Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Target Healthcare REIT plc is a United Kingdom-based real estate investment trust specializing in healthcare properties, primarily a diversified portfolio of freehold and long leasehold care homes leased to experienced operators. Launched in March 2013, it focuses on generating an attractive level of income alongside potential for capital and income growth through investments in modern, purpose-built facilities across the UK. The portfolio, valued at approximately £0.8 billion as of June 2025, comprises around 94-95 care homes let on full repairing and insuring leases with annual uplifts linked to the UK Retail Prices Index, subject to caps and collars. As the UK's pioneering care home REIT and a FTSE 250 constituent, it plays a vital role in the healthcare real estate sector, supporting an aging population's needs while offering exposure to specialized assets with stable, inflation-linked rental income. Target Healthcare REIT plc manages operations through subsidiaries and is headquartered in London, emphasizing tenant covenants and property valuations driven by rental levels and yields.
£1.10
£0.01 (-0.72%)
EOD Jul 3, 2026
Revenue grew 4143.3%, still solid.
Net debt of £202M represents 4.8x FCF, leverage limits flexibility.
9.3x earnings, 16.1x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
£78M
▲ +4143.3% YoY
Net Income (TTM)
£73M
▲ +1211.1% YoY
Op. Margin
—
ROIC
—
Cash Flow & Balance Sheet
FCF (TTM)
£42M
▲ +42.7% YoY
Op. Cash Flow (TTM)
£88M
▲ +195.7% YoY
Net Debt
£202M
Cash & Equiv.
£39M
3Y CAGR: +15.7%
3Y CAGR: +19.3%
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At a P/E of 9.3 and a price-to-free-cash-flow of 16.1, Target Healthcare REIT (THRL.XLON) trades below a two-stage DCF intrinsic value of about £2.19 per share, so at £1.10 the stock looks undervalued (99.2% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Target Healthcare REIT scores 69/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 5.2%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about £2.19 per share for THRL.XLON, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around £1.64. At today's £1.10, that puts the stock about 99.2% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Target Healthcare REIT scores 69 out of 100 on Intrinsiqq's quality score, a weighted blend of 6 metrics each scored 0 to 100, which makes it a solid business on these measures. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, Target Healthcare REIT pays a regular dividend of about £0.06 per share per year (typically in quarterly installments), a yield of roughly 5.2% at the current price. That is a payout ratio of about 48.3% of earnings, so the dividend is well covered. Target Healthcare REIT has grown the dividend at roughly 4.9% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For THRL.XLON's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. THRL.XLON currently trades below its estimated intrinsic value and scores 69/100 on quality (solid). It also yields about 5.2%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.