OFFICE PROPERTIES INCOME TRU (OPI)
US67623C1099 - REIT
Overall OPI gets a fundamental rating of 3 out of 10. We evaluated OPI against 129 industry peers in the Diversified REITs industry. There are concerns on the financial health of OPI while its profitability can be described as average. OPI is valied quite expensively at the moment, while it does show a decent growth rate.
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.
The reported net income has been mixed in the past 5 years: OPI reported negative net income in multiple years.
OPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OPI has a Return On Assets of -0.80%. This is in the lower half of the industry: OPI underperforms 68.50% of its industry peers.
The Return On Equity of OPI (-2.34%) is worse than 69.29% of its industry peers.
OPI's Return On Invested Capital of 2.73% is in line compared to the rest of the industry. OPI outperforms 55.12% 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 3.08%.
The last Return On Invested Capital (2.73%) for OPI is above the 3 year average (2.14%), which is a sign of increasing profitability.
| 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
Looking at the Operating Margin, with a value of 19.03%, OPI is in line with its industry, outperforming 40.94% of the companies in the same industry.
OPI's Operating Margin has improved in the last couple of years.
The Gross Margin of OPI (66.80%) is comparable to the rest of the industry.
OPI's Gross Margin has been stable in the last couple of years.
| 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.
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.
OPI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.19, we must say that OPI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.19, OPI is not doing good in the industry: 84.25% of the companies in the same industry are doing better.
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 70.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.19 |
ROIC/WACC0.74
WACC3.71%
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.
OPI has a better Current ratio (1.51) than 66.93% of its industry peers.
A Quick Ratio of 1.51 indicates that OPI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.51, OPI is in the better half of the industry, outperforming 69.29% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 23.13% on average over the past years. This is a very strong growth
OPI shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.49%.
OPI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.58% yearly.
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
OPI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.35% yearly.
EPS Next Y-677.14%
EPS Next 2Y-265.05%
EPS Next 3Y-142.93%
EPS Next 5YN/A
Revenue Next Year-6.37%
Revenue Next 2Y-7.58%
Revenue Next 3Y-4.35%
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
Based on the Price/Earnings ratio of 0.92, the valuation of OPI can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of OPI indicates a rather cheap valuation: OPI is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, 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 | 0.92 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OPI indicates a rather cheap valuation: OPI is cheaper than 97.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.5 |
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 3.20%. Purely for dividend investing, there may be better candidates out there.
The stock price of OPI dropped by -53.09% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 6.55, OPI is paying slightly less dividend.
OPI's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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
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-45.72%
EPS Next 2Y-265.05%
EPS Next 3Y-142.93%
OFFICE PROPERTIES INCOME TRU
NASDAQ:OPI (11/22/2024, 2:47:41 PM)
1.16
+0.02 (+1.75%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap64.70M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.92 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.8% | ||
| ROE | -2.34% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.03% | ||
| PM (TTM) | N/A | ||
| GM | 66.8% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)333.33%
EPS 3Y23.13%
EPS 5Y
EPS Q2Q%
EPS Next Y-677.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)24.49%
Revenue growth 3Y-3.18%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y