CareTrust REIT, Inc. (CTRE) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

CareTrust REIT, Inc. (CTRE) Real Estate Portfolio & Strategy

CareTrust REIT, Inc. specializes in the ownership and leasing of healthcare properties, focusing on skilled nursing and senior housing facilities nationwide. With a strong emphasis on long-term net leases and strategic operator partnerships, the company aims to capitalize on both external acquisitions and internal growth opportunities within the healthcare REIT sector.

What Is the Investment Thesis for CTRE?

The company's long-term net-lease model provides stable cash flow, supported by a dividend yield of 3.35%. With a profit margin of 71.5% and a gross margin of 86.8%, CareTrust REIT demonstrates strong operational efficiency. Key growth catalysts include strategic acquisitions of healthcare properties and organic growth through existing operator relationships. The company's beta of 0.79 suggests lower volatility compared to the broader market. However, potential risks include regulatory changes in the healthcare industry and competition from other REITs like American Healthcare REIT, Inc. (AHR) and Healthcare Realty Trust Incorporated (HR). Investors should monitor the company's ability to maintain high occupancy rates and manage operator performance to ensure continued revenue growth.

Based on FMP financials and quantitative analysis

CTRE Key Highlights

Market capitalization of $9.17B, reflecting substantial investor confidence in CareTrust REIT's market position.

• P/E ratio of 24.11, indicating a premium valuation based on earnings.
• Profit margin of 71.5%, showcasing efficient management and profitable operations within the healthcare REIT sector.
• Gross margin of 86.8%, highlighting the company's ability to maintain high revenue relative to the cost of goods sold.
• Dividend yield of 3.35%, providing a steady income stream for investors.

Who Are CTRE's Competitors?

CTRE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CTRE's Key Strengths?

Stable cash flow from long-term net leases.

• High profit and gross margins.
• Experienced management team.
• Strong relationships with operators.

What Are CTRE's Weaknesses?

Reliance on operator performance.

• Exposure to regulatory changes in the healthcare industry.
• Limited diversification beyond skilled nursing and seniors housing.
• Small number of employees relative to market cap.

What Could Drive CTRE Stock Higher?

Strategic acquisitions of skilled nursing and senior housing facilities to expand the company's portfolio.

• Organic growth through improved operator performance and increased occupancy rates.
• Potential development and redevelopment projects to create new healthcare facilities.
• Expansion into new geographic markets with favorable demographics.

What Are the Key Risks for CTRE?

Inconsistent delivery — missed Wall Street EPS estimates in 6 of the last 8 reported quarters.

• Insider selling — insiders were net sellers of roughly $6.5M recently.
• Regulatory changes in the healthcare industry impacting reimbursement rates and operating costs.
• Competition from other REITs for acquisitions and operator partnerships.
• Economic downturn leading to decreased occupancy rates and rental income.
• Reliance on the financial stability and operational performance of tenant operators.
• Rising interest rates increasing borrowing costs and impacting profitability.

What Are the Growth Opportunities for CTRE?

• Growth opportunity 1: Strategic Acquisitions: CareTrust REIT can expand its portfolio through targeted acquisitions of well-performing skilled nursing and senior housing facilities. The market for healthcare properties is substantial, with ongoing consolidation and opportunities to acquire assets from smaller operators. By focusing on properties with strong occupancy rates and established operator relationships, CareTrust REIT can drive revenue growth and increase its market share. The timeline for acquisitions is ongoing, with potential deals closing throughout the year.
• Growth opportunity 2: Organic Growth through Operator Relationships: CareTrust REIT can foster organic growth by working closely with its existing operators to improve property performance and expand service offerings. This includes investing in property upgrades, enhancing resident care programs, and attracting new residents. By supporting its operators, CareTrust REIT can increase occupancy rates, drive revenue growth, and strengthen its competitive position. This is an ongoing strategy with continuous improvement initiatives.
• Growth opportunity 3: Development and Redevelopment Projects: CareTrust REIT can pursue development and redevelopment projects to create new, state-of-the-art healthcare facilities. This includes building new skilled nursing facilities, expanding existing properties, and converting underutilized spaces into revenue-generating assets. Development projects can provide higher returns compared to acquisitions, but also involve greater risks and longer timelines. The timeline for development projects typically ranges from 18 to 36 months.
• Growth opportunity 4: Expansion into New Geographies: CareTrust REIT can expand its geographic footprint by entering new markets with favorable demographics and strong demand for healthcare services. This includes targeting states with aging populations and limited supply of skilled nursing and senior housing facilities. By diversifying its geographic exposure, CareTrust REIT can reduce its reliance on specific regions and mitigate the impact of local market conditions. This expansion can be achieved through acquisitions or development projects, with a timeline of 12 to 24 months.
• Growth opportunity 5: Diversification into Related Healthcare Properties: CareTrust REIT can diversify its portfolio by investing in related healthcare properties, such as medical office buildings, rehabilitation centers, and specialty hospitals. This can broaden its revenue base and reduce its exposure to the skilled nursing and senior housing sectors. Diversification can be achieved through acquisitions or partnerships, with a timeline of 12 to 18 months.

What Are CTRE's Competitive Advantages?

• Long-term net leases provide stable and predictable cash flow.
• Strategic relationships with quality operators enhance property performance.
• Nationwide portfolio diversifies geographic risk.
• Focus on the growing healthcare sector provides long-term demand.

What Does CTRE Do?

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust (REIT) established to invest in healthcare-related properties. The company's primary focus is on owning, acquiring, developing, and leasing properties within the skilled nursing and seniors housing sectors. CareTrust REIT operates on a long-term net-lease model, partnering with a diverse range of operators across the United States. Founded with the vision of providing essential real estate capital to the healthcare industry, CareTrust REIT has grown its portfolio to encompass a nationwide presence. The company's strategy involves identifying and acquiring well-performing properties, as well as fostering strong relationships with its operating partners. This approach allows CareTrust REIT to benefit from both the stability of long-term leases and the growth potential of the healthcare sector. CareTrust REIT's portfolio includes a mix of skilled nursing facilities, assisted living facilities, and independent living communities. The company actively seeks opportunities to expand its footprint through strategic acquisitions and developments, while maintaining a disciplined approach to capital allocation. CareTrust REIT is headquartered in San Clemente, California, and manages its portfolio with a focus on delivering sustainable, long-term value to its shareholders.

What Products and Services Does CTRE Offer?

• Owns and leases skilled nursing facilities.
• Acquires seniors housing properties.
• Develops healthcare-related real estate.
• Manages a nationwide portfolio of long-term net-leased properties.
• Partners with quality operators in the healthcare sector.
• Pursues external growth opportunities through acquisitions.
• Drives organic growth through existing operator relationships.

How Does CTRE Make Money?

• CareTrust REIT operates on a long-term net-lease model, where tenants are responsible for property expenses.
• The company generates revenue through rental income from its healthcare properties.
• CareTrust REIT focuses on acquiring and developing properties in the skilled nursing and seniors housing sectors.

What Industry Does CTRE Operate In?

CareTrust REIT operates within the healthcare REIT sector, which is experiencing growth due to the aging population and increasing demand for senior housing and skilled nursing facilities. The market is competitive, with key players like American Healthcare REIT, Inc. (AHR) and Healthcare Realty Trust Incorporated (HR). These companies compete for acquisitions and operator partnerships. CareTrust REIT differentiates itself through its focus on long-term net leases and strategic relationships with operators. The industry is also influenced by regulatory changes and reimbursement policies, which can impact the profitability of healthcare facilities.

Who Are CTRE's Key Customers?

• Operators of skilled nursing facilities.
• Operators of seniors housing properties.
• Residents of skilled nursing and seniors housing facilities.

Company Profile

CareTrust REIT, Inc. operates in the REIT - Healthcare Facilities industry within the Real Estate sector. It is headquartered in Dana Point, US. The company is led by CEO David Sedgwick. CTRE has traded publicly since 2014.

Return on equity for CareTrust REIT, Inc. stands at 8.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 6.4%, showing how much profit it generates from its asset base. CTRE trades at a trailing price-to-earnings ratio of 24.11, below the Real Estate sector average of ~29.00x. Its free cash flow yield is 4.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.75 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.8%, the inverse of the P/E and a quick read on earnings relative to price.

CTRE Valuation & Market Position

With a $9.17B market cap, CareTrust REIT, Inc. sits in the mid-cap segment of the market. Analyst price targets span from $43.00 to $47.00, with a consensus of $44.43. At the current price of $38.82, that implies approximately 14% upside potential. Relative to its peer group, CTRE's quantitative score of 96/100 is above the peer average of 76/100.

Quarterly Financial Performance: CareTrust REIT, Inc.

Revenue for CareTrust REIT, Inc. came in at $161.3M during Q2 FY2026, a 13.0% improvement versus the preceding quarter. The company recorded net income of $89.0M, with diluted EPS of $0.38. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Real Estate company. Across the four most recent quarters, CTRE averaged $0.41 in diluted EPS.

CareTrust REIT, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 4.18 places it in the safe zone, indicating low near-term bankruptcy risk.

CareTrust REIT, Inc. has missed Wall Street's EPS estimate in 6 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 4.9% below estimates on average.

The most recent 12 insider filings for CareTrust REIT, Inc. break down as 3 sales and 9 purchases. On net that is roughly 28K shares acquired (about $6.5M) — insiders putting money in tends to read as conviction.

CTRE Financials

CTRE Latest News

CTRE Analyst Consensus

CTRE MoonshotScore

CTRE Real Estate Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources