📊 BKD Key Takeaways
Is Brookdale Senior Living Inc. (BKD) a Good Investment?
Brookdale exhibits severe financial distress with negative stockholders equity (-$55.9M), an unsustainable interest coverage ratio of 0.2x, and negative free cash flow of -$25.6M annually. The company cannot service its $4.3B debt burden from operations and is burning cash despite modest revenue growth, indicating a balance sheet that is technically insolvent and facing material refinancing risk.
Brookdale's fundamentals remain very weak: modest 2.2% revenue growth is not translating into earnings, with operating margin at just 0.4% and net losses still substantial at -$262.69M. Financial health is strained by negative equity, $4.29B of long-term debt, and extremely weak interest coverage of 0.1x, while free cash flow is only marginally positive. The business shows some operating cash generation, but the overall quality of growth is poor because it is not yet producing durable profitability or balance-sheet repair.
Brookdale Senior Living Inc. Key Strengths (BKD)
- Modest revenue growth of 2.2% YoY demonstrates operational activity in mature senior living sector
- Gross margin of 28.3% indicates reasonable underlying unit economics before SG&A and interest burden
- Cash position of $265.2M provides near-term liquidity buffer for operations
- Revenue is still growing modestly year over year, indicating stable underlying demand
- Gross margin of 26.2% suggests the core service base retains some economic value before overhead and financing costs
- Operating cash flow of $218.03M remained positive, allowing free cash flow to stay slightly positive
BKD Stock Risks: Brookdale Senior Living Inc. Investment Risks
- Negative stockholders equity of -$55.9M represents balance sheet insolvency and equity value destruction
- Interest coverage ratio of 0.2x is critically unsustainable - operating income covers only 20% of interest expense
- Negative free cash flow of -$25.6M with capex exceeding operating cash flow indicates ongoing cash burn
- Net income remains deeply negative at -$6.9M with zero YoY improvement and EPS deteriorating 25.8% YoY
- Current ratio of 1.03x reflects extremely tight liquidity with minimal operational stress buffer
- Negative stockholders equity and liabilities exceeding assets indicate a highly stressed balance sheet
- Interest coverage of 0.1x shows operating income is far too low relative to debt burden
- Net margin of -8.2% and only 0.5% free cash flow margin leave little cushion against operational setbacks
Key Metrics to Watch
- Interest coverage ratio trajectory - must move above 1.0x for sustainability
- Free cash flow inflection - needs to turn positive to stabilize balance sheet
- Operating cash flow trend - monitor for further deterioration in cash generation
- Debt refinancing success and maturity schedule - refinancing risk is material
- Net profitability path - monitor cost structure efficiency and pricing power
- Occupancy rates and reimbursement rates - underlying operational drivers of cash generation
- Operating margin and interest coverage
- Free cash flow after capital expenditures and net debt reduction
Brookdale Senior Living Inc. (BKD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Brookdale Senior Living Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
BKD Profit Margin, ROE & Profitability Analysis
BKD vs Services Sector: How Brookdale Senior Living Inc. Compares
How Brookdale Senior Living Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Brookdale Senior Living Inc. Stock Overvalued? BKD Valuation Analysis 2026
Based on fundamental analysis, Brookdale Senior Living Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Brookdale Senior Living Inc. Balance Sheet: BKD Debt, Cash & Liquidity
BKD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Brookdale Senior Living Inc.'s revenue has declined by 21% over the 5-year period, indicating business contraction. The most recent EPS of $-0.84 indicates the company is currently unprofitable.
BKD Revenue Growth, EPS Growth & YoY Performance
BKD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $764.9M | -$6.9M | $-0.03 |
| Q3 2025 | $784.2M | -$50.7M | $-0.22 |
| Q2 2025 | $777.5M | -$37.7M | $-0.17 |
| Q1 2025 | $782.8M | -$29.6M | $-0.13 |
| Q3 2024 | $757.3M | -$48.8M | $-0.22 |
| Q2 2024 | $750.8M | -$4.5M | $-0.02 |
| Q1 2024 | $753.3M | -$29.6M | $-0.13 |
| Q3 2023 | $757.3M | -$28.4M | $-0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Brookdale Senior Living Inc. Dividends, Buybacks & Capital Allocation
BKD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Brookdale Senior Living Inc. (CIK: 0001332349)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BKD
What is the AI rating for BKD?
Brookdale Senior Living Inc. (BKD) has a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BKD's key strengths?
Claude: Modest revenue growth of 2.2% YoY demonstrates operational activity in mature senior living sector. Gross margin of 28.3% indicates reasonable underlying unit economics before SG&A and interest burden. ChatGPT: Revenue is still growing modestly year over year, indicating stable underlying demand. Gross margin of 26.2% suggests the core service base retains some economic value before overhead and financing costs.
What are the risks of investing in BKD?
Claude: Negative stockholders equity of -$55.9M represents balance sheet insolvency and equity value destruction. Interest coverage ratio of 0.2x is critically unsustainable - operating income covers only 20% of interest expense. ChatGPT: Negative stockholders equity and liabilities exceeding assets indicate a highly stressed balance sheet. Interest coverage of 0.1x shows operating income is far too low relative to debt burden.
What is BKD's revenue and growth?
Brookdale Senior Living Inc. reported revenue of $764.9M.
Does BKD pay dividends?
Brookdale Senior Living Inc. does not currently pay dividends.
Where can I find BKD SEC filings?
Official SEC filings for Brookdale Senior Living Inc. (CIK: 0001332349) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BKD's EPS?
Brookdale Senior Living Inc. has a diluted EPS of $-0.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is BKD's fundamental grade?
Based on our AI fundamental analysis in June 2026, Brookdale Senior Living Inc. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is BKD stock overvalued or undervalued?
Valuation metrics for BKD: ROE of N/A (sector avg: 16%), net margin of -0.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is BKD's AI grade for 2026?
Our dual AI analysis gives Brookdale Senior Living Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BKD's free cash flow?
Brookdale Senior Living Inc.'s operating cash flow is $20.9M, with capital expenditures of $46.5M. FCF margin is -3.3%.
How does BKD compare to other Services stocks?
Vs Services sector averages: Net margin -0.9% (avg: 10%), ROE N/A (avg: 16%), current ratio 1.03 (avg: 1.5).