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 129 industry peers in the Diversified REITs industry. While OHI belongs to the best of the industry regarding profitability, 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.
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
OHI's Return On Assets of 4.62% is amongst the best of the industry. OHI outperforms 91.47% of its industry peers.
Looking at the Return On Equity, with a value of 9.45%, OHI belongs to the top of the industry, outperforming 86.82% of the companies in the same industry.
The Return On Invested Capital of OHI (5.73%) is better 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
The Profit Margin of OHI (41.29%) is better than 92.25% of its industry peers.
OHI's Profit Margin has been stable in the last couple of years.
OHI's Operating Margin of 62.79% is amongst the best of the industry. OHI outperforms 97.67% of its industry peers.
OHI's Operating Margin has been stable in the last couple of years.
OHI's Gross Margin of 98.70% is amongst the best of the industry. OHI outperforms 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
OHI has an Altman-Z score of 1.19. This is a bad value and indicates that OHI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of OHI (1.19) is better than 81.40% of its industry peers.
The Debt to FCF ratio of OHI is 17.33, which is on the high side as it means it would take OHI, 17.33 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 17.33, OHI belongs to the best of the industry, outperforming 82.17% of the companies in the same industry.
OHI has a Debt/Equity ratio of 0.94. This is a neutral value indicating OHI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.94, OHI is in the better half of the industry, outperforming 63.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 17.33 | ||
| Altman-Z | 1.19 |
ROIC/WACC0.78
WACC7.38%
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 79.84% 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's Quick ratio of 2.01 is fine compared to the rest 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.
The Earnings Per Share has been decreasing by -0.38% on average over the past years.
The Revenue has grown by 11.29% in the past year. This is quite good.
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)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.
The Revenue is expected to decrease by -0.50% on average over the next years.
EPS Next Y8.04%
EPS Next 2Y7.8%
EPS Next 3Y5.75%
EPS Next 5Y22.18%
Revenue Next Year11.64%
Revenue Next 2Y8.96%
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.
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
Based on the Price/Earnings ratio of 22.35, the valuation of OHI can be described as rather expensive.
OHI's Price/Earnings ratio is a bit cheaper when compared to the industry. OHI is cheaper than 79.84% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. OHI is around the same levels.
With a Price/Forward Earnings ratio of 20.84, OHI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, OHI is valued cheaply inside the industry as 91.47% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. OHI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 20.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OHI is on the same level as its industry peers.
OHI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OHI is cheaper than 65.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.33 | ||
| EV/EBITDA | 15.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
OHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.78
PEG (5Y)N/A
EPS Next 2Y7.8%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.31%, OHI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.45, 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.31% |
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
OHI pays out 158.46% of its income as dividend. This is not a sustainable payout ratio.
DP158.46%
EPS Next 2Y7.8%
EPS Next 3Y5.75%
37.54
+0.89 (+2.43%)
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 Change0%
Ins Owners0.17%
Ins Owner Change0.55%
Market Cap10.86B
Analysts70.48
Price Target41.07 (9.4%)
Short Float %3.27%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.31% |
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)-0.17%
PT rev (3m)-1.47%
EPS NQ rev (1m)-3.1%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)-3.12%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 20.84 | ||
| P/S | 10.01 | ||
| P/FCF | 42.33 | ||
| P/OCF | 13.93 | ||
| P/B | 2.29 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 15.08 |
EPS(TTM)1.68
EY4.48%
EPS(NY)1.8
Fwd EY4.8%
FCF(TTM)0.89
FCFY2.36%
OCF(TTM)2.7
OCFY7.18%
SpS3.75
BVpS16.38
TBVpS14.06
PEG (NY)2.78
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
WACC7.38%
ROIC/WACC0.78
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 Y8.04%
EPS Next 2Y7.8%
EPS Next 3Y5.75%
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 2Y8.96%
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%