OMEGA HEALTHCARE INVESTORS (OHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OHI - US6819361006 - REIT
44.44 USD
+0.17 (+0.38%)
44.3 USD
-0.14 (-0.32%)
We assign a fundamental rating of 6 out of 10 to OHI. OHI was compared to 126 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.
In the past year OHI had a positive cash flow from operations.
OHI had positive earnings in each of the past 5 years.
Each year in the past 5 years OHI had a positive operating cash flow.
1.2 Ratios
OHI has a better Return On Assets (4.92%) than 93.65% of its industry peers.
OHI's Return On Equity of 10.36% is amongst the best of the industry. OHI outperforms 86.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.53%, OHI belongs to the top of the industry, outperforming 96.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OHI is in line with the industry average of 3.06%.
The last Return On Invested Capital (5.53%) for OHI is above the 3 year average (4.40%), which is a sign of increasing profitability.
| 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
The Profit Margin of OHI (45.34%) is better than 96.03% of its industry peers.
OHI's Profit Margin has been stable in the last couple of years.
OHI has a better Operating Margin (62.39%) than 98.41% of its industry peers.
In the last couple of years the Operating Margin of OHI has remained more or less at the same level.
OHI has a better Gross Margin (98.83%) than 99.21% of its industry peers.
OHI's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OHI is destroying value.
Compared to 1 year ago, OHI has more shares outstanding
The number of shares outstanding for OHI has been increased compared to 5 years ago.
OHI has a better debt/assets ratio than last year.
2.2 Solvency
OHI has an Altman-Z score of 1.35. This is a bad value and indicates that OHI is not financially healthy and even has some risk of bankruptcy.
OHI's Altman-Z score of 1.35 is amongst the best of the industry. OHI outperforms 88.10% of its industry peers.
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.
OHI has a better Debt to FCF ratio (171.85) than 61.11% 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.
OHI has a better Debt to Equity ratio (0.99) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 171.85 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.75
WACC7.41%
2.3 Liquidity
OHI has a Current Ratio of 2.90. This indicates that OHI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.90, OHI belongs to the top of the industry, outperforming 91.27% of the companies in the same industry.
A Quick Ratio of 2.90 indicates that OHI has no problem at all paying its short term obligations.
OHI has a better Quick ratio (2.90) than 91.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.9 | ||
| Quick Ratio | 2.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.76% over the past year.
OHI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.38% yearly.
Looking at the last year, OHI shows a quite strong growth in Revenue. The Revenue has grown by 13.72% in the last year.
Measured over the past years, OHI shows a small growth in Revenue. The Revenue has been growing by 2.51% on average per year.
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.
The Revenue is expected to grow by 1.04% on average over the next years.
EPS Next Y13.92%
EPS Next 2Y10.57%
EPS Next 3Y7.44%
EPS Next 5Y22.45%
Revenue Next Year12.3%
Revenue Next 2Y10.47%
Revenue Next 3Y9.3%
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
With a Price/Earnings ratio of 23.89, OHI is valued on the expensive side.
Based on the Price/Earnings ratio, OHI is valued a bit cheaper than 75.40% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, OHI is valued at the same level.
With a Price/Forward Earnings ratio of 23.45, OHI is valued on the expensive side.
88.89% 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 23.98, OHI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.89 | ||
| Fwd PE | 23.45 |
4.2 Price Multiples
61.90% of the companies in the same industry are cheaper than OHI, based on the Enterprise Value to EBITDA ratio.
61.11% of the companies in the same industry are more expensive than OHI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 451.89 | ||
| EV/EBITDA | 16.69 |
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)1.72
PEG (5Y)N/A
EPS Next 2Y10.57%
EPS Next 3Y7.44%
5. Dividend
5.1 Amount
OHI has a Yearly Dividend Yield of 6.00%, which is a nice return.
OHI's Dividend Yield is comparable with the industry average which is at 6.86.
Compared to an average S&P500 Dividend Yield of 1.92, OHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6% |
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 2Y10.57%
EPS Next 3Y7.44%
44.44
+0.17 (+0.38%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners79.59%
Inst Owner Change0.19%
Ins Owners0.17%
Ins Owner Change-0.92%
Market Cap13.13B
Revenue(TTM)1.15B
Net Income(TTM)521.56M
Analysts72.73
Price Target47.37 (6.59%)
Short Float %4.42%
Short Ratio7.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6% |
Yearly Dividend2.61
Dividend Growth(5Y)-0.86%
DP146.38%
Div Incr Years0
Div Non Decr Years21
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.4%
Min EPS beat(2)6.41%
Max EPS beat(2)30.39%
EPS beat(4)2
Avg EPS beat(4)5.48%
Min EPS beat(4)-10.4%
Max EPS beat(4)30.39%
EPS beat(8)4
Avg EPS beat(8)0.52%
EPS beat(12)5
Avg EPS beat(12)-9.89%
EPS beat(16)8
Avg EPS beat(16)-1.73%
Revenue beat(2)1
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-4.52%
Max Revenue beat(2)1.18%
Revenue beat(4)2
Avg Revenue beat(4)-2.02%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)1.18%
Revenue beat(8)6
Avg Revenue beat(8)0.11%
Revenue beat(12)8
Avg Revenue beat(12)-2.79%
Revenue beat(16)9
Avg Revenue beat(16)-2.35%
PT rev (1m)0.8%
PT rev (3m)7.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.93%
EPS NY rev (1m)0%
EPS NY rev (3m)4.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.66%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.89 | ||
| Fwd PE | 23.45 | ||
| P/S | 11.42 | ||
| P/FCF | 451.89 | ||
| P/OCF | 14.98 | ||
| P/B | 2.61 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 16.69 |
EPS(TTM)1.86
EY4.19%
EPS(NY)1.9
Fwd EY4.26%
FCF(TTM)0.1
FCFY0.22%
OCF(TTM)2.97
OCFY6.68%
SpS3.89
BVpS17.04
TBVpS14.77
PEG (NY)1.72
PEG (5Y)N/A
Graham Number26.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 10.36% | ||
| ROCE | 7% | ||
| ROIC | 5.53% | ||
| ROICexc | 5.96% | ||
| ROICexgc | 6.58% | ||
| OM | 62.39% | ||
| PM (TTM) | 45.34% | ||
| GM | 98.83% | ||
| FCFM | 2.53% |
ROA(3y)3.77%
ROA(5y)3.46%
ROE(3y)9.19%
ROE(5y)8.47%
ROIC(3y)4.4%
ROIC(5y)4.37%
ROICexc(3y)4.62%
ROICexc(5y)4.51%
ROICexgc(3y)5.11%
ROICexgc(5y)4.96%
ROCE(3y)5.57%
ROCE(5y)5.53%
ROICexgc growth 3Y6.74%
ROICexgc growth 5Y4.93%
ROICexc growth 3Y6.44%
ROICexc growth 5Y4.57%
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%
F-Score8
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 171.85 | ||
| Debt/EBITDA | 4.81 | ||
| Cap/Depr | 264.03% | ||
| Cap/Sales | 73.71% | ||
| Interest Coverage | 3.29 | ||
| Cash Conversion | 84.42% | ||
| Profit Quality | 5.57% | ||
| Current Ratio | 2.9 | ||
| Quick Ratio | 2.9 | ||
| Altman-Z | 1.35 |
F-Score8
WACC7.41%
ROIC/WACC0.75
Cap/Depr(3y)109.04%
Cap/Depr(5y)117.96%
Cap/Sales(3y)35.29%
Cap/Sales(5y)38.61%
Profit Quality(3y)94.64%
Profit Quality(5y)123.55%
High Growth Momentum
Growth
EPS 1Y (TTM)36.76%
EPS 3Y-4.33%
EPS 5Y-0.38%
EPS Q2Q%40.48%
EPS Next Y13.92%
EPS Next 2Y10.57%
EPS Next 3Y7.44%
EPS Next 5Y22.45%
Revenue 1Y (TTM)13.72%
Revenue growth 3Y-0.36%
Revenue growth 5Y2.51%
Sales Q2Q%12.88%
Revenue Next Year12.3%
Revenue Next 2Y10.47%
Revenue Next 3Y9.3%
Revenue Next 5Y1.04%
EBIT growth 1Y20.97%
EBIT growth 3Y5.23%
EBIT growth 5Y3.54%
EBIT Next Year72.62%
EBIT Next 3Y25.92%
EBIT Next 5Y21.17%
FCF growth 1Y-89.36%
FCF growth 3Y189.54%
FCF growth 5Y49.66%
OCF growth 1Y44.6%
OCF growth 3Y1.24%
OCF growth 5Y6.24%
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 23.89 and the Price/Book (PB) ratio is 2.61.
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 13.92% in the next year.