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Brookdale Senior Living (BKD)
NYSE:BKD
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Brookdale Senior Living
(NYSE:BKD)
51Neutral
Positive Factors
Demographic Tailwinds
Demographic tailwinds for senior housing are set to accelerate as baby boomers age into the sweet spot for the industry.
Lease Renewals
Lease renewals could be positive catalysts, providing opportunities to reduce rent payments or acquire assets, enhancing EBITDA.
Negative Factors
Occupancy Levels
Brookdale's occupancy levels remain below the 2019 levels and are tracking slightly below estimates, indicating slower growth.
Brookdale Senior Living (BKD) vs. S&P 500 (SPY)
Market Cap
$1.13B
Dividend YieldN/A
Average Volume (3M)2.80M
Price to Earnings (P/E)―
Beta (1Y)0.87
Revenue Growth3.95%
EPS Growth-5.53%
CountryUS
Employees36,000
SectorHealthcare
Sector Strength78
IndustryHealthcare Providers & Services
Share Statistics
EPS (TTM)-0.89
Shares Outstanding200,189,060
10 Day Avg. Volume3,356,353
30 Day Avg. Volume2,800,903
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.35
Price to Cash Flow (P/CF)6.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.00Price Target Upside42.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Brookdale Senior Living Business Overview & Revenue Model
Company DescriptionBrookdale Senior Living, Inc. engages in the operation of senior living communities. It manages independent living, assisted living, and dementia-care communities, and continuing care retirement centers. It operates through the following segments: Independent Living; Assisted Living & Memory Care, CCRCs, Health Care Services and Management Services. The Independent Living segment is primarily designed for middle to upper income seniors who desire an upscale residential environment providing the highest quality of service. The Assisted Living & Memory Care segment offer housing and 24-hour assistance with ADLs to mid-acuity frail and elderly residents. The CCRCs segment offers a variety of living arrangements and services to accommodate all levels of physical ability and health. The Healthcare Services segment provides home health, hospice and outpatient therapy services, as well as education and wellness programs, to residents of many communities and to seniors living outside communities. The Management Services segment composes of communities operated by the company pursuant to management agreements. The company was founded on June 28, 2005 and is headquartered in Brentwood, TN.
How the Company Makes MoneyBrookdale Senior Living generates revenue primarily through resident fees for its senior living services. These fees vary based on the level of care and type of accommodation provided, such as independent living, assisted living, or memory care. The company also earns income from ancillary services, including therapy, home health, and hospice services, which are either billed directly to residents or to third-party payers like Medicare and Medicaid. Additionally, Brookdale may engage in partnerships with healthcare providers to enhance service offerings and optimize care delivery. The company focuses on maximizing occupancy rates in its communities as a key driver of revenue growth and profitability.
Brookdale Senior Living Financial Statement Overview
Summary
Brookdale Senior Living's financial statements highlight challenges in profitability and high leverage, despite some positive trends in cash flow management and revenue growth. The company must address its debt levels and improve profitability to ensure long-term financial stability.Income Statement
The company shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) revenue of $3.13 billion indicates a moderate growth rate compared to the previous year. However, the company suffers from consistent net losses, with a net profit margin of -6.46% in the TTM. Despite slight improvements in EBIT and EBITDA margins, overall profitability remains a concern.45
Neutral
Balance Sheet
The balance sheet reveals significant financial leverage, with a high debt-to-equity ratio of 6.78 in the TTM. The company's equity ratio has decreased, indicating a reliance on debt financing. Negative stockholders' equity is a potential risk, though some improvement is seen in asset management efficiency.40
Negative
Cash Flow
Cash flow analysis shows improvement in operating cash flow, but free cash flow remains low. The free cash flow to net income ratio is positive at 0.08, showing some efficiency in cash generation despite net losses. The increase in free cash flow from the previous year suggests improving cash management.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.13B | 3.01B | 2.74B | 2.75B | 3.42B | Gross Profit |
| 799.31M | 737.63M | 513.94M | 488.58M | 681.40M | EBIT |
| 46.53M | 18.41M | -85.10M | -185.74M | 9.22M | EBITDA |
| 413.45M | 370.44M | 268.79M | 159.32M | 374.88M | Net Income Common Stockholders |
| -201.94M | -189.01M | -238.34M | -99.36M | 82.02M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 328.80M | 307.73M | 447.53M | 529.42M | 553.33M | Total Assets |
| 6.34B | 5.57B | 5.94B | 6.41B | 6.90B | Total Debt |
| 1.63B | 4.73B | 4.89B | 5.23B | 5.21B | Net Debt |
| 1.32B | 4.45B | 4.49B | 4.88B | 4.83B | Total Liabilities |
| 6.12B | 5.17B | 5.35B | 5.71B | 6.10B | Stockholders Equity |
| 212.47M | 403.66M | 582.61M | 697.40M | 800.43M |
| Cash Flow | Free Cash Flow | |||
| 166.18M | -70.28M | -193.64M | -271.29M | 19.78M | Operating Cash Flow |
| 166.18M | 162.92M | 3.28M | -94.63M | 205.65M | Investing Cash Flow |
| -278.07M | -113.36M | -67.43M | 181.46M | -425.11M | Financing Cash Flow |
| 142.06M | -174.44M | 100.38M | -113.66M | 382.91M |
Brookdale Senior Living Technical Analysis
Neutral
5.63
Price Trends
5.14
Positive
5.42
Positive
6.16
Negative
Market Momentum
0.18
Positive
55.45
Neutral
29.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKD, the sentiment is Neutral. The current price of 5.63 is above the 20-day moving average (MA) of 5.54, above the 50-day MA of 5.14, and below the 200-day MA of 6.16, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 55.45 is Neutral, neither overbought nor oversold. The STOCH value of 29.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BKD.
Brookdale Senior Living Risk Analysis
Brookdale Senior Living disclosed 37 risk factors in its most recent earnings report. Brookdale Senior Living reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Brookdale Senior Living Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $93.76B | 178.88 | 3.32% | 1.78% | 20.40% | 57.80% | |
72 Outperform | $1.64B | 17.67 | 9.81% | 6.31% | 6.54% | -4.13% | |
63 Neutral | $3.95B | 31.80 | 4.57% | 7.03% | 7.22% | 809.92% | |
63 Neutral | $30.29B | 348.23 | 0.80% | 2.67% | 9.48% | ― | |
61 Neutral | $1.46B | 14.22 | 10.79% | 2.60% | 15.25% | 51.77% | |
51 Neutral | $1.13B | ― | -65.55% | ― | 3.95% | -5.53% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
BKD
Brookdale Senior Living
5.63
-0.54
-8.75%
WELL
Welltower
147.29
56.39
62.04%
LTC
LTC Properties
35.73
5.46
18.04%
NHC
National Healthcare
94.52
0.20
0.21%
SBRA
Sabra Healthcare REIT
16.62
3.50
26.68%
VTR
Ventas
66.70
24.53
58.17%
Brookdale Senior Living Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: 6.23% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The call highlighted significant financial and operational improvements, including strong revenue growth, improved occupancy rates, and strategic portfolio management. Despite challenges with occupancy and natural disaster expenses, the company's proactive measures and strategic initiatives indicate positive momentum. The sentiment is slightly more positive due to the outweighing highlights, but some challenges remain.Highlights
Strong Financial Performance
RevPAR increased by 6.1% year-over-year, adjusted EBITDA grew over 15%, and adjusted free cash flow improved nearly 40%, turning positive in the back half of 2024.
Occupancy and Engagement Improvements
Weighted average occupancy grew by 140 basis points, and the company saw the strongest fourth quarter move-in volume since 2016.
Associate Retention and Workplace Recognition
Trailing twelve-month turnover improved by more than thirteen percentage points compared to 2023, and Brookdale was named a top 200 most loved workplace by Newsweek in 2024.
Positive Outcomes from Health Plus Program
Residents in Health Plus communities had 80% fewer emergency room visits and 66% fewer hospitalizations compared to seniors with comparable conditions living at home.
Strategic Portfolio Management
Successful lease amendments and acquisitions increased the proportion of owned real estate to over 75% of consolidated units, improving cash flow and liquidity.
Debt Management Success
Addressed more than $1 billion of future maturities, eliminating all 2025 debt maturities and significantly reducing 2026 maturities.
Lowlights
Occupancy Challenges
Occupancy fell below expectations beginning in the second quarter of 2024, impacted by a disruption in lead flow from two largest third-party paid referral partners.
Natural Disaster Expenses
Incurred approximately $3.5 million in natural disaster expenses in the fourth quarter primarily related to hurricanes, compared to no expenses in the prior year fourth quarter.
Continued Fluctuations in Lead Flow
Despite improvements, disruptions in lead flow from third-party referral partners affected move-ins, although efforts are being made to mitigate this.
Company Guidance
During the Brookdale Senior Living fourth quarter and full year 2024 earnings call, several key metrics and guidance details were discussed. The company reported a 6.1% increase in RevPAR and a significant 15% growth in adjusted EBITDA for 2024, with adjusted free cash flow improving nearly 40%, turning positive in the latter half of the year. Weighted average occupancy grew by 140 basis points, although occupancy fell below expectations in the second quarter due to disruptions in lead flow from third-party referral partners. For 2025, Brookdale expects RevPAR growth of 4.75% to 5.75% and adjusted EBITDA between $430 million and $445 million. The company has also managed its capital structure effectively, reducing 2026 maturities to $44 million and eliminating 2025 debt maturities. Significant strategic transactions included lease amendments and acquisitions, increasing the proportion of owned real estate to over 75% of consolidated units by year-end. Brookdale plans to continue expanding its Health Plus program, which showed positive health outcomes, and focus on operational excellence and profitable occupancy growth.Brookdale Senior Living Corporate Events
Business Operations and StrategyFinancial Disclosures
Brookdale Senior Living Reports Strong 2024 Financial Results
Positive
Feb 18, 2025
Brookdale Senior Living announced its financial results for the fourth quarter and full year of 2024, reporting a notable increase in revenue per available unit and occupancy rates compared to the previous year. The company has made significant strides in financial performance through strategic priorities, including lease amendments with Ventas, Inc., refinancing debt, and acquiring leased communities, enhancing cash flow and positioning for growth in 2025.
Business Operations and StrategyFinancial Disclosures
Brookdale Senior Living Reports Improved Occupancy Rates
Positive
Jan 10, 2025
Brookdale Senior Living reported an increase in consolidated occupancy for December 2024, with a weighted average occupancy of 79.3%, marking a 100 basis point rise from the previous year. This growth was attributed to favorable move-in and move-out levels, with fourth-quarter move-in volume surpassing pre-pandemic averages by 8%, indicating a positive trend for the company’s operations and market position.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.