OMEGA HEALTHCARE INVESTORS (OHI)
US6819361006 - REIT
Overall OHI gets a fundamental rating of 5 out of 10. We evaluated OHI against 126 industry peers in the Diversified REITs industry. While OHI has a great profitability rating, there are some minor concerns on its financial health. OHI has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year OHI was profitable.
OHI had a positive operating cash flow in the past year.
OHI had positive earnings in each of the past 5 years.
In the past 5 years OHI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.66%, OHI is doing good in the industry, outperforming 72.36% of the companies in the same industry.
OHI's Return On Equity of 6.78% is fine compared to the rest of the industry. OHI outperforms 78.86% of its industry peers.
The Return On Invested Capital of OHI (4.37%) is better than 88.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OHI is in line with the industry average of 2.95%.
The last Return On Invested Capital (4.37%) for OHI is above the 3 year average (4.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 6.78% | ||
| ROIC | 4.37% |
ROA(3y)3.84%
ROA(5y)3.34%
ROE(3y)9.76%
ROE(5y)8.33%
ROIC(3y)4.18%
ROIC(5y)4.2%
1.3 Margins
Looking at the Profit Margin, with a value of 25.50%, OHI is in the better half of the industry, outperforming 77.24% of the companies in the same industry.
OHI's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 51.48%, OHI belongs to the best of the industry, outperforming 94.31% of the companies in the same industry.
In the last couple of years the Operating Margin of OHI has declined.
OHI has a Gross Margin of 98.42%. This is amongst the best in the industry. OHI outperforms 98.37% of its industry peers.
OHI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.48% | ||
| PM (TTM) | 25.5% | ||
| GM | 98.42% |
OM growth 3Y0.52%
OM growth 5Y-3.06%
PM growth 3Y12.62%
PM growth 5Y-4.4%
GM growth 3Y-0.07%
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 more shares outstanding
The number of shares outstanding for OHI has been increased compared to 5 years ago.
OHI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that OHI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.65, OHI is in line with its industry, outperforming 58.54% of the companies in the same industry.
OHI has a debt to FCF ratio of 16.30. This is a negative value and a sign of low solvency as OHI would need 16.30 years to pay back of all of its debts.
OHI's Debt to FCF ratio of 16.30 is fine compared to the rest of the industry. OHI outperforms 73.98% of its industry peers.
OHI has a Debt/Equity ratio of 1.42. This is a high value indicating a heavy dependency on external financing.
OHI's Debt to Equity ratio of 1.42 is on the low side compared to the rest of the industry. OHI is outperformed by 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 16.3 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.59
WACC7.36%
2.3 Liquidity
OHI has a Current Ratio of 2.42. This indicates that OHI is financially healthy and has no problem in meeting its short term obligations.
OHI has a Current ratio of 2.42. This is amongst the best in the industry. OHI outperforms 85.37% of its industry peers.
A Quick Ratio of 2.42 indicates that OHI has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.42, OHI belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 2.42 |
3. Growth
3.1 Past
OHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.69%.
Measured over the past years, OHI shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.70% on average per year.
The Revenue has grown by 8.14% in the past year. This is quite good.
The Revenue has been growing slightly by 1.50% on average over the past years.
EPS 1Y (TTM)-44.69%
EPS 3Y12.79%
EPS 5Y-6.7%
EPS growth Q2Q15.79%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y2.1%
Revenue growth 5Y1.5%
Revenue growth Q2Q65.22%
3.2 Future
The Earnings Per Share is expected to grow by 14.20% on average over the next years. This is quite good.
The Revenue is expected to decrease by -0.79% on average over the next years.
EPS Next Y39.43%
EPS Next 2Y21.91%
EPS Next 3Y14.2%
EPS Next 5YN/A
Revenue Next Year3.8%
Revenue Next 2Y6.16%
Revenue Next 3Y3.54%
Revenue Next 5Y-0.79%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.68 indicates a quite expensive valuation of OHI.
63.41% of the companies in the same industry are more expensive than OHI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of OHI to the average of the S&P500 Index (24.80), we can say OHI is valued slightly more expensively.
A Price/Forward Earnings ratio of 22.00 indicates a rather expensive valuation of OHI.
87.80% of the companies in the same industry are more expensive than OHI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of OHI to the average of the S&P500 Index (21.27), we can say OHI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.68 | ||
| Fwd PE | 22 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as OHI.
62.60% of the companies in the same industry are more expensive than OHI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.97 | ||
| EV/EBITDA | 14.81 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OHI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as OHI's earnings are expected to grow with 14.20% in the coming years.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y21.91%
EPS Next 3Y14.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.74%, OHI is a good candidate for dividend investing.
OHI's Dividend Yield is rather good when compared to the industry average which is at 5.97. OHI pays more dividend than 83.74% of the companies in the same industry.
OHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.74% |
5.2 History
The dividend of OHI decreases each year by -0.52%.
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)-0.52%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
265.86% of the earnings are spent on dividend by OHI. This is not a sustainable payout ratio.
DP265.86%
EPS Next 2Y21.91%
EPS Next 3Y14.2%
OMEGA HEALTHCARE INVESTORS
NYSE:OHI (4/19/2024, 1:10:55 PM)
30.37
+0.39 (+1.3%)
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 Cap7.45B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.74% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.68 | ||
| Fwd PE | 22 | ||
| 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)0.78
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 6.78% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 51.48% | ||
| PM (TTM) | 25.5% | ||
| GM | 98.42% | ||
| 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 Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.42 | ||
| Quick Ratio | 2.42 | ||
| 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)-44.69%
EPS 3Y12.79%
EPS 5Y
EPS growth Q2Q
EPS Next Y39.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.14%
Revenue growth 3Y2.1%
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