OMEGA HEALTHCARE INVESTORS (OHI) Stock Fundamental Analysis
NYSE:OHI - New York Stock Exchange, Inc. - US6819361006 - REIT - Currency: USD
Overall OHI gets a fundamental rating of 5 out of 10. We evaluated OHI against 129 industry peers in the Diversified REITs industry. While OHI has a great profitability rating, there are some minor concerns on its financial health. OHI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year OHI was profitable.
In the past year OHI had a positive cash flow from operations.
OHI had positive earnings in each of the past 5 years.
Of the past 5 years OHI 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of OHI (3.64%) is better than 87.30% of its industry peers.
Looking at the Return On Equity, with a value of 8.27%, OHI belongs to the top of the industry, outperforming 84.13% of the companies in the same industry.
The Return On Invested Capital of OHI (5.06%) is better than 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OHI is in line with the industry average of 3.12%.
The last Return On Invested Capital (5.06%) for OHI is above the 3 year average (4.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 8.27% | ||
| ROIC | 5.06% |
ROA(3y)3.77%
ROA(5y)3.46%
ROE(3y)9.19%
ROE(5y)8.47%
ROIC(3y)4.41%
ROIC(5y)4.37%
1.3 Margins
With an excellent Profit Margin value of 34.41%, OHI belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
OHI's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 58.66%, OHI belongs to the best of the industry, outperforming 96.03% of the companies in the same industry.
In the last couple of years the Operating Margin of OHI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 98.58%, OHI belongs to the top of the industry, outperforming 99.21% of the companies in the same industry.
OHI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.66% | ||
| PM (TTM) | 34.41% | ||
| GM | 98.58% |
OM growth 3Y5.61%
OM growth 5Y1.01%
PM growth 3Y-0.48%
PM growth 5Y1.03%
GM growth 3Y-0.14%
GM growth 5Y0.01%
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.
Compared to 1 year ago, OHI has more shares outstanding
OHI has more shares outstanding than it did 5 years ago.
OHI has a better debt/assets ratio than last year.
2.2 Solvency
OHI has an Altman-Z score of 0.98. This is a bad value and indicates that OHI is not financially healthy and even has some risk of bankruptcy.
OHI has a better Altman-Z score (0.98) than 72.22% of its industry peers.
The Debt to FCF ratio of OHI is 14.74, which is on the high side as it means it would take OHI, 14.74 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.74, OHI belongs to the top of the industry, outperforming 80.16% of the companies in the same industry.
OHI has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
OHI has a Debt to Equity ratio (1.15) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 14.74 | ||
| Altman-Z | 0.98 |
ROIC/WACC0.7
WACC7.27%
2.3 Liquidity
A Current Ratio of 1.95 indicates that OHI should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.95, OHI is doing good in the industry, outperforming 73.81% of the companies in the same industry.
A Quick Ratio of 1.95 indicates that OHI should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.95, OHI is doing good in the industry, outperforming 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.95 |
3. Growth
3.1 Past
OHI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.57%, which is quite impressive.
Measured over the past years, OHI shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.38% on average per year.
Looking at the last year, OHI shows a quite strong growth in Revenue. The Revenue has grown by 10.70% in the last year.
The Revenue has been growing slightly by 2.51% on average over the past years.
EPS 1Y (TTM)56.57%
EPS 3Y-4.33%
EPS 5Y-0.38%
EPS Q2Q%86.36%
Revenue 1Y (TTM)10.7%
Revenue growth 3Y-0.36%
Revenue growth 5Y2.51%
Sales Q2Q%16.71%
3.2 Future
The Earnings Per Share is expected to grow by 0.33% on average over the next years.
Based on estimates for the next years, OHI will show a decrease in Revenue. The Revenue will decrease by -2.17% on average per year.
EPS Next Y6.31%
EPS Next 2Y5.25%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue Next Year9.08%
Revenue Next 2Y6.95%
Revenue Next 3Y-3.5%
Revenue Next 5Y-2.17%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.34, the valuation of OHI can be described as rather expensive.
Based on the Price/Earnings ratio, OHI is valued a bit cheaper than the industry average as 79.37% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 30.30. OHI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 21.95, which indicates a rather expensive current valuation of OHI.
OHI's Price/Forward Earnings ratio is rather cheap when compared to the industry. OHI is cheaper than 88.89% of the companies in the same industry.
OHI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.34 | ||
| Fwd PE | 21.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OHI is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
64.29% 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 | 30.62 | ||
| EV/EBITDA | 16.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of OHI may justify a higher PE ratio.
PEG (NY)3.7
PEG (5Y)N/A
EPS Next 2Y5.25%
EPS Next 3Y0.33%
5. Dividend
5.1 Amount
OHI has a Yearly Dividend Yield of 7.37%, which is a nice return.
Compared to an average industry Dividend Yield of 18.47, OHI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, OHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.37% |
5.2 History
The dividend of OHI decreases each year by -0.52%.
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)-0.52%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
192.12% of the earnings are spent on dividend by OHI. This is not a sustainable payout ratio.
DP192.12%
EPS Next 2Y5.25%
EPS Next 3Y0.33%
36.17
+0.24 (+0.67%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners68.28%
Inst Owner Change9.29%
Ins Owners0.22%
Ins Owner Change-5.41%
Market Cap10.10B
Analysts71.43
Price Target43.38 (19.93%)
Short Float %4.11%
Short Ratio5.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.37% |
Yearly Dividend2.69
Dividend Growth(5Y)-0.52%
DP192.12%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.53%
Min EPS beat(2)8.95%
Max EPS beat(2)26.1%
EPS beat(4)2
Avg EPS beat(4)-4.45%
Min EPS beat(4)-37.25%
Max EPS beat(4)26.1%
EPS beat(8)3
Avg EPS beat(8)-17.58%
EPS beat(12)6
Avg EPS beat(12)-4.13%
EPS beat(16)8
Avg EPS beat(16)-0.68%
Revenue beat(2)2
Avg Revenue beat(2)1.82%
Min Revenue beat(2)0.3%
Max Revenue beat(2)3.35%
Revenue beat(4)4
Avg Revenue beat(4)2.24%
Min Revenue beat(4)0.3%
Max Revenue beat(4)3.99%
Revenue beat(8)6
Avg Revenue beat(8)-3.17%
Revenue beat(12)7
Avg Revenue beat(12)-2.46%
Revenue beat(16)10
Avg Revenue beat(16)-1.51%
PT rev (1m)-0.16%
PT rev (3m)6.16%
EPS NQ rev (1m)3.24%
EPS NQ rev (3m)10.87%
EPS NY rev (1m)1.15%
EPS NY rev (3m)8.97%
Revenue NQ rev (1m)0.88%
Revenue NQ rev (3m)1.93%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)3.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.34 | ||
| Fwd PE | 21.95 | ||
| P/S | 9.98 | ||
| P/FCF | 30.62 | ||
| P/OCF | 14.73 | ||
| P/B | 2.4 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 16.33 |
EPS(TTM)1.55
EY4.29%
EPS(NY)1.65
Fwd EY4.56%
FCF(TTM)1.18
FCFY3.27%
OCF(TTM)2.46
OCFY6.79%
SpS3.62
BVpS15.08
TBVpS12.65
PEG (NY)3.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 8.27% | ||
| ROCE | 6.4% | ||
| ROIC | 5.06% | ||
| ROICexc | 5.25% | ||
| ROICexgc | 5.79% | ||
| OM | 58.66% | ||
| PM (TTM) | 34.41% | ||
| GM | 98.58% | ||
| FCFM | 32.6% |
ROA(3y)3.77%
ROA(5y)3.46%
ROE(3y)9.19%
ROE(5y)8.47%
ROIC(3y)4.41%
ROIC(5y)4.37%
ROICexc(3y)4.62%
ROICexc(5y)4.51%
ROICexgc(3y)5.11%
ROICexgc(5y)4.97%
ROCE(3y)5.58%
ROCE(5y)5.53%
ROICexcg growth 3Y6.78%
ROICexcg growth 5Y4.95%
ROICexc growth 3Y6.48%
ROICexc growth 5Y4.59%
OM growth 3Y5.61%
OM growth 5Y1.01%
PM growth 3Y-0.48%
PM growth 5Y1.03%
GM growth 3Y-0.14%
GM growth 5Y0.01%
F-Score7
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 14.74 | ||
| Debt/EBITDA | 5.43 | ||
| Cap/Depr | 117.91% | ||
| Cap/Sales | 35.18% | ||
| Interest Coverage | 2.52 | ||
| Cash Conversion | 76.59% | ||
| Profit Quality | 94.74% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.95 | ||
| Altman-Z | 0.98 |
F-Score7
WACC7.27%
ROIC/WACC0.7
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)56.57%
EPS 3Y-4.33%
EPS 5Y-0.38%
EPS Q2Q%86.36%
EPS Next Y6.31%
EPS Next 2Y5.25%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue 1Y (TTM)10.7%
Revenue growth 3Y-0.36%
Revenue growth 5Y2.51%
Sales Q2Q%16.71%
Revenue Next Year9.08%
Revenue Next 2Y6.95%
Revenue Next 3Y-3.5%
Revenue Next 5Y-2.17%
EBIT growth 1Y66.26%
EBIT growth 3Y5.23%
EBIT growth 5Y3.54%
EBIT Next Year65.68%
EBIT Next 3Y22.21%
EBIT Next 5YN/A
FCF growth 1Y20.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.03%
OCF growth 3YN/A
OCF growth 5YN/A