OFFICE PROPERTIES INCOME TRU (OPI)
US67623C1099 - REIT
Taking everything into account, OPI scores 3 out of 10 in our fundamental rating. OPI was compared to 127 industry peers in the Diversified REITs industry. There are concerns on the financial health of OPI while its profitability can be described as average. 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.
In the past year OPI had a positive cash flow from operations.
In multiple years OPI reported negative net income over the last 5 years.
In the past 5 years OPI always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -1.88%, OPI is not doing good in the industry: 74.40% of the companies in the same industry are doing better.
OPI's Return On Equity of -5.95% is on the low side compared to the rest of the industry. OPI is outperformed by 73.60% of its industry peers.
OPI has a worse Return On Invested Capital (2.23%) than 60.00% 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 2.97%.
The last Return On Invested Capital (2.23%) for OPI is above the 3 year average (2.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.88% | ||
| ROE | -5.95% | ||
| ROIC | 2.23% |
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
The Operating Margin of OPI (20.01%) is comparable to the rest of the industry.
OPI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 67.74%, OPI is in line with its industry, outperforming 49.60% 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 | 20.01% | ||
| PM (TTM) | N/A | ||
| GM | 67.74% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OPI is destroying value.
The number of shares outstanding for OPI has been increased compared to 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
OPI has an Altman-Z score of -0.22. This is a bad value and indicates that OPI is not financially healthy and even has some risk of bankruptcy.
OPI has a worse Altman-Z score (-0.22) than 86.40% of its industry peers.
A Debt/Equity ratio of 2.06 is on the high side and indicates that OPI has dependencies on debt financing.
OPI has a Debt to Equity ratio of 2.06. This is in the lower half of the industry: OPI underperforms 74.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.22 |
ROIC/WACC0.57
WACC3.91%
2.3 Liquidity
OPI has a Current Ratio of 1.38. This is a normal value and indicates that OPI is financially healthy and should not expect problems in meeting its short term obligations.
OPI has a Current ratio (1.38) which is in line with its industry peers.
OPI has a Quick Ratio of 1.38. This is a normal value and indicates that OPI is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.38, OPI perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
OPI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 671.43%, which is quite impressive.
OPI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.13% yearly.
Looking at the last year, OPI shows a small growth in Revenue. The Revenue has grown by 0.23% in the last year.
The Revenue has been growing slightly by 4.58% on average over the past years.
EPS 1Y (TTM)671.43%
EPS 3Y23.13%
EPS 5YN/A
EPS growth Q2Q8000%
Revenue 1Y (TTM)0.23%
Revenue growth 3Y-3.18%
Revenue growth 5Y4.58%
Revenue growth Q2Q5.3%
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
The Price/Earnings ratio is 2.03, which indicates a rather cheap valuation of OPI.
Based on the Price/Earnings ratio, OPI is valued cheaply inside the industry as 98.40% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.15. OPI is valued rather cheaply when compared to this.
The Forward Price/Earnings Ratio is negative for OPI. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.03 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OPI indicates a rather cheap valuation: OPI is cheaper than 94.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.71 |
4.3 Compensation for Growth
A cheap valuation may be justified as OPI's earnings are expected to decrease with -144.75% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-261.08%
EPS Next 3Y-144.75%
5. Dividend
5.1 Amount
OPI has a Yearly Dividend Yield of 1.74%.
The stock price of OPI dropped by -41.78% 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 5.70, OPI's dividend is way lower than its industry peers. On top of this 83.20% of the companies listed in the same industry pay a better dividend than OPI!
OPI's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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-49.71%
EPS Next 2Y-261.08%
EPS Next 3Y-144.75%
OFFICE PROPERTIES INCOME TRU
NASDAQ:OPI (5/17/2024, 7:17:59 PM)
After market: 2.2 +0.01 (+0.23%)2.195
-0.1 (-4.57%)
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 Cap107.01M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 2.03 | ||
| 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 | -1.88% | ||
| ROE | -5.95% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.01% | ||
| PM (TTM) | N/A | ||
| GM | 67.74% | ||
| 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 Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| 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)671.43%
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)0.23%
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