OMEGA HEALTHCARE INVESTORS (OHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OHI - US6819361006 - REIT
43.61 USD
-0.36 (-0.82%)
43.61 USD
0 (0%)
OHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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
OHI had positive earnings in the past year.
In the past year OHI had a positive cash flow from operations.
In the past 5 years OHI has always been profitable.
OHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of OHI (4.92%) is better than 93.75% of its industry peers.
OHI has a better Return On Equity (10.36%) than 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.
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
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 has a better Operating Margin (62.39%) than 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OHI is destroying value.
OHI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, OHI has more shares outstanding
OHI has a better debt/assets ratio than last year.
2.2 Solvency
OHI has an Altman-Z score of 1.32. 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 1.32 is amongst the best of the industry. OHI outperforms 86.72% 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.
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.
A Debt/Equity ratio of 0.99 indicates that OHI is somewhat dependend on debt financing.
OHI has a Debt to Equity ratio of 0.99. This is in the better half of the industry: OHI outperforms 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 171.85 | ||
| Altman-Z | 1.32 |
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.
OHI's Current ratio of 2.90 is amongst the best of the industry. OHI outperforms 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.
Looking at the Quick ratio, with a value of 2.90, OHI belongs to the top 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.
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%.
The Revenue has been growing slightly by 2.51% on average over the past years.
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.
Based on estimates for the next years, OHI will show a small growth in Revenue. The Revenue will grow by 0.62% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 23.45, which indicates a rather expensive current valuation of OHI.
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 26.61, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.01 indicates a rather expensive valuation of OHI.
OHI's Price/Forward Earnings ratio is rather cheap when compared to the industry. OHI is cheaper than 89.06% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, OHI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.45 | ||
| Fwd PE | 23.01 |
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 62.50% of the companies in the same industry.
OHI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 443.45 | ||
| EV/EBITDA | 16.51 |
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)1.68
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.
Compared to an average industry Dividend Yield of 6.33, OHI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, OHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.02% |
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%
43.61
-0.36 (-0.82%)
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 Cap12.89B
Revenue(TTM)1.15B
Net Income(TTM)521.56M
Analysts72.38
Price Target46.99 (7.75%)
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 | 23.45 | ||
| Fwd PE | 23.01 | ||
| P/S | 11.21 | ||
| P/FCF | 443.45 | ||
| P/OCF | 14.7 | ||
| P/B | 2.56 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 16.51 |
EPS(TTM)1.86
EY4.27%
EPS(NY)1.9
Fwd EY4.35%
FCF(TTM)0.1
FCFY0.23%
OCF(TTM)2.97
OCFY6.8%
SpS3.89
BVpS17.04
TBVpS14.77
PEG (NY)1.68
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 | 1.32 |
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 23.45 and the Price/Book (PB) ratio is 2.56.
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.