Regional Health Properties (RHEP) AI Stock Analysis

• Market Cap: $5.54M
• Dividend Yield: N/A
• Average Volume (3M): 5.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: 23.70%
• EPS Growth: -109.93%
• Country: US
• Employees: 256
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Care Facilities
• EPS (TTM): -0.94
• Shares Outstanding: 2,129,239
• 10 Day Avg. Volume: 6,234
• 30 Day Avg. Volume: 5,477
• PEG Ratio: 0.05
• Price to Book (P/B): -1.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.31
• Enterprise Value/Market Cap: 9.66
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 6.56
• Enterprise Value/Ebitda: 8.46
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The overall score reflects significant financial challenges, including weak profitability and a highly leveraged balance sheet. While technical indicators show positive momentum, the poor valuation with a negative P/E ratio limits the stock's attractiveness. Sustained improvements in financial performance are crucial for a positive outlook.

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 portfolio of healthcare and senior living facilities to third-party operators. The company's business model involves acquiring properties and leasing them under long-term agreements, which provides a steady stream of rental income. These leases often include annual rent escalations, contributing to revenue growth. Additionally, RHEP may engage in property sales or acquisitions as part of its strategy to optimize its portfolio, which can also impact earnings. The company's financial performance is influenced by the operational success of its tenants, occupancy rates of the facilities, and overall demand in the healthcare real estate market.

Regional Health Properties Financial Statement Overview

Summary

Regional Health Properties faces significant financial challenges. Despite some revenue recovery in the TTM period, the company has weak profitability and a highly leveraged balance sheet. The improvement in free cash flow is positive, but overall financial stability remains a concern.

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	4.18M	9.98M	10.31M	10.35M
	EBIT
440.00K	161.00K	-804.00K	3.88M	1.39M	2.29M
	EBITDA
1.72M	2.22M	1.45M	6.29M	3.98M	5.19M
	Net Income Common Stockholders
-3.52M	-3.22M	-3.89M	-15.09M	-2.66M	-3.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
582.00K	582.00K	953.00K	843.00K	6.79M	4.19M
	Total Assets
60.47M	60.47M	62.18M	68.58M	105.70M	108.03M
	Total Debt
43.96M	43.96M	53.65M	55.40M	84.94M	90.32M
	Net Debt
43.38M	43.38M	52.70M	54.56M	78.14M	86.14M
	Total Liabilities
63.38M	63.38M	62.00M	64.86M	95.30M	96.92M
	Stockholders Equity
-2.92M	-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: Positive
• Last Price: 2.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RHEP, the sentiment is Positive. The current price of 2.6 is above the 20-day moving average (MA) of 2.22, above the 50-day MA of 1.94, and above the 200-day MA of 1.85, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 55.09 is Neutral, neither overbought nor oversold. The STOCH value of 84.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RHEP.

Regional Health Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	76 Outperform	$1.68B	15.71	11.19%	2.25%	19.16%	31.92%
PNTG	69 Neutral	$1.04B	39.43	11.28%	―	30.04%	43.47%
BKD	56 Neutral	$1.61B	―	-91.17%	―	3.88%	-34.30%
SNDA	56 Neutral	$494.46M	―	-70.23%	―	26.13%	37.38%
RHEP	54 Neutral	$5.54M	―		―	23.70%	-109.93%
Sector *	52 Neutral	$5.19B	3.04	-44.64%	2.82%	16.45%	-0.53%
MODV	33 Underperform	$13.18M	―	-951.52%	―	-0.70%	-2.38%

Regional Health Properties Corporate Events

Regional Health Properties Announces Leadership Changes and Merger Plan

On January 15, 2025, Heather L. Pittard, the Chief Accounting Officer of Regional Health Properties, announced her resignation, effective February 15, 2025. Paul J. O’Sullivan will take over her responsibilities as the principal accounting officer. Additionally, during the company’s 2024 Annual Meeting of Shareholders held on January 14, 2025, key decisions included the election of directors and the ratification of Cherry Bekaert, LLP as the company’s independent registered public accounting firm for 2024. Notably, a proposed merger with SunLink Health Systems, Inc. is also in the pipeline, pending shareholder approval.