Sabra Health Care REIT Inc. Common Stock (SBRA)

FairStock Score: 51/100 — MIXED

Key Financials

Strengths

• Generates $321 million in annual free cash flow (6.4% yield on market cap)
• Revenue growth of 16.2% demonstrates strong top-line momentum
• Attractive 6.0% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($13) with negative 57% margin of safety—limited downside protection
• Altman Z-Score of 0.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Sabra Health Care REIT Inc. Common Stock is a small-cap real estate company valued at $5.0 billion. The business generates $776 million in annual revenue with a 3.5% net margin and $321 million in free cash flow. From a quality standpoint, Sabra shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.7 warrants caution. On valuation, the stock is trading at a premium 31.1x earnings, with trades above its Graham Number with a negative 57% margin. Growth dynamics show revenue growing at 16.2% and profit growth of -41.7%. The 6.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 51/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Sabra's 16% revenue growth trajectory could accelerate as it captures additional market share in the real estate sector. With $321 million in annual free cash flow (6.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 31x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. 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