OMEGA HEALTHCARE INVESTORS (OHI) Stock Fundamental Analysis
NYSE:OHI - New York Stock Exchange, Inc. - US6819361006 - REIT - Currency: USD
Taking everything into account, OHI scores 6 out of 10 in our fundamental rating. OHI was compared to 130 industry peers in the Diversified REITs industry. OHI scores excellent on profitability, but there are some minor concerns on its financial health. OHI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
OHI had positive earnings in the past year.
In the past year OHI had a positive cash flow from operations.
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
OHI has a better Return On Assets (4.11%) than 90.00% of its industry peers.
OHI's Return On Equity of 8.96% is amongst the best of the industry. OHI outperforms 84.62% of its industry peers.
The Return On Invested Capital of OHI (5.44%) is better than 93.08% 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 3.19%.
The last Return On Invested Capital (5.44%) for OHI is above the 3 year average (4.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.11% | ||
| ROE | 8.96% | ||
| ROIC | 5.44% |
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 has a better Profit Margin (38.65%) than 89.23% of its industry peers.
OHI's Profit Margin has been stable in the last couple of years.
OHI's Operating Margin of 62.74% is amongst the best of the industry. OHI outperforms 96.92% of its industry peers.
OHI's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 98.62%, OHI belongs to the best of the industry, outperforming 99.23% of the companies in the same industry.
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 | 62.74% | ||
| PM (TTM) | 38.65% | ||
| GM | 98.62% |
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.
Compared to 5 years ago, OHI has more shares outstanding
Compared to 1 year ago, OHI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.11, we must say that OHI is in the distress zone and has some risk of bankruptcy.
OHI has a Altman-Z score of 1.11. This is amongst the best in the industry. OHI outperforms 81.54% of its industry peers.
OHI has a debt to FCF ratio of 17.80. This is a negative value and a sign of low solvency as OHI would need 17.80 years to pay back of all of its debts.
OHI has a Debt to FCF ratio of 17.80. This is in the better half of the industry: OHI outperforms 77.69% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that OHI has dependencies on debt financing.
OHI has a Debt to Equity ratio (1.07) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 17.8 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.74
WACC7.32%
2.3 Liquidity
OHI has a Current Ratio of 2.44. This indicates that OHI is financially healthy and has no problem in meeting its short term obligations.
OHI has a Current ratio of 2.44. This is amongst the best in the industry. OHI outperforms 85.38% of its industry peers.
A Quick Ratio of 2.44 indicates that OHI has no problem at all paying its short term obligations.
The Quick ratio of OHI (2.44) is better than 85.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 2.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 56.57% over the past year.
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.
Looking at the last year, OHI shows a quite strong growth in Revenue. The Revenue has grown by 10.70% in the last year.
The Revenue has been growing slightly by 2.51% on average over the past years.
EPS 1Y (TTM)56.57%
EPS 3Y-4.33%
EPS 5Y-0.38%
EPS Q2Q%86.36%
Revenue 1Y (TTM)10.7%
Revenue growth 3Y-0.36%
Revenue growth 5Y2.51%
Sales Q2Q%16.71%
3.2 Future
OHI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.63% yearly.
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 Y8.63%
EPS Next 2Y7.18%
EPS Next 3Y2.86%
EPS Next 5Y22.63%
Revenue Next Year11.16%
Revenue Next 2Y7.96%
Revenue Next 3Y6.39%
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.
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
The Price/Earnings ratio is 24.26, which indicates a rather expensive current valuation of OHI.
OHI's Price/Earnings ratio is a bit cheaper when compared to the industry. OHI is cheaper than 71.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, OHI is valued at the same level.
A Price/Forward Earnings ratio of 22.33 indicates a rather expensive valuation of OHI.
Based on the Price/Forward Earnings ratio, OHI is valued cheaper than 87.69% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.32. OHI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.26 | ||
| Fwd PE | 22.33 |
4.2 Price Multiples
63.08% of the companies in the same industry are cheaper than OHI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, OHI is valued a bit cheaper than the industry average as 63.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.99 | ||
| EV/EBITDA | 15.75 |
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)2.81
PEG (5Y)N/A
EPS Next 2Y7.18%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
OHI has a Yearly Dividend Yield of 6.95%, which is a nice return.
Compared to an average industry Dividend Yield of 16.87, OHI pays a bit more dividend than its industry peers.
OHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.95% |
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
OHI pays out 168.69% of its income as dividend. This is not a sustainable payout ratio.
DP168.69%
EPS Next 2Y7.18%
EPS Next 3Y2.86%
NYSE:OHI (4/21/2025, 1:56:08 PM)
37.6
-0.97 (-2.51%)
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 Change0.3%
Ins Owners0.17%
Ins Owner Change0.01%
Market Cap10.60B
Analysts70.48
Price Target41.68 (10.85%)
Short Float %5.44%
Short Ratio7.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.95% |
Yearly Dividend2.61
Dividend Growth(5Y)-0.86%
DP168.69%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.23%
Min EPS beat(2)-4.48%
Max EPS beat(2)8.95%
EPS beat(4)2
Avg EPS beat(4)3.75%
Min EPS beat(4)-15.58%
Max EPS beat(4)26.1%
EPS beat(8)3
Avg EPS beat(8)-9.74%
EPS beat(12)6
Avg EPS beat(12)1.35%
EPS beat(16)8
Avg EPS beat(16)1.18%
Revenue beat(2)2
Avg Revenue beat(2)1.83%
Min Revenue beat(2)0.32%
Max Revenue beat(2)3.35%
Revenue beat(4)4
Avg Revenue beat(4)1.99%
Min Revenue beat(4)0.3%
Max Revenue beat(4)3.99%
Revenue beat(8)7
Avg Revenue beat(8)1.3%
Revenue beat(12)8
Avg Revenue beat(12)-1.89%
Revenue beat(16)10
Avg Revenue beat(16)-1.64%
PT rev (1m)-0.49%
PT rev (3m)-4.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.61%
EPS NY rev (1m)2.19%
EPS NY rev (3m)3.37%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)3.96%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)2.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.26 | ||
| Fwd PE | 22.33 | ||
| P/S | 10.08 | ||
| P/FCF | 38.99 | ||
| P/OCF | 14.14 | ||
| P/B | 2.34 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | 15.75 |
EPS(TTM)1.55
EY4.12%
EPS(NY)1.68
Fwd EY4.48%
FCF(TTM)0.96
FCFY2.57%
OCF(TTM)2.66
OCFY7.07%
SpS3.73
BVpS16.1
TBVpS13.71
PEG (NY)2.81
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.11% | ||
| ROE | 8.96% | ||
| ROCE | 6.89% | ||
| ROIC | 5.44% | ||
| ROICexc | 5.75% | ||
| ROICexgc | 6.33% | ||
| OM | 62.74% | ||
| PM (TTM) | 38.65% | ||
| GM | 98.62% | ||
| FCFM | 25.85% |
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-Score8
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 17.8 | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 156.77% | ||
| Cap/Sales | 45.43% | ||
| Interest Coverage | 2.86 | ||
| Cash Conversion | 77.72% | ||
| Profit Quality | 66.9% | ||
| Current Ratio | 2.44 | ||
| Quick Ratio | 2.44 | ||
| Altman-Z | 1.11 |
F-Score8
WACC7.32%
ROIC/WACC0.74
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)56.57%
EPS 3Y-4.33%
EPS 5Y-0.38%
EPS Q2Q%86.36%
EPS Next Y8.63%
EPS Next 2Y7.18%
EPS Next 3Y2.86%
EPS Next 5Y22.63%
Revenue 1Y (TTM)10.7%
Revenue growth 3Y-0.36%
Revenue growth 5Y2.51%
Sales Q2Q%16.71%
Revenue Next Year11.16%
Revenue Next 2Y7.96%
Revenue Next 3Y6.39%
Revenue Next 5Y-1.02%
EBIT growth 1Y34.91%
EBIT growth 3Y5.23%
EBIT growth 5Y3.54%
EBIT Next Year70.62%
EBIT Next 3Y23.57%
EBIT Next 5Y19.21%
FCF growth 1Y-12.54%
FCF growth 3Y189.54%
FCF growth 5Y49.66%
OCF growth 1Y21.32%
OCF growth 3Y1.24%
OCF growth 5Y6.24%