OFFICE PROPERTIES INCOME TRU (OPI) Stock Fundamental Analysis
NASDAQ:OPI - Nasdaq - US67623C1099 - REIT - Currency: USD
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. Both the profitability and financial health of OPI have multiple concerns. OPI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
OPI had positive earnings in the past year.
In the past year OPI had a positive cash flow from operations.
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 81.54% of its industry peers.
OPI has a Return On Equity of -12.26%. This is in the lower half of the industry: OPI underperforms 76.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.59%, OPI is in line with its industry, outperforming 47.69% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OPI is in line with the industry average of 3.17%.
The last Return On Invested Capital (2.59%) for OPI is above the 3 year average (2.10%), which is a sign of increasing profitability.
| 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 has a Gross Margin of 66.82%. This is comparable to the rest of the industry: OPI outperforms 49.23% of its industry peers.
OPI's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OPI is destroying value.
OPI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, OPI has more shares outstanding
Compared to 1 year ago, OPI has a worse debt to assets ratio.
2.2 Solvency
OPI has an Altman-Z score of -0.18. This is a bad value and indicates that OPI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of OPI (-0.18) is worse than 77.69% of its industry peers.
A Debt/Equity ratio of 2.20 is on the high side and indicates that OPI has dependencies on debt financing.
The Debt to Equity ratio of OPI (2.20) is worse than 77.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.18 |
ROIC/WACC0.56
WACC4.61%
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.
The Current ratio of OPI (3.35) is better than 90.00% 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 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 3.35 |
3. Growth
3.1 Past
OPI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 139.29%, which is quite impressive.
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.
Looking at the last year, OPI shows a very strong growth in Revenue. The Revenue has grown by 20.22%.
OPI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.85% yearly.
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
The Earnings Per Share is expected to decrease by -167.50% 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 -6.28% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 0.58, which indicates a rather cheap valuation of OPI.
100.00% of the companies in the same industry are more expensive than OPI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.79, OPI is valued rather cheaply.
OPI is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.58 | ||
| Fwd PE | N/A |
4.2 Price Multiples
96.92% 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 | 7.56 |
4.3 Compensation for Growth
A cheap valuation may be justified as OPI's earnings are expected to decrease with -167.50% in the coming years.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-167.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.96%, OPI is a good candidate for dividend investing.
In the last 3 months the price of OPI has falen by -57.84%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 16.86, OPI pays a better dividend. On top of this OPI pays more dividend than 86.15% of the companies listed in the same industry.
OPI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.96% |
5.2 History
The dividend of OPI decreases each year by -56.49%.
OPI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-56.49%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of OPI are negative and hence is the payout ratio. OPI will probably not be able to sustain this dividend level.
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
0.3858
-0.01 (-3.53%)
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 Change0.15%
Ins Owners0.95%
Ins Owner Change0%
Market Cap26.71M
Analysts46.67
Price Target3.37 (773.51%)
Short Float %7.47%
Short Ratio6.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.96% |
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)0%
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)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.58 | ||
| Fwd PE | N/A | ||
| P/S | 0.04 | ||
| P/FCF | N/A | ||
| P/OCF | 0.4 | ||
| P/B | 0.02 | ||
| P/tB | 0.02 | ||
| EV/EBITDA | 7.56 |
EPS(TTM)0.67
EY173.67%
EPS(NY)-3.17
Fwd EYN/A
FCF(TTM)-0.81
FCFYN/A
OCF(TTM)0.97
OCFY251.48%
SpS9.26
BVpS16.65
TBVpS16.65
PEG (NY)N/A
PEG (5Y)0.46
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
WACC4.61%
ROIC/WACC0.56
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%