GICS Sector : Healthcare
Sienna Senior Living Inc., through its subsidiaries, provides senior living and long-term care (LTC) services in Canada.It operates through Retirement and LTC segments.The company offers a range of seniors' living options, including independent supportive and assisted living, memory care, and long-term care services, as well as specialized services comprising dementia care, continence management, skin and wound care, palliation, and end of life care; and provides management services.
Sienna Senior Living Inc. reported revenue of $278.4 million in Q4 2025, representing a 14.2% year-over-year increase, driven by occupancy and rental rate growth, as well as increased care revenue. The company's same-property NOI increased by 10.1% to $47.4 million, with a 15.4% increase in the Retirement segment and a 5.6% increase in Long-Term Care. However, the actual EPS came out at $0.07, missing estimates of $0.25. Analysts had estimated revenue growth of 2.8% for the next year.
Publication Date: Mar -05
The company's financial performance was strong, with a robust pipeline and opportunities in both long-term care and retirement lines of business. Sienna maintained a strong financial position and balance sheet, ending the year with over $500 million in liquidity and $1.5 billion of unencumbered assets. The company expects to continue its growth momentum in 2026, with same-property NOI growth in excess of 10% in the Retirement segment and in the low single digits in Long-Term Care.
To understand what's priced into Sienna Senior Living's stock, we can look at its valuation metrics. The company has a P/E Ratio of 49.98, P/B Ratio of 3.09, and EV/EBITDA of 23.02. The Dividend Yield is 4.01%, while the Free Cash Flow Yield is -1.85%. The ROE is 6.93%, and the ROIC is 4.16%. The Net Debt / EBITDA ratio is 8.3. These metrics indicate that the company's stock may be priced for high growth expectations, but the actual EPS miss and revenue growth estimate may impact the stock's performance.
Nitin Jain mentioned that the company's 10% growth rate is a combination of rent growth, occupancy increase, and other factors. They're currently at 95% occupancy, which is uncharted territory, and some homes are already at 100% occupancy. The company's optimization portfolio saw occupancy increase by 790 basis points year-over-year in Q4 and NOI grew by 22.1%. The lease-up of the Hygate property in Waterloo is tracking ahead of expectations, and the company is seeing strong demand for the property.
The company is seeing economic trends that may lead to an increase in supply in the future, particularly in retirement homes. Demographic changes are happening, with baby boomers entering senior living, and obsolete retirement homes needing to be replaced. The cost of building and buying these facilities has also skyrocketed, making it challenging for new entrants. As a result, only sophisticated senior living providers can afford to enter this complex market, leading to more discipline in the industry.
Sienna Senior Living Inc. (TSE:SIA) Given Consensus Rating of “Buy” by Analysts
Mar -26
Sienna Senior Living (TSE:SIA) Stock Price Passes Above Fifty Day Moving Average – Time to Sell?
Mar -20
Sienna Announces March Dividend
Mar -13
Sienna Senior Living Inc. (TSE:SIA) Receives Average Rating of “Buy” from Analysts
Mar -01
Sienna Senior Living (TSE:SIA) Reaches New 1-Year High Following Analyst Upgrade
Feb -24
Brokerages Set Sienna Senior Living Inc. (TSE:SIA) PT at C$22.67
Feb -07
Sienna Announces Completion of $250 Million Offering of 3.524% Series F Senior Unsecured Debentures
Dec -18
Sienna Announces November Dividend
Nov -14
Sienna Senior Living Inc.'s Long-term Care segment growth of 4.5% is driven by increasing demand for senior care services, aging population, and government funding for healthcare. Additionally, the company's strategic acquisitions, expansion of existing facilities, and focus on high-acuity care are contributing to its growth.
Sienna Senior Living Inc.'s 4.8% growth driven by increasing demand for senior living services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on providing high-quality care and amenities, as well as its efforts to improve operational efficiency, have contributed to its growth.
Sienna Senior Living Inc.'s 3.2% growth in Adjustments for Joint Venture is driven by increasing demand for senior living services, strategic partnerships, and effective cost management. Additionally, the company's focus on expanding its portfolio of high-quality senior living communities and investing in technology to enhance operational efficiency have contributed to this growth.
Sienna Senior Living Inc. offers long-term care services for seniors who require ongoing medical and personal care. This includes 24/7 nursing care, medication management, and assistance with daily living activities.
Sienna Senior Living Inc. provides memory care services specifically designed for seniors living with Alzheimer's disease or other forms of dementia. This includes specialized programming, activities, and care tailored to meet the unique needs of individuals with memory impairments.
Sienna Senior Living Inc. offers assisted living services for seniors who require assistance with daily living activities such as bathing, dressing, and medication management. This includes support with daily tasks, meals, and social activities.
Sienna Senior Living Inc. provides independent living services for active seniors who want to maintain their independence while having access to amenities and services. This includes private suites, meals, and social activities.
Sienna Senior Living Inc. offers respite care services for seniors who require temporary care and support. This includes short-term stays, meals, and social activities.
Sienna Senior Living Inc. faces moderate threat from substitutes, as seniors have limited alternatives for senior living services.
Residents and their families have limited bargaining power due to the specialized nature of senior living services offered by Sienna Senior Living Inc.
Suppliers of food, medical equipment, and other essential services have moderate bargaining power, as Sienna Senior Living Inc. relies on them for quality services.
The threat of new entrants is low due to the high barriers to entry, including regulatory hurdles and significant capital investments required to establish a senior living facility.
The senior living industry is highly competitive, with many established players, leading to a high intensity of rivalry among competitors, including Sienna Senior Living Inc.
| Value | |
|---|---|
| Debt Weight | 72.92% |
| Debt Cost | 5.74% |
| Equity Weight | 27.08% |
| Equity Cost | 9.69% |
| WACC | 6.81% |
| Leverage | 269.32% |
Value: 4.1
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