NasdaqGS:SBRA

Stock Analysis Report

Executive Summary

As of June 30, 2019, Sabra’s investment portfolio included 432 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) 22 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.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

3.6%

NasdaqGS:SBRA

-0.1%

US REITs

1.1%

US Market


1 Year Return

-3.3%

NasdaqGS:SBRA

10.8%

US REITs

2.1%

US Market

SBRA underperformed the REITs industry which returned 10% over the past year.

SBRA underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

SBRAIndustryMarket
7 Day3.6%-0.1%1.1%
30 Day4.6%1.2%3.7%
90 Day11.9%1.4%2.3%
1 Year5.6%-3.3%15.8%10.8%4.4%2.1%
3 Year24.5%-3.7%30.0%13.0%47.0%37.4%
5 Year30.7%-12.3%68.9%33.2%61.6%43.8%

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 based on future cash flows and its price relative to the stock market?

41%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sabra Health Care REIT's share price is below the future cash flow value, and at a moderate discount (> 20%).

Sabra Health Care REIT's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Sabra Health Care REIT is overvalued based on earnings compared to the US REITs industry average.

Sabra Health Care REIT is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Sabra Health Care REIT is poor value based on expected growth next year.


Price Based on Value of Assets

Sabra Health Care REIT is good value based on assets compared to the US REITs industry average.


Next Steps

Future Growth

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

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sabra Health Care REIT's revenue is expected to grow by 0.9% yearly, however this is not considered high growth (20% yearly).

Sabra Health Care REIT's earnings are expected to grow significantly at over 20% yearly.

Sabra Health Care REIT's revenue growth is positive but not above the United States of America market average.

Sabra Health Care REIT's earnings growth is expected to exceed the United States of America market average.

Sabra Health Care REIT's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Sabra Health Care REIT will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

37.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sabra Health Care REIT has delivered over 20% year on year earnings growth in the past 5 years.

Sabra Health Care REIT's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Sabra Health Care REIT's 1-year earnings growth is negative, it can't be compared to the US REITs industry average.


Return on Equity

Sabra Health Care REIT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sabra Health Care REIT used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Sabra Health Care REIT's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sabra Health Care REIT's financial position?


Financial Position Analysis

Sabra Health Care REIT is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sabra Health Care REIT's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Sabra Health Care REIT's level of debt (82.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (104% vs 82.4% today).

Debt is not well covered by operating cash flow (12.6%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

8.05%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sabra Health Care REIT's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Sabra Health Care REIT's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Whilst dividend payments have been stable, Sabra Health Care REIT has been paying a dividend for less than 10 years.

Dividend payments have increased, but Sabra Health Care REIT only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (198.4x coverage).


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?

8.8yrs

Average management tenure


CEO

Rick Matros (65yo)

9.3yrs

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

Rick's remuneration is about average for companies of similar size in United States of America.

Rick's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

8.8yrs

Average Tenure

57yo

Average Age

The average tenure for the Sabra Health Care REIT management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.5yrs

Average Tenure

62yo

Average Age

The tenure for the Sabra Health Care REIT board of directors is about average.


Insider Trading

Sabra Health Care REIT individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,245,50927 Aug 19
Raymond Lewis
EntityIndividual
Role
Member of the Board of Directors
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


Management Team

  • Rick Matros (65yo)

    Chairman

    • Tenure: 9.3yrs
    • Compensation: US$4.68m
  • Talya Nevo-Hacohen (59yo)

    Executive VP

    • Tenure: 8.8yrs
    • Compensation: US$2.01m
  • Harold Andrews (55yo)

    Executive VP

    • Tenure: 8.8yrs
    • Compensation: US$2.01m
  • Pete Nyland

    Executive Vice President of Asset Management

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

    Executive VP & Portfolio Manager

    • Tenure: 2.2yrs
  • 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)

    Director

    • Tenure: 2.1yrs
    • Compensation: US$164.00k
  • Rick Matros (65yo)

    Chairman

    • Tenure: 9.3yrs
    • Compensation: US$4.68m
  • Ray Lewis (55yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: US$160.00k
  • Milton Walters (77yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: US$170.00k
  • Jeff Malehorn (57yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: US$162.00k
  • Bob Ettl (59yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: US$188.00k
  • Lynne Katzmann

    Director

    • Tenure: 0.5yrs
  • Craig Barbarosh (51yo)

    Director

    • Tenure: 8.8yrs
    • 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$4.272b
  • Shares outstanding: 189.52m
  • 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 June 30, 2019, Sabra’s investment portfolio included 432 real estate properties held for investment (consisting of (i) 304 Skilled Nursing/Transitional Care facilities, (ii) 62 Senior Housing communi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 00:12
End of Day Share Price2019/09/16 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.