Sonida Senior Living Inc. Common Stock (SNDA)

FairStock Score: 18/100 — RISKY

Key Financials

Strengths

• Generates $40 million in annual free cash flow (2.5% yield on market cap)

Concerns

• Altman Z-Score of 0.5 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Sonida Senior Living Inc. Common Stock is a micro-cap healthcare company valued at $1.6 billion. The business generates $367 million in annual revenue with a 2.8% net margin and $40 million in free cash flow. From a quality standpoint, Sonida shows distressed Altman Z-Score of 0.5 warrants caution and negative ROE indicating losses. Growth dynamics show revenue growing at 6.2% and profit growth of -441.0%. Our composite FairStock Score of 18/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $40 million in annual free cash flow (2.5% 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 healthcare 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