Five Star Quality Care, Inc. operates and manages senior living communities in the United States. The companys senior living communities comprise independent living communities, assisted living communities, and skilled nursing facilities. The company was founded in 2000 and is based in Newton, Massachusetts.
FVE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Five Star Senior Living Inc. To summarize, we found that Five Star Senior Living Inc ranked in the 91th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1947% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Five Star Senior Living Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 5.12 -- which is good for besting 53.38% of its peer stocks (US stocks in the Healthcare sector with positive cash flow).
Its compound free cash flow growth rate, as measured over the past 5.49 years, is 0.72% -- higher than 86.44% of stocks in our DCF forecasting set.
88% of the company's capital comes from equity, which is greater than 70.08% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FVE, try ALPN, CORT, OMI, SSY, and BEAT.
Diversified Healthcare Trust (DHC) has had a year that it would rather forget. The REIT struggled with its senior housing operating portfolio where occupancies have plummeted. This came on the back of a rather difficult 2019 where DHC cut its dividends for the first time, thanks to a rather troublesome...
Trapping Value on Seeking Alpha | January 15, 2021
Clark Street Value is bullish on Five Star Senior Living Inc. (NASDAQ:FVE) stock. Clark Street Value is an individual investor that is focused on finding value and special situation investments. Five Star Senior Living Inc. (NASDAQ:FVE) owns and operates a senior living communities. In the last one year, Five Star Senior Living Inc. (NASDAQ:FVE) stock gained […]
NEWTON, Mass.--(BUSINESS WIRE)--Five Star Senior Living Inc. (Nasdaq: FVE) today announced its plan to begin administering the COVID-19 vaccine to Five Star residents and team members this month. As the Pfizer COVID-19 vaccine has received Emergency Use Authorization (EUA) by the Food and Drug Administration (FDA), Five Star intends to take advantage of the federal plan prioritizing long-term care residents and workers. Five Star will prioritize the vaccination of residents and staff in its ski
NEWTON, Mass.--(BUSINESS WIRE)--Five Star Senior Living Inc. (Nasdaq: FVE) is pleased to announce that Katie Potter, president and chief executive officer, has been recognized as a Senior Housing Influencer in the November/December issue of GlobeSt. Real Estate Forum. The Influencer series honors individuals, teams and companies that have made a recognizable and significant impact in the industry by completing deals and projects and introducing innovation and best practices. Potter oversees nea