OMEGA HEALTHCARE INVESTORS (OHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OHI - US6819361006 - REIT
44.7 USD
-0.34 (-0.75%)
44.7 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to OHI. OHI was compared to 125 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.
- OHI had a positive operating cash flow in the past year.
- OHI had positive earnings in each of the past 5 years.
- Each year in the past 5 years OHI had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of OHI (4.92%) is better than 93.60% of its industry peers.
- With an excellent Return On Equity value of 10.36%, OHI belongs to the best of the industry, outperforming 86.40% of the companies in the same industry.
- OHI has a Return On Invested Capital of 5.53%. This is amongst the best in the industry. OHI outperforms 96.80% 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 3.07%.
- 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
- OHI has a Profit Margin of 45.34%. This is amongst the best in the industry. OHI outperforms 96.00% of its industry peers.
- OHI's Profit Margin has been stable in the last couple of years.
- The Operating Margin of OHI (62.39%) is better than 98.40% of its industry peers.
- 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.
- Compared to 1 year ago, OHI has more shares outstanding
- Compared to 5 years ago, OHI has more shares outstanding
- Compared to 1 year ago, OHI has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.36, we must say that OHI is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.36, OHI belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
- 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.
- OHI has a better Debt to FCF ratio (171.85) than 61.60% of its industry peers.
- A Debt/Equity ratio of 0.99 indicates that 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 61.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 171.85 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.74
WACC7.51%
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 91.20% of its industry peers.
- A Quick Ratio of 2.90 indicates that OHI has no problem at all paying its short term obligations.
- The Quick ratio of OHI (2.90) is better than 91.20% 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.
- OHI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.38% yearly.
- The Revenue has grown by 13.72% in the past year. This is quite good.
- 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
- Based on estimates for the next years, OHI will show a very strong growth in Earnings Per Share. The EPS will grow by 22.45% on average per year.
- Based on estimates for the next years, OHI will show a small growth in Revenue. The Revenue will grow by 1.04% on average per year.
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.
- 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 24.03, OHI is valued on the expensive side.
- 76.80% of the companies in the same industry are more expensive than OHI, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of OHI to the average of the S&P500 Index (27.32), we can say OHI is valued inline with the index average.
- The Price/Forward Earnings ratio is 23.59, which indicates a rather expensive current valuation of OHI.
- 87.20% 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 (24.30), we can say OHI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 23.59 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OHI indicates a slightly more expensive valuation: OHI is more expensive than 61.60% of the companies listed in the same industry.
- 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 | 454.54 | ||
| EV/EBITDA | 16.82 |
4.3 Compensation for Growth
- OHI's 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)1.73
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.
- OHI's Dividend Yield is comparable with the industry average which is at 6.59.
- OHI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.86.
| 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%
44.7
-0.34 (-0.75%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-04 2026-02-04/amc
Inst Owners79.59%
Inst Owner Change0.27%
Ins Owners0.17%
Ins Owner Change-0.92%
Market Cap13.21B
Revenue(TTM)1.15B
Net Income(TTM)521.56M
Analysts72.73
Price Target48.13 (7.67%)
Short Float %4.26%
Short Ratio7.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.03% |
Yearly Dividend2.61
Dividend Growth(5Y)-0.86%
DP146.38%
Div Incr Years0
Div Non Decr Years21
Ex-DateN/A
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)2.43%
PT rev (3m)9.15%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)3.71%
EPS NY rev (1m)0%
EPS NY rev (3m)4.19%
Revenue NQ rev (1m)-2.5%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 23.59 | ||
| P/S | 11.49 | ||
| P/FCF | 454.54 | ||
| P/OCF | 15.06 | ||
| P/B | 2.62 | ||
| P/tB | 3.03 | ||
| EV/EBITDA | 16.82 |
EPS(TTM)1.86
EY4.16%
EPS(NY)1.9
Fwd EY4.24%
FCF(TTM)0.1
FCFY0.22%
OCF(TTM)2.97
OCFY6.64%
SpS3.89
BVpS17.04
TBVpS14.77
PEG (NY)1.73
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 | 1.36 |
F-Score8
WACC7.51%
ROIC/WACC0.74
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 Year12.39%
Revenue Next 2Y9.96%
Revenue Next 3Y7.99%
Revenue Next 5Y1.04%
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.
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 24.03 and the Price/Book (PB) ratio is 2.62.
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.