OMEGA HEALTHCARE INVESTORS (OHI) Stock Fundamental Analysis
NYSE:OHI - New York Stock Exchange, Inc. - US6819361006 - REIT - Currency: USD
We assign a fundamental rating of 6 out of 10 to OHI. OHI was compared to 129 industry peers in the Diversified REITs industry. OHI scores excellent on profitability, but there are some minor concerns on its financial health. OHI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
OHI had positive earnings in the past year.
OHI had a positive operating cash flow in the past year.
In the past 5 years OHI has always been profitable.
Each year in the past 5 years OHI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of OHI (4.62%) is better than 91.47% of its industry peers.
With an excellent Return On Equity value of 9.45%, OHI belongs to the best of the industry, outperforming 86.82% of the companies in the same industry.
OHI has a better Return On Invested Capital (5.73%) than 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 3.15%.
The last Return On Invested Capital (5.73%) for OHI is above the 3 year average (4.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 9.45% | ||
| ROIC | 5.73% |
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
Looking at the Profit Margin, with a value of 41.29%, OHI belongs to the top of the industry, outperforming 92.25% of the companies in the same industry.
In the last couple of years the Profit Margin of OHI has remained more or less at the same level.
Looking at the Operating Margin, with a value of 62.79%, OHI belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
OHI's Operating Margin has been stable in the last couple of years.
The Gross Margin of OHI (98.70%) is better than 100.00% 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 | 62.79% | ||
| PM (TTM) | 41.29% | ||
| GM | 98.7% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OHI is destroying value.
The number of shares outstanding for OHI has been increased compared to 1 year ago.
OHI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OHI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.19, 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 1.19, OHI belongs to the top of the industry, outperforming 82.95% of the companies in the same industry.
OHI has a debt to FCF ratio of 17.33. This is a negative value and a sign of low solvency as OHI would need 17.33 years to pay back of all of its debts.
OHI has a better Debt to FCF ratio (17.33) than 82.17% of its industry peers.
OHI has a Debt/Equity ratio of 0.94. This is a neutral value indicating OHI is somewhat dependend on debt financing.
The Debt to Equity ratio of OHI (0.94) is better than 63.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 17.33 | ||
| Altman-Z | 1.19 |
ROIC/WACC0.62
WACC9.27%
2.3 Liquidity
A Current Ratio of 2.01 indicates that OHI has no problem at all paying its short term obligations.
OHI has a better Current ratio (2.01) than 79.84% of its industry peers.
OHI has a Quick Ratio of 2.01. This indicates that OHI is financially healthy and has no problem in meeting its short term obligations.
OHI has a Quick ratio of 2.01. This is in the better half of the industry: OHI outperforms 79.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
OHI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.35%, which is quite impressive.
OHI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.38% yearly.
OHI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.29%.
OHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.51% yearly.
EPS 1Y (TTM)51.35%
EPS 3Y-4.33%
EPS 5Y-0.38%
EPS Q2Q%48.15%
Revenue 1Y (TTM)11.29%
Revenue growth 3Y-0.36%
Revenue growth 5Y2.51%
Sales Q2Q%13.76%
3.2 Future
The Earnings Per Share is expected to grow by 22.63% on average over the next years. This is a very strong growth
Based on estimates for the next years, OHI will show a decrease in Revenue. The Revenue will decrease by -1.02% on average per year.
EPS Next Y11.52%
EPS Next 2Y8.52%
EPS Next 3Y6.24%
EPS Next 5Y22.63%
Revenue Next Year12.02%
Revenue Next 2Y8.35%
Revenue Next 3Y7.99%
Revenue Next 5Y-1.02%
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 22.27 indicates a rather expensive valuation of OHI.
Based on the Price/Earnings ratio, OHI is valued a bit cheaper than the industry average as 79.07% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.52. OHI is around the same levels.
With a Price/Forward Earnings ratio of 20.50, OHI is valued on the expensive side.
89.92% of the companies in the same industry are more expensive than OHI, based on the Price/Forward Earnings ratio.
OHI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.25.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.27 | ||
| Fwd PE | 20.5 |
4.2 Price Multiples
OHI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, OHI is valued a bit cheaper than the industry average as 63.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.2 | ||
| EV/EBITDA | 15.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates OHI does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of OHI may justify a higher PE ratio.
PEG (NY)1.93
PEG (5Y)N/A
EPS Next 2Y8.52%
EPS Next 3Y6.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.29%, OHI is a good candidate for dividend investing.
OHI's Dividend Yield is a higher than the industry average which is at 6.68.
OHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.29% |
5.2 History
The dividend of OHI decreases each year by -0.86%.
OHI has paid a dividend for at least 10 years, which is 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
158.46% of the earnings are spent on dividend by OHI. This is not a sustainable payout ratio.
DP158.46%
EPS Next 2Y8.52%
EPS Next 3Y6.24%
37.42
-0.18 (-0.48%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners77.17%
Inst Owner Change6.99%
Ins Owners0.17%
Ins Owner Change0.01%
Market Cap10.83B
Analysts70.48
Price Target41.62 (11.22%)
Short Float %4.07%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.29% |
Yearly Dividend2.61
Dividend Growth(5Y)-0.86%
DP158.46%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.44%
Min EPS beat(2)-10.4%
Max EPS beat(2)-4.48%
EPS beat(4)2
Avg EPS beat(4)5.04%
Min EPS beat(4)-10.4%
Max EPS beat(4)26.1%
EPS beat(8)3
Avg EPS beat(8)-5.29%
EPS beat(12)5
Avg EPS beat(12)-11.46%
EPS beat(16)7
Avg EPS beat(16)-2.75%
Revenue beat(2)1
Avg Revenue beat(2)-2.38%
Min Revenue beat(2)-5.07%
Max Revenue beat(2)0.32%
Revenue beat(4)3
Avg Revenue beat(4)-0.28%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)3.35%
Revenue beat(8)6
Avg Revenue beat(8)0.65%
Revenue beat(12)7
Avg Revenue beat(12)-2.88%
Revenue beat(16)9
Avg Revenue beat(16)-2.14%
PT rev (1m)0%
PT rev (3m)-2.55%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)3.19%
EPS NY rev (1m)2.66%
EPS NY rev (3m)4.9%
Revenue NQ rev (1m)0.64%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.27 | ||
| Fwd PE | 20.5 | ||
| P/S | 9.98 | ||
| P/FCF | 42.2 | ||
| P/OCF | 13.88 | ||
| P/B | 2.28 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 15.09 |
EPS(TTM)1.68
EY4.49%
EPS(NY)1.83
Fwd EY4.88%
FCF(TTM)0.89
FCFY2.37%
OCF(TTM)2.7
OCFY7.2%
SpS3.75
BVpS16.38
TBVpS14.06
PEG (NY)1.93
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 9.45% | ||
| ROCE | 7.26% | ||
| ROIC | 5.73% | ||
| ROICexc | 5.97% | ||
| ROICexgc | 6.6% | ||
| OM | 62.79% | ||
| PM (TTM) | 41.29% | ||
| GM | 98.7% | ||
| FCFM | 23.65% |
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 | 0.94 | ||
| Debt/FCF | 17.33 | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 168.82% | ||
| Cap/Sales | 48.23% | ||
| Interest Coverage | 2.89 | ||
| Cash Conversion | 78.69% | ||
| Profit Quality | 57.28% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 1.19 |
F-Score7
WACC9.27%
ROIC/WACC0.62
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)51.35%
EPS 3Y-4.33%
EPS 5Y-0.38%
EPS Q2Q%48.15%
EPS Next Y11.52%
EPS Next 2Y8.52%
EPS Next 3Y6.24%
EPS Next 5Y22.63%
Revenue 1Y (TTM)11.29%
Revenue growth 3Y-0.36%
Revenue growth 5Y2.51%
Sales Q2Q%13.76%
Revenue Next Year12.02%
Revenue Next 2Y8.35%
Revenue Next 3Y7.99%
Revenue Next 5Y-1.02%
EBIT growth 1Y34.26%
EBIT growth 3Y5.23%
EBIT growth 5Y3.54%
EBIT Next Year70.93%
EBIT Next 3Y24.64%
EBIT Next 5Y19.21%
FCF growth 1Y-42.26%
FCF growth 3Y189.54%
FCF growth 5Y49.66%
OCF growth 1Y28.93%
OCF growth 3Y1.24%
OCF growth 5Y6.24%