# Brookdale Senior Living (BKD.US)

Canonical: https://gigainvestors.com/s/BKD

Analysis as of: 2026-10-16T07:26:57.148Z. Financial observations: FY2003–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $10.09 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 9

- Operating margin variation: 1.84×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.07×

- FY2018: -0.17×

- FY2019: -0.01×

- FY2020: -0.03×

- FY2021: -0.08×

- FY2022: -0.02×

- FY2023: 0.01×

- FY2024: 0.02×

- FY2025: 0.01×

- LTM to Jun 2026: 0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 8.0pp below the typical margin (limit 4pp)

- ROIC, median of available years: -0.6%

- ROIC, second-lowest year: -3.8%

- Typical minus recent gross margin: 8.0 pp

- Typical gross margin (annual median): 22.4%

- Recent gross margin (lower of latest and 3-year median): 14.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.5%

- ROIC including acquisitions, ten-year median: -1.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -3.8%

- FY2018: -9.5%

- FY2019: -0.6%

- FY2020: -1.6%

- FY2021: -3.2%

- FY2022: -0.7%

- FY2023: 0.3%

- FY2024: 0.7%

- FY2025: 0.2%

- LTM to Jun 2026: 10.6%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$213M

- Net income, five-year total: -$991M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.6 pp

- Working capital / revenue, change between three-year averages: -4.6 pp

- Working capital / revenue, final three-year average: 0.0%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $69M

- FY2022: -$81M

- FY2023: -$72M

- FY2024: -$35M

- FY2025: -$94M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -3.8% vs 0.3%

- Per-share earnings: -2.48 to -0.89 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.5%

- Ordinary dilution, 5-year annual growth: 5.0%

- Market cap gain: $205M

- Cumulative retained earnings: -$2.3B

- Diluted shares, 10-year annual growth: 2.5%

- Diluted shares, 5-year annual growth: 5.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $1.59

- Per-share value, starting three-year median: -$2.48

- Per-share value, ending three-year median: -$0.89

- Buybacks concentrated in cheaper years (correlation): 0.12

- Average buyback yield: 0.7%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $4.7B

- Cumulative net income, 10 years: -$2.7B

- ROIC, first three-year median: -3.8%

- ROIC, last three-year median: 0.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$2.18

- FY2017: -$3.07

- FY2018: -$2.82

- FY2019: -$1.44

- FY2020: $0.44

- FY2021: -$0.54

- FY2022: -$1.25

- FY2023: -$0.84

- FY2024: -$0.89

- FY2025: -$1.12

### accounting: pass

- Sloan accruals: -8.1%

- Receivables to sales index (DSRI): 1.24×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 5.5%

- Earnings backed by cash: Yes

- Accounting red flags: 0

Chart: Sloan accruals; fiscal year observations.

- FY2016: -8.4%

- FY2017: -12.2%

- FY2018: -11.3%

- FY2019: -6.7%

- FY2020: -1.8%

- FY2021: -0.1%

- FY2022: -4.1%

- FY2023: -6.3%

- FY2024: -5.8%

- FY2025: -8.1%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Martin Whitman](https://gigainvestors.com/TA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 37% since Jun 2026 · sales -3.5%

Story as of 2026-10-16T09:58:24.204Z; price observation 2026-10-15.

- 2025-10-10: Brookdale (BKD) Hits All-Time High on Occupancy Rate Surge, New CEO ([finance.yahoo.com](https://finance.yahoo.com/news/brookdale-bkd-hits-time-high-023324833.html))

- 2025-11-08: Brookdale targets mid-teen adjusted EBITDA growth through 2026 as occupancy and portfolio optimization advance ([seekingalpha.com](https://seekingalpha.com/news/4519021-brookdale-targets-mid-teen-adjusted-ebitda-growth-through-2026-as-occupancy-and-portfolio?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales -3.5%; source https://www.sec.gov/Archives/edgar/data/1332349/000133234926000032/bkd-20251231.htm; observed 2026-02-19.

- FY2017: $3.9B 

- FY2018: $3.5B 

- FY2019: $4.1B 

- FY2020: $3.0B 

- FY2021: $2.7B 

- FY2022: $2.7B 

- FY2023: $2.9B 

- FY2024: $3.0B 

- FY2025: $3.1B 

- FY2026: $3.0B 

### Gross margin · FY2026

gross margin 14.4%; source https://www.sec.gov/Archives/edgar/data/1332349/000133234926000032/bkd-20251231.htm; observed 2026-02-19.

- FY2017: 32.5% 

- FY2018: 30.3% 

- FY2019: 21.6% 

- FY2020: 23.2% 

- FY2021: 17.8% 

- FY2022: 18.7% 

- FY2023: 26.0% 

- FY2024: 27.1% 

- FY2025: 20.6% 

- FY2026: 14.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical care facilities; annual sales are USD 3.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1332349/000133234926000032/bkd-20251231.htm (filed 2026-02-19); FY2025: revenue 3124949000; grossProfit 645024000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); BKD.US: Brookdale Senior Living Inc. owns, manages, and operates senior living communities in the United States. It operates in three segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs). The Independent Living segment owns or leases communities comprising independent and assisted living units in a single community that are primarily designed for middle to upper income seniors. The Assisted Living and Memory Care segment owns or leases communities consisting of freestanding, multi-story communities and freestanding single-story communities, which offer housing and 24-hour assistance with activities of daily living for the Company's residents. This segment operates memory care communities for residents with Alzheimer's and other dementias. The CCRCs segment owns or leases communities that provides various living arrangements, such as independent and assisted living, memory care, and skilled nursing; and services to accommodate various levels of physical ability and healthcare needs. It manages communities on behalf of others. The company was incorporated in 2005 and is headquartered in Brentwood, Tennessee.

### Why customers stay

Margins ranged from 20.6% to 27.1% during 2023–25; it lost 0.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: grossProfit / revenue = 26%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: grossProfit / revenue = 27.1%.

- Source: https://www.sec.gov/Archives/edgar/data/1332349/000133234926000032/bkd-20251231.htm (filed 2026-02-19); FY2025: grossProfit / revenue = 20.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); 10-year return on capital observations [[2017,-0.037739848248467614],[2018,-0.09452834964257135],[2019,-0.005768625308689888],[2020,-0.016077765679520725],[2021,-0.03193401350631695],[2022,-0.006743889145197258],[2023,0.0030339199622216946],[2024,0.006672985561730225],[2025,0.0021483163303614963],[2026,0.10602969100843568]]; median -0.006256257226943573. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 1 of 10 years; bought back USD 6.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2020: growth capex 0; upkeep 185871000; owner earnings 261802000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2021: growth capex 0; upkeep 176657000; owner earnings 69115000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,4293000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1332349/000133234926000032/bkd-20251231.htm (filed 2026-02-19); FY2025: cash repurchases 6473000 USD.

### Are managers owners

Insiders own 2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); BKD.US SharesStats.PercentInsiders = 1.9539999999999997 percentage points; cache date 2026-10-15.

### What the price says

The price is 0.8 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Closing price 10.09 USD; reporting-to-trading FX 1; FY2025 annual sales per share 13.287647176382045; price multiple 0.7593518902228484. FY2025 cash earnings/share -0.3993375202507048. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $14.43 per share

- 2016-11: $11.63 per share

- 2016-12: $12.42 per share

- 2017-01: $14.97 per share

- 2017-02: $14.40 per share

- 2017-03: $13.43 per share

- 2017-04: $12.99 per share

- 2017-05: $13.74 per share

- 2017-06: $14.71 per share

- 2017-07: $14.20 per share

- 2017-08: $12.13 per share

- 2017-09: $10.60 per share

- 2017-10: $10.03 per share

- 2017-11: $10.69 per share

- 2017-12: $9.70 per share

- 2018-01: $9.50 per share

- 2018-02: $6.53 per share

- 2018-03: $6.71 per share

- 2018-04: $7.24 per share

- 2018-05: $7.87 per share

- 2018-06: $9.09 per share

- 2018-07: $9.59 per share

- 2018-08: $9.92 per share

- 2018-09: $9.83 per share

- 2018-10: $8.93 per share

- 2018-11: $8.55 per share

- 2018-12: $6.70 per share

- 2019-01: $8.15 per share

- 2019-02: $6.76 per share

- 2019-03: $6.58 per share

- 2019-04: $6.18 per share

- 2019-05: $6.18 per share

- 2019-06: $7.21 per share

- 2019-07: $7.79 per share

- 2019-08: $8.18 per share

- 2019-09: $7.58 per share

- 2019-10: $7.35 per share

- 2019-11: $7.14 per share

- 2019-12: $7.27 per share

- 2020-01: $6.59 per share

- 2020-02: $6.57 per share

- 2020-03: $3.12 per share

- 2020-04: $3.61 per share

- 2020-05: $3.66 per share

- 2020-06: $2.95 per share

- 2020-07: $2.77 per share

- 2020-08: $2.75 per share

- 2020-09: $2.54 per share

- 2020-10: $2.94 per share

- 2020-11: $4.24 per share

- 2020-12: $4.43 per share

- 2021-01: $4.94 per share

- 2021-02: $5.82 per share

- 2021-03: $6.05 per share

- 2021-04: $6.54 per share

- 2021-05: $6.74 per share

- 2021-06: $7.90 per share

- 2021-07: $7.52 per share

- 2021-08: $7.30 per share

- 2021-09: $6.30 per share

- 2021-10: $6.50 per share

- 2021-11: $5.86 per share

- 2021-12: $5.16 per share

- 2022-01: $5.29 per share

- 2022-02: $6.88 per share

- 2022-03: $7.05 per share

- 2022-04: $6.18 per share

- 2022-05: $5.70 per share

- 2022-06: $4.54 per share

- 2022-07: $4.82 per share

- 2022-08: $4.40 per share

- 2022-09: $4.27 per share

- 2022-10: $4.47 per share

- 2022-11: $3.15 per share

- 2022-12: $2.73 per share

- 2023-01: $2.88 per share

- 2023-02: $3.23 per share

- 2023-03: $2.95 per share

- 2023-04: $4.29 per share

- 2023-05: $3.45 per share

- 2023-06: $4.22 per share

- 2023-07: $3.52 per share

- 2023-08: $4.25 per share

- 2023-09: $4.14 per share

- 2023-10: $3.91 per share

- 2023-11: $5.30 per share

- 2023-12: $5.82 per share

- 2024-01: $5.47 per share

- 2024-02: $5.72 per share

- 2024-03: $6.61 per share

- 2024-04: $6.79 per share

- 2024-05: $6.71 per share

- 2024-06: $6.83 per share

- 2024-07: $7.73 per share

- 2024-08: $7.11 per share

- 2024-09: $6.79 per share

- 2024-10: $6.27 per share

- 2024-11: $5.68 per share

- 2024-12: $5.03 per share

- 2025-01: $4.63 per share

- 2025-02: $5.70 per share

- 2025-03: $6.26 per share

- 2025-04: $6.56 per share

- 2025-05: $6.51 per share

- 2025-06: $6.96 per share

- 2025-07: $7.75 per share

- 2025-08: $7.70 per share

- 2025-09: $8.47 per share

- 2025-10: $9.27 per share

- 2025-11: $11.13 per share

- 2025-12: $10.79 per share

- 2026-01: $15.00 per share

- 2026-02: $15.30 per share

- 2026-03: $13.68 per share

- 2026-04: $14.36 per share

- 2026-05: $12.87 per share

- 2026-06: $16.09 per share

- 2026-07: $14.60 per share

- 2026-08: $11.79 per share

- 2026-09: $10.83 per share

- 2026-10: $10.09 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1332349/000133234926000032/bkd-20251231.htm); period 2025-12-31, filed 2026-02-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.