Investment Thesis
Healthpeak Properties demonstrates critical financial stress despite 367% revenue growth, with an inability to service debt from operations (0.1x interest coverage) and severe negative free cash flow of -634M. The 895M capex spending against 261M operating cash flow combined with 1.3% operating margins reveals an unsustainable business model burning cash at alarming rates.
Strengths
- Strong revenue growth of 367% YoY indicates significant business expansion
- Positive operating cash flow of 261M provides near-term liquidity cushion
- Substantial asset base of 21.6B and equity cushion of 7.8B provide buffer against distress
Risks
- Interest coverage of 0.1x is critically unsustainable - operating income cannot service debt obligations
- Negative free cash flow of -634M indicates severe cash burn and reliance on external financing
- Extremely low operating margin of 1.3% despite massive revenue growth suggests operational inefficiency or poor acquisition integration
Key Metrics to Watch
- Interest coverage ratio improvement toward sustainable levels above 1.5x
- Free cash flow trend and capex normalization to sustainable levels
- Operating margin expansion demonstrating operational leverage and integration success
Financial Metrics
Revenue
753.0M
Net Income
193.6M
EPS (Diluted)
$0.28
Free Cash Flow
-634.1M
Total Assets
21.6B
Cash
1.2B
Profitability Ratios
Gross Margin
N/A
Operating Margin
1.3%
Net Margin
25.7%
ROE
2.5%
ROA
0.9%
FCF Margin
-84.2%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
1.33x
Debt/Assets
58.1%
Interest Coverage
0.11x
Long-term Debt
10.4B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-07T08:40:10.852223 |
Data as of: 2026-03-31 |
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