OMEGA HEALTHCARE INVESTORS (OHI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:OHI • US6819361006
43.41 USD
+0.25 (+0.58%)
At close: Jan 29, 2026
43.3004 USD
-0.11 (-0.25%)
Pre-Market: 1/30/2026, 8:06:39 AM
OHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 124 industry peers in the Diversified REITs industry. OHI has an excellent profitability rating, but there are some minor concerns on its financial health. OHI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year OHI was profitable.
- In the past year OHI had a positive cash flow from operations.
- 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 93.55% of the companies in the same industry.
- The Return On Equity of OHI (10.36%) is better than 87.10% of its industry peers.
- OHI has a better Return On Invested Capital (5.53%) than 96.77% 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 3.05%.
- 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 has a Profit Margin of 45.34%. This is amongst the best in the industry. OHI outperforms 95.97% of its industry peers.
- OHI's Profit Margin has been stable in the last couple of years.
- OHI has a better Operating Margin (62.39%) than 98.39% of its industry peers.
- OHI's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 98.83%, OHI belongs to the top of the industry, outperforming 99.19% 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
- 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
- The number of shares outstanding for OHI has been increased compared to 5 years ago.
- The debt/assets ratio for OHI has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.32, we must say that OHI is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of OHI (1.32) is better than 86.29% 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's Debt to FCF ratio of 171.85 is fine compared to the rest of the industry. OHI outperforms 62.10% of 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.
- With a decent Debt to Equity ratio value of 0.99, OHI is doing good in the industry, outperforming 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 171.85 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.74
WACC7.45%
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 91.13% of its industry peers.
- OHI has a Quick Ratio of 2.90. This indicates that OHI is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 2.90, OHI belongs to the top of the industry, outperforming 91.13% of the companies in the same industry.
| 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.
- Measured over the past years, OHI shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.38% on average per year.
- The Revenue has grown by 13.72% in the past year. This is quite good.
- 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
- 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 Y14.16%
EPS Next 2Y10.64%
EPS Next 3Y7.42%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- OHI is valuated rather expensively with a Price/Earnings ratio of 23.34.
- Compared to the rest of the industry, the Price/Earnings ratio of OHI indicates a somewhat cheap valuation: OHI is cheaper than 77.42% of the companies listed in the same industry.
- OHI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 22.88 indicates a rather expensive valuation of OHI.
- 88.71% of the companies in the same industry are more expensive than OHI, based on the Price/Forward Earnings ratio.
- OHI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.34 | ||
| Fwd PE | 22.88 |
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.
- 62.10% 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 | 441.42 | ||
| EV/EBITDA | 16.45 |
4.3 Compensation for Growth
- OHI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of OHI may justify a higher PE ratio.
PEG (NY)1.65
PEG (5Y)N/A
EPS Next 2Y10.64%
EPS Next 3Y7.42%
5. Dividend
5.1 Amount
- OHI has a Yearly Dividend Yield of 6.20%, which is a nice return.
- Compared to an average industry Dividend Yield of 6.82, OHI has a dividend in line with its industry peers.
- OHI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
5.2 History
- The dividend of OHI decreases each year by -0.86%.
- OHI has paid a dividend for at least 10 years, which is 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 2Y10.64%
EPS Next 3Y7.42%
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 23.34 and the Price/Book (PB) ratio is 2.55.
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 14.16% in the next year.