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.

Snowflake

Fundamentals

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

OHI

-2.0%

US REITs

0.5%

US Market


1 Year Return

19.8%

OHI

12.0%

US REITs

12.8%

US Market

Return vs Industry: OHI exceeded the US REITs industry which returned 12% over the past year.

Return vs Market: OHI exceeded the US Market which returned 12.8% over the past year.


Shareholder returns

OHIIndustryMarket
7 Day-2.9%-2.0%0.5%
30 Day-3.0%-2.9%4.3%
90 Day7.8%0.9%8.0%
1 Year28.2%19.8%16.7%12.0%15.3%12.8%
3 Year81.1%42.5%37.2%20.2%48.3%38.7%
5 Year58.3%9.5%54.5%22.5%62.6%44.5%

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?

39.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OHI ($41.16) is trading below our estimate of fair value ($68.08)

Significantly Below Fair Value: OHI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OHI is good value based on its PE Ratio (25x) compared to the REITs industry average (37.6x).

PE vs Market: OHI is poor value based on its PE Ratio (25x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: OHI is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: OHI is overvalued based on its PB Ratio (2.3x) compared to the US REITs industry average (1.9x).


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?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OHI's forecast earnings growth (6.6% per year) is above the savings rate (2.7%).

Earnings vs Market: OHI's earnings (6.6% per year) are forecast to grow slower than the US market (14.3% 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 (-0.2% per year).

High Growth Revenue: OHI's revenue is forecast to decline over the next 3 years (-0.2% 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?

1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OHI has high quality earnings.

Growing Profit Margin: OHI's current net profit margins (38.1%) are higher than last year (31.9%).


Past Earnings Growth Analysis

Earnings Trend: OHI's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: OHI's earnings growth over the past year (22%) exceeds its 5-year average (1.9% per year).

Earnings vs Industry: OHI earnings growth over the past year (22%) exceeded the REITs industry 8.7%.


Return on Equity

High ROE: OHI's Return on Equity (8.7%) is considered low.


Return on Assets


Return on Capital Employed


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?

6.51%

Current Dividend Yield


Dividend Yield vs Market

company6.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.8%forecastin3Years6.5%

Current dividend yield vs market & industry

Notable Dividend: OHI's dividend (6.51%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: OHI's dividend (6.51%) is in the top 25% of dividend payers in the US market (3.67%)


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 (91.5%), 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

What is the CEO of Omega Healthcare Investors's salary, the management and board of directors tenure and is there insider trading?

12.8yrs

Average management tenure


CEO

C. Pickett (57yo)

18.4yrs

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 ($USD6.58M) is about average for companies of similar size in the US market ($USD6.77M).

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


Management Age and Tenure

12.8yrs

Average Tenure

55yo

Average Age

Experienced Management: OHI's management team is seasoned and experienced (12.8 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

64yo

Average Age

Experienced Board: OHI's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

Insider Buying: OHI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$804,80026 Aug 19
Daniel Booth
EntityIndividual
Role
Chief Operating Officer
Secretary & COO
Shares20,000
Max PriceUS$40.24
SellUS$112,92026 Mar 19
Ben Perks
EntityIndividual
Shares3,000
Max PriceUS$37.64
SellUS$1,460,53614 Mar 19
Daniel Booth
EntityIndividual
Role
Chief Operating Officer
Secretary & COO
Shares40,000
Max PriceUS$36.51
BuyUS$49,51214 Feb 19
Burke Whitman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,350
Max PriceUS$36.68

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.7%.


Management Team

  • C. Pickett (57yo)

    CEO & Director

    • Tenure: 18.4yrs
    • Compensation: US$6.58m
  • Steven Insoft (55yo)

    Chief Corporate Development Officer

    • Tenure: 4.6yrs
    • Compensation: US$3.21m
  • Dan Booth (56yo)

    Secretary & COO

    • Tenure: 18.1yrs
    • Compensation: US$3.40m
  • Bob Stephenson (55yo)

    CFO, Treasurer & Assistant Secretary

    • Tenure: 18.3yrs
    • Compensation: US$3.05m
  • Michael Ritz (50yo)

    Chief Accounting Officer

    • Tenure: 12.8yrs
    • Compensation: US$1.38m
  • Samuel Kovitz (56yo)

    Executive VP

    • Tenure: 0yrs
  • Gail Makode (44yo)

    Chief Legal Officer & General Counsel

    • Tenure: 0.2yrs
  • Megan Krull (41yo)

    Senior Vice President of Operations

    • Tenure: 0yrs
  • Matthew Gourmand (43yo)

    Senior Vice President of Investor Relations

    • Tenure: 2.1yrs
  • Michele Reber

    Senior Director of Asset Management

    • Tenure: 0yrs

Board Members

  • C. Pickett (57yo)

    CEO & Director

    • Tenure: 18.4yrs
    • Compensation: US$6.58m
  • Steve Plavin (60yo)

    Independent Director

    • Tenure: 19.3yrs
    • Compensation: US$231.51k
  • Ed Lowenthal (75yo)

    Independent Director

    • Tenure: 24.1yrs
    • Compensation: US$264.01k
  • Burke Whitman (63yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$95.02k
  • Barbara Hill (67yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$228.01k
  • Norm Bobins (76yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$206.01k
  • Craig Callen (63yo)

    Chairman of the Board

    • Tenure: 2.4yrs
    • Compensation: US$365.75k
  • Kapila Anand (65yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$206.01k

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$9.264b
  • Market Cap: US$8.993b
  • Shares outstanding: 225.56m
  • 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 grou ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 23:37
End of Day Share Price2019/11/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.