📊 BKD Key Takeaways
Is Brookdale Senior Living Inc. (BKD) a Good Investment?
Brookdale is in severe financial distress with negative stockholders equity of -$44.8M, indicating the company is technically insolvent on a book value basis. The company is unprofitable with a -8.2% net margin, generates minimal operating income of only $13.5M on $3.2B revenue, and has dangerously low interest coverage of 0.1x, making debt service unsustainable. While operating cash flow of $218M provides a temporary cushion, the combination of negative equity, negative profitability, high leverage, and deteriorating liquidity ratios signals imminent financial distress.
Brookdale's fundamentals remain very weak: modest 2.2% revenue growth is not translating into earnings, with operating margin at just 0.4% and net losses still substantial at -$262.69M. Financial health is strained by negative equity, $4.29B of long-term debt, and extremely weak interest coverage of 0.1x, while free cash flow is only marginally positive. The business shows some operating cash generation, but the overall quality of growth is poor because it is not yet producing durable profitability or balance-sheet repair.
Why Buy Brookdale Senior Living Inc. Stock? BKD Key Strengths
- Positive operating cash flow of $218M demonstrates some underlying cash generation despite accounting losses
- Revenue growth of 2.2% YoY shows the business maintains modest top-line expansion in a mature sector
- Cash position of $279.1M provides short-term liquidity buffer for immediate obligations
- Revenue is still growing modestly year over year, indicating stable underlying demand
- Gross margin of 26.2% suggests the core service base retains some economic value before overhead and financing costs
- Operating cash flow of $218.03M remained positive, allowing free cash flow to stay slightly positive
BKD Stock Risks: Brookdale Senior Living Inc. Investment Risks
- Negative stockholders equity of -$44.8M indicates technical insolvency and elimination of equity cushion; any further losses could trigger covenant violations
- Interest coverage ratio of 0.1x is critically low; operating income of $13.5M cannot service $4.3B long-term debt, indicating refinancing risk or default potential
- Net loss of -$262.7M with -8.2% net margin shows core operations are value-destructive; negative ROA of -4.4% and current ratio of 0.98x indicate deteriorating financial health
- High leverage with liabilities equaling total assets leaves no margin for error; any operational deterioration or market downturn could trigger liquidity crisis
- Negative stockholders equity and liabilities exceeding assets indicate a highly stressed balance sheet
- Interest coverage of 0.1x shows operating income is far too low relative to debt burden
- Net margin of -8.2% and only 0.5% free cash flow margin leave little cushion against operational setbacks
Key Metrics to Watch
- Interest coverage ratio trend - any further decline below 0.5x signals imminent default risk
- Operating cash flow sustainability - watch if OCF begins declining as it may not offset capex obligations
- Debt refinancing ability and covenant compliance status - critical given negative equity and weak coverage ratios
- Path to profitability and operating margin expansion - company must achieve sustained positive net income to restore equity
- Operating margin and interest coverage
- Free cash flow after capital expenditures and net debt reduction
Brookdale Senior Living Inc. (BKD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.5% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
BKD Profit Margin, ROE & Profitability Analysis
BKD vs Services Sector: How Brookdale Senior Living Inc. Compares
How Brookdale Senior Living Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Brookdale Senior Living Inc. Stock Overvalued? BKD Valuation Analysis 2026
Based on fundamental analysis, Brookdale Senior Living Inc. has mixed fundamental signals relative to the Services 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.
Brookdale Senior Living Inc. Balance Sheet: BKD Debt, Cash & Liquidity
BKD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Brookdale Senior Living Inc.'s revenue has declined by 21% over the 5-year period, indicating business contraction. The most recent EPS of $-0.84 indicates the company is currently unprofitable.
BKD Revenue Growth, EPS Growth & YoY Performance
BKD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $784.2M | -$50.7M | $-0.22 |
| Q2 2025 | $777.5M | -$37.7M | $-0.17 |
| Q1 2025 | $782.8M | -$29.6M | $-0.13 |
| Q3 2024 | $757.3M | -$48.8M | $-0.22 |
| Q2 2024 | $750.8M | -$4.5M | $-0.02 |
| Q1 2024 | $753.3M | -$29.6M | $-0.13 |
| Q3 2023 | $757.3M | -$28.4M | $-0.15 |
| Q2 2023 | $689.5M | -$4.5M | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Brookdale Senior Living Inc. Dividends, Buybacks & Capital Allocation
BKD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Brookdale Senior Living Inc. (CIK: 0001332349)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BKD
What is the AI rating for BKD?
Brookdale Senior Living Inc. (BKD) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 90% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BKD's key strengths?
Claude: Positive operating cash flow of $218M demonstrates some underlying cash generation despite accounting losses. Revenue growth of 2.2% YoY shows the business maintains modest top-line expansion in a mature sector. ChatGPT: Revenue is still growing modestly year over year, indicating stable underlying demand. Gross margin of 26.2% suggests the core service base retains some economic value before overhead and financing costs.
What are the risks of investing in BKD?
Claude: Negative stockholders equity of -$44.8M indicates technical insolvency and elimination of equity cushion; any further losses could trigger covenant violations. Interest coverage ratio of 0.1x is critically low; operating income of $13.5M cannot service $4.3B long-term debt, indicating refinancing risk or default potential. ChatGPT: Negative stockholders equity and liabilities exceeding assets indicate a highly stressed balance sheet. Interest coverage of 0.1x shows operating income is far too low relative to debt burden.
What is BKD's revenue and growth?
Brookdale Senior Living Inc. reported revenue of $3.2B.
Does BKD pay dividends?
Brookdale Senior Living Inc. does not currently pay dividends.
Where can I find BKD SEC filings?
Official SEC filings for Brookdale Senior Living Inc. (CIK: 0001332349) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BKD's EPS?
Brookdale Senior Living Inc. has a diluted EPS of $-1.12.
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 rating reflects both perspectives for balanced insights.
Is BKD a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Brookdale Senior Living Inc. has a STRONG SELL rating with 90% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is BKD stock overvalued or undervalued?
Valuation metrics for BKD: ROE of N/A (sector avg: 16%), net margin of -8.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy BKD stock in 2026?
Our dual AI analysis gives Brookdale Senior Living Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BKD's free cash flow?
Brookdale Senior Living Inc.'s operating cash flow is $218.0M, with capital expenditures of $201.5M. FCF margin is 0.5%.
How does BKD compare to other Services stocks?
Vs Services sector averages: Net margin -8.2% (avg: 10%), ROE N/A (avg: 16%), current ratio 0.98 (avg: 1.5).