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Sonida Senior Living, Inc. (SNDA)
NYSE:SNDA
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Sonida Senior Living, Inc.
(NYSE:SNDA)
51Neutral
Positive Factors
Debt Management
Significant progress on the path to reduce debt on its balance sheet while rebuilding and scaling its portfolio.
Demographics
Strong demand driven by a powerful demographic story with an aging population.
Earnings
Adjusted EBITDA of $12.3M modestly beat MSe of $11.7M.
Operational Efficiency
The company's fully integrated operating platform means no reliance on third-party property management, contributing to a unified team structure and purchasing efficiencies through scale.
Negative Factors
Concentration Risk
Concentrated exposure to high-growth senior housing operations could sustain growth above diversified healthcare REIT competitors.
Valuation
SNDA is a pure-play senior housing owner and operator with best-in-class growth that is likely reflected in the price.
Sonida Senior Living, Inc. (SNDA) vs. S&P 500 (SPY)
Market Cap
$429.39M
Dividend YieldN/A
Average Volume (3M)28.87K
Price to Earnings (P/E)―
Beta (1Y)0.45
Revenue Growth19.19%
EPS GrowthN/A
CountryUS
Employees3,415
SectorHealthcare
Sector Strength70
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-0.04
Shares Outstanding18,915,937
10 Day Avg. Volume26,878
30 Day Avg. Volume28,867
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.46
Price to Cash Flow (P/CF)-35.40
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
$25.00Price Target Upside10.13% Upside
Rating ConsensusHold
Number of Analyst Covering1
Sonida Senior Living, Inc. Business Overview & Revenue Model
Company DescriptionSonida Senior Living, Inc. (SNDA) is a company that specializes in providing senior living services. It operates in the senior housing sector, offering a range of services and accommodations designed to meet the varying needs of its elderly residents. The company is known for its commitment to creating supportive and engaging living environments where seniors can enjoy an enhanced quality of life.
How the Company Makes MoneySonida Senior Living, Inc. makes money primarily through the fees and rents collected from its senior living facilities. These facilities include independent living, assisted living, and memory care communities. The company generates revenue by providing housing, meals, healthcare services, and other amenities tailored to the needs of seniors. Additionally, Sonida may engage in partnerships with healthcare providers to offer specialized services that further enhance its value proposition. The company's earnings are influenced by occupancy rates, pricing strategies, and its ability to manage operational costs effectively.
Sonida Senior Living, Inc. Financial Statement Overview
Summary
Sonida Senior Living, Inc. faces significant financial challenges, highlighted by declining revenues, persistent losses, and heavy reliance on debt. The negative equity and ongoing cash flow issues underscore financial instability. While there have been attempts to improve liquidity through financing, the fundamental operational inefficiencies and high leverage present substantial risks. The company needs strategic restructuring and improved financial management to enhance its financial health and stability.Income Statement
The income statement shows declining revenue over the years with a significant drop from 2019 to the TTM period. The company has struggled to maintain profitability, reflected in negative net income across multiple years. Gross profit margin has turned negative in the TTM, indicating cost management issues. The company had a positive EBIT in 2023, but it deteriorated to zero in the TTM period. Overall, the income statement suggests weak financial performance and challenges in achieving sustainable revenue growth.40
Negative
Balance Sheet
The balance sheet reflects high leverage, with a debt-to-equity ratio that indicates significant reliance on debt financing. The company has a negative stockholders' equity, which suggests financial instability and potential risk to creditors. Although total assets have increased in the TTM, the equity ratio remains low, further highlighting financial vulnerability. Overall, the balance sheet demonstrates a precarious financial position with high financial risk.35
Negative
Cash Flow
Cash flow analysis reveals inconsistent performance with negative free cash flow in recent years, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is negative in the TTM, pointing towards operational inefficiencies. Financing activities have provided some liquidity relief, as seen in the positive cash flow from financing in the TTM. However, the reliance on financing rather than operational improvements poses a risk to long-term sustainability.45
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 304.33M | 255.32M | 238.43M | 234.72M | 383.86M | 447.10M | Gross Profit |
| -39.39M | 234.22M | 39.43M | 36.55M | 104.29M | 140.31M | EBIT |
| 0.00 | 24.80M | -19.06M | -24.94M | -13.76M | -14.46M | EBITDA |
| -40.76M | 55.15M | 9.14M | 12.93M | 46.55M | 49.50M | Net Income Common Stockholders |
| -7.58M | -21.11M | -54.40M | 125.61M | -295.37M | -36.03M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 16.99M | 4.08M | 16.91M | 78.69M | 17.89M | 23.98M | Total Assets |
| 841.92M | 621.46M | 661.27M | 728.55M | 702.83M | 1.27B | Total Debt |
| 651.39M | 629.42M | 671.03M | 683.68M | 909.85M | 1.19B | Net Debt |
| 634.40M | 625.34M | 654.12M | 604.99M | 891.96M | 1.16B | Total Liabilities |
| 712.31M | 688.01M | 719.43M | 775.36M | 982.10M | 1.25B | Stockholders Equity |
| 71.78M | -66.55M | -58.16M | -46.81M | -279.26M | 14.38M |
| Cash Flow | Free Cash Flow | ||||
| -26.95M | -7.25M | -27.14M | -38.71M | -22.43M | -15.08M | Operating Cash Flow |
| -1.78M | 10.68M | -2.58M | -28.27M | -6.79M | 5.23M | Investing Cash Flow |
| -208.92M | -16.56M | -36.90M | -10.44M | 8.51M | 47.78M | Financing Cash Flow |
| 232.04M | -7.11M | -22.65M | 99.42M | -15.92M | -60.26M |
Sonida Senior Living, Inc. Technical Analysis
Negative
22.70
Price Trends
23.98
Negative
23.95
Negative
25.71
Negative
Market Momentum
-0.30
Positive
40.80
Neutral
8.45
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNDA, the sentiment is Negative. The current price of 22.7 is below the 20-day moving average (MA) of 23.63, below the 50-day MA of 23.98, and below the 200-day MA of 25.71, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 40.80 is Neutral, neither overbought nor oversold. The STOCH value of 8.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNDA.
Sonida Senior Living, Inc. Risk Analysis
Sonida Senior Living, Inc. disclosed 37 risk factors in its most recent earnings report. Sonida Senior Living, Inc. 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
Sonida Senior Living, Inc. 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 | $7.40B | 25.16 | 17.90% | 0.19% | 15.52% | 40.29% | |
77 Outperform | $3.41B | 23.90 | 10.53% | 4.88% | 4.88% | 0.41% | |
74 Outperform | $10.57B | 25.11 | 10.02% | 7.15% | 9.90% | 56.41% | |
63 Neutral | $30.53B | 349.82 | 0.80% | 2.65% | 9.48% | ― | |
58 Neutral | $1.23B | ― | -65.55% | ― | 3.95% | -5.53% | |
51 Neutral | $429.39M | ― | -17.38% | ― | 19.19% | ― | |
49 Neutral | $6.85B | 0.81 | -52.75% | 2.49% | 20.08% | 1.28% |
* Healthcare Sector Average
Performance Comparison
SNDA
Sonida Senior Living, Inc.
22.70
-6.44
-22.10%
BKD
Brookdale Senior Living
6.15
-0.59
-8.75%
NHI
National Health Investors
74.70
15.21
25.57%
OHI
Omega Healthcare
38.08
8.52
28.82%
ENSG
The Ensign Group
128.74
5.04
4.07%
VTR
Ventas
68.76
26.90
64.26%
Sonida Senior Living, Inc. Earnings Call Summary
Earnings Call Date: Mar 17, 2025 | % Change Since: -3.69% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong year-over-year growth in key financial metrics, successful capital allocation and debt restructuring, and operational improvements, including increased lead volumes and reduced employee turnover. However, some challenges remain, notably a decline in occupancy in Q4 2024 and Medicaid-related issues in Indiana. Overall, the positive aspects significantly outweigh the negative, indicating a strong performance outlook for 2025.Highlights
Record Year-Over-Year Growth
Sonida Senior Living, Inc. achieved 19% and 27% year-over-year growth from 2023 in same-store adjusted community NOI and adjusted EBITDA, respectively.
Occupancy and Revenue Per Occupied Room (RevPOR) Growth
The company saw a same-store improvement of 180 basis points in occupancy and nearly 6% growth in RevPOR year-over-year.
Successful Capital Allocation
Executed six transactions totaling more than $250 million, including three transactions in the fourth quarter totaling 11 communities and 817 units, driving 11% sequential total NOI at share growth quarter over quarter.
Debt Restructuring Achievements
Achieved a discounted payoff of $18.3 million on a $28.4 million loan balance, a 36% discount, and extended maturities of 18 communities with Fannie Mae, totaling $220 million, by two years.
Lead and Tour Volume Increase
Q4 2024 saw a 15% year-over-year increase in lead volume and an 11% increase in tour volume in the same-store owned portfolio.
Employee Turnover Reduction
Company turnover decreased nearly 10% in 2024, marking the second year in a row of reduction.
Lowlights
Occupancy Decline in Q4 2024
Q4 2024 was the first quarter since the pandemic that did not realize occupancy growth from the previous quarter, with a weighted average occupancy falling 40 basis points from Q3.
Medicaid-Related Challenges
Temporary deterioration of Medicaid-related aging in Indiana accounted for approximately $700,000 of increased bad debt versus 2023.
Company Guidance
During the call, Sonida Senior Living, Inc. provided guidance for 2025, indicating a focus on achieving same-store Net Operating Income (NOI) growth at the high end of their peer group, similar to 2024. The company plans to leverage the value-add nature of their 2024 acquisitions, which had a weighted average occupancy of 76% and an NOI margin of 21.7% as of Q4 2024, to outpace growth in their stable same-store portfolio. They aim to capitalize on demographic trends and a supply-demand imbalance in senior living, with a target to achieve pricing gains consistent with the prior year, as they did with a 6.3% annual rate increase in 2024. The company also plans to enhance employee retention, which saw a 10% turnover reduction in 2024, through investment in employee experience. Additionally, Sonida will continue to pursue acquisition opportunities, noting a favorable market environment with motivated sellers and special situations yielding a significant pipeline.Sonida Senior Living, Inc. Corporate Events
Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Sonida Senior Living Expands with Strategic Acquisitions
Positive
Mar 17, 2025
In 2024, Sonida Senior Living, Inc. achieved significant growth through both organic and inorganic means, including the acquisition of 20 high-quality communities. The company reported a notable improvement in financial performance, with a $19 million reduction in net loss and a 27.4% increase in adjusted EBITDA. Key highlights include increased occupancy and revenue per unit, as well as strategic acquisitions in Cincinnati and Atlanta. Additionally, Sonida extended its loan agreements with Fannie Mae and expanded its credit facility, positioning the company for accelerated growth in 2025.
M&A TransactionsBusiness Operations and Strategy
Sonida Senior Living Expands Portfolio and Extends Loans
Positive
Jan 6, 2025
Sonida Senior Living, Inc. announced the acquisition of a senior living community in Cincinnati, increasing its portfolio to 20 properties acquired in 2024 and a total of 94 communities. Additionally, the company extended the maturity dates of its Fannie Mae loan agreements to 2029, which will allow it to focus on growth without significant debt maturities until 2027, thus strengthening its market position and operational scale.
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.