Target Healthcare REIT

THRL.L

REIT - Healthcare Facilities · Real Estate

Price

111.20 GBp

+0.40 (+0.36%)

Market Cap

£689.7M

Exchange

London Stock Exchange

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Strong

Growth

Mixed

Cash Flow

Good

Stability

Strong

Valuation

Good

Dividends

Good

Track this stock — start free trial

Share count rising — dilution

+30.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 475.4M (2021) → 620.2M (2025)

Winston Score History

The full picture

Target Healthcare REIT is a UK-based real estate company that owns care homes — buildings where elderly people live and receive round-the-clock nursing or personal care. The company buys these properties and leases them to care home operators across the United Kingdom. It focuses specifically on modern, purpose-built care homes rather than older converted buildings.

The company makes money by collecting rent from the care home operators who run the day-to-day services inside its properties. Those leases are typically long-term, which creates a steady and predictable income stream. Target Healthcare operates entirely within the UK and has a portfolio of roughly 100 properties, giving it a focused but meaningful presence in the sector. Its competitive edge comes from owning newer, higher-quality buildings that are better suited to modern care standards, making them more attractive to operators. The key risk is that rising interest rates increase borrowing costs and can pressure the value of its property portfolio.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+6.1% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-26.9% YoY

YoY Growth Rate

Earnings declining

R&D Spend

£0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

0.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

£893M cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Target Healthcare REIT is growing revenue at 6% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

89.1%

Premium pricing power — 89.1% gross margin

Profit after running costs

Operating Margin

87.3%

Excellent — 87.3% operating margin

Return on the money invested

ROCE

6.6%

Weak — 6.6% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales growth

Sales YoY

+5.4%

Slow sales growth (+5.4% YoY)

Profit growth

EPS YoY

+7.9%

Modest earnings growth (+7.9% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Profit that turns into cash

Cash Conversion

56%

Weak — only 56% of profit becomes cash

Spare cash per sale

FCF Margin

58.3%

Converts sales into free cash efficiently (58.3%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

What it owes vs what it owns

Debt / Equity

0.27

Conservative — low debt load (0.27)

Covers its interest

Interest Cover

5.70x

Adequate interest coverage (5.7x)

Interest coverage between 3 and 8. Profits cover interest several times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

Price vs profit

P/E Ratio (TTM)

8.9x

Attractive valuation — P/E 8.9

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

-7.3

SLOWING

Earnings expected to fall — forward P/E higher than today

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend

Dividend Yield

5.42%

Healthy income — 5.42% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record

Dividend Growth

+2.5%

Dividend flat

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial