OMEGA HEALTHCARE INVESTORS (OHI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:OHI • US6819361006
43.88 USD
+0.47 (+1.08%)
At close: Jan 30, 2026
43.88 USD
0 (0%)
Pre-Market: 2/2/2026, 8:00:22 AM
Overall OHI gets a fundamental rating of 6 out of 10. We evaluated OHI against 124 industry peers in the Diversified REITs industry. While OHI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. OHI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- OHI had positive earnings in the past year.
- OHI had a positive operating cash flow in the past year.
- OHI had positive earnings in each of the past 5 years.
- In the past 5 years OHI always reported a positive cash flow from operatings.
1.2 Ratios
- OHI has a better Return On Assets (4.92%) than 93.55% of its industry peers.
- The Return On Equity of OHI (10.36%) is better than 87.10% of its industry peers.
- OHI's Return On Invested Capital of 5.53% is amongst the best of the industry. OHI outperforms 96.77% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for OHI is in line with the industry average of 3.05%.
- The 3 year average ROIC (4.40%) for OHI is below the current ROIC(5.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 10.36% | ||
| ROIC | 5.53% |
ROA(3y)3.77%
ROA(5y)3.46%
ROE(3y)9.19%
ROE(5y)8.47%
ROIC(3y)4.4%
ROIC(5y)4.37%
1.3 Margins
- With an excellent Profit Margin value of 45.34%, OHI belongs to the best of the industry, outperforming 95.97% of the companies in the same industry.
- OHI's Profit Margin has been stable in the last couple of years.
- OHI has a better Operating Margin (62.39%) than 98.39% of its industry peers.
- OHI's Operating Margin has been stable in the last couple of years.
- With an excellent Gross Margin value of 98.83%, OHI belongs to the best of the industry, outperforming 99.19% of the companies in the same industry.
- In the last couple of years the Gross Margin of OHI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 62.39% | ||
| PM (TTM) | 45.34% | ||
| GM | 98.83% |
OM growth 3Y5.61%
OM growth 5Y1.01%
PM growth 3Y-0.48%
PM growth 5Y1.03%
GM growth 3Y-0.08%
GM growth 5Y0.04%
2. Health
2.1 Basic Checks
- OHI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for OHI has been increased compared to 1 year ago.
- Compared to 5 years ago, OHI has more shares outstanding
- Compared to 1 year ago, OHI has an improved debt to assets ratio.
2.2 Solvency
- OHI has an Altman-Z score of 1.33. This is a bad value and indicates that OHI is not financially healthy and even has some risk of bankruptcy.
- With an excellent Altman-Z score value of 1.33, OHI belongs to the best of the industry, outperforming 86.29% of the companies in the same industry.
- OHI has a debt to FCF ratio of 171.85. This is a negative value and a sign of low solvency as OHI would need 171.85 years to pay back of all of its debts.
- The Debt to FCF ratio of OHI (171.85) is better than 62.10% of its industry peers.
- OHI has a Debt/Equity ratio of 0.99. This is a neutral value indicating OHI is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.99, OHI is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 171.85 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.74
WACC7.46%
2.3 Liquidity
- A Current Ratio of 2.90 indicates that OHI has no problem at all paying its short term obligations.
- OHI's Current ratio of 2.90 is amongst the best of the industry. OHI outperforms 91.13% of its industry peers.
- A Quick Ratio of 2.90 indicates that OHI has no problem at all paying its short term obligations.
- OHI has a Quick ratio of 2.90. This is amongst the best in the industry. OHI outperforms 91.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.9 | ||
| Quick Ratio | 2.9 |
3. Growth
3.1 Past
- OHI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.76%, which is quite impressive.
- OHI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.38% yearly.
- OHI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.72%.
- OHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.51% yearly.
EPS 1Y (TTM)36.76%
EPS 3Y-4.33%
EPS 5Y-0.38%
EPS Q2Q%40.48%
Revenue 1Y (TTM)13.72%
Revenue growth 3Y-0.36%
Revenue growth 5Y2.51%
Sales Q2Q%12.88%
3.2 Future
- OHI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.45% yearly.
- OHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.04% yearly.
EPS Next Y14.16%
EPS Next 2Y10.64%
EPS Next 3Y7.42%
EPS Next 5Y22.45%
Revenue Next Year12.39%
Revenue Next 2Y9.96%
Revenue Next 3Y7.99%
Revenue Next 5Y1.04%
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 accelerating.
- 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
- OHI is valuated rather expensively with a Price/Earnings ratio of 23.59.
- Based on the Price/Earnings ratio, OHI is valued a bit cheaper than 78.23% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.32. OHI is around the same levels.
- OHI is valuated rather expensively with a Price/Forward Earnings ratio of 23.13.
- 88.71% of the companies in the same industry are more expensive than OHI, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, OHI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.59 | ||
| Fwd PE | 23.13 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, OHI is valued a bit more expensive than the industry average as 60.48% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, OHI is valued a bit cheaper than 62.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 446.2 | ||
| EV/EBITDA | 16.58 |
4.3 Compensation for Growth
- OHI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of OHI may justify a higher PE ratio.
PEG (NY)1.67
PEG (5Y)N/A
EPS Next 2Y10.64%
EPS Next 3Y7.42%
5. Dividend
5.1 Amount
- OHI has a Yearly Dividend Yield of 6.17%, which is a nice return.
- OHI's Dividend Yield is comparable with the industry average which is at 6.98.
- OHI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.17% |
5.2 History
- The dividend of OHI decreases each year by -0.86%.
- OHI has been paying a dividend for at least 10 years, so it has a reliable track record.
- OHI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.86%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
- 146.38% of the earnings are spent on dividend by OHI. This is not a sustainable payout ratio.
DP146.38%
EPS Next 2Y10.64%
EPS Next 3Y7.42%
OMEGA HEALTHCARE INVESTORS / OHI FAQ
Can you provide the ChartMill fundamental rating for OMEGA HEALTHCARE INVESTORS?
ChartMill assigns a fundamental rating of 6 / 10 to OHI.
Can you provide the valuation status for OMEGA HEALTHCARE INVESTORS?
ChartMill assigns a valuation rating of 4 / 10 to OMEGA HEALTHCARE INVESTORS (OHI). This can be considered as Fairly Valued.
What is the profitability of OHI stock?
OMEGA HEALTHCARE INVESTORS (OHI) has a profitability rating of 8 / 10.
What is the valuation of OMEGA HEALTHCARE INVESTORS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for OMEGA HEALTHCARE INVESTORS (OHI) is 23.59 and the Price/Book (PB) ratio is 2.57.
What is the expected EPS growth for OMEGA HEALTHCARE INVESTORS (OHI) stock?
The Earnings per Share (EPS) of OMEGA HEALTHCARE INVESTORS (OHI) is expected to grow by 14.16% in the next year.