NasdaqGS:SBRA

Stock Analysis Report

Executive Summary

As of September 30, 2019, Sabra’s investment portfolio included 434 real estate properties held for investment (consisting of (i) 304 Skilled Nursing/Transitional Care facilities, (ii) 62 Senior Housing communities (“Senior Housing - Leased”), (iii) 44 Senior Housing communities operated by third-party property managers pursuant to property management agreements (“Senior Housing - Managed”) and (iv) 24 Specialty Hospitals and Other facilities), one investment in a direct financing lease, 20 investments in loans receivable (consisting of (i) one mortgage loan, (ii) two construction loans and (iii) 17 other loans), nine preferred equity investments and one investment in an unconsolidated joint venture that owns 170 Senior Housing - Managed communities.

Rewards

Trading at 49.4% below its fair value

Earnings are forecast to grow 26.44% per year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (1.7%) are lower than last year (60.3%)

Shareholders have been diluted in the past year



Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has Sabra Health Care REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.8%

SBRA

-3.0%

US REITs

0.6%

US Market


1 Year Return

9.8%

SBRA

11.0%

US REITs

20.8%

US Market

Return vs Industry: SBRA underperformed the US REITs industry which returned 11% over the past year.

Return vs Market: SBRA underperformed the US Market which returned 20.8% over the past year.


Shareholder returns

SBRAIndustryMarket
7 Day-6.8%-3.0%0.6%
30 Day-7.8%-2.2%2.5%
90 Day-6.8%-1.7%4.9%
1 Year19.7%9.8%15.7%11.0%23.5%20.8%
3 Year12.6%-13.0%32.0%15.4%46.5%37.0%
5 Year4.4%-30.3%49.0%18.1%64.6%46.5%

Price Volatility Vs. Market

How volatile is Sabra Health Care REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sabra Health Care REIT undervalued compared to its fair value and its price relative to the market?

49.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SBRA ($20.56) is trading below our estimate of fair value ($40.59)

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


Price To Earnings Ratio

PE vs Industry: SBRA is poor value based on its PE Ratio (380x) compared to the REITs industry average (36.8x).

PE vs Market: SBRA is poor value based on its PE Ratio (380x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: SBRA is poor value based on its PEG Ratio (14.4x)


Price to Book Ratio

PB vs Industry: SBRA is good value based on its PB Ratio (1.2x) compared to the US REITs industry average (1.9x).


Next Steps

Future Growth

How is Sabra Health Care REIT forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

26.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBRA's forecast earnings growth (26.4% per year) is above the savings rate (1.7%).

Earnings vs Market: SBRA's earnings (26.4% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: SBRA's revenue (0.8% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: SBRA's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SBRA's Return on Equity is forecast to be low in 3 years time (5%).


Next Steps

Past Performance

How has Sabra Health Care REIT performed over the past 5 years?

28.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBRA has a large one-off loss of $93.5M impacting its September 30 2019 financial results.

Growing Profit Margin: SBRA's current net profit margins (1.7%) are lower than last year (60.3%).


Past Earnings Growth Analysis

Earnings Trend: SBRA's earnings have grown significantly by 28.5% per year over the past 5 years.

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

Earnings vs Industry: SBRA had negative earnings growth (-97.5%) over the past year, making it difficult to compare to the REITs industry average (8.3%).


Return on Equity

High ROE: SBRA's Return on Equity (0.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sabra Health Care REIT's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

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


Financial Institutions Analysis

Asset Level: SBRA's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SBRA has a sufficient allowance for bad loans.

Low Risk Liabilities: SBRA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SBRA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SBRA has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SBRA has an appropriate level of bad loans.


Next Steps

Dividend

What is Sabra Health Care REIT's current dividend yield, its reliability and sustainability?

8.75%

Current Dividend Yield


Dividend Yield vs Market

company8.8%marketbottom25%1.4%markettop25%3.7%industryaverage3.8%forecastin3Years8.8%

Current dividend yield vs market & industry

Notable Dividend: SBRA's dividend (8.75%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: SBRA's dividend (8.75%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SBRA has been paying a dividend for less than 10 years.

Growing Dividend: SBRA's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (93.4%), SBRA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SBRA's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

What is the CEO of Sabra Health Care REIT's salary, the management and board of directors tenure and is there insider trading?

9.1yrs

Average management tenure


CEO

Rick Matros (65yo)

9.6yrs

Tenure

US$4,675,510

Compensation

Mr. Richard K. Matros, also known as Rick, has been President and Chief Executive Officer and Director at Baylor Scott & White Medical Center - Sunnyvale since May 2010 and has been its Chairman of the Boa ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD4.68M) is about average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Rick's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.1yrs

Average Tenure

57yo

Average Age

Experienced Management: SBRA's management team is seasoned and experienced (9.1 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

62yo

Average Age

Experienced Board: SBRA's board of directors are considered experienced (5.7 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$1,245,50927 Aug 19
Raymond Lewis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares58,000
Max PriceUS$21.47
SellUS$311,70021 Aug 19
Michael Foster
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares15,000
Max PriceUS$20.78

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Management Team

  • Rick Matros (65yo)

    Chairman

    • Tenure: 9.6yrs
    • Compensation: US$4.68m
  • Talya Nevo-Hacohen (59yo)

    Executive VP

    • Tenure: 9.1yrs
    • Compensation: US$2.01m
  • Harold Andrews (55yo)

    Executive VP

    • Tenure: 9.1yrs
    • Compensation: US$2.01m
  • Pete Nyland

    Executive Vice President of Asset Management

    • Tenure: 0yrs
  • Brent Chappell (54yo)

    Executive VP & Portfolio Manager

    • Tenure: 2.4yrs
  • Michael Costa

    Executive Vice President of Finance

    • Tenure: 0yrs

Board Members

  • Michael Foster (66yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$186.50k
  • Ronald Geary (72yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$164.00k
  • Rick Matros (65yo)

    Chairman

    • Tenure: 9.6yrs
    • Compensation: US$4.68m
  • Ray Lewis (55yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$160.00k
  • Milton Walters (77yo)

    Director

    • Tenure: 9.1yrs
    • Compensation: US$170.00k
  • Jeff Malehorn (57yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$162.00k
  • Bob Ettl (59yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$188.00k
  • Lynne Katzmann

    Independent Director

    • Tenure: 0.8yrs
  • Craig Barbarosh (51yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$194.00k

Company Information

Sabra Health Care REIT, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sabra Health Care REIT, Inc.
  • Ticker: SBRA
  • Exchange: NasdaqGS
  • Founded: 2010
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Market Cap: US$4.160b
  • Shares outstanding: 202.32m
  • Website: https://www.sabrahealth.com

Number of Employees


Location

  • Sabra Health Care REIT, Inc.
  • 18500 Von Karman Avenue
  • Suite 550
  • Irvine
  • California
  • 92612
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SBRANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2010
SBCDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2010

Biography

As of September 30, 2019, Sabra’s investment portfolio included 434 real estate properties held for investment (consisting of (i) 304 Skilled Nursing/Transitional Care facilities, (ii) 62 Senior Housing co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 01:03
End of Day Share Price2019/12/13 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.