Omega Healthcare Investors, Inc.
Omega Healthcare Investors, Inc. Fundamental Analysis
Omega Healthcare Investors, Inc. (OHI) shows strong financial fundamentals with a PE ratio of 23.31, profit margin of 49.47%, and ROE of 11.83%. The company generates $1.2B in annual revenue with strong year-over-year growth of 10.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze OHI's fundamental strength across five key dimensions:
Efficiency Score
WeakOHI struggles to generate sufficient returns from assets.
Valuation Score
ModerateOHI shows balanced valuation metrics.
Growth Score
ExcellentOHI delivers strong and consistent growth momentum.
Financial Health Score
ExcellentOHI maintains a strong and stable balance sheet.
Profitability Score
ModerateOHI maintains healthy but balanced margins.
Key Financial Metrics
Is OHI Expensive or Cheap?
P/E Ratio
OHI trades at 23.31 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, OHI's PEG of 2.52 indicates potential overvaluation.
Price to Book
The market values Omega Healthcare Investors, Inc. at 2.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.12 times EBITDA. This is generally considered low.
How Well Does OHI Make Money?
Net Profit Margin
For every $100 in sales, Omega Healthcare Investors, Inc. keeps $49.47 as profit after all expenses.
Operating Margin
Core operations generate 62.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.83 in profit for every $100 of shareholder equity.
ROA
Omega Healthcare Investors, Inc. generates $5.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Omega Healthcare Investors, Inc. generates strong operating cash flow of $877.64M, reflecting robust business health.
Free Cash Flow
Omega Healthcare Investors, Inc. generates strong free cash flow of $857.52M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.90 in free cash annually.
FCF Yield
OHI converts 6.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How OHI Stacks Against Its Sector Peers
| Metric | OHI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.31 | 24.23 | Neutral |
| ROE | 11.83% | 659.00% | Weak |
| Net Margin | 49.47% | 4497.00% | Weak |
| Debt/Equity | 0.82 | -22.14 (disorted) | Distorted |
| Current Ratio | 3.46 | 13.87 | Strong Liquidity |
| ROA | 5.87% | -1390.00% (disorted) | Weak |
OHI outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Omega Healthcare Investors, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-6.41%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-1.52%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
11.89%
Industry Style: Income, Inflation Hedge, REIT
High Growth