OMEGA HEALTHCARE INVESTORS (OHI) Stock Fundamental Analysis
NYSE:OHI - New York Stock Exchange, Inc. - US6819361006 - REIT - Currency: USD
We assign a fundamental rating of 6 out of 10 to OHI. 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
OHI had positive earnings in the past year.
In the past year OHI had a positive cash flow from operations.
In the past 5 years OHI has always been profitable.
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 4.62%, OHI belongs to the top of the industry, outperforming 91.47% of the companies in the same industry.
OHI's Return On Equity of 9.45% is amongst the best of the industry. OHI outperforms 86.82% of its industry peers.
With an excellent Return On Invested Capital value of 5.73%, OHI belongs to the best of the industry, outperforming 94.57% 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 3.15%.
The last Return On Invested Capital (5.73%) for OHI is above the 3 year average (4.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 9.45% | ||
| ROIC | 5.73% |
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
The Profit Margin of OHI (41.29%) is better than 92.25% of its industry peers.
OHI's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 62.79%, OHI belongs to the best of the industry, outperforming 97.67% 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's Gross Margin of 98.70% is amongst the best of the industry. OHI outperforms 100.00% 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 | 62.79% | ||
| PM (TTM) | 41.29% | ||
| GM | 98.7% |
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.
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
Compared to 1 year ago, OHI has an improved debt to assets ratio.
2.2 Solvency
OHI has an Altman-Z score of 1.19. This is a bad value and indicates that OHI is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.19, OHI belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
The Debt to FCF ratio of OHI is 17.33, which is on the high side as it means it would take OHI, 17.33 years of fcf income to pay off all of its debts.
OHI's Debt to FCF ratio of 17.33 is amongst the best of the industry. OHI outperforms 82.17% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that OHI is somewhat dependend on debt financing.
OHI has a Debt to Equity ratio of 0.94. This is in the better half of the industry: OHI outperforms 63.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 17.33 | ||
| Altman-Z | 1.19 |
ROIC/WACC0.78
WACC7.38%
2.3 Liquidity
OHI has a Current Ratio of 2.01. This indicates that OHI is financially healthy and has no problem in meeting its short term obligations.
OHI's Current ratio of 2.01 is fine compared to the rest of the industry. OHI outperforms 79.84% of its industry peers.
A Quick Ratio of 2.01 indicates that OHI has no problem at all paying its short term obligations.
OHI has a Quick ratio of 2.01. This is in the better half of the industry: OHI outperforms 79.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.35% 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.
OHI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.29%.
OHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.51% yearly.
EPS 1Y (TTM)51.35%
EPS 3Y-4.33%
EPS 5Y-0.38%
EPS Q2Q%48.15%
Revenue 1Y (TTM)11.29%
Revenue growth 3Y-0.36%
Revenue growth 5Y2.51%
Sales Q2Q%13.76%
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 22.18% on average per year.
Based on estimates for the next years, OHI will show a decrease in Revenue. The Revenue will decrease by -0.50% on average per year.
EPS Next Y8.04%
EPS Next 2Y7.8%
EPS Next 3Y5.75%
EPS Next 5Y22.18%
Revenue Next Year11.64%
Revenue Next 2Y8.96%
Revenue Next 3Y7.99%
Revenue Next 5Y-0.5%
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
The Price/Earnings ratio is 22.35, which indicates a rather expensive current valuation of OHI.
Based on the Price/Earnings ratio, OHI is valued a bit cheaper than the industry average as 79.84% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of OHI to the average of the S&P500 Index (27.30), we can say OHI is valued inline with the index average.
The Price/Forward Earnings ratio is 20.84, which indicates a rather expensive current valuation of OHI.
91.47% of the companies in the same industry are more expensive than OHI, based on the Price/Forward Earnings ratio.
OHI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 20.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OHI is on the same level as its industry peers.
OHI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OHI is cheaper than 65.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.33 | ||
| EV/EBITDA | 15.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
OHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.78
PEG (5Y)N/A
EPS Next 2Y7.8%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
OHI has a Yearly Dividend Yield of 7.31%, which is a nice return.
OHI's Dividend Yield is a higher than the industry average which is at 6.45.
OHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.31% |
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
158.46% of the earnings are spent on dividend by OHI. This is not a sustainable payout ratio.
DP158.46%
EPS Next 2Y7.8%
EPS Next 3Y5.75%
37.54
+0.89 (+2.43%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners78.88%
Inst Owner Change0%
Ins Owners0.17%
Ins Owner Change0.55%
Market Cap10.86B
Analysts70.48
Price Target41.07 (9.4%)
Short Float %3.27%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.31% |
Yearly Dividend2.61
Dividend Growth(5Y)-0.86%
DP158.46%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.44%
Min EPS beat(2)-10.4%
Max EPS beat(2)-4.48%
EPS beat(4)2
Avg EPS beat(4)5.04%
Min EPS beat(4)-10.4%
Max EPS beat(4)26.1%
EPS beat(8)3
Avg EPS beat(8)-5.29%
EPS beat(12)5
Avg EPS beat(12)-11.46%
EPS beat(16)7
Avg EPS beat(16)-2.75%
Revenue beat(2)1
Avg Revenue beat(2)-2.38%
Min Revenue beat(2)-5.07%
Max Revenue beat(2)0.32%
Revenue beat(4)3
Avg Revenue beat(4)-0.28%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)3.35%
Revenue beat(8)6
Avg Revenue beat(8)0.65%
Revenue beat(12)7
Avg Revenue beat(12)-2.88%
Revenue beat(16)9
Avg Revenue beat(16)-2.14%
PT rev (1m)-0.17%
PT rev (3m)-1.47%
EPS NQ rev (1m)-3.1%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)-3.12%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 20.84 | ||
| P/S | 10.01 | ||
| P/FCF | 42.33 | ||
| P/OCF | 13.93 | ||
| P/B | 2.29 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 15.08 |
EPS(TTM)1.68
EY4.48%
EPS(NY)1.8
Fwd EY4.8%
FCF(TTM)0.89
FCFY2.36%
OCF(TTM)2.7
OCFY7.18%
SpS3.75
BVpS16.38
TBVpS14.06
PEG (NY)2.78
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 9.45% | ||
| ROCE | 7.26% | ||
| ROIC | 5.73% | ||
| ROICexc | 5.97% | ||
| ROICexgc | 6.6% | ||
| OM | 62.79% | ||
| PM (TTM) | 41.29% | ||
| GM | 98.7% | ||
| FCFM | 23.65% |
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%
ROICexcg growth 3Y6.74%
ROICexcg 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-Score7
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 17.33 | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 168.82% | ||
| Cap/Sales | 48.23% | ||
| Interest Coverage | 2.89 | ||
| Cash Conversion | 78.69% | ||
| Profit Quality | 57.28% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 1.19 |
F-Score7
WACC7.38%
ROIC/WACC0.78
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)51.35%
EPS 3Y-4.33%
EPS 5Y-0.38%
EPS Q2Q%48.15%
EPS Next Y8.04%
EPS Next 2Y7.8%
EPS Next 3Y5.75%
EPS Next 5Y22.18%
Revenue 1Y (TTM)11.29%
Revenue growth 3Y-0.36%
Revenue growth 5Y2.51%
Sales Q2Q%13.76%
Revenue Next Year11.64%
Revenue Next 2Y8.96%
Revenue Next 3Y7.99%
Revenue Next 5Y-0.5%
EBIT growth 1Y34.26%
EBIT growth 3Y5.23%
EBIT growth 5Y3.54%
EBIT Next Year70.93%
EBIT Next 3Y24.64%
EBIT Next 5Y17.98%
FCF growth 1Y-42.26%
FCF growth 3Y189.54%
FCF growth 5Y49.66%
OCF growth 1Y28.93%
OCF growth 3Y1.24%
OCF growth 5Y6.24%