OMEGA HEALTHCARE INVESTORS (OHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OHI - US6819361006 - REIT
43.7 USD
+0.45 (+1.04%)
43.7 USD
0 (0%)
OHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 125 industry peers in the Diversified REITs industry. While OHI has a great profitability rating, 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.
- Each year in the past 5 years OHI has been profitable.
- 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 93.60% of its industry peers.
- The Return On Equity of OHI (10.36%) is better than 86.40% of its industry peers.
- With an excellent Return On Invested Capital value of 5.53%, OHI belongs to the best of the industry, outperforming 96.80% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for OHI is in line with the industry average of 3.07%.
- 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
- With an excellent Profit Margin value of 45.34%, OHI belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of OHI has remained more or less at the same level.
- With an excellent Operating Margin value of 62.39%, OHI belongs to the best of the industry, outperforming 98.40% of the companies in the same industry.
- OHI's Operating Margin has been stable in the last couple of years.
- The Gross Margin of OHI (98.83%) is better than 99.20% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OHI is destroying value.
- OHI has more shares outstanding than it did 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
- OHI has an Altman-Z score of 1.31. This is a bad value and indicates that OHI is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.31, OHI belongs to the top of the industry, outperforming 87.20% 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 61.60% of its industry peers.
- A Debt/Equity ratio of 0.99 indicates that OHI is somewhat dependend on debt financing.
- The Debt to Equity ratio of OHI (0.99) is better than 61.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 171.85 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.74
WACC7.45%
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.
- With an excellent Current ratio value of 2.90, OHI belongs to the best of the industry, outperforming 91.20% of the companies in the same industry.
- 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.
- OHI has a Quick ratio of 2.90. This is amongst the best in the industry. OHI outperforms 91.20% 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.
- 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
- 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 Year12.39%
Revenue Next 2Y9.96%
Revenue Next 3Y7.99%
Revenue Next 5Y1.04%
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
- OHI is valuated rather expensively with a Price/Earnings ratio of 23.49.
- Based on the Price/Earnings ratio, OHI is valued a bit cheaper than the industry average as 77.60% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of OHI to the average of the S&P500 Index (27.21), we can say OHI is valued inline with the index average.
- The Price/Forward Earnings ratio is 23.06, which indicates a rather expensive current valuation of OHI.
- 88.80% of the companies in the same industry are more expensive than OHI, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of OHI to the average of the S&P500 Index (24.26), we can say OHI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 23.06 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OHI is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, OHI is valued a bit cheaper than the industry average as 61.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 444.37 | ||
| EV/EBITDA | 16.4 |
4.3 Compensation for Growth
- The 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)1.69
PEG (5Y)N/A
EPS Next 2Y10.57%
EPS Next 3Y7.44%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.03%, OHI is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 6.59, OHI has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, OHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.03% |
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 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%
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 23.49 and the Price/Book (PB) ratio is 2.56.
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.