OMEGA HEALTHCARE INVESTORS (OHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OHI - US6819361006 - REIT
44.68 USD
-0.46 (-1.02%)
44.6 USD
-0.08 (-0.18%)
Taking everything into account, OHI scores 6 out of 10 in our fundamental rating. OHI was compared to 127 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.
Each year in the past 5 years OHI has been profitable.
OHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 4.92%, OHI belongs to the best of the industry, outperforming 93.70% of the companies in the same industry.
With an excellent Return On Equity value of 10.36%, OHI belongs to the best of the industry, outperforming 86.61% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.53%, OHI belongs to the best of the industry, outperforming 96.85% of the companies in the same industry.
OHI had an Average Return On Invested Capital over the past 3 years of 4.40%. This 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
OHI's Profit Margin of 45.34% is amongst the best of the industry. OHI outperforms 95.28% 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 Operating Margin of 62.39%. This is amongst the best in the industry. OHI outperforms 97.64% of its industry peers.
In the last couple of years the Operating Margin of OHI has remained more or less at the same level.
With an excellent Gross Margin value of 98.83%, OHI belongs to the best of the industry, outperforming 99.21% of the companies in the same industry.
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.
Compared to 1 year ago, OHI has more shares outstanding
Compared to 5 years ago, OHI has more shares outstanding
The debt/assets ratio for OHI has been reduced compared to a year ago.
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.
OHI has a better Altman-Z score (1.36) than 88.19% of its industry peers.
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.
The Debt to FCF ratio of OHI (171.85) is better than 60.63% of its industry peers.
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 60.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 171.85 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.74
WACC7.43%
2.3 Liquidity
A Current Ratio of 2.90 indicates that OHI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.90, OHI belongs to the best of the industry, outperforming 91.34% of the companies in the same industry.
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 91.34% 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.
OHI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.38% yearly.
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
The Earnings Per Share is expected to grow by 22.45% on average over the next years. This is a very strong growth
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 Year12.3%
Revenue Next 2Y10.47%
Revenue Next 3Y9.3%
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
A Price/Earnings ratio of 24.02 indicates a rather expensive valuation of OHI.
OHI's Price/Earnings ratio is a bit cheaper when compared to the industry. OHI is cheaper than 76.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.00. OHI is around the same levels.
A Price/Forward Earnings ratio of 23.58 indicates a rather expensive valuation of OHI.
Based on the Price/Forward Earnings ratio, OHI is valued cheaply inside the industry as 86.61% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of OHI to the average of the S&P500 Index (23.70), we can say OHI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 23.58 |
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 61.42% 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 60.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 454.33 | ||
| EV/EBITDA | 16.81 |
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
OHI has a Yearly Dividend Yield of 6.04%, which is a nice return.
Compared to an average industry Dividend Yield of 6.83, OHI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, OHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.04% |
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%
44.68
-0.46 (-1.02%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners79.59%
Inst Owner Change0%
Ins Owners0.17%
Ins Owner Change0.16%
Market Cap13.20B
Revenue(TTM)1.15B
Net Income(TTM)521.56M
Analysts72.38
Price Target47.37 (6.02%)
Short Float %4.42%
Short Ratio7.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.04% |
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)2.44%
PT rev (3m)7.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.93%
EPS NY rev (1m)0%
EPS NY rev (3m)4.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.66%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 23.58 | ||
| P/S | 11.48 | ||
| P/FCF | 454.33 | ||
| P/OCF | 15.06 | ||
| P/B | 2.62 | ||
| P/tB | 3.03 | ||
| EV/EBITDA | 16.81 |
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
WACC7.43%
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 Year12.3%
Revenue Next 2Y10.47%
Revenue Next 3Y9.3%
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.
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 24.02 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.