Brookdale Senior Living Inc.
$12.25
+0.49%Brookdale Senior Living Inc. owns, manages, and operates senior living communities in the United States. It operates in three segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs). The Independent Living segment owns or leases communities comprising independent and assisted living units in a single community that are primarily designed for middle to upper income seniors. The Assisted Living and Memory Care segment owns or leases communities consisting of freestanding multi-story communities and freestanding single-story communities, which offer housing and 24-hour assistance with activities of daily living for the Company's residents. This segment also operates memory care communities for residents with Alzheimer's and other dementias. The CCRCs segment owns or leases communities that provides various living arrangements, such as independent and assisted living, memory care, and skilled nursing; and services to accommodate various levels of physical ability and healthcare needs. It also manages communities on behalf of others. As of December 31, 2021, the company owned 347 communities, leased 299 communities, and managed 33 communities on behalf of others. Brookdale Senior Living Inc. was incorporated in 2005 and is headquartered in Brentwood, Tennessee.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -11.0).
Valuation inputs: P/E -11.0, earnings yield N/A, momentum +0.5%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +5.9%, ROIC +0.3%).
Profitability stack: net margin -8.4%, ROE +5.9%, ROIC +0.3%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +100.7%, momentum +0.5%, net margin -8.4%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Brookdale Senior Living Inc. Market vs Earnings Trajectory
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Brookdale Senior Living Inc. Fair Value Envelope
Brookdale Senior Living Inc. Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Non-operating losses: Core business is profitable but other expenses (interest, taxes, one-time items) are driving net losses. Review capital structure and non-operating items.
Brookdale Senior Living Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Brookdale Senior Living Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.
Working Capital
Positive working capital, but relatively tight. The company should monitor cash flow carefully.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Brookdale Senior Living Inc. Street Expectations Map
Wall Street analysts project that BKD stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 17.67, with estimates ranging from a low of 17.00 to a high of 18.00.
The consensus 1-year price target stands at 17.67, with estimates ranging from a low of 17.00 to a high of 18.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Brookdale Senior Living Inc. Insider Positioning
During the last 12 months, there has been no insider trading activity reported for BKD.
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Top Buyers
No buying activity
Top Sellers
No selling activity
Insider Activity Analysis
Net Insider Sentiment
No insider trading activity reported. This could indicate blackout periods, lack of conviction, or regulatory restrictions.
Insider Participation
No insider trading activity reported from any insiders in the past year.
No Dividend Yield Data
BKD has not reported any dividend yield values in the available annual periods.
bkd Dividend History
Learning Layer
Related Guides
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Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.