OFFICE PROPERTIES INCOME TRU (OPI)
US67623C1099 - REIT
Taking everything into account, OPI scores 3 out of 10 in our fundamental rating. OPI was compared to 130 industry peers in the Diversified REITs industry. While OPI is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, OPI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year OPI was profitable.
In the past year OPI had a positive cash flow from operations.
In multiple years OPI reported negative net income over the last 5 years.
Each year in the past 5 years OPI had a positive operating cash flow.
1.2 Ratios
OPI has a Return On Assets of -0.80%. This is in the lower half of the industry: OPI underperforms 69.53% of its industry peers.
OPI's Return On Equity of -2.34% is on the low side compared to the rest of the industry. OPI is outperformed by 70.31% of its industry peers.
The Return On Invested Capital of OPI (2.73%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for OPI is in line with the industry average of 3.08%.
The 3 year average ROIC (2.14%) for OPI is below the current ROIC(2.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.8% | ||
| ROE | -2.34% | ||
| ROIC | 2.73% |
ROA(3y)-0.7%
ROA(5y)-0.24%
ROE(3y)-2.18%
ROE(5y)-0.87%
ROIC(3y)2.14%
ROIC(5y)2.24%
1.3 Margins
OPI's Operating Margin of 19.03% is in line compared to the rest of the industry. OPI outperforms 42.19% of its industry peers.
In the last couple of years the Operating Margin of OPI has grown nicely.
OPI's Gross Margin of 66.80% is in line compared to the rest of the industry. OPI outperforms 46.09% of its industry peers.
In the last couple of years the Gross Margin of OPI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.03% | ||
| PM (TTM) | N/A | ||
| GM | 66.8% |
OM growth 3Y0.17%
OM growth 5Y2.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.6%
GM growth 5Y0.09%
2. Health
2.1 Basic Checks
OPI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for OPI has been increased compared to 1 year ago.
OPI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OPI has a worse debt to assets ratio.
2.2 Solvency
OPI has an Altman-Z score of -0.19. This is a bad value and indicates that OPI is not financially healthy and even has some risk of bankruptcy.
OPI has a Altman-Z score of -0.19. This is amonst the worse of the industry: OPI underperforms 83.59% of its industry peers.
A Debt/Equity ratio of 1.82 is on the high side and indicates that OPI has dependencies on debt financing.
OPI has a Debt to Equity ratio of 1.82. This is in the lower half of the industry: OPI underperforms 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.19 |
ROIC/WACC0.74
WACC3.68%
2.3 Liquidity
OPI has a Current Ratio of 1.51. This is a normal value and indicates that OPI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.51, OPI is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
OPI has a Quick Ratio of 1.51. This is a normal value and indicates that OPI is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of OPI (1.51) is better than 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
OPI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 333.33%, which is quite impressive.
Measured over the past years, OPI shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.13% on average per year.
Looking at the last year, OPI shows a very strong growth in Revenue. The Revenue has grown by 24.49%.
Measured over the past years, OPI shows a small growth in Revenue. The Revenue has been growing by 4.58% on average per year.
EPS 1Y (TTM)333.33%
EPS 3Y23.13%
EPS 5YN/A
EPS Q2Q%-178.05%
Revenue 1Y (TTM)24.49%
Revenue growth 3Y-3.18%
Revenue growth 5Y4.58%
Sales Q2Q%-9.55%
3.2 Future
The Earnings Per Share is expected to decrease by -142.93% on average over the next years. This is quite bad
Based on estimates for the next years, OPI will show a decrease in Revenue. The Revenue will decrease by -5.30% on average per year.
EPS Next Y-677.14%
EPS Next 2Y-265.05%
EPS Next 3Y-142.93%
EPS Next 5YN/A
Revenue Next Year-6.64%
Revenue Next 2Y-8.59%
Revenue Next 3Y-5.3%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 0.81 indicates a rather cheap valuation of OPI.
Based on the Price/Earnings ratio, OPI is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.55. OPI is valued rather cheaply when compared to this.
OPI is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.81 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OPI is valued cheaply inside the industry as 97.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.48 |
4.3 Compensation for Growth
OPI's earnings are expected to decrease with -142.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-265.05%
EPS Next 3Y-142.93%
5. Dividend
5.1 Amount
OPI has a Yearly Dividend Yield of 3.74%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of OPI has falen by -52.56%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
OPI's Dividend Yield is slightly below the industry average, which is at 16.05.
OPI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
5.2 History
The dividend of OPI decreases each year by -22.67%.
OPI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-22.67%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
OPI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The Dividend Rate of OPI has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-45.72%
EPS Next 2Y-265.05%
EPS Next 3Y-142.93%
OFFICE PROPERTIES INCOME TRU
NASDAQ:OPI (12/26/2024, 8:00:02 PM)
After market: 1.02 0 (0%)1.02
+0.01 (+0.99%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners53.15%
Inst Owner Change-10.09%
Ins Owners1.24%
Ins Owner Change0%
Market Cap56.90M
Analysts46.67
Price Target3.37 (230.39%)
Short Float %9.36%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
Dividend Growth(5Y)-22.67%
DP-45.72%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)184.87%
Min EPS beat(2)-98.02%
Max EPS beat(2)467.75%
EPS beat(4)3
Avg EPS beat(4)332.06%
Min EPS beat(4)-98.02%
Max EPS beat(4)883.83%
EPS beat(8)4
Avg EPS beat(8)83.49%
EPS beat(12)5
Avg EPS beat(12)50.15%
EPS beat(16)8
Avg EPS beat(16)10.79%
Revenue beat(2)0
Avg Revenue beat(2)-0.75%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)-0.58%
Revenue beat(4)1
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-0.92%
Max Revenue beat(4)6.38%
Revenue beat(8)1
Avg Revenue beat(8)-0.83%
Revenue beat(12)2
Avg Revenue beat(12)-0.91%
Revenue beat(16)3
Avg Revenue beat(16)-0.46%
PT rev (1m)-23.26%
PT rev (3m)-23.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.17%
EPS NY rev (1m)0%
EPS NY rev (3m)3.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.28%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.81 | ||
| Fwd PE | N/A | ||
| P/S | 0.09 | ||
| P/FCF | N/A | ||
| P/OCF | 0.77 | ||
| P/B | 0.04 | ||
| P/tB | 0.04 | ||
| EV/EBITDA | 7.48 |
EPS(TTM)1.26
EY123.53%
EPS(NY)-3.17
Fwd EYN/A
FCF(TTM)-1.35
FCFYN/A
OCF(TTM)1.33
OCFY130.12%
SpS11.78
BVpS22.92
TBVpS22.92
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.8% | ||
| ROE | -2.34% | ||
| ROCE | 3.46% | ||
| ROIC | 2.73% | ||
| ROICexc | 2.75% | ||
| ROICexgc | 2.76% | ||
| OM | 19.03% | ||
| PM (TTM) | N/A | ||
| GM | 66.8% | ||
| FCFM | N/A |
ROA(3y)-0.7%
ROA(5y)-0.24%
ROE(3y)-2.18%
ROE(5y)-0.87%
ROIC(3y)2.14%
ROIC(5y)2.24%
ROICexc(3y)2.16%
ROICexc(5y)2.27%
ROICexgc(3y)2.16%
ROICexgc(5y)2.27%
ROCE(3y)2.71%
ROCE(5y)2.84%
ROICexcg growth 3Y-3.47%
ROICexcg growth 5Y12%
ROICexc growth 3Y-3.43%
ROICexc growth 5Y12.77%
OM growth 3Y0.17%
OM growth 5Y2.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.6%
GM growth 5Y0.09%
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.37 | ||
| Cap/Depr | 78.57% | ||
| Cap/Sales | 22.72% | ||
| Interest Coverage | 0.83 | ||
| Cash Conversion | 23.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | -0.19 |
F-Score6
WACC3.68%
ROIC/WACC0.74
Cap/Depr(3y)163.28%
Cap/Depr(5y)112.81%
Cap/Sales(3y)65.13%
Cap/Sales(5y)45.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)333.33%
EPS 3Y23.13%
EPS 5YN/A
EPS Q2Q%-178.05%
EPS Next Y-677.14%
EPS Next 2Y-265.05%
EPS Next 3Y-142.93%
EPS Next 5YN/A
Revenue 1Y (TTM)24.49%
Revenue growth 3Y-3.18%
Revenue growth 5Y4.58%
Sales Q2Q%-9.55%
Revenue Next Year-6.64%
Revenue Next 2Y-8.59%
Revenue Next 3Y-5.3%
Revenue Next 5YN/A
EBIT growth 1Y16.31%
EBIT growth 3Y-3.02%
EBIT growth 5Y6.82%
EBIT Next Year214.13%
EBIT Next 3Y43.85%
EBIT Next 5YN/A
FCF growth 1Y-272.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-65.64%
OCF growth 3Y-15.34%
OCF growth 5Y-0.44%