NYSE:OHI

Stock Analysis Report

Omega Healthcare Investors

Executive Summary

Omega is a real estate investment trust that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities.

Rewards

Trading at 64.6% below its fair value

Earnings are forecast to grow 6.69% per year

Earnings grew by 21.1% over the past year

Pays a high and reliable dividend of 9.55%

Risk Analysis

Highly volatile share price over past 3 months

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

6 star dividend payer with solid track record.


Similar Companies

Share Price & News

How has Omega Healthcare Investors's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OHI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

26.1%

OHI

20.4%

US REITs

12.5%

US Market


1 Year Return

-26.2%

OHI

-19.8%

US REITs

-12.7%

US Market

Return vs Industry: OHI underperformed the US REITs industry which returned -19.8% over the past year.

Return vs Market: OHI underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

OHIIndustryMarket
7 Day26.1%20.4%12.5%
30 Day-29.2%-19.3%-14.7%
90 Day-33.8%-24.5%-21.5%
1 Year-21.1%-26.2%-16.8%-19.8%-10.9%-12.7%
3 Year7.1%-15.4%-0.8%-12.9%12.6%5.4%
5 Year-3.8%-33.1%12.1%-10.8%31.9%17.5%

Price Volatility Vs. Market

How volatile is Omega Healthcare Investors's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Omega Healthcare Investors undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OHI ($28.05) is trading below our estimate of fair value ($79.19)

Significantly Below Fair Value: OHI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OHI is good value based on its PE Ratio (17.5x) compared to the REITs industry average (24.1x).

PE vs Market: OHI is poor value based on its PE Ratio (17.5x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: OHI is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: OHI is overvalued based on its PB Ratio (1.5x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

How is Omega Healthcare Investors forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OHI's forecast earnings growth (6.7% per year) is above the savings rate (1.7%).

Earnings vs Market: OHI's earnings (6.7% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: OHI's earnings are forecast to grow, but not significantly.

Revenue vs Market: OHI's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: OHI's revenue is forecast to decline over the next 3 years (-1.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if OHI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Omega Healthcare Investors performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OHI has high quality earnings.

Growing Profit Margin: OHI's current net profit margins (36.7%) are higher than last year (31.9%).


Past Earnings Growth Analysis

Earnings Trend: OHI's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: OHI's earnings growth over the past year (21.1%) exceeds its 5-year average (3.1% per year).

Earnings vs Industry: OHI earnings growth over the past year (21.1%) exceeded the REITs industry 5%.


Return on Equity

High ROE: OHI's Return on Equity (8.1%) is considered low.


Next Steps

Financial Health

How is Omega Healthcare Investors's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: OHI has a high level of physical assets or inventory.

Debt Coverage by Assets: OHI's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: OHI's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if OHI has a sufficient allowance for bad loans.

Low Risk Liabilities: OHI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if OHI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: OHI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if OHI has an appropriate level of bad loans.


Next Steps

Dividend

What is Omega Healthcare Investors's current dividend yield, its reliability and sustainability?

9.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OHI's dividend (9.55%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: OHI's dividend (9.55%) is in the top 25% of dividend payers in the US market (5.49%)


Stability and Growth of Payments

Stable Dividend: OHI's dividends per share have been stable in the past 10 years.

Growing Dividend: OHI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.2%), OHI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OHI's dividends in 3 years are forecast to be thoroughly covered by earnings (0.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.0yrs

Average management tenure


CEO

C. Pickett (57yo)

18.75s

Tenure

US$6,582,323

Compensation

Mr. C. Taylor Pickett, CPA, has been the Chief Executive Officer and President of Omega Healthcare Investors Inc., general partner of OHI Healthcare Properties Limited Partnership since June 12, 2001. He i ...


CEO Compensation Analysis

Compensation vs Market: C.'s total compensation ($USD6.58M) is about average for companies of similar size in the US market ($USD7.36M).

Compensation vs Earnings: C.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
C. Pickett
CEO & Director18.75yrsUS$6.58m0.080% $5.2m
Robert Stephenson
CFO, Treasurer & Assistant Secretary18.58yrsUS$3.05m0.10% $6.6m
Daniel Booth
Secretary & COO18.42yrsUS$3.40m0.066% $4.3m
Michael Ritz
Chief Accounting Officer13yrsUS$1.38m0.0053% $349.3k
Steven Insoft
Chief Corporate Development Officer4.92yrsUS$3.21m0.081% $5.3m
Matthew Gourmand
Senior Vice President of Investor Relations2.42yrsno datano data
Gail Makode
Chief Legal Officer & General Counsel0.50yrno datano data
Samuel Kovitz
Executive VPno datano datano data
Megan Krull
Senior Vice President of Operationsno datano datano data
Michele Reber
Senior Director of Asset Managementno datano datano data

13.0yrs

Average Tenure

55yo

Average Age

Experienced Management: OHI's management team is seasoned and experienced (13 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
C. Pickett
CEO & Director18.75yrsUS$6.58m0.080% $5.2m
Stephen Plavin
Independent Director19.67yrsUS$231.51k0.040% $2.6m
Edward Lowenthal
Independent Director24.42yrsUS$264.01k0.021% $1.4m
Burke Whitman
Independent Director1.42yrsUS$95.02k0.0036% $235.7k
Barbara Hill
Independent Director6.92yrsUS$228.01k0.014% $900.9k
Norman Bobins
Independent Director4.92yrsUS$206.01k0.030% $1.9m
Craig Callen
Chairman of the Board2.75yrsUS$365.75k0.016% $1.1m
Kapila Anand
Independent Director1.75yrsUS$206.01k0.0040% $261.1k

5.9yrs

Average Tenure

64yo

Average Age

Experienced Board: OHI's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: OHI insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.6%.


Top Shareholders

Company Information

Omega Healthcare Investors, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Omega Healthcare Investors, Inc.
  • Ticker: OHI
  • Exchange: NYSE
  • Founded: 1992
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Implied Market Cap: US$6.528b
  • Market Cap: US$6.362b
  • Shares outstanding: 232.74m
  • Website: https://www.omegahealthcare.com

Number of Employees


Location

  • Omega Healthcare Investors, Inc.
  • 303 International Circle
  • Suite 200
  • Hunt Valley
  • Maryland
  • 21030
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OHINYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1992
WX4DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1992
0KBLLSE (London Stock Exchange)YesCommon StockGBUSDAug 1992

Biography

Omega is a real estate investment trust that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the US, as well as in the UK. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:12
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.