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5/08/2012

Long-Term Care Facilities : FVE

Five Star Quality Care Inc. (FVE)

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"Five Star Quality Care, Inc. operates and manages senior living communities in the United States. Its senior living communities include independent living communities, assisted living communities, and skilled nursing facilities (SNFs)."

Five Star Quality Care Inc. (FVE) is not as  interesting as initially thought. But the -60.86% 52 week return does provide a potential for eventual strong reversion to the mean.

Current enterprise value per share is 4.73 down from 2010 average amount of 5.50. Current price is 3.16 with a market capitalization of 151 million. Enterprise value is  237 million. On a positive not EV to book is at a historical low but the asset base has moved higher from PPE over the past 2 years. ROIC is sound at 19.82%. FVE does own a nice real estate portfolio. below is a table that may be useful.

2007-12 2008-12 2009-12 2010-12 2011-12 Current
Price 9.28 4.63 2.50 4.22 5.18 3.16
EV Per Share 10.86 10.12 2.82 5.50 6.88 4.73
BV Per Share 2.10 2.68 3.59 4.20 6.22 6.23
Sales Per Share 23.48 34.64 30.76 31.65 28.46 27.92
ROIC 9.97 -1.89 15.67 10.31 22.53 19.82
FCF/Sales -3.58 -3.26 -2.94 4.26 -1.30 -2.00
EV/Sales 0.46 0.29 0.09 0.17 0.24 0.17
EV/BV 5.18 3.78 0.79 1.31 1.11 0.76
           
YOY Price Change   -50.05% -46.03% 68.78% 22.76% -39.02%
YOY EV Change   -6.79% -72.10% 94.88% 25.07% -31.30%
YOY EV/Sales Change   -58.32% -218.23% 47.20% 28.09% -42.80%
YOY EV/Book Change   -37.12% -381.02% 39.98% -18.38% -45.64%