OMEGA HEALTHCARE INVESTORS (OHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OHI - US6819361006 - REIT
44.46 USD
+0.19 (+0.43%)
44.46 USD
0 (0%)
Overall OHI gets a fundamental rating of 6 out of 10. We evaluated OHI against 128 industry peers in the Diversified REITs industry. OHI scores excellent on profitability, but there are some minor concerns on its financial health. OHI has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years OHI has been profitable.
In the past 5 years OHI always reported a positive cash flow from operatings.
1.2 Ratios
OHI's Return On Assets of 4.92% is amongst the best of the industry. OHI outperforms 93.75% of its industry peers.
OHI has a Return On Equity of 10.36%. This is amongst the best in the industry. OHI outperforms 85.94% of its industry peers.
OHI has a Return On Invested Capital of 5.53%. This is amongst the best in the industry. OHI outperforms 96.88% of its industry peers.
OHI had an Average Return On Invested Capital over the past 3 years of 4.40%. This is in line with the industry average of 3.05%.
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 95.31% of its industry peers.
In the last couple of years the Profit Margin of OHI has remained more or less at the same level.
OHI's Operating Margin of 62.39% is amongst the best of the industry. OHI outperforms 97.66% of its industry peers.
OHI's Operating Margin has been stable in the last couple of years.
OHI has a better Gross Margin (98.83%) than 99.22% 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
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.
OHI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OHI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that OHI is in the distress zone and has some risk of bankruptcy.
OHI's Altman-Z score of 1.35 is amongst the best of the industry. OHI outperforms 88.28% of its industry peers.
The Debt to FCF ratio of OHI is 171.85, which is on the high side as it means it would take OHI, 171.85 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 171.85, OHI is in line with its industry, outperforming 59.38% of the companies in the same industry.
OHI has a Debt/Equity ratio of 0.99. This is a neutral value indicating OHI is somewhat dependend on debt financing.
The Debt to Equity ratio of OHI (0.99) is better than 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 171.85 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.75
WACC7.39%
2.3 Liquidity
A Current Ratio of 2.90 indicates that OHI has no problem at all paying its short term obligations.
The Current ratio of OHI (2.90) is better than 90.63% of its industry peers.
OHI has a Quick Ratio of 2.90. This indicates that OHI is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.90, OHI belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
| 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.
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 13.72% in the last year.
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
The Earnings Per Share is expected to grow by 22.45% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 0.62% on average over the next years.
EPS Next Y13.92%
EPS Next 2Y10.57%
EPS Next 3Y7.44%
EPS Next 5Y22.45%
Revenue Next Year12.2%
Revenue Next 2Y10.26%
Revenue Next 3Y9%
Revenue Next 5Y0.62%
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
With a Price/Earnings ratio of 23.90, OHI is valued on the expensive side.
Based on the Price/Earnings ratio, OHI is valued a bit cheaper than the industry average as 75.78% of the companies are valued more expensively.
OHI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
OHI is valuated rather expensively with a Price/Forward Earnings ratio of 23.46.
OHI's Price/Forward Earnings ratio is rather cheap when compared to the industry. OHI is cheaper than 88.28% 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 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.9 | ||
| Fwd PE | 23.46 |
4.2 Price Multiples
OHI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. OHI is more expensive than 64.84% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OHI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 452.1 | ||
| EV/EBITDA | 16.69 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
OHI has an outstanding profitability rating, which 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
With a Yearly Dividend Yield of 6.02%, OHI is a good candidate for dividend investing.
OHI's Dividend Yield is a higher than the industry average which is at 6.33.
OHI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.02% |
5.2 History
The dividend of OHI decreases each year by -0.86%.
OHI has paid a dividend for at least 10 years, which is a reliable track record.
OHI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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%
44.46
+0.19 (+0.43%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners79.56%
Inst Owner Change3.19%
Ins Owners0.17%
Ins Owner Change0.29%
Market Cap13.14B
Revenue(TTM)1.15B
Net Income(TTM)521.56M
Analysts72.38
Price TargetN/A
Short Float %4.58%
Short Ratio7.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.02% |
Yearly Dividend2.61
Dividend Growth(5Y)-0.86%
DP146.38%
Div Incr Years0
Div Non Decr Years21
Ex-Date
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)4.54%
PT rev (3m)7.49%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)3.38%
EPS NY rev (1m)3.57%
EPS NY rev (3m)5.45%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.9 | ||
| Fwd PE | 23.46 | ||
| P/S | 11.42 | ||
| P/FCF | 452.1 | ||
| P/OCF | 14.98 | ||
| P/B | 2.61 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 16.69 |
EPS(TTM)1.86
EY4.18%
EPS(NY)1.9
Fwd EY4.26%
FCF(TTM)0.1
FCFY0.22%
OCF(TTM)2.97
OCFY6.67%
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
WACC7.39%
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 Year12.2%
Revenue Next 2Y10.26%
Revenue Next 3Y9%
Revenue Next 5Y0.62%
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.
What is the valuation status for OHI stock?
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.
Can you provide the PE and PB ratios for OHI stock?
The Price/Earnings (PE) ratio for OMEGA HEALTHCARE INVESTORS (OHI) is 23.9 and the Price/Book (PB) ratio is 2.61.
Can you provide the expected EPS growth for OHI stock?
The Earnings per Share (EPS) of OMEGA HEALTHCARE INVESTORS (OHI) is expected to grow by 13.92% in the next year.