OFFICE PROPERTIES INCOME TRU (OPI)
US67623C1099 - REIT
OPI gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 126 industry peers in the Diversified REITs industry. OPI may be in some trouble as it scores bad on both profitability and health. OPI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year OPI was profitable.
OPI had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: OPI reported negative net income in multiple years.
In the past 5 years OPI always reported a positive cash flow from operatings.
1.2 Ratios
OPI has a Return On Assets of -1.74%. This is in the lower half of the industry: OPI underperforms 72.36% of its industry peers.
The Return On Equity of OPI (-5.54%) is worse than 73.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.10%, OPI is doing worse than 62.60% of the companies in the same industry.
OPI had an Average Return On Invested Capital over the past 3 years of 2.14%. This is in line with the industry average of 2.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.74% | ||
| ROE | -5.54% | ||
| ROIC | 2.1% |
ROA(3y)-0.7%
ROA(5y)-0.24%
ROE(3y)-2.18%
ROE(5y)-0.87%
ROIC(3y)2.14%
ROIC(5y)2.24%
1.3 Margins
Looking at the Operating Margin, with a value of 19.13%, OPI is in line with its industry, outperforming 46.34% of the companies in the same industry.
In the last couple of years the Operating Margin of OPI has grown nicely.
With a Gross Margin value of 67.63%, OPI perfoms like the industry average, outperforming 49.59% of the companies in the same industry.
OPI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.13% | ||
| PM (TTM) | N/A | ||
| GM | 67.63% |
OM growth 3Y0.17%
OM growth 5Y2.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.6%
GM growth 5Y0.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OPI is destroying value.
OPI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for OPI has been increased compared to 5 years ago.
Compared to 1 year ago, OPI has a worse debt to assets ratio.
2.2 Solvency
OPI has an Altman-Z score of -0.23. This is a bad value and indicates that OPI is not financially healthy and even has some risk of bankruptcy.
OPI has a Altman-Z score of -0.23. This is amonst the worse of the industry: OPI underperforms 86.18% of its industry peers.
OPI has a Debt/Equity ratio of 2.05. This is a high value indicating a heavy dependency on external financing.
OPI has a Debt to Equity ratio of 2.05. This is in the lower half of the industry: OPI underperforms 74.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.23 |
ROIC/WACC0.52
WACC4.07%
2.3 Liquidity
OPI has a Current Ratio of 0.99. This is a bad value and indicates that OPI is not financially healthy enough and could expect problems in meeting its short term obligations.
OPI's Current ratio of 0.99 is on the low side compared to the rest of the industry. OPI is outperformed by 64.23% of its industry peers.
A Quick Ratio of 0.99 indicates that OPI may have some problems paying its short term obligations.
OPI has a Quick ratio of 0.99. This is in the lower half of the industry: OPI underperforms 60.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 315.38% over the past year.
Measured over the past years, OPI shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.13% on average per year.
The Revenue has decreased by -3.74% in the past year.
OPI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.58% yearly.
EPS 1Y (TTM)315.38%
EPS 3Y23.13%
EPS 5YN/A
EPS growth Q2Q630.77%
Revenue 1Y (TTM)-3.74%
Revenue growth 3Y-3.18%
Revenue growth 5Y4.58%
Revenue growth Q2Q4.57%
3.2 Future
Based on estimates for the next years, OPI will show a very negative growth in Earnings Per Share. The EPS will decrease by -144.75% on average per year.
OPI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.30% yearly.
EPS Next Y-752.89%
EPS Next 2Y-261.08%
EPS Next 3Y-144.75%
EPS Next 5YN/A
Revenue Next Year-4.41%
Revenue Next 2Y-3.62%
Revenue Next 3Y-2.3%
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.
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
OPI is valuated reasonably with a Price/Earnings ratio of 10.25.
Compared to the rest of the industry, the Price/Earnings ratio of OPI indicates a rather cheap valuation: OPI is cheaper than 95.12% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.28, 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 | 10.25 | ||
| Fwd PE | N/A |
4.2 Price Multiples
92.68% of the companies in the same industry are more expensive than OPI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.93 |
4.3 Compensation for Growth
OPI's earnings are expected to decrease with -144.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-261.08%
EPS Next 3Y-144.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.56%, OPI has a reasonable but not impressive dividend return.
In the last 3 months the price of OPI has falen by -20.50%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
With a Dividend Yield of 1.56, OPI pays less dividend than the industry average, which is at 5.88. 87.80% of the companies listed in the same industry pay a better dividend than OPI!
Compared to the average S&P500 Dividend Yield of 2.41, OPI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
The dividend of OPI decreases each year by -22.67%.
OPI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-22.67%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
OPI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
OPI's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-90.77%
EPS Next 2Y-261.08%
EPS Next 3Y-144.75%
OFFICE PROPERTIES INCOME TRU
NASDAQ:OPI (5/3/2024, 7:10:27 PM)
After market: 2.81 -0.06 (-2.09%)2.87
+0.31 (+12.11%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap139.91M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.74% | ||
| ROE | -5.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.13% | ||
| PM (TTM) | N/A | ||
| GM | 67.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)315.38%
EPS 3Y23.13%
EPS 5Y
EPS growth Q2Q
EPS Next Y-752.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.74%
Revenue growth 3Y-3.18%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y