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With the baby-boomer generation |
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becoming older, think care homes. |
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Released on Wednesday, November 30, 2011, 9:00 PM ET
Pittsburgh, PA (SpeculatingStocks) - Sun Rise Senior Living Inc. (NYSE:SRZ) is a small cap trading at $5.03 per share with a market capitalization around $285 million the company. Yet, it has been providing care to senior citizens for the past 30 years.
SRZ has an EPS of $0.11 per share and a price that is around 43 times earnings. SRZ also has a volatility beta around 4.86. And yet over the past few months the stock has moved down, hitting a 52-week low of about $3.68 per share, before bouncing back again. The stock is now currently trading right above its 50-day moving average.
The company has a current ratio of 0.74 so it would be fairly strong in paying any of its current bills; Sun Rise also has a stable operating cash flow of $41.94 million, and enough cash to offer $1.46 per share. And although Sun Rise doesn’t have any dividend for the shareholder, it does hold a return on equity of 8.34%.
With the baby-boomer generation becoming older and retiring, it will not be long before that very same generation is moving into nursing or community care homes. Over the long-term, or perhaps in the short-term as the case may be, nursing homes as a financial sector should become highly prized investments as their revenue and demand continue to grow with a shift of population: it’s basic economics. The only question is whether you would want to invest now rather than later in Sun Rise.
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