Sabra Health Care REIT, Inc.

Valuation Analysis

About the Company

Sabra Health Care REIT, Inc. operates as a self-administered, self-managed real estate investment trust that, through its subsidiaries, owns and invests in real estate serving the healthcare industry throughout the United States and Canada. Sabra Health Care REIT, Inc. is incorporated on May 10th, 2010 and is based in Tustin, United States.

Sabra Health Care REIT, Inc. Stock at a Glance

Sabra Health Care REIT, Inc. (SBRA) is currently trading at $18.73 with a market capitalization of $4.7B. The trailing P/E ratio stands at 29.73x, with a forward P/E of 25.2x. The 52-week range spans from $17.17 to $21.28; the current price is 12% below the yearly high. Year-over-year revenue growth stands at +21.7%. The net profit margin stands at 19.15%.

💰 Dividend

Sabra Health Care REIT, Inc. pays an annual dividend of $1.20 per share, representing a yield of 6.41%. The payout ratio stands at 190.48%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

13 analysts rate Sabra Health Care REIT, Inc. (SBRA) on consensus: Buy. The average price target is $22.77, implying +21.57% from the current price. Analyst price targets range from $20.00 to $25.00.

Sabra Health Care REIT, Inc.: The Investment Case in Detail

Sabra Health Care REIT, Inc. (SBRA) operates in the Real Estate — specifically REIT - Healthcare Facilities — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 21.7% pace year-over-year, suggesting the business model continues to find new customers and pricing power. With a gross margin near 63.74%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Free cash flow is positive and net margins stand at 19.15%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

The Bear Case

Short interest sits at 16.03% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

At a PEG of 5.28, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

What to Watch Next

• The forward P/E of 25.2x is meaningfully below the trailing 29.73x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 21.57% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (16.03%).

Trading Data

💵 Dividend Info

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