Medical Properties Trust: A Decent High-Risk High-Reward Play

Dair Sansyzbayev
8.92K Followers

Summary

  • Medical Properties Trust has faced allegations of unethical business conduct and weaker-than-expected Q1 earnings, leading to a significant REIT stock selloff.
  • MPW, a self-advised REIT, has seen strong long-term financial performance with over 20% revenue CAGR. However, the company's latest earnings release missed consensus estimates, and it lowered its top-end FY2023 guidance.
  • My valuation analysis shows a massive upside potential, and the forward dividend yield of 11% is very attractive. That said, the stock is solid high-risk high-reward opportunity.

Медицинский стетоскоп и дом для toy на розовом фоне с пространством копирования

Natalia Kopyltsova/iStock via Getty Images

Investment thesis

In recent months, there has been a lot of controversy around the Medical Properties Trust (NYSE:MPW)related to allegations related to the management's unethical business conduct. The weaker-than-expected Q1 earnings also fueled

This article was written by

8.92K Followers
I am a highly experienced Chief Financial Officer (CFO) with a strong background in the oilfield and real estate industries. With over a decade of experience in finance, I have led numerous complex due diligence efforts and M&A transactions, both domestically and internationally.In recent years, I have developed a keen interest in equity research and analysis of public companies. This interest has led me to render equity research services for a Dubai-based family office with over $20 million in assets under management (AUM). My expertise in finance allows me to provide valuable insights and recommendations to clients seeking to make informed investment decisions.I pride myself on my ability to analyze financial statements, evaluate market trends, and identify key drivers of growth in different industries. I am passionate about staying up-to-date on the latest developments and trends in the equity research industry, and I am always seeking to enhance my skills and knowledge through continuing education and professional development.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in MPW over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About MPW Stock

SymbolLast Price% Chg
EPS
PE
Div Rate
Yield
Short Interest
Market Cap
Volume
Compare to Peers

More on MPW

Related Stocks

SymbolLast Price% Chg
MPW
--