OMEGA HEALTHCARE INVESTORS (OHI) Stock Fundamental Analysis
NYSE:OHI - US6819361006 - REIT
42.57 USD
+0.37 (+0.88%)
42.03 USD
-0.54 (-1.27%)
Overall OHI gets a fundamental rating of 5 out of 10. We evaluated OHI against 129 industry peers in the Diversified REITs industry. While OHI has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, OHI is valued expensive at the moment.
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
The Return On Assets of OHI (4.32%) is better than 89.92% of its industry peers.
OHI has a Return On Equity of 9.13%. This is amongst the best in the industry. OHI outperforms 86.05% of its industry peers.
OHI's Return On Invested Capital of 5.38% is amongst the best of the industry. OHI outperforms 94.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OHI is in line with the industry average of 3.06%.
The last Return On Invested Capital (5.38%) for OHI is above the 3 year average (4.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 9.13% | ||
| ROIC | 5.38% |
ROA(3y)3.77%
ROA(5y)3.46%
ROE(3y)9.19%
ROE(5y)8.47%
ROIC(3y)4.4%
ROIC(5y)4.37%
1.3 Margins
OHI's Profit Margin of 40.86% is amongst the best of the industry. OHI outperforms 92.25% of its industry peers.
OHI's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 62.27%, OHI belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
In the last couple of years the Operating Margin of OHI has remained more or less at the same level.
With an excellent Gross Margin value of 98.78%, OHI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
OHI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 62.27% | ||
| PM (TTM) | 40.86% | ||
| GM | 98.78% |
OM growth 3Y5.61%
OM growth 5Y1.01%
PM growth 3Y-0.48%
PM growth 5Y1.03%
GM growth 3Y-0.08%
GM growth 5Y0.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OHI is destroying value.
OHI has more shares outstanding than it did 1 year ago.
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
OHI has an Altman-Z score of 1.27. This is a bad value and indicates that OHI is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.27, OHI belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.
A Debt/Equity ratio of 1.00 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 1.00, OHI is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.27 |
ROIC/WACC0.73
WACC7.4%
2.3 Liquidity
A Current Ratio of 2.86 indicates that OHI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.86, OHI belongs to the top of the industry, outperforming 89.92% of the companies in the same industry.
A Quick Ratio of 2.86 indicates that OHI has no problem at all paying its short term obligations.
OHI has a Quick ratio of 2.86. This is amongst the best in the industry. OHI outperforms 89.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.86 |
3. Growth
3.1 Past
OHI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.01%, which is quite impressive.
Measured over the past years, OHI shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.38% on average per year.
OHI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.04%.
Measured over the past years, OHI shows a small growth in Revenue. The Revenue has been growing by 2.51% on average per year.
EPS 1Y (TTM)29.01%
EPS 3Y-4.33%
EPS 5Y-0.38%
EPS Q2Q%2.22%
Revenue 1Y (TTM)14.04%
Revenue growth 3Y-0.36%
Revenue growth 5Y2.51%
Sales Q2Q%11.78%
3.2 Future
OHI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.45% yearly.
OHI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.50% yearly.
EPS Next Y8.04%
EPS Next 2Y7.95%
EPS Next 3Y5.75%
EPS Next 5Y22.45%
Revenue Next Year11.92%
Revenue Next 2Y9.74%
Revenue Next 3Y7.99%
Revenue Next 5Y-0.5%
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.
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
With a Price/Earnings ratio of 25.19, OHI can be considered very expensive at the moment.
OHI's Price/Earnings ratio is a bit cheaper when compared to the industry. OHI is cheaper than 77.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, OHI is valued at the same level.
The Price/Forward Earnings ratio is 23.57, which indicates a rather expensive current valuation of OHI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OHI indicates a rather cheap valuation: OHI is cheaper than 87.60% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, OHI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.19 | ||
| Fwd PE | 23.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OHI is valued a bit more expensive than 67.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of OHI may justify a higher PE ratio.
PEG (NY)3.13
PEG (5Y)N/A
EPS Next 2Y7.95%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
OHI has a Yearly Dividend Yield of 6.35%, which is a nice return.
OHI's Dividend Yield is a higher than the industry average which is at 6.31.
Compared to an average S&P500 Dividend Yield of 2.34, OHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.35% |
5.2 History
The dividend of OHI decreases each year by -0.86%.
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)-0.86%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
162.15% of the earnings are spent on dividend by OHI. This is not a sustainable payout ratio.
DP162.15%
EPS Next 2Y7.95%
EPS Next 3Y5.75%
42.57
+0.37 (+0.88%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners73.02%
Inst Owner Change-1.28%
Ins Owners0.17%
Ins Owner Change0.47%
Market Cap12.56B
Analysts72
Price Target42.33 (-0.56%)
Short Float %2.86%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.35% |
Yearly Dividend2.61
Dividend Growth(5Y)-0.86%
DP162.15%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.99%
Min EPS beat(2)-10.4%
Max EPS beat(2)6.41%
EPS beat(4)2
Avg EPS beat(4)0.12%
Min EPS beat(4)-10.4%
Max EPS beat(4)8.95%
EPS beat(8)4
Avg EPS beat(8)-2.02%
EPS beat(12)5
Avg EPS beat(12)-11.04%
EPS beat(16)8
Avg EPS beat(16)-1.53%
Revenue beat(2)0
Avg Revenue beat(2)-4.8%
Min Revenue beat(2)-5.07%
Max Revenue beat(2)-4.52%
Revenue beat(4)2
Avg Revenue beat(4)-1.48%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)3.35%
Revenue beat(8)5
Avg Revenue beat(8)-0.41%
Revenue beat(12)7
Avg Revenue beat(12)-3.22%
Revenue beat(16)9
Avg Revenue beat(16)-2.02%
PT rev (1m)1.75%
PT rev (3m)1.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.12%
Revenue NQ rev (1m)0.81%
Revenue NQ rev (3m)2.78%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.19 | ||
| Fwd PE | 23.57 | ||
| P/S | 11.27 | ||
| P/FCF | N/A | ||
| P/OCF | 15.04 | ||
| P/B | 2.52 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 16.54 |
EPS(TTM)1.69
EY3.97%
EPS(NY)1.81
Fwd EY4.24%
FCF(TTM)-0.21
FCFYN/A
OCF(TTM)2.83
OCFY6.65%
SpS3.78
BVpS16.91
TBVpS14.62
PEG (NY)3.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 9.13% | ||
| ROCE | 6.81% | ||
| ROIC | 5.38% | ||
| ROICexc | 5.79% | ||
| ROICexgc | 6.38% | ||
| OM | 62.27% | ||
| PM (TTM) | 40.86% | ||
| GM | 98.78% | ||
| FCFM | N/A |
ROA(3y)3.77%
ROA(5y)3.46%
ROE(3y)9.19%
ROE(5y)8.47%
ROIC(3y)4.4%
ROIC(5y)4.37%
ROICexc(3y)4.62%
ROICexc(5y)4.51%
ROICexgc(3y)5.11%
ROICexgc(5y)4.96%
ROCE(3y)5.57%
ROCE(5y)5.53%
ROICexcg growth 3Y6.74%
ROICexcg growth 5Y4.93%
ROICexc growth 3Y6.44%
ROICexc growth 5Y4.57%
OM growth 3Y5.61%
OM growth 5Y1.01%
PM growth 3Y-0.48%
PM growth 5Y1.03%
GM growth 3Y-0.08%
GM growth 5Y0.04%
F-Score7
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.95 | ||
| Cap/Depr | 283.85% | ||
| Cap/Sales | 80.53% | ||
| Interest Coverage | 3.04 | ||
| Cash Conversion | 82.66% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.86 | ||
| Altman-Z | 1.27 |
F-Score7
WACC7.4%
ROIC/WACC0.73
Cap/Depr(3y)109.04%
Cap/Depr(5y)117.96%
Cap/Sales(3y)35.29%
Cap/Sales(5y)38.61%
Profit Quality(3y)94.64%
Profit Quality(5y)123.55%
High Growth Momentum
Growth
EPS 1Y (TTM)29.01%
EPS 3Y-4.33%
EPS 5Y-0.38%
EPS Q2Q%2.22%
EPS Next Y8.04%
EPS Next 2Y7.95%
EPS Next 3Y5.75%
EPS Next 5Y22.45%
Revenue 1Y (TTM)14.04%
Revenue growth 3Y-0.36%
Revenue growth 5Y2.51%
Sales Q2Q%11.78%
Revenue Next Year11.92%
Revenue Next 2Y9.74%
Revenue Next 3Y7.99%
Revenue Next 5Y-0.5%
EBIT growth 1Y27.34%
EBIT growth 3Y5.23%
EBIT growth 5Y3.54%
EBIT Next Year71.85%
EBIT Next 3Y24.77%
EBIT Next 5Y19.73%
FCF growth 1Y-120.4%
FCF growth 3Y189.54%
FCF growth 5Y49.66%
OCF growth 1Y38.65%
OCF growth 3Y1.24%
OCF growth 5Y6.24%