Genesis Healthcare provides post-acute care services through a network of skilled nursing centers and assisted/senior living communities in the United States. It operates through three segments: Long-Term Care Services, Therapy Services, and Hospice and Home Health Services. The company was founded in 2003 and is based in Kennett Square, Pennsylvania.
GEN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Genesis Healthcare Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Genesis Healthcare Inc ranked in the 98th percentile in terms of potential gain offered. Our DCF model suggests the stock is undervalued by 28157.5%; returns of such proportions should be viewed with some skepticism, though. In terms of the factors that were most noteworthy in this DCF analysis for GEN, they are:
1% of the company's capital comes from equity, which is greater than just 0.97% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 99% of the company's capital is sourced from debt; this is greater than 98.99% of the free cash flow producing stocks we're observing.
The weighted average cost of capital for the company is 12. This value is greater than 85.78% stocks in the Healthcare sector that generate free cash flow.
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 GEN, try KMDA, VRTX, THC, ASNB, and AMEH.
Healthcare REITS focused on skilled nursing facilities are in the spotlight at Mizuho, which noted the news last week that operators Genesis (GEN) and Signature received qualified audit opinions. That's a report that raised concerns about tenant credit at REITs focused on SNFs, the firm says, but it believes investors...
Introduction For the uninitiated, Healthcare Services Group (HCSG) is a support services company that deals with the housekeeping, laundry, facility maintenance, and dietary service requirements of c.3000 health facilities across the U.S. To put it in crude terms, HCSG serves as something akin to an outsourced admin department for these...
The Alpha Sieve on Seeking Alpha | September 11, 2020
KENNETT SQUARE, Pa., July 23, 2020 (GLOBE NEWSWIRE) -- As part of an effort to reduce avoidable hospital readmissions along with gaps in care coordination both within and across settings, and to improve outcomes for patients, the American Heart Association has awarded the first Post-Acute Care Heart Failure Center Certification to eight Genesis HealthCare (Genesis) skilled nursing facilities. The Post-Acute Care Heart Failure Center Certification is the first of its kind to recognize skilled nursing facilities committed to following current evidence-based guidelines to reduce hospital readmissions for heart failure patients. It was piloted with Genesis, one of the nation’s largest providers of skilled nursing and long-term care.The certification builds on the Association’s Get With The...