OMEGA HEALTHCARE INVESTORS (OHI) Stock Fundamental Analysis
NYSE:OHI - New York Stock Exchange, Inc. - US6819361006 - REIT - Currency: USD
OHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 128 industry peers in the Diversified REITs industry. OHI has an excellent profitability rating, 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
In the past year OHI was profitable.
In the past year OHI had a positive cash flow from operations.
OHI had positive earnings in each of the past 5 years.
OHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 4.62%, OHI belongs to the best of the industry, outperforming 91.41% of the companies in the same industry.
With an excellent Return On Equity value of 9.45%, OHI belongs to the best of the industry, outperforming 86.72% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.73%, OHI belongs to the top of the industry, outperforming 94.53% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OHI is in line with the industry average of 3.14%.
The 3 year average ROIC (4.40%) for OHI is below the current ROIC(5.73%), indicating increased profibility in the last year.
| 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
The Profit Margin of OHI (41.29%) is better than 92.19% of its industry peers.
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 97.66% 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.
Looking at the Gross Margin, with a value of 98.70%, OHI belongs to the top of the industry, outperforming 100.00% 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 | 62.79% | ||
| 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
OHI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, OHI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.16, we must say that OHI is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.16, OHI belongs to the best of the industry, outperforming 81.25% 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.
With an excellent Debt to FCF ratio value of 17.33, OHI belongs to the best of the industry, outperforming 82.03% of the companies in the same industry.
A Debt/Equity ratio of 0.94 indicates that OHI is somewhat dependend on debt financing.
OHI has a better Debt to Equity ratio (0.94) than 63.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 17.33 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.68
WACC8.41%
2.3 Liquidity
OHI has a Current Ratio of 2.01. This indicates that OHI is financially healthy and has no problem in meeting its short term obligations.
OHI has a better Current ratio (2.01) than 79.69% of its industry peers.
A Quick Ratio of 2.01 indicates that OHI has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.01, OHI is doing good in the industry, outperforming 79.69% of the companies in the same industry.
| 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.
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 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
Based on estimates for the next years, OHI will show a very strong growth in Earnings Per Share. The EPS will grow by 22.18% on average per year.
OHI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.50% yearly.
EPS Next Y10.87%
EPS Next 2Y8.86%
EPS Next 3Y5.85%
EPS Next 5Y22.18%
Revenue Next Year11.64%
Revenue Next 2Y8.75%
Revenue Next 3Y7.99%
Revenue Next 5Y-0.5%
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
The Price/Earnings ratio is 21.77, 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 79.69% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, OHI is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.92, the valuation of OHI can be described as rather expensive.
92.19% of the companies in the same industry are more expensive than OHI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.49. OHI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 19.92 |
4.2 Price Multiples
OHI's Enterprise Value to EBITDA ratio is in line with the industry average.
65.63% 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 | 41.25 | ||
| EV/EBITDA | 14.8 |
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
PEG (5Y)N/A
EPS Next 2Y8.86%
EPS Next 3Y5.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.29%, OHI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.79, 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 2.43.
| 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.86%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
OHI pays out 158.46% of its income as dividend. This is not a sustainable payout ratio.
DP158.46%
EPS Next 2Y8.86%
EPS Next 3Y5.85%
36.58
-0.17 (-0.46%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners78.88%
Inst Owner Change6.99%
Ins Owners0.17%
Ins Owner Change0.55%
Market Cap10.59B
Analysts70.48
Price Target41.07 (12.27%)
Short Float %3.72%
Short Ratio3.97
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)-1.31%
PT rev (3m)-1.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)2.06%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 19.92 | ||
| P/S | 9.76 | ||
| P/FCF | 41.25 | ||
| P/OCF | 13.57 | ||
| P/B | 2.23 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 14.8 |
EPS(TTM)1.68
EY4.59%
EPS(NY)1.84
Fwd EY5.02%
FCF(TTM)0.89
FCFY2.42%
OCF(TTM)2.7
OCFY7.37%
SpS3.75
BVpS16.38
TBVpS14.06
PEG (NY)2
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 | 1.16 |
F-Score7
WACC8.41%
ROIC/WACC0.68
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 Y10.87%
EPS Next 2Y8.86%
EPS Next 3Y5.85%
EPS Next 5Y22.18%
Revenue 1Y (TTM)11.29%
Revenue growth 3Y-0.36%
Revenue growth 5Y2.51%
Sales Q2Q%13.76%
Revenue Next Year11.64%
Revenue Next 2Y8.75%
Revenue Next 3Y7.99%
Revenue Next 5Y-0.5%
EBIT growth 1Y34.26%
EBIT growth 3Y5.23%
EBIT growth 5Y3.54%
EBIT Next Year70.93%
EBIT Next 3Y24.64%
EBIT Next 5Y17.98%
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%