CareTrust REIT Inc. Common Stock (CTRE)

FairStock Score: 72/100 — STEADY

Key Financials

Strengths

• Generates $241 million in annual free cash flow (2.8% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Altman Z-Score of 4.7 confirms minimal bankruptcy risk and strong solvency
• Superior net profit margin of 23.4% indicating pricing power and operational efficiency
• Revenue growth of 72.8% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($25) with negative 51% margin of safety—limited downside protection

AI Analysis

CareTrust REIT Inc. Common Stock is a small-cap real estate company valued at $8.6 billion. The business generates $476 million in annual revenue with a 23.4% net margin and $241 million in free cash flow. From a quality standpoint, CareTrust shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and healthy Altman Z-Score of 4.7. On valuation, the stock is reasonably priced at 24.2x earnings, with trades above its Graham Number with a negative 51% margin. Growth dynamics show revenue growing at 72.8% and profit growth of 113.5%. The 4.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 72/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

CareTrust's 73% revenue growth trajectory could accelerate as it captures additional market share in the real estate sector. With $241 million in annual free cash flow (2.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the real estate space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer