OFFICE PROPERTIES INCOME TRU (OPI) Stock Fundamental Analysis
USA - NASDAQ:OPI - US67623C1099 - REIT
0.2409 USD
-0.02 (-9.13%)
0.24 USD
0 (-0.37%)
We assign a fundamental rating of 2 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
In the past year OPI has reported negative net income.
OPI had a positive operating cash flow in the past year.
OPI had negative earnings in 4 of the past 5 years.
In the past 5 years OPI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of OPI (-8.26%) is worse than 86.05% of its industry peers.
With a Return On Equity value of -27.59%, OPI is not doing good in the industry: 85.27% of the companies in the same industry are doing better.
OPI has a Return On Invested Capital of 1.51%. This is in the lower half of the industry: OPI underperforms 75.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OPI is in line with the industry average of 3.01%.
| 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
Looking at the Operating Margin, with a value of 14.06%, OPI is doing worse than 68.22% of the companies in the same industry.
In the last couple of years the Operating Margin of OPI has remained more or less at the same level.
With a Gross Margin value of 62.98%, OPI is not doing good in the industry: 61.24% of the companies in the same industry are doing better.
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.
OPI has more shares outstanding than it did 1 year ago.
OPI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OPI has a worse debt to assets ratio.
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.
OPI's Altman-Z score of -0.39 is on the low side compared to the rest of the industry. OPI is outperformed by 82.95% of its industry peers.
A Debt/Equity ratio of 2.22 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 2.22, OPI is doing worse than 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.39 |
ROIC/WACC0.33
WACC4.57%
2.3 Liquidity
A Current Ratio of 2.01 indicates that OPI has no problem at all paying its short term obligations.
The Current ratio of OPI (2.01) is better than 79.84% of its industry peers.
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.
OPI has a better Quick ratio (2.01) 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%.
The Earnings Per Share has been growing slightly by 1.24% on average over the past years.
OPI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -30.27%.
OPI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.85% yearly.
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
Based on estimates for the next years, OPI will show a very negative growth in Earnings Per Share. The EPS will decrease by -167.50% on average per year.
Based on estimates for the next years, OPI will show a decrease in Revenue. The Revenue will decrease by -6.28% on average per year.
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
Based on the Enterprise Value to EBITDA ratio, OPI is valued cheaper than 86.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.78 |
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 12.45%, OPI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.68, OPI pays a better dividend. On top of this OPI pays more dividend than 93.80% of the companies listed in the same industry.
OPI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.45% |
5.2 History
The dividend of OPI decreases each year by -56.49%.
OPI has been paying a dividend for at least 10 years, so it has 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-0.84%
EPS Next 2Y-167.5%
EPS Next 3YN/A
0.2409
-0.02 (-9.13%)
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 Change0%
Ins Owners0.83%
Ins Owner Change0%
Market Cap17.82M
Analysts46.67
Price TargetN/A
Short Float %15.98%
Short Ratio0.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.45% |
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 | 0.04 | ||
| P/FCF | N/A | ||
| P/OCF | 1.43 | ||
| P/B | 0.02 | ||
| P/tB | 0.02 | ||
| EV/EBITDA | 9.78 |
EPS(TTM)-0.59
EYN/A
EPS(NY)-3.45
Fwd EYN/A
FCF(TTM)-1.02
FCFYN/A
OCF(TTM)0.17
OCFY70.02%
SpS6.31
BVpS14.41
TBVpS14.41
PEG (NY)N/A
PEG (5Y)N/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%
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-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
WACC4.57%
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%