* Note: Prices are in Million (M) USD.
Description:
Brookdale Senior Living Inc. (BKD) is a leading provider of senior living solutions in the United States, focusing on delivering high-quality care and support across its extensive portfolio of communities. Headquartered in Brentwood, Tennessee, the company operates over 600 senior living communities, offering a range of services including independent living, assisted living, Alzheimer's, and dementia care. With a commitment to enhancing the quality of life for residents, Brookdale employs innovative programs and experienced staff to foster a vibrant, nurturing environment. As a key player in the senior housing market, the company is well-positioned to capitalize on the growing demand for senior care services amid an aging population.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $252 M
Debt : $4,385 M
EBITDA : $449 M
Net Debt (Debt - Cash): $4,133 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Health care
Industry: Medical care facilities
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $-123 M
Average Revenue: $2,674 M
Revenue Converted To Free Cash Flow (%): -4.6%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $2,983 M
Revenue 5 Years Ago (2019-12-31): $3,267 M
Total Growth over 5 Years: -8.7%
5-Year Revenue CAGR (Historical): -1.8%
Forward 5-Year CAGR (Tapered): -1.6%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $228 M
Share Count 5 Years Ago (2020-12-31): $184 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-0.57
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.57
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: -22.4%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $8.42
52-Week Low: $4.45
Threshold Price (15% Above 52-Week Low): $5.12
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $2,000 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share) (TTM ending 2025-06-30): $0.07
Owners' Earnings (FCF/Share, latest positive annual) (2020-12-31): $0.09
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 7 points to above Brookdale Senior Living Inc (BKD) stock.
Last 2 Years Avg PE 6.68, Fair Value PE 9, Industry Based PE 15, Risk-Free Anchored PE (25% MoS) 18.2. Based on these 4 values, average assigned is 12.22. The fair value of Brookdale Senior Living Inc (BKD) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
