OMEGA HEALTHCARE INVESTORS (OHI)
US6819361006 - REIT
Overall OHI gets a fundamental rating of 5 out of 10. We evaluated OHI against 130 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year OHI was profitable.
OHI had a positive operating cash flow in the past year.
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 (3.64%) than 87.50% of its industry peers.
The Return On Equity of OHI (8.27%) is better than 83.59% of its industry peers.
OHI has a Return On Invested Capital of 5.06%. This is amongst the best in the industry. OHI outperforms 92.19% of its industry peers.
OHI had an Average Return On Invested Capital over the past 3 years of 4.18%. This is in line with the industry average of 3.08%.
The 3 year average ROIC (4.18%) for OHI is below the current ROIC(5.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 8.27% | ||
| ROIC | 5.06% |
ROA(3y)3.84%
ROA(5y)3.34%
ROE(3y)9.76%
ROE(5y)8.33%
ROIC(3y)4.18%
ROIC(5y)4.2%
1.3 Margins
The Profit Margin of OHI (34.41%) is better than 85.94% of its industry peers.
In the last couple of years the Profit Margin of OHI has declined.
Looking at the Operating Margin, with a value of 58.66%, OHI belongs to the top of the industry, outperforming 96.09% of the companies in the same industry.
OHI's Operating Margin has declined in the last couple of years.
OHI has a better Gross Margin (98.58%) than 99.22% 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 | 58.66% | ||
| PM (TTM) | 34.41% | ||
| GM | 98.58% |
OM growth 3Y0.52%
OM growth 5Y-3.06%
PM growth 3Y12.62%
PM growth 5Y-4.4%
GM growth 3Y-0.07%
GM growth 5YN/A
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.
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 1.01. 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 1.01 is fine compared to the rest of the industry. OHI outperforms 73.44% of its industry peers.
OHI has a debt to FCF ratio of 14.74. This is a negative value and a sign of low solvency as OHI would need 14.74 years to pay back of all of its debts.
OHI has a Debt to FCF ratio of 14.74. This is amongst the best in the industry. OHI outperforms 81.25% of its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that OHI has dependencies on debt financing.
OHI's Debt to Equity ratio of 1.15 is in line compared to the rest of the industry. OHI outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 14.74 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.69
WACC7.34%
2.3 Liquidity
A Current Ratio of 1.95 indicates that OHI should not have too much problems paying its short term obligations.
The Current ratio of OHI (1.95) is better than 71.88% of its industry peers.
A Quick Ratio of 1.95 indicates that OHI should not have too much problems paying its short term obligations.
OHI's Quick ratio of 1.95 is fine compared to the rest of the industry. OHI outperforms 75.00% of its industry peers.
| 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 41.67%, which is quite impressive.
Measured over the past years, OHI shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.70% on average per year.
OHI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.25%.
Measured over the past years, OHI shows a small growth in Revenue. The Revenue has been growing by 1.50% on average per year.
EPS 1Y (TTM)41.67%
EPS 3Y12.79%
EPS 5Y-6.7%
EPS Q2Q%13.51%
Revenue 1Y (TTM)18.25%
Revenue growth 3Y2.1%
Revenue growth 5Y1.5%
Sales Q2Q%14.05%
3.2 Future
The Earnings Per Share is expected to grow by 33.78% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -1.43% on average over the next years.
EPS Next Y52.45%
EPS Next 2Y28.27%
EPS Next 3Y18.86%
EPS Next 5Y33.78%
Revenue Next Year11.32%
Revenue Next 2Y9.96%
Revenue Next 3Y7.68%
Revenue Next 5Y-1.43%
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 quite expensively with a Price/Earnings ratio of 27.78.
Based on the Price/Earnings ratio, OHI is valued a bit cheaper than the industry average as 70.31% of the companies are valued more expensively.
OHI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.55.
A Price/Forward Earnings ratio of 23.20 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 87.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.00. OHI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.78 | ||
| Fwd PE | 23.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OHI is valued a bit more expensive than the industry average as 67.97% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OHI indicates a somewhat cheap valuation: OHI is cheaper than 64.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.94 | ||
| EV/EBITDA | 16.55 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OHI has an outstanding profitability rating, which may justify a higher PE ratio.
OHI's earnings are expected to grow with 18.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y28.27%
EPS Next 3Y18.86%
5. Dividend
5.1 Amount
OHI has a Yearly Dividend Yield of 7.09%, which is a nice return.
Compared to an average industry Dividend Yield of 16.05, OHI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, OHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.09% |
5.2 History
The dividend of OHI decreases each year by -0.52%.
OHI has paid a dividend for at least 10 years, which is 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
OHI pays out 192.12% of its income as dividend. This is not a sustainable payout ratio.
DP192.12%
EPS Next 2Y28.27%
EPS Next 3Y18.86%
OMEGA HEALTHCARE INVESTORS
NYSE:OHI (12/27/2024, 12:32:03 PM)
37.785
-0.37 (-0.96%)
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 Change12.16%
Ins Owners0.22%
Ins Owner Change-5.46%
Market Cap10.20B
Analysts70.48
Price Target43.32 (14.65%)
Short Float %3.91%
Short Ratio6.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.09% |
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)5.99%
PT rev (3m)16.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.77%
EPS NY rev (1m)4.5%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.07%
Revenue NY rev (1m)1.55%
Revenue NY rev (3m)3.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.78 | ||
| Fwd PE | 23.2 | ||
| P/S | 10.09 | ||
| P/FCF | 30.94 | ||
| P/OCF | 14.88 | ||
| P/B | 2.42 | ||
| P/tB | 2.89 | ||
| EV/EBITDA | 16.55 |
EPS(TTM)1.36
EY3.6%
EPS(NY)1.63
Fwd EY4.31%
FCF(TTM)1.22
FCFY3.23%
OCF(TTM)2.54
OCFY6.72%
SpS3.75
BVpS15.59
TBVpS13.08
PEG (NY)0.53
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)3.84%
ROA(5y)3.34%
ROE(3y)9.76%
ROE(5y)8.33%
ROIC(3y)4.18%
ROIC(5y)4.2%
ROICexc(3y)4.29%
ROICexc(5y)4.28%
ROICexgc(3y)4.74%
ROICexgc(5y)4.69%
ROCE(3y)5.29%
ROCE(5y)5.31%
ROICexcg growth 3Y5.9%
ROICexcg growth 5Y-1.35%
ROICexc growth 3Y5.38%
ROICexc growth 5Y-1.67%
OM growth 3Y0.52%
OM growth 5Y-3.06%
PM growth 3Y12.62%
PM growth 5Y-4.4%
GM growth 3Y-0.07%
GM growth 5YN/A
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 | 1.01 |
F-Score7
WACC7.34%
ROIC/WACC0.69
Cap/Depr(3y)126.08%
Cap/Depr(5y)120.91%
Cap/Sales(3y)42.45%
Cap/Sales(5y)40.67%
Profit Quality(3y)73.23%
Profit Quality(5y)112.29%
High Growth Momentum
Growth
EPS 1Y (TTM)41.67%
EPS 3Y12.79%
EPS 5Y-6.7%
EPS Q2Q%13.51%
EPS Next Y52.45%
EPS Next 2Y28.27%
EPS Next 3Y18.86%
EPS Next 5Y33.78%
Revenue 1Y (TTM)18.25%
Revenue growth 3Y2.1%
Revenue growth 5Y1.5%
Sales Q2Q%14.05%
Revenue Next Year11.32%
Revenue Next 2Y9.96%
Revenue Next 3Y7.68%
Revenue Next 5Y-1.43%
EBIT growth 1Y66.26%
EBIT growth 3Y2.63%
EBIT growth 5Y-1.61%
EBIT Next Year83.07%
EBIT Next 3Y28.5%
EBIT Next 5Y22.14%
FCF growth 1Y-30.06%
FCF growth 3Y-16.17%
FCF growth 5Y4.05%
OCF growth 1Y9.05%
OCF growth 3Y-4.46%
OCF growth 5Y4.34%