OFFICE PROPERTIES INCOME TRU (OPI) Stock Fundamental Analysis
NASDAQ:OPI - Nasdaq - US67623C1099 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to OPI. OPI was compared to 129 industry peers in the Diversified REITs industry. OPI has a bad profitability rating. Also its financial health evaluation is rather negative. OPI has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
OPI had positive earnings in the past year.
OPI had a positive operating cash flow in the past year.
In the past 5 years OPI reported 4 times negative net income.
In the past 5 years OPI always reported a positive cash flow from operatings.
1.2 Ratios
OPI has a worse Return On Assets (-5.10%) than 82.17% of its industry peers.
OPI has a Return On Equity of -16.45%. This is amonst the worse of the industry: OPI underperforms 83.72% of its industry peers.
OPI has a Return On Invested Capital of 2.31%. This is comparable to the rest of the industry: OPI outperforms 41.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OPI is in line with the industry average of 3.15%.
The 3 year average ROIC (2.10%) for OPI is below the current ROIC(2.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.1% | ||
| ROE | -16.45% | ||
| ROIC | 2.31% |
ROA(3y)-1.82%
ROA(5y)-1.1%
ROE(3y)-5.93%
ROE(5y)-3.59%
ROIC(3y)2.1%
ROIC(5y)2.13%
1.3 Margins
OPI has a worse Operating Margin (16.48%) than 62.79% of its industry peers.
OPI's Operating Margin has been stable in the last couple of years.
The Gross Margin of OPI (65.17%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of OPI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.48% | ||
| PM (TTM) | N/A | ||
| GM | 65.17% |
OM growth 3Y-0.97%
OM growth 5Y-1.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.46%
GM growth 5Y-1.48%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OPI is destroying value.
Compared to 1 year ago, OPI has more shares outstanding
The number of shares outstanding for OPI has been increased compared to 5 years ago.
The debt/assets ratio for OPI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.30, we must say that OPI is in the distress zone and has some risk of bankruptcy.
OPI has a Altman-Z score of -0.30. This is amonst the worse of the industry: OPI underperforms 82.17% of its industry peers.
A Debt/Equity ratio of 2.13 is on the high side and indicates that OPI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.13, OPI is doing worse than 75.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.3 |
ROIC/WACC0.5
WACC4.57%
2.3 Liquidity
A Current Ratio of 2.33 indicates that OPI has no problem at all paying its short term obligations.
OPI has a Current ratio of 2.33. This is amongst the best in the industry. OPI outperforms 82.17% of its industry peers.
A Quick Ratio of 2.33 indicates that OPI has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.33, OPI belongs to the best of the industry, outperforming 82.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 |
3. Growth
3.1 Past
OPI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 366.67%, which is quite impressive.
OPI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.24% yearly.
Looking at the last year, OPI shows a quite strong growth in Revenue. The Revenue has grown by 13.88% in the last year.
OPI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.85% yearly.
EPS 1Y (TTM)366.67%
EPS 3YN/A
EPS 5Y1.24%
EPS Q2Q%154.55%
Revenue 1Y (TTM)13.88%
Revenue growth 3Y-4.51%
Revenue growth 5Y-5.85%
Sales Q2Q%-18.51%
3.2 Future
The Earnings Per Share is expected to decrease by -167.50% on average over the next years. This is quite bad
The Revenue is expected to decrease by -6.28% on average over the next years.
EPS Next Y-573.34%
EPS Next 2Y-167.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-11.89%
Revenue Next 2Y-6.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 0.29 indicates a rather cheap valuation of OPI.
OPI's Price/Earnings ratio is rather cheap when compared to the industry. OPI is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of OPI to the average of the S&P500 Index (26.31), we can say OPI is valued rather cheaply.
OPI is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.29 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OPI is valued cheaply inside the industry as 93.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.31 |
4.3 Compensation for Growth
OPI's earnings are expected to decrease with -167.50% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-167.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 17.79%, OPI is a good candidate for dividend investing.
In the last 3 months the price of OPI has falen by -71.59%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
OPI's Dividend Yield is rather good when compared to the industry average which is at 6.75. OPI pays more dividend than 97.67% of the companies in the same industry.
OPI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.79% |
5.2 History
The dividend of OPI decreases each year by -56.49%.
OPI has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-56.49%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of OPI are negative and hence is the payout ratio. OPI will probably not be able to sustain this dividend level.
The Dividend Rate of OPI has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-1.23%
EPS Next 2Y-167.5%
EPS Next 3YN/A
0.2399
+0.02 (+6.72%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners41.16%
Inst Owner Change-16.08%
Ins Owners0.88%
Ins Owner Change0%
Market Cap17.01M
Analysts46.67
Price Target3.37 (1304.75%)
Short Float %5.56%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.79% |
Yearly Dividend0.03
Dividend Growth(5Y)-56.49%
DP-1.23%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)133.46%
Min EPS beat(2)108.49%
Max EPS beat(2)158.43%
EPS beat(4)3
Avg EPS beat(4)159.16%
Min EPS beat(4)-98.02%
Max EPS beat(4)467.75%
EPS beat(8)5
Avg EPS beat(8)64.88%
EPS beat(12)7
Avg EPS beat(12)112.52%
EPS beat(16)8
Avg EPS beat(16)-30.1%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.29 | ||
| Fwd PE | N/A | ||
| P/S | 0.03 | ||
| P/FCF | N/A | ||
| P/OCF | 1.42 | ||
| P/B | 0.02 | ||
| P/tB | 0.02 | ||
| EV/EBITDA | 8.31 |
EPS(TTM)0.84
EY350.15%
EPS(NY)-3.45
Fwd EYN/A
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)0.17
OCFY70.25%
SpS8.68
BVpS15.61
TBVpS15.61
PEG (NY)N/A
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.1% | ||
| ROE | -16.45% | ||
| ROCE | 2.92% | ||
| ROIC | 2.31% | ||
| ROICexc | 2.35% | ||
| ROICexgc | 2.36% | ||
| OM | 16.48% | ||
| PM (TTM) | N/A | ||
| GM | 65.17% | ||
| FCFM | N/A |
ROA(3y)-1.82%
ROA(5y)-1.1%
ROE(3y)-5.93%
ROE(5y)-3.59%
ROIC(3y)2.1%
ROIC(5y)2.13%
ROICexc(3y)2.15%
ROICexc(5y)2.17%
ROICexgc(3y)2.16%
ROICexgc(5y)2.18%
ROCE(3y)2.66%
ROCE(5y)2.69%
ROICexcg growth 3Y-0.4%
ROICexcg growth 5Y-4.17%
ROICexc growth 3Y-0.44%
ROICexc growth 5Y-4.15%
OM growth 3Y-0.97%
OM growth 5Y-1.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.46%
GM growth 5Y-1.48%
F-Score5
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.48 | ||
| Cap/Depr | 53.46% | ||
| Cap/Sales | 15.36% | ||
| Interest Coverage | 0.58 | ||
| Cash Conversion | 4.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 | ||
| Altman-Z | -0.3 |
F-Score5
WACC4.57%
ROIC/WACC0.5
Cap/Depr(3y)92.41%
Cap/Depr(5y)121.7%
Cap/Sales(3y)34.95%
Cap/Sales(5y)48.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)366.67%
EPS 3YN/A
EPS 5Y1.24%
EPS Q2Q%154.55%
EPS Next Y-573.34%
EPS Next 2Y-167.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.88%
Revenue growth 3Y-4.51%
Revenue growth 5Y-5.85%
Sales Q2Q%-18.51%
Revenue Next Year-11.89%
Revenue Next 2Y-6.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.2%
EBIT growth 3Y-5.43%
EBIT growth 5Y-6.86%
EBIT Next Year206.7%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-105.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-93.85%
OCF growth 3Y-32.82%
OCF growth 5Y-20.78%