One-glance verdict
Overvalued
$-7.14 our estimate vs market $3.65
Wall Street consensus: $5.12 (-171.8% lower than our fair-value estimate)
151% below our estimate, beyond the bull case
Fundamentals snapshot
Medical Properties Trust, Inc.
MPT · NYQ · Real Estate · REIT - Healthcare Facilities
Current price
$3.65
52-week range
$3.36 - $6.47
Market cap
$2.18B
Balance sheet
Distressed
1.05x Concerning
Net debt $9.31B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 2.9% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Operating margin compressed from 65.1% to 57.4% over 3 years.
- Risk Return on equity was -0.6% last year — the company lost money on shareholders' equity.
What this company does
Medical Properties Trust, Inc.
Medical Properties Trust is a special type of company called a real estate investment trust (a company that owns buildings and rents them out), which focuses only on owning hospital properties. It makes money by buying hospital buildings and then leasing them back to the hospital operators, collecting steady rent payments. This business model allows hospitals to raise cash for improvements by selling their real estate, while providing the company with a reliable, long-term source of income.
How the company got here
Medical Properties Trust (MPT) was started in 2003 to buy and build hospitals, and then rent them out. It became a publicly traded company in 2005, which means anyone can buy a piece of the company, called a stock. Over the years, it grew by buying hundreds of hospitals and other healthcare buildings, not just in the U.S. but also in Europe and other parts of the world. Recently, the company has faced challenges because some of the hospital operators it rents to have had financial problems, which affects MPT's income. This has led MPT to focus on strengthening its financial situation by selling some properties and paying down its debt.
What it actually does
Think of MPT as a landlord for hospitals. Instead of renting apartments to people, it rents entire hospital buildings to the companies that actually run the hospitals and treat patients. MPT's main business is providing money to these hospital operators through a process called a sale-leaseback. This is where a hospital operator sells its building to MPT to get cash, and then immediately rents it back from MPT on a long-term contract. This arrangement allows the hospital operator to use the cash for things like upgrading equipment or expanding its services, while MPT gets a steady stream of rental income.
Hospital Facility Leasing
This is the company's main business and where almost all of its money comes from. MPT owns different types of healthcare buildings, such as general hospitals, rehabilitation centers, and behavioral health facilities. It leases these properties to hospital operating companies under long-term agreements, which provides a predictable source of revenue (money the company makes). The tenants, which are the hospital operators, are responsible for all the costs of maintaining the buildings, so MPT acts purely as the landlord. This single line of business is the core of the entire company's operations.
What management is betting on now
The company's leadership is currently focused on making its finances more secure. A key priority is to reduce its debt by selling off some properties and using the cash to pay back what it owes. Management is also working to deal with the financial troubles of some of its tenants (the hospital operators who rent from them) to ensure it continues to collect rent. The company has also updated its brand and stock ticker to 'MPT' to simplify its identity as it moves forward. The main goal is to create a more stable financial foundation to support the company's long-term value.
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
$252.06M
Net income
$32.83M
Diluted EPS
0.05
Operating cash flow
$-14.26M
Free cash flow
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Sources
Revenue
$270.34M
Net income
$17.31M
Diluted EPS
0.03
Operating cash flow
$160.06M
Free cash flow
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Sources
Revenue
$237.52M
Net income
$-77.73M
Diluted EPS
-0.13
Operating cash flow
$18.57M
Free cash flow
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Sources
Revenue
$240.36M
Net income
$-98.36M
Diluted EPS
-0.16
Operating cash flow
$51.75M
Free cash flow
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Sources
Revenue
$223.80M
Net income
$-118.28M
Diluted EPS
-0.20
Operating cash flow
$384.00K
Free cash flow
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Sources
Revenue
$231.84M
Net income
$-412.85M
Diluted EPS
-0.68
Operating cash flow
$76.69M
Free cash flow
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Sources
Revenue
$225.83M
Net income
$-801.16M
Diluted EPS
-1.34
Operating cash flow
$59.20M
Free cash flow
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Sources
Revenue
$266.56M
Net income
$-320.63M
Diluted EPS
-0.54
Operating cash flow
$35.26M
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $-7.14 vs current price $3.65
Wall Street consensus is the average analyst price target: $5.12 (-171.8% lower than our fair-value estimate).
Our most-likely fair value is $-7.14 a share — about 295.6% below today's price of $3.65, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $9.3B. Interest coverage 1.1x.
Net debt
$9.31B
Interest coverage
1.05x
Medical Properties Trust, Inc.'s profit covers its interest bill about 1.1 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
MPT
BASELINE
Medical Properties Trust, Inc.
Total debt $9.70B Interest coverage 1.05x This is the baseline the peer rows are being compared against.
Total debt $4.03B Interest coverage 3.46x +229% vs MPT Carries about 3.3x more debt cushion than MPT.
Total debt $12.92B Interest coverage 1.40x +33% vs MPT Carries about 1.3x more debt cushion than MPT.
Total debt $19.72B Interest coverage 0.54x -48% vs MPT Carries about 1.9x less debt cushion than MPT.
Total debt $10.32B Interest coverage 1.78x +70% vs MPT Carries about 1.7x more debt cushion than MPT.
Total debt $4.40B Interest coverage 0.46x -56% vs MPT Carries about 2.3x less debt cushion than MPT.
What you should know
The case for and against MPT
3 Rewards
2 Risks
Rewards
-
Revenue grew 2.9% last year.
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 10.6% with 22-year payout history.
Risks
-
Operating margin compressed from 65.1% to 57.4% over 3 years.
-
Return on equity was -0.6% last year — the company lost money on shareholders' equity.
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)
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Forward P/E
73.00x
P/B
0.48x
P/S
1.97x
EV/EBITDA
11.95x
PEG ratio
1.61x
Profitability
How much profit each dollar creates
Gross margin
95.9%
Operating margin
57.4%
Net margin
-2.7%
ROE
-0.6%
ROA
2.8%
Health
Liquidity and balance-sheet strength
Debt / equity
2.16x
Current ratio
1.17x
Quick ratio
1.00x
Total debt
$9.70B
Total cash
$396.56M
Growth
How the business has been compounding
Revenue TTM
$1.00B
Revenue 5Y CAGR
-10.9%
EPS TTM
-0.05
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$216.12M
Free CF TTM
$230.77M
FCF margin
23.1%
Dividend
Shareholder payout
Yield
10.6%
Payout ratio
1,054.6%
Last ex-div date
2026-09-10