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
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.
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.