit Margin: LWSC.F's current net profit margins (1%) are lower than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: LWSC.F has become profitable over the past 5 years, growing earnings by 44.9% per year.

Accelerating Growth: LWSC.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LWSC.F had negative earnings growth (-50.8%) over the past year, making it difficult to compare to the Healthcare industry average (6.2%).


Return on Equity

High ROE: LWSC.F's Return on Equity (1.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sienna Senior Living's financial position?


Financial Position Analysis

Short Term Liabilities: LWSC.F's short term assets (CA$55.5M) do not cover its short term liabilities (CA$252.4M).

Long Term Liabilities: LWSC.F's short term assets (CA$55.5M) do not cover its long term liabilities (CA$916.3M).


Debt to Equity History and Analysis

Debt Level: LWSC.F's debt to equity ratio (186.3%) is considered high.

Reducing Debt: LWSC.F's debt to equity ratio has reduced from 302.1% to 186.3% over the past 5 years.

Debt Coverage: LWSC.F's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: LWSC.F's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: LWSC.F's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

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

4.89%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Sienna Senior Living before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years4.9%

Current dividend yield vs market & industry

Notable Dividend: LWSC.F's dividend (4.97%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: LWSC.F's dividend (4.97%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: LWSC.F's dividends per share have been stable in the past 10 years.

Growing Dividend: LWSC.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (906.1%), LWSC.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Lois Cormack (58yo)

6.8yrs

Tenure

CA$1,669,168

Compensation

Ms. Lois Cormack, MHSc, ICD.D, RN, has been Director at Allied Properties REIT since May 12, 2018. She has been President and Chief Executive Officer at Sienna Senior Living Inc. since April 22, 2013. For  ...


CEO Compensation Analysis

Compensation vs Market: Lois's total compensation ($USD1.28M) is below average for companies of similar size in the US market ($USD2.53M).

Compensation vs Earnings: Lois's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

5.0yrs

Average Tenure

Experienced Management: LWSC.F's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

6.2yrs

Average Tenure

64yo

Average Age

Experienced Board: LWSC.F's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

Insider Buying: LWSC.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$6,15621 Nov 19
Joanne Dykeman
EntityIndividual
Role
Chief Operating Officer
Executive Vice-President of Operations
Shares450
Max PriceUS$13.68
SellUS$236,90422 May 19
Paula Coleman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,800
Max PriceUS$14.13
SellUS$127,10717 May 19
Paula Coleman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,000
Max PriceUS$14.16
SellUS$134,63009 Apr 19
Joanne Dykeman
EntityIndividual
Role
Chief Operating Officer
Executive Vice-President of Operations
Shares9,839
Max PriceUS$13.80
SellUS$252,80113 Mar 19
Paula Coleman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares18,400
Max PriceUS$13.75
SellUS$340,31905 Mar 19
Paula Coleman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$13.63
SellUS$314,06627 Feb 19
Paula Coleman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares23,000
Max PriceUS$13.69
SellUS$299,52525 Feb 19
Paula Coleman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares22,000
Max PriceUS$13.66

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.5%.


Management Team

  • Cristina Alaimo

    General Counsel & Corporate Secretary

    • Tenure: 5yrs
    • Compensation: CA$283.15k
  • Lois Cormack (58yo)

    President

    • Tenure: 6.8yrs
    • Compensation: CA$1.67m
  • Tracy Jones

    President of Preferred Healthcare Services

    • Compensation: CA$180.51k
  • Nitin Jain

    CFO & Chief Investment Officer

    • Tenure: 5.6yrs
    • Compensation: CA$960.75k
  • Faruq Rashid

    Interim Vice President of Corporate Finance

    • Joanne Dykeman

      Executive Vice-President of Operations

      • Compensation: CA$631.75k
    • Olga Giovanniello

      Executive Vice President of People & Culture

      • Tenure: 1yrs
    • Nancy Webb

      Vice President of Marketing & Communications

      • Tenure: 1yrs

    Board Members

    • Dino Chiesa (70yo)

      Independent Chairman of the Board

      • Tenure: 9.8yrs
      • Compensation: CA$207.30k
    • Brian Johnston (60yo)

      Independent Director

      • Tenure: 0.7yrs
    • Janet Graham (64yo)

      Independent Director

      • Tenure: 9.8yrs
      • Compensation: CA$137.30k
    • Lois Cormack (58yo)

      President

      • Tenure: 6.8yrs
      • Compensation: CA$1.67m
    • Jack MacDonald (73yo)

      Independent Director

      • Tenure: 9.8yrs
      • Compensation: CA$116.30k
    • Paula Coleman (66yo)

      Independent Director

      • Tenure: 5.9yrs
      • Compensation: CA$107.30k
    • Stephen Sender (60yo)

      Independent Director

      • Tenure: 2.7yrs
      • Compensation: CA$117.30k

    Company Information

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


    Key Information

    • Name: Sienna Senior Living Inc.
    • Ticker: LWSC.F
    • Exchange: OTCPK
    • Founded: 1972
    • Industry: Health Care Facilities
    • Sector: Healthcare
    • Market Cap: CA$1.276b
    • Listing Market Cap: CA$976.919m
    • Shares outstanding: 66.65m
    • Website: https://www.siennaliving.ca

    Number of Employees


    Location

    • Sienna Senior Living Inc.
    • 302 Town Center Boulevard
    • Suite 300
    • Markham
    • Ontario
    • L3R 0E8
    • Canada

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    SIATSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2010
    LWSC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2010
    636DB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2010

    Biography

    Sienna Senior Living Inc., through its subsidiaries, provides senior housing and long-term care (LTC) services in Canada. It operates through LTC and Retirement segments. The company offers a range of seniors’ living options, including independent and assisted living, memory care, long-term care, and specialized programs and services, as well as provides management services. As of December 31, 2018, it owned and operated a total of 70 seniors’ living residences comprising 27 retirement residences, 35 LTC residences, and 8 seniors’ living residences. The company was formerly known as Leisureworld Senior Care Corporation and changed its name to Sienna Senior Living Inc. in May 2015. Sienna Senior Living Inc. was founded in 1972 and is headquartered in Markham, Canada. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/21 00:36
    End of Day Share Price2020/01/15 00:00
    Earnings2019/09/30
    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.