One-glance verdict
Within fair range
$49.67 our estimate vs market $36.39
Wall Street consensus: $43.64 (-12.1% lower than our fair-value estimate)
27% below our estimate
Fundamentals snapshot
CareTrust REIT, Inc.
CTRE · NYQ · Real Estate · REIT - Healthcare Facilities
Current price
$36.39
52-week range
$34.28 - $43.62
Market cap
$8.60B
Balance sheet
Watch
4.91x Stretched
Net debt $1.16B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 20.0% last year.
- Reward Returns 9.1% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Insider ownership is only 0.8% (peer median: 1.4%).
What this company does
CareTrust REIT, Inc.
CareTrust REIT, Inc. owns and leases buildings for healthcare, like nursing homes and senior living facilities. Their main income comes from long-term rental payments from the companies that operate these healthcare properties, which is like a steady stream of money. This is important because it means they have a predictable income to pay their bills and hopefully grow their business by buying or building more properties.
How the company got here
CareTrust REIT, Inc. was established in 2013 and began operations in 2014, emerging from a spin-off from The Ensign Group. It was founded with a focus on acquiring and leasing healthcare-related real estate. The company's strategy has been to grow by acquiring properties and leasing them to healthcare operators, often through long-term net leases. This approach allows CareTrust to generate steady, contract-based income while the operators manage the day-to-day business of providing care. Over the years, CareTrust has expanded its portfolio through strategic acquisitions and a focus on building strong relationships with its tenant operators.
What it actually does
CareTrust REIT, Inc. is a real estate investment trust (REIT) that owns and leases healthcare-related properties. Think of them as a landlord that specializes in buildings used for healthcare services. They don't provide medical care themselves; instead, they own the real estate and rent it out to companies that do. These companies, called operators, run facilities like nursing homes and senior living communities. CareTrust makes money primarily through the rent collected from these long-term leases, providing a stable income stream tied to the healthcare industry.
Skilled Nursing Facilities
This is CareTrust's primary business line. They own and lease buildings specifically designed for skilled nursing facilities (SNFs). These are places where people go for round-the-clock medical care and rehabilitation, often after a hospital stay. The customers here are the healthcare operators who run these facilities, and indirectly, the patients who receive care. CareTrust earns rental income from these operators under long-term agreements, which are typically 'triple-net leases.' In a triple-net lease, the tenant (the operator) is responsible for most of the property's operating costs, including taxes, insurance, and maintenance, making the rent income more predictable for CareTrust.
Senior Housing
CareTrust also owns and leases properties that cater to seniors needing daily support, such as assisted living communities and memory care facilities. These are designed for older adults who may need help with daily activities but don't require the intensive medical care found in skilled nursing facilities. Similar to their SNF business, CareTrust acts as the landlord, leasing these properties to senior living operators. The revenue generated here comes from the rental payments made by these operators, contributing to CareTrust's overall income.
Other Healthcare Properties
Beyond skilled nursing and senior housing, CareTrust invests in and leases other types of healthcare-related real estate. This can include properties used for outpatient care, behavioral health services, or other specialized medical needs. This segment allows CareTrust to diversify its portfolio beyond its core focus areas. The revenue model remains consistent: CareTrust owns the property and leases it to healthcare providers who operate the services, generating rental income for CareTrust.
What management is betting on now
CareTrust's management is focused on growing the company by acquiring more healthcare properties and expanding its relationships with existing and new operators. They are actively looking for opportunities to deploy capital into new acquisitions and structured investments, aiming to increase their portfolio's overall yield. A key part of their strategy is deepening partnerships with strong operators who can consistently pay rent, which provides stability and allows CareTrust to focus on growth rather than managing underperforming assets. They are also working to diversify their tenant base and property types to reduce risk and create more avenues for growth.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$161.35M
Net income
$89.00M
Diluted EPS
0.38
Operating cash flow
$134.75M
Free cash flow
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Revenue
$142.78M
Net income
$80.21M
Diluted EPS
0.36
Operating cash flow
$90.36M
Free cash flow
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Sources
Revenue
$134.86M
Net income
$111.29M
Diluted EPS
0.52
Operating cash flow
$120.96M
Free cash flow
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Revenue
$132.44M
Net income
$74.90M
Diluted EPS
0.35
Operating cash flow
$100.91M
Free cash flow
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Revenue
$112.47M
Net income
$68.55M
Diluted EPS
0.35
Operating cash flow
$100.78M
Free cash flow
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Revenue
$96.62M
Net income
$65.80M
Diluted EPS
0.35
Operating cash flow
$71.38M
Free cash flow
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Revenue
$86.94M
Net income
$52.13M
Diluted EPS
0.30
Operating cash flow
$75.21M
Free cash flow
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Revenue
$77.38M
Net income
$33.44M
Diluted EPS
0.21
Operating cash flow
$67.25M
Free cash flow
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Is it cheap or expensive?
Fair value $49.67 vs current price $36.39
Wall Street consensus is the average analyst price target: $43.64 (-12.1% lower than our fair-value estimate).
Our most-likely fair value is $49.67 a share — about 36.5% away from today's price of $36.39, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $1.2B. Interest coverage 4.9x.
Net debt
$1.16B
Interest coverage
4.91x
CareTrust REIT, Inc.'s profit covers its interest bill about 4.9 times over. which is stronger than every peer shown here.
Watch
Worse cushion
Baseline
Better cushion
CTRE
BASELINE
CareTrust REIT, Inc.
Total debt $1.21B Interest coverage 4.91x This is the baseline the peer rows are being compared against.
Total debt $4.03B Interest coverage 3.46x -29% vs CTRE Carries about 1.4x less debt cushion than CTRE.
Total debt $2.63B Interest coverage 2.35x -52% vs CTRE Carries about 2.1x less debt cushion than CTRE.
Total debt $1.28B Interest coverage 3.53x -28% vs CTRE Carries about 1.4x less debt cushion than CTRE.
Total debt $779.49M Interest coverage 3.53x -28% vs CTRE Carries about 1.4x less debt cushion than CTRE.
Total debt $1.57B Interest coverage 1.97x -60% vs CTRE Carries about 2.5x less debt cushion than CTRE.
What you should know
The case for and against CTRE
3 Rewards
1 Risk
Rewards
-
Revenue grew 20.0% last year.
-
Returns 9.1% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Insider ownership is only 0.8% (peer median: 1.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
22.74x
Forward P/E
19.38x
P/B
1.91x
P/S
15.05x
EV/EBITDA
20.17x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
96.4%
Operating margin
64.9%
Net margin
62.2%
ROE
9.1%
ROA
4.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.27x
Current ratio
3.30x
Quick ratio
2.95x
Total debt
$1.21B
Total cash
$47.59M
Growth
How the business has been compounding
Revenue TTM
$571.43M
Revenue 5Y CAGR
25.4%
EPS TTM
1.60
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$446.99M
Free CF TTM
$379.04M
FCF margin
66.3%
Dividend
Shareholder payout
Yield
4.3%
Payout ratio
90.6%
Last ex-div date
2026-09-30