CareTrust REIT (CTRE)
NYSE:CTRE
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CareTrust REIT
(NYSE:CTRE)
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Rating:81Outperform
Price Target:
$43.00
▲(8.86% Upside)
Action:Reiterated
Date:05/22/26
CTRE scores well primarily on strong financial performance (high profitability, accelerating TTM growth, and strong cash generation) and a notably positive earnings update with raised guidance and dividend growth. Technicals add support via a clear uptrend and positive momentum, while valuation is the main tempering factor given the higher P/E despite a decent yield.
Positive Factors
Strong Cash Generation
CareTrust's very strong operating and free cash flow, which nearly track net income, provide durable internal funding for dividends, acquisitions and debt service. High FCF supports payout growth and reduces reliance on external capital, underpinning long-term earnings quality and strategic activity.
Negative Factors
SHOP Cap-Rate Compression
Intensifying competition and cap-rate compression in SHOP reduce underwriting cushions and require tighter spreads to reach target returns. If sustained, this structural pressure can lower future acquisition yields, compress incremental portfolio cash returns and force riskier bidding to maintain growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
CareTrust's very strong operating and free cash flow, which nearly track net income, provide durable internal funding for dividends, acquisitions and debt service. High FCF supports payout growth and reduces reliance on external capital, underpinning long-term earnings quality and strategic activity.
Read all positive factors
CareTrust REIT (CTRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.75B
Dividend Yield3.56%
Average Volume (3M)2.69M
Price to Earnings (P/E)24.2
Beta (1Y)0.28
Revenue Growth58.48%
EPS Growth70.32%
CountryUS
Employees21
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)1.57
Shares Outstanding236,240,230
10 Day Avg. Volume3,290,622
30 Day Avg. Volume2,688,974
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)1.82
Price to Sales (P/S)15.45
P/FCF Ratio19.43
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue19.79
Enterprise Value/Gross Profit26.83
Enterprise Value/Ebitda18.73
Forecast
1Y Price Target
$44.88Price Target Upside13.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.49
Revenue Forecast (FY)$499.30M
CareTrust REIT Business Overview & Revenue Model
Company Description
CareTrust REIT, Inc. operates as a self-managed, publicly traded real estate investment trust. The company specializes in the ownership, acquisition, development, and leasing of various healthcare properties, including skilled nursing facilities, ...
How the Company Makes Money
CareTrust REIT primarily makes money by collecting contractual rent from healthcare operators that lease its properties. Its core revenue stream is lease income generated from long-term net leases, under which tenants are generally responsible for...
CareTrust REIT Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: substantial year-to-date investment activity (~$1.1B), double-digit per-share FFO/FAD growth, raised guidance, an investment-grade rating, strong rent coverage, and ample liquidity. The primary headwinds are competitive pressure and cap-rate compression in SHOP and selective pricing pressure on larger SNF deals, as well as modest near-term increases in G&A and accounting complexity around loans. Overall, the positives (accelerating investment activity, upgraded rating, raised guidance, strong earnings and coverage, and healthy liquidity) materially outweigh the challenges described.Positive Updates
Strong Investment Activity and Scale-Up
Closed approximately $245M of investments in Q1 and, since April, an additional 12 transactions totaling ~ $865M; year-to-date closed ~ $1.1B of investments at a blended stabilized yield of ~8.9% (Q1 blended yield 8.8%). Current quoted pipeline ~ $360M (over half UK care homes, ~20% SHOP).
Negative Updates
Increased Competition and Cap Rate Compression in SHOP
SHOP market is highly competitive with cap-rate compression (management estimates ~50 bps compression over the past six months); class-A primary SHOP cap rates described as roughly in the mid-5% range, making it harder to win deals without stretching underwriting.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Investment Activity and Scale-Up
Closed approximately $245M of investments in Q1 and, since April, an additional 12 transactions totaling ~ $865M; year-to-date closed ~ $1.1B of investments at a blended stabilized yield of ~8.9% (Q1 blended yield 8.8%). Current quoted pipeline ~ $360M (over half UK care homes, ~20% SHOP).
Read all positive updates
Company Guidance
CareTrust raised its 2026 full‑year guidance, with normalized FAD now guided to $1.98–$2.02 and the midpoints of updated normalized FFO and FAD representing increases of 14.8% and 13.6%, respectively, versus 2025 (and +4.9% and +3.9% versus the company’s initial 2026 guidance); the guidance assumes a weighted average diluted share count of 234 million, no new investments/loans/dispositions or debt/equity issuances beyond year‑to‑date activity, 2.5% inflation‑based rent escalators on long‑term triple‑net leases, $145 million of loans to be repaid this year, and no material change in the sterling–dollar spot rate. The company noted strong Q1 operating results (normalized FFO $107.4M, +38% YoY; normalized FAD $107.6M, +33% YoY; normalized FFO/FAD per share $0.48, +14%/+12% YoY), and highlighted ample liquidity and conservative leverage as support for the guidance (≈$70M cash, $350M drawn on a $1.2B revolver with ≈$850M availability, ≈$879M ATM capacity, net debt/annualized normalized run‑rate EBITDA 0.6x and net debt/enterprise value ~3.6%).CareTrust REIT Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 468.13M | 476.59M | 228.26M | 198.60M | 187.51M | 190.19M |
| Gross Profit | 345.39M | 281.79M | 214.71M | 189.01M | 178.13M | 186.62M |
| EBITDA | 494.82M | 462.08M | 211.54M | 145.80M | 72.88M | 151.05M |
| Net Income | 334.95M | 320.54M | 125.08M | 53.73M | -7.51M | 71.98M |
Balance Sheet | ||||||
| Total Assets | 5.24B | 5.15B | 3.44B | 2.08B | 1.62B | 1.64B |
| Cash, Cash Equivalents and Short-Term Investments | 223.21M | 198.04M | 213.82M | 294.45M | 13.18M | 19.89M |
| Total Debt | 894.65M | 894.22M | 396.93M | 595.60M | 719.50M | 673.40M |
| Total Liabilities | 1.08B | 1.09B | 507.63M | 666.12M | 771.41M | 725.09M |
| Stockholders Equity | 4.13B | 4.04B | 2.91B | 1.42B | 849.37M | 915.76M |
Cash Flow | ||||||
| Free Cash Flow | 397.14M | 379.04M | 236.20M | 143.79M | 137.12M | 150.86M |
| Operating Cash Flow | 413.01M | 394.03M | 244.25M | 154.77M | 144.41M | 156.87M |
| Investing Cash Flow | -1.53B | -1.46B | -1.49B | -267.81M | -127.40M | -192.63M |
| Financing Cash Flow | 707.98M | 1.05B | 1.17B | 394.32M | -23.73M | 36.74M |
CareTrust REIT Technical Analysis
Negative
39.50
Price Trends
39.39
Negative
38.89
Negative
36.94
Negative
Market Momentum
-0.93
Positive
33.94
Neutral
18.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTRE, the sentiment is Negative. The current price of 39.5 is above the 20-day moving average (MA) of 38.86, above the 50-day MA of 39.39, and above the 200-day MA of 36.94, indicating a bearish trend. The MACD of -0.93 indicates Positive momentum. The RSI at 33.94 is Neutral, neither overbought nor oversold. The STOCH value of 18.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTRE.
CareTrust REIT Risk Analysis
CareTrust REIT disclosed 49 risk factors in its most recent earnings report. CareTrust REIT reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CareTrust REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $8.75B | 24.22 | 8.67% | 3.56% | 58.48% | 70.32% | |
69 Neutral | $13.55B | 20.98 | 12.40% | 6.11% | 13.95% | 27.68% | |
67 Neutral | $3.47B | 23.02 | 9.88% | 4.73% | 16.91% | -1.91% | |
66 Neutral | $7.10B | -34.56 | -4.34% | 6.56% | -6.44% | 46.41% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $4.68B | 29.14 | 5.61% | 6.47% | 13.50% | 7.25% | |
64 Neutral | $9.78B | 86.86 | 3.37% | 2.10% | 12.24% | ― |
* Real Estate Sector Average
CTRE
CareTrust REIT
36.38
7.69
26.80%
NHI
National Health Investors
70.56
3.02
4.47%
OHI
Omega Healthcare
44.64
9.87
28.40%
SBRA
Sabra Healthcare REIT
18.05
0.87
5.04%
HR
Healthcare Realty Trust
20.02
5.75
40.26%
AHR
American Healthcare REIT, Inc.
46.52
11.61
33.26%
CareTrust REIT Corporate Events
Business Operations and StrategyPrivate Placements and Financing
CareTrust REIT Completes Upsized Public Equity Offering
Positive
May 21, 2026
On May 18, 2026, CareTrust REIT, Inc. and its operating partnership entered into an underwriting agreement with Wells Fargo Securities and J.P. Morgan Securities for a public equity offering of 12,500,000 common shares, plus an option for 1,875,00...
Business Operations and StrategyPrivate Placements and Financing
CareTrust REIT Launches Large Forward Equity Offering
Positive
May 20, 2026
On May 18, 2026, CareTrust REIT entered into an underwriting agreement with Wells Fargo and J.P. Morgan to facilitate a public offering of 12,500,000 common shares, with an option for underwriters to purchase up to an additional 1,875,000 shares a...
Business Operations and StrategyDividendsFinancial Disclosures
CareTrust REIT Raises 2026 Guidance After Strong Q1
Positive
May 7, 2026
CareTrust REIT reported strong first-quarter 2026 results on May 7, 2026, highlighted by net income of $80.2 million, or $0.36 per diluted share, and double-digit year-over-year growth in normalized funds from operations and funds available for di...
Executive/Board ChangesShareholder Meetings
CareTrust REIT Stockholders Back Board and Governance Plans
Positive
Apr 30, 2026
CareTrust REIT, Inc. held its 2026 annual meeting of stockholders on April 29, 2026, where investors voted on board composition, executive pay and auditor selection. The real estate investment trust focuses on healthcare-related properties such as...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.