senior housing industry Sector in dire straits?

Discussion in 'Economics' started by Hookway, Mar 11, 2019.

  1. Hookway


    Hello All

    Can someone help me understand the nature of the financial metrics for Assisted living

    For example

    Genesis HealthCare (GEN)

    Possibly the 2nd biggest in the USA

    employs some 66000 people with a relatively trivial market cap of $220M

    thats about $3k of market cap per employee

    and this is with 380 FACILITIES, ie about $700k in mkt cap per FACILITY, houses are worth more than that

    Market cap is far less than annual revenue

    The largest (Brookdale Senior Living, Inc) appears to be in worse shape

    Am I missing something in understanding these figures or is there something seriously amiss

    Any help in understanding this appreciated
  2. aqtrader


    Balance sheet too bad. Net is negative 2 billion.
  3. Sig


    Did you check out the liabilities part of the assets and liabilities?
  4. Hookway


    Yes. As far as I can read the balance sheet it appears they have giant debt and financing lease obligations. They are also operating with large losses.
  5. Sig


    Well there's your answer. Probably made worse by contracts they have with tenants that are costing them more than they make but they can't get out of until the tenant dies.
    Stocktracker and aqtrader like this.
  6. themickey