OMEGA HEALTHCARE INVESTORS (OHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OHI - US6819361006 - REIT
45.82 USD
+0.32 (+0.7%)
45.82 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
In the past year OHI was profitable.
OHI had a positive operating cash flow in the past year.
OHI had positive earnings in each of the past 5 years.
OHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.92%, OHI belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
OHI's Return On Equity of 10.36% is amongst the best of the industry. OHI outperforms 89.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.53%, OHI belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OHI is in line with the industry average of 3.06%.
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
Looking at the Profit Margin, with a value of 45.34%, OHI belongs to the top of the industry, outperforming 95.31% 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 62.39%, OHI belongs to the best of the industry, outperforming 97.66% 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.
OHI has a better Gross Margin (98.83%) than 98.44% 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
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
Based on the Altman-Z score of 1.39, we must say that OHI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of OHI (1.39) is better than 87.50% 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.
OHI has a Debt to FCF ratio (171.85) which is in line with its industry peers.
OHI has a Debt/Equity ratio of 0.99. This is a neutral value indicating OHI is somewhat dependend on debt financing.
OHI's Debt to Equity ratio of 0.99 is fine compared to the rest 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 | 1.39 |
ROIC/WACC0.76
WACC7.32%
2.3 Liquidity
A Current Ratio of 2.90 indicates that OHI has no problem at all paying its short term obligations.
OHI has a Current ratio of 2.90. This is amongst the best in the industry. OHI outperforms 90.63% of its industry peers.
A Quick Ratio of 2.90 indicates that OHI has no problem at all paying its short term obligations.
OHI has a Quick ratio of 2.90. This is amongst the best in the industry. OHI outperforms 90.63% of its industry peers.
| 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.
The Earnings Per Share has been decreasing by -0.38% on average over the past years.
OHI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.72%.
Measured over the past years, OHI shows a small growth in Revenue. The Revenue has been growing by 2.51% on average per year.
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 Y9.99%
EPS Next 2Y8.75%
EPS Next 3Y6.81%
EPS Next 5Y22.45%
Revenue Next Year11.64%
Revenue Next 2Y9.79%
Revenue Next 3Y8.6%
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.
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
OHI is valuated rather expensively with a Price/Earnings ratio of 24.63.
Based on the Price/Earnings ratio, OHI is valued a bit cheaper than 78.13% of the companies in the same industry.
OHI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.15.
Based on the Price/Forward Earnings ratio of 25.00, the valuation of OHI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, OHI is valued cheaply inside the industry as 85.16% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, OHI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.63 | ||
| Fwd PE | 25 |
4.2 Price Multiples
69.53% of the companies in the same industry are cheaper than OHI, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as OHI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 465.09 | ||
| EV/EBITDA | 17.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates OHI does not grow enough to justify the current Price/Earnings ratio.
OHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.47
PEG (5Y)N/A
EPS Next 2Y8.75%
EPS Next 3Y6.81%
5. Dividend
5.1 Amount
OHI has a Yearly Dividend Yield of 6.01%, which is a nice return.
OHI's Dividend Yield is comparable with the industry average which is at 6.59.
Compared to an average S&P500 Dividend Yield of 2.41, OHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.01% |
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 2Y8.75%
EPS Next 3Y6.81%
45.82
+0.32 (+0.7%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners76.93%
Inst Owner Change3.17%
Ins Owners0.17%
Ins Owner Change0.83%
Market Cap13.52B
Revenue(TTM)1.15B
Net Income(TTM)521.56M
Analysts72.38
Price Target46.24 (0.92%)
Short Float %3.83%
Short Ratio6.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.01% |
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)4.86%
PT rev (3m)9.24%
EPS NQ rev (1m)2.62%
EPS NQ rev (3m)5.38%
EPS NY rev (1m)0%
EPS NY rev (3m)1.81%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)1.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.63 | ||
| Fwd PE | 25 | ||
| P/S | 11.75 | ||
| P/FCF | 465.09 | ||
| P/OCF | 15.41 | ||
| P/B | 2.68 | ||
| P/tB | 3.1 | ||
| EV/EBITDA | 17.11 |
EPS(TTM)1.86
EY4.06%
EPS(NY)1.83
Fwd EY4%
FCF(TTM)0.1
FCFY0.22%
OCF(TTM)2.97
OCFY6.49%
SpS3.9
BVpS17.07
TBVpS14.79
PEG (NY)2.47
PEG (5Y)N/A
Graham Number26.73
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 | 1.39 |
F-Score8
WACC7.32%
ROIC/WACC0.76
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 Y9.99%
EPS Next 2Y8.75%
EPS Next 3Y6.81%
EPS Next 5Y22.45%
Revenue 1Y (TTM)13.72%
Revenue growth 3Y-0.36%
Revenue growth 5Y2.51%
Sales Q2Q%12.88%
Revenue Next Year11.64%
Revenue Next 2Y9.79%
Revenue Next 3Y8.6%
Revenue Next 5Y0.62%
EBIT growth 1Y20.97%
EBIT growth 3Y5.23%
EBIT growth 5Y3.54%
EBIT Next Year72.47%
EBIT Next 3Y25.17%
EBIT Next 5Y20.99%
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 24.63 and the Price/Book (PB) ratio is 2.68.
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 9.99% in the next year.