NasdaqGS:SBRA

Stock Analysis Report

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Executive Summary

As of September 30, 2020, Sabra’s investment portfolio included 425 real estate properties held for investment (consisting of (i) 287 Skilled Nursing/Transitional Care facilities, (ii) 64 Senior Housing communities (“Senior Housing - Leased”), (iii) 47 Senior Housing communities operated by third-party property managers pursuant to property management agreements (“Senior Housing - Managed”) and (iv) 27 Specialty Hospitals and Other facilities), one asset held for sale, one investment in a direct financing lease, 19 investments in loans receivable (consisting of (i) one mortgage loan, (ii) one construction loan and (iii) 17 other loans), six preferred equity investments and one investment in an unconsolidated joint venture that owns 158 Senior Housing - Managed communities. More Details


Snowflake Analysis

Solid track record, good value and pays a dividend.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SBRA's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

1.4%

SBRA

0.07%

US REITs

2.8%

US Market


1 Year Return

-23.2%

SBRA

-8.6%

US REITs

20.9%

US Market

Return vs Industry: SBRA underperformed the US REITs industry which returned -8.7% over the past year.

Return vs Market: SBRA underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

SBRAIndustryMarket
7 Day1.4%0.07%2.8%
30 Day27.6%9.6%11.1%
90 Day13.7%2.1%6.5%
1 Year-16.3%-23.2%-4.8%-8.6%23.6%20.9%
3 Year15.0%-11.7%17.8%3.8%47.3%37.6%
5 Year32.1%-13.7%47.6%17.9%94.3%72.9%

Long-Term 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?

49.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SBRA ($17.11) is trading below our estimate of fair value ($33.76)

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


Price To Earnings Ratio

PE vs Industry: SBRA is good value based on its PE Ratio (24.7x) compared to the US REITs industry average (37.8x).

PE vs Market: SBRA is poor value based on its PE Ratio (24.7x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: SBRA is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: SBRA is good value based on its PB Ratio (1.1x) compared to the US REITs industry average (1.6x).


Next Steps

Future Growth

How is Sabra Health Care REIT forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBRA's forecast earnings growth (5.5% per year) is above the savings rate (2.2%).

Earnings vs Market: SBRA's earnings (5.5% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: SBRA's earnings are forecast to grow, but not significantly.

Revenue vs Market: SBRA's revenue (3.4% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: SBRA's revenue (3.4% 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 SBRA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBRA has high quality earnings.

Growing Profit Margin: SBRA's current net profit margins (23.8%) are higher than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: SBRA's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: SBRA's earnings growth over the past year (1242.8%) exceeds its 5-year average (15.1% per year).

Earnings vs Industry: SBRA earnings growth over the past year (1242.8%) exceeded the REITs industry 2%.


Return on Equity

High ROE: SBRA's Return on Equity (4.2%) is considered low.


Next Steps

Financial Health

How is Sabra Health Care REIT's financial position?


Financial Position Analysis

Short Term Liabilities: SBRA's short term assets ($243.9M) exceed its short term liabilities ($98.8M).

Long Term Liabilities: SBRA's short term assets ($243.9M) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: SBRA's debt to equity ratio (73.2%) is considered high.

Reducing Debt: SBRA's debt to equity ratio has reduced from 126.7% to 73.2% over the past 5 years.

Debt Coverage: SBRA's debt is not well covered by operating cash flow (14.7%).

Interest Coverage: SBRA's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

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

7.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SBRA's dividend (7.01%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: SBRA's dividend (7.01%) is in the top 25% of dividend payers in the US market (4.08%)


Stability and Growth of Payments

Stable Dividend: SBRA's dividend payments have been volatile in the past 10 years.

Growing Dividend: SBRA's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.9%), SBRA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SBRA's dividends in 3 years are forecast to be covered by earnings (67.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.9yrs

Average management tenure


CEO

Rick Matros (66 yo)

10.5yrs

Tenure

US$5,743,968

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 ($USD5.74M) is about average for companies of similar size in the US market ($USD5.14M).

Compensation vs Earnings: Rick's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Matros
Chairman10.5yrsUS$5.74m0.66%
$ 23.3m
Harold Andrews
Executive VP10yrsUS$2.37m0.15%
$ 5.1m
Talya Nevo-Hacohen
Executive VP10yrsUS$2.37m0.14%
$ 5.1m
Peter Nyland
Executive Vice President of Asset Management7.83yrsno datano data
Brent Chappell
Executive VP & Portfolio Manager3.33yrsno datano data
Michael Costa
Executive Vice President of Financeno datano datano data
Darrin Smith
Executive Vice President of Investments0.67yrno datano data

8.9yrs

Average Tenure

58yo

Average Age

Experienced Management: SBRA's management team is seasoned and experienced (8.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Matros
Chairman10.5yrsUS$5.74m0.66%
$ 23.3m
Michael Foster
Lead Independent Directorno dataUS$226.99k0.030%
$ 1.1m
Ronald Geary
Independent Director3.25yrsUS$196.99k0.0080%
$ 282.2k
Raymond Lewis
Independent Director3.25yrsUS$189.99k0.089%
$ 3.1m
Milton Walters
Independent Director10yrsUS$200.99k0.012%
$ 408.6k
Jeffrey Malehorn
Independent Director3.25yrsUS$194.99k0.0092%
$ 327.1k
Lynne Katzmann
Independent Director1.67yrsUS$213.19k0%
$ 0
Craig Barbarosh
Independent Director10yrsUS$223.99k0.021%
$ 752.7k

3.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: SBRA's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.8%.


Top Shareholders

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$3.541b
  • Shares outstanding: 206.93m
  • 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, 2020, Sabra’s investment portfolio included 425 real estate properties held for investment (consisting of (i) 287 Skilled Nursing/Transitional Care facilities, (ii) 64 Senior Housing co...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 23:56
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.