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Sabra Health Care REIT, Inc. (NASDAQ:SBRA): The Best Of Both Worlds

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I've been keeping an eye on Sabra Health Care REIT, Inc. (NASDAQ:SBRA) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SBRA has a lot to offer. Basically, it is a notable dividend payer with a an impressive history of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Sabra Health Care REIT here.

Good value with proven track record and pays a dividend

SBRA delivered a bottom-line expansion of 82% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, SBRA also outperformed its industry, which delivered a growth of 18%. This is what investors like to see! SBRA's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if SBRA's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, SBRA's share price is trading below the group's average. This bolsters the proposition that SBRA's price is currently discounted.

NasdaqGS:SBRA Income Statement, May 6th 2019
NasdaqGS:SBRA Income Statement, May 6th 2019

SBRA is considered one of the top dividend payers in the market, and its profitability ensures that dividends are well-covered by its net income.

NasdaqGS:SBRA Historical Dividend Yield, May 6th 2019
NasdaqGS:SBRA Historical Dividend Yield, May 6th 2019

Next Steps:

For Sabra Health Care REIT, there are three key factors you should further research:

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  1. Future Outlook: What are well-informed industry analysts predicting for SBRA’s future growth? Take a look at our free research report of analyst consensus for SBRA’s outlook.

  2. Financial Health: Are SBRA’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SBRA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.