Five Star Quality Care, Inc. ($FVE) Possible Buy to $6 Confident Investor Rating: Good

Company name Five Star Quality Care, Inc.
Stock ticker FVE
Live stock price [stckqut]FVE[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Fair
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $9
Target stock price (averages with growth) $5.61
Target stock price (averages with no growth) $1.56
Target stock price (manual assumptions) $7.34

The following company description is from Google Finance: http://www.google.com/finance?q=fve

Five Star Quality Care, Inc. (Five Star), operates senior living communities, including independent living communities, assisted living communities and skilled nursing facilities (SNFs). As of December 31, 2011, the Company operated 245 senior living communities located in 30 states containing 27,159 living units, including 207 primarily independent and assisted living communities with 23,736 living units and 38 SNFs with 3,423 living units. During the year ended December 31, 2011, the Company discontinued its operations on two SNFs owned and operated by it containing 271 living units and one assisted living community leased from Senior Housing Properties Trust (SNH) and operated by it containing 103 living units. In 2011, the Company acquired from unrelated parties seven assisted living communities containing 854 living units with one located in Arizona and the other six located in Indiana, or the Indiana Communities. In September 2012, it sold its pharmacy business to Omnicare, Inc.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good, in fact the company ranks as a Good company, but there are some concerns with the price of the stock most notably it's top line revenue growth. Even though this stock ranks as Good, I will not be adding it to my Watch List because of some of my concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.