OMEGA HEALTHCARE INVESTORS (OHI)
US6819361006 - REIT
Overall OHI gets a fundamental rating of 5 out of 10. We evaluated OHI against 130 industry peers in the Diversified REITs industry. OHI has an excellent profitability rating, but there are some minor concerns on its financial health. OHI has a expensive valuation and it also scores bad on growth. OHI also has an excellent dividend rating. These ratings could make OHI a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year OHI was profitable.
In the past year OHI had a positive cash flow from operations.
Each year in the past 5 years OHI has been profitable.
Each year in the past 5 years OHI had a positive operating cash flow.
1.2 Ratios
OHI's Return On Assets of 2.47% is fine compared to the rest of the industry. OHI outperforms 71.88% of its industry peers.
OHI's Return On Equity of 6.34% is amongst the best of the industry. OHI outperforms 80.47% of its industry peers.
With a decent Return On Invested Capital value of 3.08%, OHI is doing good in the industry, outperforming 62.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OHI is in line with the industry average of 2.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.47% | ||
| ROE | 6.34% | ||
| ROIC | 3.08% |
ROA(3y)3.51%
ROA(5y)3.46%
ROE(3y)8.88%
ROE(5y)8.61%
ROIC(3y)4.01%
ROIC(5y)4.32%
1.3 Margins
OHI has a Profit Margin of 27.21%. This is amongst the best in the industry. OHI outperforms 81.25% of its industry peers.
In the last couple of years the Profit Margin of OHI has grown nicely.
OHI's Operating Margin of 41.72% is amongst the best of the industry. OHI outperforms 87.50% of its industry peers.
In the last couple of years the Operating Margin of OHI has declined.
The Gross Margin of OHI (98.15%) is better than 98.44% of its industry peers.
In the last couple of years the Gross Margin of OHI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.72% | ||
| PM (TTM) | 27.21% | ||
| GM | 98.15% |
OM growth 3Y-9.21%
OM growth 5Y-6.19%
PM growth 3Y9.8%
PM growth 5Y34.48%
GM growth 3Y-0.05%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OHI is destroying value.
Compared to 1 year ago, OHI has less shares outstanding
The number of shares outstanding for OHI has been increased compared to 5 years ago.
The debt/assets ratio for OHI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.61, we must say that OHI is in the distress zone and has some risk of bankruptcy.
OHI has a Altman-Z score (0.61) which is in line with its industry peers.
OHI has a debt to FCF ratio of 19.37. This is a negative value and a sign of low solvency as OHI would need 19.37 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 19.37, OHI is doing good in the industry, outperforming 71.09% of the companies in the same industry.
A Debt/Equity ratio of 1.44 is on the high side and indicates that OHI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.44, OHI is doing worse than 66.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 19.37 | ||
| Altman-Z | 0.61 |
ROIC/WACC0.43
WACC7.2%
2.3 Liquidity
A Current Ratio of 2.89 indicates that OHI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.89, OHI belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
A Quick Ratio of 2.89 indicates that OHI has no problem at all paying its short term obligations.
The Quick ratio of OHI (2.89) is better than 89.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.89 |
3. Growth
3.1 Past
OHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.83%.
The Earnings Per Share has been growing slightly by 4.02% on average over the past years.
Looking at the last year, OHI shows a very negative growth in Revenue. The Revenue has decreased by -13.02% in the last year.
Measured over the past years, OHI shows a decrease in Revenue. The Revenue has been decreasing by -0.67% on average per year.
EPS 1Y (TTM)-44.83%
EPS 3Y4.25%
EPS 5Y4.02%
EPS growth Q2Q-13.95%
Revenue 1Y (TTM)-13.02%
Revenue growth 3Y-1.85%
Revenue growth 5Y-0.67%
Revenue growth Q2Q1.09%
3.2 Future
Based on estimates for the next years, OHI will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.82% on average per year.
OHI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.90% yearly.
EPS Next Y-36.58%
EPS Next 2Y-8.93%
EPS Next 3Y-4.16%
EPS Next 5Y14.82%
Revenue Next Year3.28%
Revenue Next 2Y5.08%
Revenue Next 3Y-2.69%
Revenue Next 5Y-0.9%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.80 indicates a quite expensive valuation of OHI.
Compared to the rest of the industry, the Price/Earnings ratio of OHI indicates a somewhat cheap valuation: OHI is cheaper than 60.16% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of OHI to the average of the S&P500 Index (24.54), we can say OHI is valued slightly more expensively.
The Price/Forward Earnings ratio is 20.56, which indicates a rather expensive current valuation of OHI.
89.06% of the companies in the same industry are more expensive than OHI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.22. OHI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.8 | ||
| Fwd PE | 20.56 |
4.2 Price Multiples
75.00% of the companies in the same industry are cheaper than OHI, based on the Enterprise Value to EBITDA ratio.
OHI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OHI is cheaper than 67.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.38 | ||
| EV/EBITDA | 17.84 |
4.3 Compensation for Growth
The decent profitability rating of OHI may justify a higher PE ratio.
A cheap valuation may be justified as OHI's earnings are expected to decrease with -4.16% in the coming years.
PEG (NY)N/A
PEG (5Y)7.92
EPS Next 2Y-8.93%
EPS Next 3Y-4.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.78%, OHI is a good candidate for dividend investing.
OHI's Dividend Yield is rather good when compared to the industry average which is at 6.17. OHI pays more dividend than 84.38% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.55, OHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.78% |
5.2 History
The dividend of OHI has a limited annual growth rate of 0.08%.
OHI has been paying a dividend for at least 10 years, so it has a reliable track record.
OHI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.08%
Div Incr Years0
Div Non Decr Years20
5.3 Sustainability
273.52% of the earnings are spent on dividend by OHI. This is not a sustainable payout ratio.
OHI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP273.52%
EPS Next 2Y-8.93%
EPS Next 3Y-4.16%
OMEGA HEALTHCARE INVESTORS
NYSE:OHI (12/11/2023, 9:47:52 AM)
30.53
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.78% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.8 | ||
| Fwd PE | 20.56 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)7.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.47% | ||
| ROE | 6.34% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 41.72% | ||
| PM (TTM) | 27.21% | ||
| GM | 98.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.89 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-44.83%
EPS 3Y4.25%
EPS 5Y
EPS growth Q2Q
EPS Next Y-36.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.02%
Revenue growth 3Y-1.85%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y