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Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

Extendicare Inc. (EXE-T) operates long-term care facilities that require significant capital investment, resulting in a stable yet competitive market environment. Experts highlight that while the performance of long-term-care REITs has been strong this year, the potential for substantial capital gains may be limited unless a major market pullback occurs. In comparison, the peer stock CSH, which focuses more on senior homes, is undergoing strategic transitions, including divesting lower-return investments and reducing debt. This indicates a shift toward a more focused operational model amidst the growing demand from an aging population. Overall, while both stocks have their merits, market conditions suggest a cautious approach to new investments in EXE at the current valuation levels.

Consensus
Cautious
Valuation
Fair Value
Similar
CSH,CSH
DON'T BUY

This has been an extremely good performance year for long-term-care REITs. Not sure there's much more in terms of capital gains from where we are now. Unless substantial pullback, wouldn't buy now.

DON'T BUY
EXE vs. CSH

EXE operates long-term care facilities which require a lot of capital, while CSH is more senior homes. CSH has been divesting lower-return investments to become more of a pure-play. You can charge whatever rent in a market if there's no competition. The seniors' population keeps growing. CSH is paying down debt, which was high a few years ago. In CSH, the easy money has been made, though. It could be a keeper, or take profits.

WATCH
He's looking at the space, which is attractive. Off the highs. Business is materially tougher, but we need it. Regulatory issues and scrutiny on EXE. Labour situation also difficult. Likes the price, but wants to see more on the business fundamentals.
DON'T BUY
There's always something that stops him from entering the seniors space in REITs: labour, regulator issues, though again demographics are a positive. That isn't a good enough, though. How will governments with huge debts supplement the entire seniors home space? However, EXE is cheap. This space is too volatile.
DON'T BUY

How COVID will effect this industry, retirement homes? He owns Sienna instead. EXE is much more involved in government-funded LTCs. Along with Chartwell, these two companies are under government scrutiny, so they likely do a much better job than private LTCs. Good question how COVID will affect these homes: there may be increased costs to manage the LTCs, and he expects the government to do more oversight, particularly the incompetent LTCs. He prefers Sienna to EXE, because Sienna is a mix of LTCs and retirement homes, while Chartwell is mostly retirement homes, which has more upside but more competitive. Don't buy purely LTCs, like EXE.

COMMENT

Extendicare has a better chart than Chartwell. It has a head-and-shoulder chart movement. If you take into account the general market sell-off, investors need to be forgiving.

WATCH
He likes the aging demographics. It has been clawing itself back after problems in the US and high level debt. They are focused on their home care and supply chain businesses. They are trying to now go capital light. He is starting to look at it. It is trading at a discount, relative to peers.
BUY
The long-term care homes are all similar. Slow growers, good dividend yielders. Payouts are reasonable. Steady stream of income. Hasn't increased dividend for 3 years. Resistant to recessions. Labour and other costs are going up. Yield around 5%.
HOLD
A great demographic pick. He bought in at $7.01 in 2014 and bought in again at $6.62. He liked how they paid down debt and reduced operations in the US. He likes the dividend and thinks there is still good upside -- maybe another 50%. They have been growing organically and by takeover. He would like to see them pay down more debt. Yield 5%
BUY ON WEAKNESS
Enjoys a regulated revenue stream like other retirement homes, so it's fairly safe--but has only 2-5% growth. A long-term hold. Buy at $8, though you can sell it at $10.
DON'T BUY
Long term care. They have about 5% dividend but it is over 100% of cash flow. Sales are growing at 1.2%. The free cash flow yield is not there.
DON'T BUY
Would avoid right now, with government regulation risk, and bad press. There's enough risk for negative press in healthcare stock.
BUY ON WEAKNESS
Look at defensive stocks this time of year. EXE's moving averages are moving up. Add more at $8.60. It's overbought now, so expect consolidation first.
HOLD
He bought more in December. They do have some debt -- a little higher than he likes. The payout ratio is such that the dividend is stable, but won't grow. The demographics are in their favour within senior housing. He is happy to keep holding it. Yield 5.7%
BUY
The activist investor? The activist investor owns 9%. It's a leader in Canada. A great demographic play. Good dividend. This could hit $12-14. He's pleased that EXE has come to an agreement with the activist.
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Extendicare Inc(EXE-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 2

Stockchase rating for Extendicare Inc is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Extendicare Inc(EXE-T) Frequently Asked Questions

What is Extendicare Inc stock symbol?

Extendicare Inc is a Canadian stock, trading under the symbol EXE-T on the Toronto Stock Exchange (EXE-CT). It is usually referred to as TSX:EXE or EXE-T

Is Extendicare Inc a buy or a sell?

In the last year, 2 stock analysts published opinions about EXE-T. 0 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Extendicare Inc.

Is Extendicare Inc a good investment or a top pick?

Extendicare Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Extendicare Inc.

Why is Extendicare Inc stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Extendicare Inc worth watching?

2 stock analysts on Stockchase covered Extendicare Inc In the last year. It is a trending stock that is worth watching.

What is Extendicare Inc stock price?

On 2025-03-14, Extendicare Inc (EXE-T) stock closed at a price of $12.93.