# Target Healthcare REIT plc (THRL.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Real Estate. Price 111p, market value 687 millionp.

## Valuation
- **P/E (trailing): 8.5×** (5-yr avg 1069.9×, 3-yr avg 857.5×). Target Healthcare REIT plc trades at 8.5× trailing earnings, well below its own five-year average of 1069.9×: cheap by its own standards. The Real Estate median in the September 2026 study was 25.2×. Forward P/E is 16.4×, higher than trailing, so analysts expect earnings to fall.
- **Price / sales: 4.7×**. Each dollar of revenue is priced at 4.7×.
- **Price / book: 0.9×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 6.3×**. Enterprise value is 6.3× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 12.3%** (5-yr avg 0.1%). Free cash flow equals 12.3% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 11.7%**. The inverse of the P/E: 11.7% of the price is earned each year.

## Profitability
- **Gross margin: 91.7%**. Target Healthcare REIT plc keeps 91.7% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 83.4%**. 83.4% of revenue is left after running the business, an exceptional level.
- **Net margin: 83.4%**. 83.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.5%**. 8.5% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 13.3%**. Return on all capital, debt included, is 13.3%.
- **Return on assets: 15.2%**. Each dollar of assets produces 15.2% of profit.

## Growth
- **Revenue growth (1 yr): -7.1%** (3-yr 4.5%/yr, 5-yr 10.5%/yr). Revenue fell 7.1% over the last year, against 10.5% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -18.3%** (3-yr 6.2%/yr, 5-yr 6.4%/yr). Earnings per share fell 18.3%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 10.6%/yr**. Free cash flow has compounded at 10.6% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.34**. Debt is 0.34 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 1.4×**. It would take 1.4 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 5.6×**. Operating profit covers interest 5.6× over, a safe margin.
- **Current ratio: 1.43** (quick 1.43). Current assets cover the next year's liabilities 1.43 times.
- **Altman Z-score: 2.86**. A Z-score of 2.86 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Target Healthcare REIT plc does not currently pay a dividend.

## Price and momentum
- **Total return (1 yr): 20.1%** (YTD 17.5%, 3-mo 9.8%). The shares are up 20.1% over twelve months including dividends.
- **From 52-week high: -5.3%** (20.5% above the low). Trading 5% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 59**. An RSI of 59 is neutral.
- **Beta (1 yr): 0.91** (volatility 18%). Beta of 0.91 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=THRL.L · Page: https://foliofundamentals.com/stocks/thrl.l

Not investment advice.