OFFICE PROPERTIES INCOME TRU (OPI) Stock Fundamental Analysis
NASDAQ:OPI - Nasdaq - US67623C1099 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to OPI. OPI was compared to 129 industry peers in the Diversified REITs industry. OPI has a bad profitability rating. Also its financial health evaluation is rather negative. OPI does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
OPI had positive earnings in the past year.
OPI had a positive operating cash flow in the past year.
In the past 5 years OPI reported 4 times negative net income.
Each year in the past 5 years OPI had a positive operating cash flow.
1.2 Ratios
OPI has a worse Return On Assets (-3.70%) than 84.13% of its industry peers.
With a Return On Equity value of -12.26%, OPI is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
OPI's Return On Invested Capital of 2.59% is in line compared to the rest of the industry. OPI outperforms 47.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OPI is in line with the industry average of 3.11%.
The 3 year average ROIC (2.10%) for OPI is below the current ROIC(2.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.7% | ||
| ROE | -12.26% | ||
| ROIC | 2.59% |
ROA(3y)-1.82%
ROA(5y)-1.1%
ROE(3y)-5.93%
ROE(5y)-3.59%
ROIC(3y)2.1%
ROIC(5y)2.13%
1.3 Margins
The Operating Margin of OPI (18.89%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of OPI has remained more or less at the same level.
OPI's Gross Margin of 66.82% is in line compared to the rest of the industry. OPI outperforms 46.83% 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 | 18.89% | ||
| PM (TTM) | N/A | ||
| GM | 66.82% |
OM growth 3Y-0.97%
OM growth 5Y-1.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.46%
GM growth 5Y-1.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OPI is destroying value.
OPI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for OPI has been increased compared to 5 years ago.
The debt/assets ratio for OPI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.18, we must say that OPI is in the distress zone and has some risk of bankruptcy.
OPI's Altman-Z score of -0.18 is on the low side compared to the rest of the industry. OPI is outperformed by 82.54% of its industry peers.
OPI has a Debt/Equity ratio of 2.20. This is a high value indicating a heavy dependency on external financing.
OPI's Debt to Equity ratio of 2.20 is on the low side compared to the rest of the industry. OPI is outperformed by 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.18 |
ROIC/WACC0.55
WACC4.71%
2.3 Liquidity
OPI has a Current Ratio of 3.35. This indicates that OPI is financially healthy and has no problem in meeting its short term obligations.
OPI has a Current ratio of 3.35. This is amongst the best in the industry. OPI outperforms 88.89% of its industry peers.
OPI has a Quick Ratio of 3.35. This indicates that OPI is financially healthy and has no problem in meeting its short term obligations.
OPI's Quick ratio of 3.35 is amongst the best of the industry. OPI outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 3.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 139.29% over the past year.
Measured over the past 5 years, OPI shows a small growth in Earnings Per Share. The EPS has been growing by 1.24% on average per year.
The Revenue has grown by 20.22% in the past year. This is a very strong growth!
Measured over the past years, OPI shows a decrease in Revenue. The Revenue has been decreasing by -5.85% on average per year.
EPS 1Y (TTM)139.29%
EPS 3YN/A
EPS 5Y1.24%
EPS Q2Q%-62.11%
Revenue 1Y (TTM)20.22%
Revenue growth 3Y-4.51%
Revenue growth 5Y-5.85%
Sales Q2Q%-11.61%
3.2 Future
Based on estimates for the next years, OPI will show a very negative growth in Earnings Per Share. The EPS will decrease by -167.50% on average per year.
OPI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.28% yearly.
EPS Next Y-573.34%
EPS Next 2Y-167.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-11.89%
Revenue Next 2Y-6.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 1.30, which indicates a rather cheap valuation of OPI.
Based on the Price/Earnings ratio, OPI is valued cheaper than 99.21% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. 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 | 1.3 | ||
| Fwd PE | N/A |
4.2 Price Multiples
97.62% of the companies in the same industry are more expensive than OPI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.63 |
4.3 Compensation for Growth
OPI's earnings are expected to decrease with -167.50% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-167.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
OPI has a Yearly Dividend Yield of 4.52%, which is a nice return.
In the last 3 months the price of OPI has falen by -23.48%. 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 comparable with the industry average which is at 18.40.
OPI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
5.2 History
The dividend of OPI decreases each year by -56.49%.
OPI has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-56.49%
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-1.44%
EPS Next 2Y-167.5%
EPS Next 3YN/A
0.8723
-0.01 (-1.37%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners52.35%
Inst Owner Change-89.22%
Ins Owners0.95%
Ins Owner Change0%
Market Cap48.66M
Analysts46.67
Price Target3.37 (286.33%)
Short Float %9.01%
Short Ratio7.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
Yearly Dividend0.03
Dividend Growth(5Y)-56.49%
DP-1.44%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)30.21%
Min EPS beat(2)-98.02%
Max EPS beat(2)158.43%
EPS beat(4)3
Avg EPS beat(4)150.71%
Min EPS beat(4)-98.02%
Max EPS beat(4)467.75%
EPS beat(8)4
Avg EPS beat(8)26.44%
EPS beat(12)6
Avg EPS beat(12)69.81%
EPS beat(16)8
Avg EPS beat(16)16.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.4%
Min Revenue beat(2)-0.58%
Max Revenue beat(2)-0.22%
Revenue beat(4)1
Avg Revenue beat(4)1.17%
Min Revenue beat(4)-0.92%
Max Revenue beat(4)6.38%
Revenue beat(8)1
Avg Revenue beat(8)0.14%
Revenue beat(12)1
Avg Revenue beat(12)-1.03%
Revenue beat(16)3
Avg Revenue beat(16)-0.46%
PT rev (1m)0%
PT rev (3m)-10.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.3 | ||
| Fwd PE | N/A | ||
| P/S | 0.08 | ||
| P/FCF | N/A | ||
| P/OCF | 0.72 | ||
| P/B | 0.04 | ||
| P/tB | 0.04 | ||
| EV/EBITDA | 7.63 |
EPS(TTM)0.67
EY76.81%
EPS(NY)-3.17
Fwd EYN/A
FCF(TTM)-1.01
FCFYN/A
OCF(TTM)1.2
OCFY138.04%
SpS11.5
BVpS20.67
TBVpS20.67
PEG (NY)N/A
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.7% | ||
| ROE | -12.26% | ||
| ROCE | 3.28% | ||
| ROIC | 2.59% | ||
| ROICexc | 2.78% | ||
| ROICexgc | 2.79% | ||
| OM | 18.89% | ||
| PM (TTM) | N/A | ||
| GM | 66.82% | ||
| FCFM | N/A |
ROA(3y)-1.82%
ROA(5y)-1.1%
ROE(3y)-5.93%
ROE(5y)-3.59%
ROIC(3y)2.1%
ROIC(5y)2.13%
ROICexc(3y)2.15%
ROICexc(5y)2.17%
ROICexgc(3y)2.16%
ROICexgc(5y)2.18%
ROCE(3y)2.66%
ROCE(5y)2.69%
ROICexcg growth 3Y-0.4%
ROICexcg growth 5Y-4.17%
ROICexc growth 3Y-0.44%
ROICexc growth 5Y-4.15%
OM growth 3Y-0.97%
OM growth 5Y-1.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.46%
GM growth 5Y-1.48%
F-Score5
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.32 | ||
| Cap/Depr | 67.29% | ||
| Cap/Sales | 19.24% | ||
| Interest Coverage | 0.83 | ||
| Cash Conversion | 22.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.35 | ||
| Quick Ratio | 3.35 | ||
| Altman-Z | -0.18 |
F-Score5
WACC4.71%
ROIC/WACC0.55
Cap/Depr(3y)92.41%
Cap/Depr(5y)121.7%
Cap/Sales(3y)34.95%
Cap/Sales(5y)48.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)139.29%
EPS 3YN/A
EPS 5Y1.24%
EPS Q2Q%-62.11%
EPS Next Y-573.34%
EPS Next 2Y-167.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)20.22%
Revenue growth 3Y-4.51%
Revenue growth 5Y-5.85%
Sales Q2Q%-11.61%
Revenue Next Year-11.89%
Revenue Next 2Y-6.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.68%
EBIT growth 3Y-5.43%
EBIT growth 5Y-6.86%
EBIT Next Year206.7%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y37.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-52.61%
OCF growth 3Y-32.82%
OCF growth 5Y-20.78%