Regional Health Properties (RHEP) AI Stock Analysis

• Market Cap: $4.68M
• Dividend Yield: N/A
• Average Volume (3M): 4.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: 59.17%
• EPS Growth: -56.62%
• Country: US
• Employees: 256
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): -0.68
• Shares Outstanding: 3,837,639
• 10 Day Avg. Volume: 4,668
• 30 Day Avg. Volume: 4,184
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 15.38
• Enterprise Value/Revenue: 3.35
• Enterprise Value/Gross Profit: 8.84
• Enterprise Value/Ebitda: 41.94
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 40 Neutral
• Price Target: $1.00 ▼(-18.03% Downside)

The overall stock score for Regional Health Properties is primarily impacted by its financial performance and technical analysis. The company's strong revenue growth is overshadowed by significant profitability and leverage challenges, while technical indicators suggest bearish momentum. Valuation concerns, including a negative P/E ratio, further weigh down the score.

Regional Health Properties Business Overview & Revenue Model

Company Description

Regional Health Properties, Inc., through its subsidiaries, operates as a self-managed real estate investment company that invests primarily in real estate purposed for long-term care and senior living. Its business principally consists of leasing and subleasing such facilities to third-party tenants, which operate the facilities. The company's facilities provide a range of healthcare services to patients and residents, including skilled nursing and assisted living services, social services, various therapy services, and other rehabilitative and healthcare services for long-term and short-stay patients and residents. As of December 31, 2021, it owned, leased, or managed 24 facilities primarily in the Southeastern United States of America. The company was incorporated in 1991 and is headquartered in Suwanee, Georgia.

How the Company Makes Money

Regional Health Properties generates revenue primarily through leasing its healthcare facilities to operators under long-term triple-net leases. In this structure, the tenants are responsible for property expenses including maintenance, insurance, and property taxes, allowing RHEP to receive consistent rental income without incurring significant operational costs. Additionally, the company may earn revenue from management fees and performance-based incentives if it is involved in managing certain facilities. RHEP's strategic partnerships with healthcare operators and its focus on acquiring properties in high-demand markets contribute to its earnings stability and growth potential.

Regional Health Properties Financial Statement Overview

Summary

Regional Health Properties faces significant financial challenges, with weak profitability and a highly leveraged balance sheet. Revenue recovery in the TTM period is a positive sign, but sustained improvement in margins and cash flow generation is crucial. The company must address high debt levels and improve operational efficiency to stabilize its financial position.

Income Statement

Regional Health Properties has shown volatile revenue trends with a notable decline in 2022. The TTM figures indicate some recovery with a revenue increase, but profitability remains weak with negative net income over multiple periods. Gross profit margin has improved slightly in the TTM, but EBIT and EBITDA margins are low, indicating operational challenges.

Balance Sheet

The company's financial position appears strained with a negative stockholders' equity and a high debt-to-equity ratio due to significant liabilities. Despite a reduction in total debt in the most recent period, the equity ratio is negative, reflecting a highly leveraged balance sheet and potential financial instability.

Cash Flow

Cash flow from operations has been inconsistent, with free cash flow improving in the TTM period. However, the operating cash flow to net income ratio is not favorable due to negative net income. The company has managed to generate positive free cash flow, but the underlying cash flow stability needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.51M	18.34M	17.16M	35.92M	26.69M	17.58M
Gross Profit	8.14M	8.30M	8.00M	9.98M	10.31M	10.35M
EBITDA	1.72M	2.22M	1.45M	-1.93M	4.08M	5.07M
Net Income	-3.52M	-3.22M	-3.89M	-6.87M	-1.18M	-688.00K
Balance Sheet
Total Assets	59.28M	60.47M	62.18M	68.58M	105.70M	108.03M
Cash, Cash Equivalents and Short-Term Investments	3.06M	582.00K	953.00K	843.00K	6.79M	4.19M
Total Debt	51.51M	43.96M	45.68M	55.40M	84.94M	90.32M
Total Liabilities	63.44M	63.38M	62.00M	64.86M	95.30M	96.92M
Stockholders Equity	-4.16M	-2.92M	185.00K	3.72M	10.40M	11.10M
Cash Flow
Free Cash Flow	1.04M	1.41M	2.75M	-3.88M	4.77M	845.00K
Operating Cash Flow	1.58M	1.94M	3.71M	-3.60M	4.89M	1.29M
Investing Cash Flow	-540.00K	-530.00K	-958.00K	-281.00K	-123.00K	-450.00K
Financing Cash Flow	-1.96M	-2.13M	-2.48M	-2.06M	-2.42M	-1.39M

Regional Health Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RHEP, the sentiment is Negative. The current price of 1.22 is below the 20-day moving average (MA) of 1.42, below the 50-day MA of 1.64, and below the 200-day MA of 1.99, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 36.07 is Neutral, neither overbought nor oversold. The STOCH value of 20.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RHEP.

Regional Health Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	―	$1.88B	18.05	10.65%	2.09%	25.19%	13.44%
PNTG	―	$872.34M	32.28	11.44%	―	30.58%	24.86%
CYH	―	$533.30M	1.59	―	―	0.74%	―
BKD	―	$2.18B	―	-108.91%	―	3.99%	-14.74%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SNDA	―	$482.25M	-11.23	-53.33%	―	31.37%	34.94%
RHEP	―	$4.68M	-0.50	―	―	59.17%	-56.62%

Regional Health Properties Corporate Events

Regional Health Properties Completes Merger with SunLink

On August 14, 2025, Regional Health Properties, Inc. completed its merger with SunLink Health Systems, Inc., integrating SunLink’s pharmacy and healthcare services with Regional’s real estate platform. This merger, which resulted in the issuance of approximately 1,595,400 shares of Regional common stock and 1,408,120 shares of Regional Series D preferred stock, aims to create a vertically integrated company poised for growth and improved efficiency. The leadership team of the newly combined company includes Brent S. Morrison as President and CEO, with a board of directors composed of members from both Regional and SunLink.

Regional Health Properties and SunLink Merger Approved

On August 4, 2025, Regional Health Properties and SunLink Health Systems announced that their shareholders approved the merger of SunLink into Regional, with Regional as the surviving entity. The merger, subject to customary closing conditions, involves the issuance of Regional’s common stock and Series D Preferred Stock as part of the merger consideration, marking a significant step in the integration of the two companies.

Regional Health Properties Sells Coosa Valley Facility

On July 30, 2025, Regional Health Properties, Inc. entered into a binding asset purchase agreement to sell Coosa Valley Health and Rehab to Coosa Valley SNF Realty LLC for $10.6 million, subject to a 45-day due diligence period. Additionally, Regional Health Properties and SunLink Health Systems, Inc. are planning a proposed merger, which will be submitted to shareholders for consideration, with important documents filed with the SEC for investor review.

Regional Health Properties Adjourns Merger Meeting for Votes

On July 29, 2025, Regional Health Properties, Inc. held a special meeting to discuss a proposed merger with SunLink Health Systems, Inc. The meeting was adjourned to solicit additional votes for the merger and share issuance proposals, with plans to reconvene on August 4, 2025. This merger, if approved, would see SunLink merging into Regional, potentially impacting stakeholders by consolidating operations under Regional’s management.

Regional Health Properties Announces Merger with SunLink

On July 28, 2025, Regional Health Properties, Inc. announced a proposed merger with SunLink Health Systems, Inc., urging shareholders to vote in favor. The merger is expected to bring significant benefits, including improved capital access, enhanced management expertise, and potential for increased shareholder value. Despite opposition from certain shareholders with interests in Series B preferred stock, the merger is positioned as advantageous for all shareholders, aiming to improve the company’s financial standing and market presence.