📊 CTRE Key Takeaways
Is CareTrust REIT, Inc. (CTRE) a Good Investment?
CareTrust REIT exhibits strong profitability margins and exceptional free cash flow generation with conservative leverage, but the extraordinary 38,789% YoY revenue spike coupled with minimal net income growth (0.2%) signals non-organic growth or accounting anomalies that question earnings quality. The critically low ROE (1.9%) and ROA (1.5%) despite 56%+ net margins suggest severely inefficient capital deployment and warrant caution.
CareTrust REIT shows strong core fundamentals, with very high operating and net margins, robust operating cash flow, and modest leverage relative to equity. The balance sheet appears healthy and cash generation is excellent, but the extreme revenue growth versus nearly flat net income suggests acquisition-driven or non-recurring factors, so growth quality should be monitored closely.
CareTrust REIT, Inc. Key Strengths (CTRE)
- Exceptional free cash flow generation at 87.4M with 61.2% FCF margin demonstrates strong cash conversion
- Conservative capital structure with 0.22x Debt/Equity ratio and 7.3x interest coverage provides financial stability
- Outstanding net margin of 56.2% and operating margin of 57.3% show pricing power and operational efficiency
- Exceptional profitability, with 68.3% operating margin and 67.3% net margin
- Strong financial health, supported by low debt-to-equity of 0.22x and solid 7.4x interest coverage
- Very strong cash generation, with $394.03M operating cash flow and $391.09M free cash flow
CTRE Stock Risks: CareTrust REIT, Inc. Investment Risks
- Abnormal revenue growth (38,789% YoY) decoupled from net income growth (0.2% YoY) indicates acquisition-driven or non-recurring revenue rather than sustainable organic growth
- Severely depressed ROE (1.9%) and ROA (1.5%) despite high margins reveal poor capital efficiency and question return generation on 5.2B asset base
- Zero insider Form 4 filings in past 90 days combined with unusual growth metrics may signal management concerns about value creation
- Revenue surged dramatically while net income was almost flat, which raises questions about the sustainability and quality of recent growth
- Return metrics are solid but not exceptional for the size of the asset base, with ROA of 6.2% and ROE of 7.9%
- Cash on hand is moderate relative to total liabilities and debt, so future expansion or refinancing conditions still matter
Key Metrics to Watch
- Organic revenue growth rate and contribution from acquisitions to assess true operational performance
- Return on equity and return on assets trending to identify whether capital efficiency improves
- Operating cash flow stability and free cash flow sustainability in subsequent reporting periods
- Operating cash flow and free cash flow conversion
- Net income growth relative to revenue growth and leverage levels
CareTrust REIT, Inc. (CTRE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 61.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CTRE Profit Margin, ROE & Profitability Analysis
CTRE vs Real Estate Sector: How CareTrust REIT, Inc. Compares
How CareTrust REIT, Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is CareTrust REIT, Inc. Stock Overvalued? CTRE Valuation Analysis 2026
Based on fundamental analysis, CareTrust REIT, Inc. has mixed fundamental signals relative to the Real Estate 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.
CareTrust REIT, Inc. Balance Sheet: CTRE Debt, Cash & Liquidity
CTRE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: CareTrust REIT, Inc.'s revenue has declined by 64% over the 5-year period, indicating business contraction. The most recent EPS of $0.50 reflects profitable operations.
CTRE Revenue Growth, EPS Growth & YoY Performance
CTRE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | N/A | $65.8M | $0.35 |
| Q3 2021 | N/A | $11.9M | $0.12 |
| Q2 2021 | N/A | $18.9M | $0.20 |
| Q1 2021 | N/A | $19.3M | $0.20 |
| Q3 2020 | $634.0K | -$10.1M | $-0.11 |
| Q2 2020 | $615.0K | $16.1M | $0.20 |
| Q1 2020 | $625.0K | $16.1M | $0.18 |
| Q3 2019 | $871.0K | -$10.1M | $-0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CareTrust REIT, Inc. Dividends, Buybacks & Capital Allocation
CTRE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for CareTrust REIT, Inc. (CIK: 0001590717)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CTRE
What is the AI rating for CTRE?
CareTrust REIT, Inc. (CTRE) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CTRE's key strengths?
Claude: Exceptional free cash flow generation at 87.4M with 61.2% FCF margin demonstrates strong cash conversion. Conservative capital structure with 0.22x Debt/Equity ratio and 7.3x interest coverage provides financial stability. ChatGPT: Exceptional profitability, with 68.3% operating margin and 67.3% net margin. Strong financial health, supported by low debt-to-equity of 0.22x and solid 7.4x interest coverage.
What are the risks of investing in CTRE?
Claude: Abnormal revenue growth (38,789% YoY) decoupled from net income growth (0.2% YoY) indicates acquisition-driven or non-recurring revenue rather than sustainable organic growth. Severely depressed ROE (1.9%) and ROA (1.5%) despite high margins reveal poor capital efficiency and question return generation on 5.2B asset base. ChatGPT: Revenue surged dramatically while net income was almost flat, which raises questions about the sustainability and quality of recent growth. Return metrics are solid but not exceptional for the size of the asset base, with ROA of 6.2% and ROE of 7.9%.
What is CTRE's revenue and growth?
CareTrust REIT, Inc. reported revenue of $142.8M.
Does CTRE pay dividends?
CareTrust REIT, Inc. pays dividends, with $74.8M distributed to shareholders in the trailing twelve months.
Where can I find CTRE SEC filings?
Official SEC filings for CareTrust REIT, Inc. (CIK: 0001590717) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CTRE's EPS?
CareTrust REIT, Inc. has a diluted EPS of $0.36.
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 CTRE's fundamental grade?
Based on our AI fundamental analysis in June 2026, CareTrust REIT, Inc. has a A grade with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CTRE stock overvalued or undervalued?
Valuation metrics for CTRE: ROE of 1.9% (sector avg: 8%), net margin of 56.2% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
What is CTRE's AI grade for 2026?
Our dual AI analysis gives CareTrust REIT, Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CTRE's free cash flow?
CareTrust REIT, Inc.'s operating cash flow is $90.4M, with capital expenditures of $2.9M. FCF margin is 61.2%.
How does CTRE compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 56.2% (avg: 20%), ROE 1.9% (avg: 8%), current ratio N/A (avg: 1.5).