OFFICE PROPERTIES INCOME TRU (OPI) Stock Fundamental Analysis
USA - NASDAQ:OPI - US67623C1099 - REIT
0.2 USD
-0.04 (-16.98%)
0.2687 USD
+0.07 (+34.35%)
Taking everything into account, OPI scores 2 out of 10 in our fundamental rating. OPI was compared to 127 industry peers in the Diversified REITs industry. OPI has a bad profitability rating. Also its financial health evaluation is rather negative. OPI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year OPI has reported negative net income.
OPI had a positive operating cash flow in the past year.
In the past 5 years OPI reported 4 times negative net income.
Each year in the past 5 years OPI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -8.26%, OPI is doing worse than 86.05% of the companies in the same industry.
The Return On Equity of OPI (-27.59%) is worse than 85.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.51%, OPI is doing worse than 75.97% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OPI is in line with the industry average of 3.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.26% | ||
| ROE | -27.59% | ||
| ROIC | 1.51% |
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
The Operating Margin of OPI (14.06%) is worse than 68.22% of its industry peers.
In the last couple of years the Operating Margin of OPI has remained more or less at the same level.
The Gross Margin of OPI (62.98%) is worse than 61.24% of its industry peers.
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 | 14.06% | ||
| PM (TTM) | N/A | ||
| GM | 62.98% |
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
OPI 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, 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 -0.39, we must say that OPI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of OPI (-0.39) is worse than 84.50% of its industry peers.
OPI has a Debt/Equity ratio of 2.22. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.22, OPI is not doing good in the industry: 72.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.39 |
ROIC/WACC0.33
WACC4.56%
2.3 Liquidity
A Current Ratio of 2.01 indicates that OPI has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.01, OPI is doing good in the industry, outperforming 79.84% of the companies in the same industry.
OPI has a Quick Ratio of 2.01. This indicates that OPI is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of OPI (2.01) is better than 79.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
OPI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -129.65%.
Measured over the past 5 years, OPI shows a small growth in Earnings Per Share. The EPS has been growing by 1.24% on average per year.
Looking at the last year, OPI shows a very negative growth in Revenue. The Revenue has decreased by -30.27% in the last year.
The Revenue has been decreasing by -5.85% on average over the past years.
EPS 1Y (TTM)-129.65%
EPS 3YN/A
EPS 5Y1.24%
EPS Q2Q%-91.67%
Revenue 1Y (TTM)-30.27%
Revenue growth 3Y-4.51%
Revenue growth 5Y-5.85%
Sales Q2Q%-7.43%
3.2 Future
OPI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -167.50% yearly.
OPI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.28% yearly.
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
OPI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for OPI. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
OPI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OPI is cheaper than 82.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.77 |
4.3 Compensation for Growth
A cheap valuation may be justified as OPI's earnings are expected to decrease with -167.50% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-167.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 40.87%, OPI is a good candidate for dividend investing.
The stock price of OPI dropped by -28.77% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 6.24, OPI pays a better dividend. On top of this OPI pays more dividend than 98.45% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, OPI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 40.87% |
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.
OPI's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-0.84%
EPS Next 2Y-167.5%
EPS Next 3YN/A
0.2
-0.04 (-16.98%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners26.86%
Inst Owner Change-3.1%
Ins Owners0.83%
Ins Owner Change0%
Market Cap14.80M
Revenue(TTM)466.97M
Net Income(TTM)-294.10M
Analysts46.67
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 40.87% |
Yearly Dividend0.03
Dividend Growth(5Y)-56.49%
DP-0.84%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)112.39%
Min EPS beat(2)108.49%
Max EPS beat(2)116.29%
EPS beat(4)3
Avg EPS beat(4)71.3%
Min EPS beat(4)-98.02%
Max EPS beat(4)158.43%
EPS beat(8)6
Avg EPS beat(8)170.05%
EPS beat(12)8
Avg EPS beat(12)132.03%
EPS beat(16)9
Avg EPS beat(16)73.31%
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 | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.03 | ||
| P/FCF | N/A | ||
| P/OCF | 1.19 | ||
| P/B | 0.01 | ||
| P/tB | 0.01 | ||
| EV/EBITDA | 9.77 |
EPS(TTM)-0.59
EYN/A
EPS(NY)-3.45
Fwd EYN/A
FCF(TTM)-1.02
FCFYN/A
OCF(TTM)0.17
OCFY84.34%
SpS6.31
BVpS14.41
TBVpS14.41
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.26% | ||
| ROE | -27.59% | ||
| ROCE | 1.91% | ||
| ROIC | 1.51% | ||
| ROICexc | 1.54% | ||
| ROICexgc | 1.55% | ||
| OM | 14.06% | ||
| PM (TTM) | N/A | ||
| GM | 62.98% | ||
| 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%
ROICexgc growth 3Y-0.4%
ROICexgc 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-Score3
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.04 | ||
| Cap/Depr | 51.83% | ||
| Cap/Sales | 18.87% | ||
| Interest Coverage | 0.4 | ||
| Cash Conversion | 5.3% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | -0.39 |
F-Score3
WACC4.56%
ROIC/WACC0.33
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)-129.65%
EPS 3YN/A
EPS 5Y1.24%
EPS Q2Q%-91.67%
EPS Next Y-573.34%
EPS Next 2Y-167.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-30.27%
Revenue growth 3Y-4.51%
Revenue growth 5Y-5.85%
Sales Q2Q%-7.43%
Revenue Next Year-11.89%
Revenue Next 2Y-6.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-50.44%
EBIT growth 3Y-5.43%
EBIT growth 5Y-6.86%
EBIT Next Year206.7%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y7.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-92.74%
OCF growth 3Y-32.82%
OCF growth 5Y-20.78%
OFFICE PROPERTIES INCOME TRU / OPI FAQ
What is the ChartMill fundamental rating of OFFICE PROPERTIES INCOME TRU (OPI) stock?
ChartMill assigns a fundamental rating of 2 / 10 to OPI.
What is the valuation status of OFFICE PROPERTIES INCOME TRU (OPI) stock?
ChartMill assigns a valuation rating of 1 / 10 to OFFICE PROPERTIES INCOME TRU (OPI). This can be considered as Overvalued.
How profitable is OFFICE PROPERTIES INCOME TRU (OPI) stock?
OFFICE PROPERTIES INCOME TRU (OPI) has a profitability rating of 2 / 10.
How sustainable is the dividend of OFFICE PROPERTIES INCOME TRU (OPI) stock?
The dividend rating of OFFICE PROPERTIES INCOME TRU (OPI) is 5 / 10 and the dividend payout ratio is -0.84%.