TSE:EXE

Extendicare Inc (EXE.TO)

38.22
-0.05 (0.13%)
as of Jul 21, 2026, 5:12:38 pm Market Open.
171 watching
0
Investor Insights
star iconJul 21, 2026, 12:00 am

This summary was created by AI, based on 4 opinions in the last 12 months.

Extendicare Inc. (EXE-T) is recognized for its strong position in the home and long-term care healthcare market, especially amidst favorable demographic trends and increasing government funding in Ontario. Several experts note that it has an impressive growth trajectory and efficient margin management, suggesting potential price appreciation towards the mid-high $30s. However, there are cautionary notes regarding the overall market dynamics, particularly with competition from well-financed private equity that may influence supply. While some deem the stock's price has already incorporated much of the growth potential, others appreciate its unique corporate structure compared to traditional REITs. Despite these insights, there's uncertainty on how to assign a fair value to the stock considering its long-term prospects.

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Consensus
Cautious
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Valuation
Fair Value
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CSH.UN
TOP PICK
Nursing homes in US and Canada. Some small operational risks in the US because Medicaid and Medicare are struggling so increases are smaller and they have to have good cost controls. Just reported a disappointing quarter because of an insurance factor. Take that out and operations are fine. Don’t have a tax problem. 9% yield.
PARTIAL BUY
Lawsuits in the US have been going on for a long time and not much is known. He has decided to ignore this issue to some extent. 75% holdings in the US. Not one you buy a lot of. Care business in the US is always risky.
BUY
Biggest problem for them is their US exposure and with the US health accord now being printed there are still some unknowns. Margins are improving and probably still has room to grow.
WAIT
A lot of healthcare related ones in the US have done quite well recently. Have some debt they are going to have to roll over. Also have 7-8 lawsuits against them in the US. Reporting their numbers this Thursday.
DON'T BUY
Specialized area. Nursing care. 75% operations in the US, very volatile market with Medicare and Medicaid. Formulas change and a very litigious environment. Would favour a Canadian business such as Leisureworld Senior Care (LW-T) instead.
COMMENT
Long-term care and skilled nursing facilities in Canada and US. Doesn't like the model they are built on because he can't quantify the risks. Good management. 9.7% distribution is safe.
BUY
Nursing homes in the US and Canada. A REIT but is taxable. Balance sheet has improved from a year ago. Beat estimates last quarter. Cheap compared to peers.
BUY
(Market Call Minute.) Will always be volatile but they know their business.
COMMENT
Was being investigated by the department of health services in the US, for potential violations of the Social Securities act. In the long run, he thinks it will turn out to be overblown so this could be an opportunity.
COMMENT
If holding as a DRIP, is it a reasonable holding to continue with after 2011? If it is a core holding and you are going to keep it for the long term, this can make sense. If you are a trader, it is not worthwhile. A good way for a company to raise capital so he would expect more of them.
WATCH
Looking at this one. The only problem is that so much of it is in the US and you keep hearing what is going to be allowed on expenses, etc. Have a lot of debt.
COMMENT
Not a fan of seniors housing. From a debt/maturity standpoint have access to CMHC financing in Canada. No debt/maturity in the US until 2011 but have about $200 million in 2011-2012, which will be a challenge to replace. On an operational and payout standpoint look sound for now. Wouldn't be surprised to see a bit of a pull back. If you are going to buy, average in over the next several months.
WATCH
Companies that are currently structured as REITs will have to come under tighter guidelines to continue to qualify. Business that is held under the REIT unit structure has to be passive in nature so it is a long that borderline. Watch to see what management does.
DON'T BUY
Seniors housing in the US with skilled nursing facilities and long-term care facilities in Canada. Not a lot of debt maturing in the US over the next couple of years and should be able to refinance the debt in Canada. Not a big fan of senior housing because of operational issues.
DON'T BUY
They claim business is going very well. It’s a good organization and it’s going to survive. He goes into others where he has better feel for where the revenue is going to come from.
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