Attractive stocks have exceptional fundamentals. In the case of Senior Housing Properties Trust (NASDAQ:SNH), there's is a highly-regarded dividend-paying company with a an impressive history of performance, trading at a discount. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Senior Housing Properties Trust here.
6 star dividend payer and undervalued
In the past couple of years, SNH has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did SNH outperformed its past performance, its growth also exceeded the REITs industry expansion, which generated a 5.4% earnings growth. This is an notable feat for the company. SNH's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of SNH's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, SNH's share price is trading below the group's average. This further reaffirms that SNH is potentially undervalued.
Income investors would also be happy to know that SNH is one of the highest dividend payers in the market, with current dividend yield standing at 9.3%. SNH has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Senior Housing Properties Trust, there are three important factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for SNH’s future growth? Take a look at our free research report of analyst consensus for SNH’s outlook.
- Financial Health: Are SNH’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SNH? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.