Good for long term investment

Screening Filters

1. Sector: Healthcare, Real Estate

   • Purpose: Restrict results to companies with business models similar to Brookdale Senior Living (senior housing / care is a blend of healthcare services and real estate).
   • Rationale:
     • Brookdale operates senior living communities, which sit at the intersection of healthcare (care services, assisted living, memory care) and real estate (owning/operating facilities).
     • For a long‑term investment decision on BKD, the most relevant comparison set is companies exposed to similar demographic, regulatory, and reimbursement dynamics (aging population, healthcare demand, property utilization).
     • Filtering to these sectors helps you see how BKD stacks up against true peers, and also surfaces alternative long‑term candidates in the same thematic space (aging demographics, healthcare real assets).

2. Region: United States

   • Purpose: Focus on companies operating under the same macro, regulatory, and demographic environment as BKD.
   • Rationale:
     • Brookdale is U.S.-based and largely U.S.-focused; long‑term performance is heavily tied to U.S. healthcare policy, U.S. rates, and U.S. demographics.
     • Limiting to U.S. firms gives you:
       • Comparable regulatory risk (Medicare/Medicaid exposure, state-level senior housing rules).
       • Similar demographic trends (U.S. aging population).
       • No added currency risk, which matters for long‑term compounding.
     • This makes the screener output more directly relevant when judging whether BKD is an attractive long‑term hold relative to U.S. peers.

3. Exchange: XNYS, XNAS, XASE (NYSE, Nasdaq, NYSE American)

   • Purpose: Ensure the results are well‑regulated, liquid U.S.-listed equities.
   • Rationale:
     • Long‑term investors benefit from:
       • Higher disclosure standards (SEC reporting, audited financials, governance requirements).
       • Generally better liquidity and tighter spreads, which matter over years when rebalancing or exiting positions.
     • These exchanges host the bulk of institutional‑quality healthcare and REIT names, so the filter steers you away from OTC or very illiquid names that might carry higher structural risk and worse transparency for long‑term holding.

4. Net Margin: min 0 (Profitable companies only)

   • Purpose: Include only companies that are currently profitable at the net income level.
   • Rationale:
     • For long‑term investment, proven profitability is a key quality indicator. Firms that consistently earn money are generally better able to:
       • Service debt and fund growth internally.
       • Withstand downturns without heavy dilution or distress.
     • Brookdale itself is still working through a turnaround and has had negative net income; setting net margin ≥ 0 effectively says:
       • “Show me the healthier, more mature peers / comparables that have already crossed into sustainable profitability.”
     • This helps you see whether you’re being paid enough in potential upside to accept BKD’s current risk profile versus peers that already check the profitability box.

5. Revenue 5‑Year CAGR: min 5%

   • Purpose: Require at least moderate top‑line growth (≥ 5% compound annual growth over 5 years).
   • Rationale:
     • Long‑term returns are heavily driven by revenue growth plus margin stability/expansion.
     • In healthcare and senior housing/real estate, a sustained 5%+ revenue CAGR usually indicates:
       • Increasing occupancy / utilization or pricing power.
       • Ability to grow the footprint (more communities, beds, or services).
     • By enforcing a 5‑year growth threshold, the screen prioritizes companies that have demonstrated durable, not just one‑off, growth through different market conditions—exactly what you want when judging a long‑term thesis like “aging demographics.”

6. Debt‑to‑Equity: max 2

   • Purpose: Limit the universe to companies with moderate leverage, avoiding highly over‑levered balance sheets.
   • Rationale:
     • Healthcare facilities and real estate‑heavy businesses often use substantial debt, but too much leverage can be fatal in downturns or during periods of rising interest rates.
     • Setting D/E ≤ 2 aims to:
       • Filter out the most financially fragile players.
       • Highlight companies more capable of weathering rate cycles and occupancy dips without distressed refinancing or equity dilution.
     • For a long‑term investor, especially in a capital‑intensive space like senior living, balance sheet strength is as important as growth, and this filter directly targets that.

7. Analyst Consensus: Strong Buy, Moderate Buy

   • Purpose: Select only stocks that Wall Street analysts broadly view as having a favorable risk‑reward profile.
   • Rationale:
     • While analysts are not infallible, consensus ratings do aggregate a large amount of fundamental modeling, management access, and sector expertise.
     • Restricting to Strong Buy / Moderate Buy:
       • Screens out names where the Street expects limited upside or heightened risk.
       • Surfaces companies where professional coverage sees credible long‑term value drivers (demand tailwinds, margin expansion, de‑leveraging paths, etc.).
     • Given your question about whether BKD is a good long‑term choice, this filter builds a comparison set of analyst‑favored peers, which you can weigh against BKD’s own rating trajectory.

Why Results Match:

• The combined filters create a focused universe of U.S. healthcare and real estate companies—the same broad ecosystem Brookdale operates in—making peer comparison meaningful for a long‑term thesis on BKD.
• Profitability (net margin ≥ 0), sustained growth (5‑year revenue CAGR ≥ 5%), and controlled leverage (D/E ≤ 2) together prioritize financially sound, growing businesses that are better suited for long‑term holding than speculative turnarounds.
• Limiting to NYSE/Nasdaq/NYSE American ensures liquid, institutionally followed names with robust disclosure—appropriate for serious, long‑horizon investors.
• Adding the Strong/Moderate Buy analyst consensus requirement further narrows the list to companies that professional analysts currently favor, giving you a high‑quality reference set to judge whether Brookdale’s long‑term risk/reward is attractive relative to its strongest peers.