OMEGA HEALTHCARE INVESTORS (OHI) Stock Fundamental Analysis
USA - NYSE:OHI - US6819361006 - REIT
43.54 USD
+0.91 (+2.13%)
43.11 USD
-0.43 (-0.99%)
Overall OHI gets a fundamental rating of 6 out of 10. We evaluated OHI against 128 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
OHI had positive earnings in the past year.
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
The Return On Assets of OHI (4.32%) is better than 89.84% of its industry peers.
OHI has a Return On Equity of 9.13%. This is amongst the best in the industry. OHI outperforms 85.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.38%, OHI belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
OHI had an Average Return On Invested Capital over the past 3 years of 4.40%. This is in line with the industry average of 3.08%.
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
With an excellent Profit Margin value of 40.86%, OHI belongs to the best of the industry, outperforming 92.19% 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.
With an excellent Operating Margin value of 62.27%, OHI belongs to the best of the industry, outperforming 97.66% of the companies in the same industry.
OHI's Operating Margin has been stable in the last couple of years.
OHI has a better Gross Margin (98.78%) than 99.22% 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 | 62.27% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OHI is destroying value.
OHI has more shares outstanding than it did 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 1.31, we must say that OHI is in the distress zone and has some risk of bankruptcy.
OHI has a better Altman-Z score (1.31) than 86.72% of its industry peers.
A Debt/Equity ratio of 1.00 is on the high side and indicates that OHI has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.00, OHI is doing good in the industry, outperforming 61.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.31 |
ROIC/WACC0.73
WACC7.34%
2.3 Liquidity
OHI has a Current Ratio of 2.86. This indicates that OHI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of OHI (2.86) is better than 90.63% of its industry peers.
OHI has a Quick Ratio of 2.86. This indicates that OHI is financially healthy and has no problem in meeting its short term obligations.
OHI has a Quick ratio of 2.86. This is amongst the best in the industry. OHI outperforms 90.63% 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 36.76%, which is quite impressive.
The Earnings Per Share has been decreasing by -0.38% on average over the past years.
Looking at the last year, OHI shows a quite strong growth in Revenue. The Revenue has grown by 10.70% in the last year.
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)36.76%
EPS 3Y-4.33%
EPS 5Y-0.38%
EPS Q2Q%40.48%
Revenue 1Y (TTM)10.7%
Revenue growth 3Y-0.36%
Revenue growth 5Y2.51%
Sales Q2Q%12.88%
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.
Based on estimates for the next years, OHI will show a small growth in Revenue. The Revenue will grow by 0.62% on average per year.
EPS Next Y9.99%
EPS Next 2Y8.75%
EPS Next 3Y6.81%
EPS Next 5Y22.45%
Revenue Next Year11.64%
Revenue Next 2Y9.79%
Revenue Next 3Y8.6%
Revenue Next 5Y0.62%
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 23.41, which indicates a rather expensive current valuation of OHI.
Based on the Price/Earnings ratio, OHI is valued cheaper than 80.47% of the companies in the same industry.
OHI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.06.
Based on the Price/Forward Earnings ratio of 23.75, the valuation of OHI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, OHI is valued cheaper than 85.94% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.73. OHI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | 23.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OHI is valued a bit more expensive than 67.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.94 |
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.
OHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.34
PEG (5Y)N/A
EPS Next 2Y8.75%
EPS Next 3Y6.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.29%, OHI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.28, OHI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, OHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
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 162.15% of its income as dividend. This is not a sustainable payout ratio.
DP162.15%
EPS Next 2Y8.75%
EPS Next 3Y6.81%
43.54
+0.91 (+2.13%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners76.93%
Inst Owner Change0.95%
Ins Owners0.17%
Ins Owner Change0.83%
Market Cap12.84B
Revenue(TTM)1.05B
Net Income(TTM)455.45M
Analysts72.38
Price Target44.95 (3.24%)
Short Float %3.79%
Short Ratio6.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
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)1.93%
PT rev (3m)8.04%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)2.28%
EPS NY rev (1m)0.6%
EPS NY rev (3m)1.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | 23.75 | ||
| P/S | 11.52 | ||
| P/FCF | N/A | ||
| P/OCF | 15.38 | ||
| P/B | 2.57 | ||
| P/tB | 2.98 | ||
| EV/EBITDA | 16.94 |
EPS(TTM)1.86
EY4.27%
EPS(NY)1.83
Fwd EY4.21%
FCF(TTM)-0.21
FCFYN/A
OCF(TTM)2.83
OCFY6.5%
SpS3.78
BVpS16.91
TBVpS14.62
PEG (NY)2.34
PEG (5Y)N/A
Graham Number26.6
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%
ROICexgc growth 3Y6.74%
ROICexgc 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 | 1.31 |
F-Score7
WACC7.34%
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)36.76%
EPS 3Y-4.33%
EPS 5Y-0.38%
EPS Q2Q%40.48%
EPS Next Y9.99%
EPS Next 2Y8.75%
EPS Next 3Y6.81%
EPS Next 5Y22.45%
Revenue 1Y (TTM)10.7%
Revenue growth 3Y-0.36%
Revenue growth 5Y2.51%
Sales Q2Q%12.88%
Revenue Next Year11.64%
Revenue Next 2Y9.79%
Revenue Next 3Y8.6%
Revenue Next 5Y0.62%
EBIT growth 1Y27.34%
EBIT growth 3Y5.23%
EBIT growth 5Y3.54%
EBIT Next Year72.47%
EBIT Next 3Y25.17%
EBIT Next 5Y20.99%
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%
OMEGA HEALTHCARE INVESTORS / OHI FAQ
Can you provide the ChartMill fundamental rating for OMEGA HEALTHCARE INVESTORS?
ChartMill assigns a fundamental rating of 6 / 10 to OHI.
What is the valuation status for OHI stock?
ChartMill assigns a valuation rating of 3 / 10 to OMEGA HEALTHCARE INVESTORS (OHI). This can be considered as Overvalued.
What is the profitability of OHI stock?
OMEGA HEALTHCARE INVESTORS (OHI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for OHI stock?
The Price/Earnings (PE) ratio for OMEGA HEALTHCARE INVESTORS (OHI) is 23.41 and the Price/Book (PB) ratio is 2.57.
Can you provide the expected EPS growth for OHI stock?
The Earnings per Share (EPS) of OMEGA HEALTHCARE INVESTORS (OHI) is expected to grow by 9.99% in the next year.