OMEGA HEALTHCARE INVESTORS (OHI)
US6819361006 - REIT
Taking everything into account, OHI scores 5 out of 10 in our fundamental rating. OHI was compared to 129 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
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
With an excellent Return On Assets value of 3.64%, OHI belongs to the best of the industry, outperforming 87.40% of the companies in the same industry.
The Return On Equity of OHI (8.27%) is better than 83.46% of its industry peers.
OHI has a better Return On Invested Capital (5.06%) than 92.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OHI is in line with the industry average of 3.08%.
The last Return On Invested Capital (5.06%) for OHI is above the 3 year average (4.18%), which is a sign of increasing profitability.
| 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
OHI has a better Profit Margin (34.41%) than 85.83% of its industry peers.
In the last couple of years the Profit Margin of OHI has declined.
OHI's Operating Margin of 58.66% is amongst the best of the industry. OHI outperforms 96.06% of its industry peers.
In the last couple of years the Operating Margin of OHI has declined.
OHI has a Gross Margin of 98.58%. This is amongst the best in the industry. OHI outperforms 99.21% 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.
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
OHI has an Altman-Z score of 1.07. This is a bad value and indicates that OHI is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.07, OHI is doing good in the industry, outperforming 74.80% of the companies in the same industry.
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 in the better half of the industry: OHI outperforms 79.53% of its industry peers.
OHI has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
OHI's Debt to Equity ratio of 1.15 is in line compared to the rest of the industry. OHI outperforms 50.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 14.74 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.69
WACC7.28%
2.3 Liquidity
OHI has a Current Ratio of 1.95. This is a normal value and indicates that OHI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of OHI (1.95) is better than 72.44% of its industry peers.
A Quick Ratio of 1.95 indicates that OHI should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.95, OHI is doing good in the industry, outperforming 74.80% of the companies in the same industry.
| 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.
OHI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.70% yearly.
Looking at the last year, OHI shows a quite strong growth in Revenue. The Revenue has grown by 18.25% in the last year.
OHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.50% yearly.
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
Based on estimates for the next years, OHI will show a decrease in Revenue. The Revenue will decrease by -1.43% on average per year.
EPS Next Y45.89%
EPS Next 2Y23.59%
EPS Next 3Y14.92%
EPS Next 5Y33.78%
Revenue Next Year9.62%
Revenue Next 2Y8.69%
Revenue Next 3Y6.75%
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.
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 quite expensively with a Price/Earnings ratio of 29.55.
Based on the Price/Earnings ratio, OHI is valued a bit cheaper than the industry average as 70.08% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of OHI to the average of the S&P500 Index (28.96), we can say OHI is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 26.58, the valuation of OHI can be described as expensive.
83.46% of the companies in the same industry are more expensive than OHI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.82. OHI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.55 | ||
| Fwd PE | 26.58 |
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 68.50% of the companies listed in the same industry.
62.99% of the companies in the same industry are more expensive than OHI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.9 | ||
| EV/EBITDA | 17.15 |
4.3 Compensation for Growth
OHI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of OHI may justify a higher PE ratio.
OHI's earnings are expected to grow with 14.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y23.59%
EPS Next 3Y14.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.74%, OHI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.55, OHI pays a bit more dividend than its industry peers.
OHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.74% |
5.2 History
The dividend of OHI decreases each year by -0.52%.
OHI has been paying a dividend for at least 10 years, so it has 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 Years20
5.3 Sustainability
192.12% of the earnings are spent on dividend by OHI. This is not a sustainable payout ratio.
DP192.12%
EPS Next 2Y23.59%
EPS Next 3Y14.92%
OMEGA HEALTHCARE INVESTORS
NYSE:OHI (11/22/2024, 12:12:59 PM)
40.185
+0.05 (+0.11%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.74% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.55 | ||
| Fwd PE | 26.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.64
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 8.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 58.66% | ||
| PM (TTM) | 34.41% | ||
| GM | 98.58% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.95 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)41.67%
EPS 3Y12.79%
EPS 5Y
EPS Q2Q%
EPS Next Y45.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.25%
Revenue growth 3Y2.1%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y