SNH is a real estate investment trust, or REIT, that owns medical office and life science properties, senior living communities and wellness centers throughout the United States.
The last earnings update was 11 days ago.
Discounted Cash Flow Calculation for NasdaqGS:SNH using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model
The calculations below outline how an intrinsic value for
Senior Housing Properties Trust
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
Senior Housing Properties Trust is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.
NasdaqGS:SNH DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO)
Amount off the current price
Senior Housing Properties Trust
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
Senior Housing Properties Trust
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Senior Housing Properties Trust's share price is below the future cash flow value, and at a moderate discount (> 20%).
Senior Housing Properties Trust's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Senior Housing Properties Trust's
is considered below, and whether this is a fair price.
Price based on past earnings
Senior Housing Properties Trust's earnings available for a low price, and how does
this compare to other companies in the same industry?
Senior Housing Properties Trust's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Senior Housing Properties Trust's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Senior Housing Properties Trust's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Senior Housing Properties Trust
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Senior Housing Properties Trust's finances.
The net worth of a company is the difference between its assets and liabilities.
Senior Housing Properties Trust is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Senior Housing Properties Trust's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Senior Housing Properties Trust's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Is Senior Housing Properties Trust (NASDAQ:SNH) Potentially Undervalued?
Senior Housing Properties Trust (NASDAQ:SNH), which is in the reits business, and is based in United States,. … A question to answer is whether Senior Housing Properties Trust's current trading price of $8.15 reflective of the actual value of the? … Let’s take a look at Senior Housing Properties Trust’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
What You Need To Know Before Investing In Senior Housing Properties Trust (NASDAQ:SNH)
Senior Housing Properties Trust is a US$2.8b. … Check out our latest analysis for Senior Housing Properties Trust … This term is very common in the REIT investing world as it provides a cleaner look at its cash flow from daily operations by excluding impact of one-off activities or non-cash items such as depreciation
Introducing Senior Housing Properties Trust, The Stock That Dropped 37% In The Last Five Years
At this point some shareholders may be questioning their investment in Senior Housing Properties Trust (NASDAQ:SNH), since the last five years saw the share price fall 37%. … During the unfortunate half decade during which the share price slipped, Senior Housing Properties Trust actually saw its earnings per share (EPS) improve by 21% per year. … Because of the sharp contrast between the EPS growth rate and the share price growth, we're inclined to look to other metrics to understand the changing market sentiment around the stock.
Boasting A 13% Return On Equity, Is Senior Housing Properties Trust (NASDAQ:SNH) A Top Quality Stock?
By way of learning-by-doing, we'll look at ROE to gain a better understanding Senior Housing Properties Trust (NASDAQ:SNH). … Senior Housing Properties Trust has a ROE of 13%, based on the last twelve months. … Check out our latest analysis for Senior Housing Properties Trust?
What You Must Know About Senior Housing Properties Trust's (NASDAQ:SNH) ROE
and want to begin learning the link between Senior Housing Properties Trust (NASDAQ:SNH)’s return fundamentals and stock market performance. … With an ROE of 10.45%, Senior Housing Properties Trust (NASDAQ:SNH) returned in-line to its own industry which delivered 7.63% over the past year. … But what is more interesting is whether SNH can sustain this level of return.
Why Senior Housing Properties Trust (NASDAQ:SNH) Should Have A Place In Your Portfolio
Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Senior Housing Properties Trust (NASDAQ:SNH) due to its excellent fundamentals in more than one area.
You May Have Been Looking At Senior Housing Properties Trust (NASDAQ:SNH) All Wrong
Senior Housing Properties Trust is a US$4.20B mid-cap real estate investment trust (REIT) based in Newton, United States. … View our latest analysis for Senior Housing Properties Trust A common financial term REIT investors should know is Funds from Operations, or FFO for short, which is a REIT's main source of income from its portfolio of property, such as rent. … Senior Housing Properties Trust can bring about diversification for your portfolio, but before you decide to invest, take a look at the other aspects you must consider before investing: Future Outlook: What are well-informed industry analysts predicting for SNH’s future growth?
SNH is a real estate investment trust, or REIT, that owns medical office and life science properties, senior living communities and wellness centers throughout the United States. SNH is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), or RMR Inc., an alternative asset management company that is headquartered in Newton, MA.
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