Stock Idea…Sienna Senior Living Inc.

Stock Idea…Sienna Senior Living Inc.

Symbol : SIA

Exchange: TSX

Market Cap : 1,1 Billion

Revenue : 558 Million
Three Year Revenue Growth : 18.7 %
Investment Type : Mid Cap Value/Growth

Price/Earnings : 45.7

Forward P/E : 31.8

Price/Book : 1.9

Price/Sales : 1.6

Price/Cash Flow : 14.6

Price :16.89

Dividend Yield : 5.33
Investment Stem : Stephen Takacsy of Lester Asset Management

Sienna Senior Living Inc. is a Canada-based company, which is engaged in serving the range of independent living (IL), independent supportive living (ISL), assisted living (AL), memory care (MC) and long-term care/residential care (referred to as LTC) communities. The Company's segments include LTC business, Retirement, Baltic, Corporate, Eliminations and Other. Its LTC segment includes over 30 owned LTC homes and the management services business. Its Retirement segment includes approximately 10 owned retirement residences (RR) communities. Its Baltic includes seven Baltic properties in, which the Company's interest is in the Nicola Lodge and Pacific Seniors Management General Partnership (PSM). The LTC segment in Ontario and British Columbia consists of various private, public sector operators and not-for-profit organizations offering a range of services. The Company offers a range of services, such as management, consulting and educational services.

The dreaded metrics from Morningstar…

http://quote.morningstar.ca/Quicktakes/stock/keyratios.aspx?t=SIA&region=CAN&culture=en-CA&ops=clear

The company’s website…

https://www.siennaliving.ca/

Sienna Senior Living owns over 100 long term care facilities and retirement homes in Ontario and B.C. It’s the second-largest publicly traded retirement residence owner after Chartwell. The stock has great defensive characteristics in this volatile market. The dividend yield is 5 per cent.
Rising interest rates should not impact this stock as rental leases are short-term in nature and can be adjusted for inflation. It should be steadily increasing its net operating income and adjusted funds from operations (AFFO) per share, and growing dividends over the long run. Sienna was recently added to TSX Composite Index.

This used to be mostly long-term care but is now 50/50 retirement housing, which is like leasing apartments. Prices will go up with interest rates and inflation. The dividend is safe. This stock barely budged over the market turmoil earlier in the year. Their biggest competitor, Chartwell, trades at a much higher multiple.

If you are a retiree looking over a steady income stream without too much volatility this stock might fill the bill. An interesting investing theme as well based on an increasing demographic.