OFFICE PROPERTIES INCOME TRU (OPI) Stock Fundamental Analysis
NASDAQ:OPI - Nasdaq - US67623C1099 - REIT - Currency: USD
Overall OPI gets a fundamental rating of 3 out of 10. We evaluated OPI against 129 industry peers in the Diversified REITs industry. OPI may be in some trouble as it scores bad on both profitability and health. OPI does not seem to be growing, but still is valued expensively.
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.
Each year in the past 5 years OPI had a positive operating cash flow.
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.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Operating Margin, with a value of 16.48%, OPI is doing worse than 62.79% 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 65.17%, OPI perfoms like the industry average, outperforming 40.31% of the companies in the same 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OPI is destroying value.
The number of shares outstanding for OPI has been increased compared to 1 year ago.
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.
The Altman-Z score of OPI (-0.30) is worse than 82.17% of its industry peers.
OPI has a Debt/Equity ratio of 2.13. This is a high value indicating a heavy dependency on external financing.
OPI's Debt to Equity ratio of 2.13 is on the low side compared to the rest of the industry. OPI is outperformed by 75.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.3 |
ROIC/WACC0.5
WACC4.58%
2.3 Liquidity
OPI has a Current Ratio of 2.33. This indicates that OPI is financially healthy and has no problem in meeting 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.
OPI has a better Quick ratio (2.33) than 82.17% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 1.24% on average over the past years.
Looking at the last year, OPI shows a quite strong growth in Revenue. The Revenue has grown by 13.88% in the last year.
Measured over the past years, OPI shows a decrease in Revenue. The Revenue has been decreasing by -5.85% on average per year.
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
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.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
OPI is valuated cheaply with a Price/Earnings ratio of 0.33.
Compared to the rest of the industry, the Price/Earnings ratio of OPI indicates a rather cheap valuation: OPI is cheaper than 100.00% of the companies listed in the same industry.
OPI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
OPI is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.33 | ||
| Fwd PE | N/A |
4.2 Price Multiples
92.25% 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 | 8.32 |
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)0.27
EPS Next 2Y-167.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
OPI has a Yearly Dividend Yield of 14.81%, which is a nice return.
The stock price of OPI dropped by -21.56% 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.
OPI's Dividend Yield is rather good when compared to the industry average which is at 6.45. OPI pays more dividend than 98.45% of the companies in the same industry.
OPI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.81% |
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
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-1.23%
EPS Next 2Y-167.5%
EPS Next 3YN/A
0.2808
+0.01 (+3.96%)
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 Change0%
Ins Owners0.88%
Ins Owner Change0%
Market Cap19.91M
Analysts46.67
Price Target3.37 (1100.14%)
Short Float %5.96%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.81% |
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 | 0.33 | ||
| Fwd PE | N/A | ||
| P/S | 0.03 | ||
| P/FCF | N/A | ||
| P/OCF | 1.67 | ||
| P/B | 0.02 | ||
| P/tB | 0.02 | ||
| EV/EBITDA | 8.32 |
EPS(TTM)0.84
EY299.15%
EPS(NY)-3.45
Fwd EYN/A
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)0.17
OCFY60.02%
SpS8.68
BVpS15.61
TBVpS15.61
PEG (NY)N/A
PEG (5Y)0.27
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
WACC4.58%
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%