Risk factor
Very high price volatility
Profitability factor
Undervalued vs peers
About
Brookdale Senior Living Inc operates senior living communities throughout the United States. The company has three reportable segments; Independent Living; Assisted Living and Memory Care; and Continuing Care Retirement Communities (CCRs). Majority of the revenue is generated from the Assisted Living and Memory Care segment that offers housing and assistance with activities of daily living to its customers. The company generates revenue in the form of Resident Fees which it receives in exchange for the services provided, and in the form of management fee from certain communities under contract, in exchange for the management services provided.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. Specifically, the stock is neutral on EV/EBITDA, underpriced on P/FC.