Omega Healthcare (OHI)
NYSE:OHI
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Omega Healthcare
(NYSE:OHI)
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Rating:76Outperform
Price Target:
$54.00
▲(15.34% Upside)
Action:ReiteratedDate:04/29/26
The score is driven mainly by strong financial performance (high profitability and improving cash generation with better leverage) and a broadly positive earnings call (raised/tightened guidance and strong liquidity). Technicals are supportive but somewhat stretched, and valuation is helped by the high dividend yield, while P/E was not usable from the provided data.
Positive Factors
Improving cash generation
Operating and free cash flow have increased materially and FCF roughly matches net income (~0.98x TTM). Sustained, high-quality cash generation supports dividend coverage, reinvestment into higher-yielding assets, and the ability to service debt, making cash-driven capital allocation more durable over the next several quarters.
Negative Factors
Operator credit / bankruptcy exposure
Direct exposure to a large operator bankruptcy creates contingent credit risk and recovery uncertainty. Outcomes depend on bankruptcy and regulatory processes; losses or protracted recoveries could reduce loan/lease cash flows, increase provisioning risk, and constrain redeployment plans over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation
Operating and free cash flow have increased materially and FCF roughly matches net income (~0.98x TTM). Sustained, high-quality cash generation supports dividend coverage, reinvestment into higher-yielding assets, and the ability to service debt, making cash-driven capital allocation more durable over the next several quarters.
Read all positive factors
Omega Healthcare (OHI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.72B
Dividend Yield6.11%
Average Volume (3M)1.86M
Price to Earnings (P/E)21.5
Beta (1Y)0.11
Revenue Growth13.95%
EPS Growth27.68%
CountryUS
Employees60
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)2.14
Shares Outstanding297,802,000
10 Day Avg. Volume1,780,087
30 Day Avg. Volume1,864,778
Financial Highlights & Ratios
PEG Ratio0.78
Price to Book (P/B)2.53
Price to Sales (P/S)10.96
P/FCF Ratio14.94
Enterprise Value/Market Cap1.32
Enterprise Value/Revenue14.65
Enterprise Value/Gross Profit17.24
Enterprise Value/Ebitda14.94
Forecast
1Y Price Target
$50.00Price Target Upside6.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)1.97
Revenue Forecast (FY)$1.08B
Omega Healthcare Business Overview & Revenue Model
Company Description
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 i...
How the Company Makes Money
Omega Healthcare Investors makes money primarily by owning healthcare real estate and collecting contractual payments from operators that run the facilities. Its key revenue streams generally include: (1) Rental income: The largest source of recur...
Omega Healthcare Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operating and financial picture: strong top‑line and adjusted cash flow growth (revenue +16.6% YoY, net income and EPS up materially, FAD per share +9.5%), tightened guidance with an increased midpoint, active and accretive deployment of capital, a sizeable $480M strategic sale to redeploy into higher-yielding opportunities, and a healthy liquidity and leverage profile. Offsetting items include bankruptcy exposure to Genesis, short‑term noise from asset sales and loan repayments that slightly reduced AFFO, issuance-related dilution, a competitive acquisition market with cap‑rate compression, occupancy stagnation in the near term, and reimbursement/legal risks that require monitoring. On balance, the positive operational and financial momentum, reinforced guidance, and strong balance sheet materially outweigh the risks discussed on the call.Positive Updates
Revenue Growth
Q1 revenue of $323.0M vs $277.0M in Q1 2025, an increase of approximately 16.6%, driven by new investments, annual escalators, and active portfolio management.
Negative Updates
Genesis Bankruptcy Exposure
Ongoing Genesis bankruptcy: Omega committed up to $26.7M of an $80M DIP facility and funded $25M of an initial $75M advance. Outcomes remain contingent on bankruptcy developments and regulatory approvals despite management's confidence in collateral coverage.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Q1 revenue of $323.0M vs $277.0M in Q1 2025, an increase of approximately 16.6%, driven by new investments, annual escalators, and active portfolio management.
Read all positive updates
Company Guidance
Omega narrowed full‑year adjusted AFFO guidance to $3.19–$3.25 per share (midpoint $3.22, up $0.02), with Q1 AFFO of $0.82 and FAD of $0.78 per share; the company noted dividend payout ratios of 82% (AFFO) and 86% (FAD) and expects the $480 million CommuniCare sale proceeds to produce roughly $0.03 of annual AFFO/FAD accretion once redeployed. Guidance reflects investments closed through April 27, assumes $65 million of the $159 million of mortgages maturing in 2026 will convert to fee simple (the balance repaid), expects $224 million of non‑real‑estate loans (including ≈$159.5 million of Genesis loans) to be repaid in 2026, and factors Q1 rent on the sold facilities of $9.2 million; it excludes additional investments or capital transactions beyond those disclosed. The company cited supporting balance‑sheet metrics: $425 million drawn on the revolver, $26 million of cash plus the ~$480 million assets‑held‑for‑sale, >$1.5 billion available on a $2.0 billion revolver, next debt maturity April 2027, fixed‑charge coverage of 6.3x and leverage of 3.5x.Omega Healthcare Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.24B | 1.20B | 1.05B | 949.74M | 878.24M | 1.06B |
| Gross Profit | 1.05B | 533.17M | 1.04B | 934.72M | 862.74M | 1.05B |
| EBITDA | 1.21B | 1.17B | 947.11M | 810.84M | 1.00B | 992.70M |
| Net Income | 632.09M | 590.11M | 406.33M | 242.18M | 426.93M | 416.74M |
Balance Sheet | ||||||
| Total Assets | 10.23B | 10.05B | 9.90B | 9.12B | 9.41B | 9.64B |
| Cash, Cash Equivalents and Short-Term Investments | 26.15M | 27.02M | 518.34M | 442.81M | 297.10M | 20.53M |
| Total Debt | 4.44B | 4.26B | 4.84B | 5.07B | 5.29B | 5.25B |
| Total Liabilities | 4.78B | 4.61B | 5.17B | 5.36B | 5.60B | 5.53B |
| Stockholders Equity | 5.19B | 5.18B | 4.54B | 3.57B | 3.61B | 3.91B |
Cash Flow | ||||||
| Free Cash Flow | 907.05M | 878.55M | 712.69M | 588.53M | 578.51M | 627.07M |
| Operating Cash Flow | 915.81M | 878.55M | 749.43M | 626.54M | 625.73M | 722.14M |
| Investing Cash Flow | -832.47M | -539.79M | -671.16M | -9.78M | 442.85M | -524.17M |
| Financing Cash Flow | -436.24M | -838.26M | 26.32M | -473.31M | -789.45M | -341.12M |
Omega Healthcare Technical Analysis
Positive
46.82
Price Trends
46.35
Positive
45.08
Positive
42.35
Positive
Market Momentum
0.07
Negative
61.01
Neutral
92.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OHI, the sentiment is Positive. The current price of 46.82 is above the 20-day moving average (MA) of 45.18, above the 50-day MA of 46.35, and above the 200-day MA of 42.35, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 61.01 is Neutral, neither overbought nor oversold. The STOCH value of 92.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OHI.
Omega Healthcare Risk Analysis
Omega Healthcare disclosed 37 risk factors in its most recent earnings report. Omega Healthcare reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
We are exposed to operational risks with respect to our properties managed in RIDEA structures that could have a material adverse effect on our business, results of operations and financial condition. Q4, 2025
2.
The use of, or inability to use, artificial intelligence by us, our operators, managers, vendors and our investors presents risks and challenges that may adversely impact our business and operating results or the business and operating results of our operators, managers and vendors or may adversely impact the requirements and demand for properties. Q4, 2025
Omega Healthcare Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $8.81B | 18.09 | 8.99% | 3.56% | 60.84% | 98.53% | |
76 Outperform | $13.72B | 21.54 | 12.40% | 6.11% | 13.95% | 27.68% | |
70 Outperform | $5.17B | 29.65 | 5.61% | 6.47% | 13.50% | 7.25% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $13.89B | 14.75 | 2.88% | 7.73% | 2.71% | -19.70% | |
62 Neutral | $9.70B | 181.31 | 2.61% | 2.10% | 9.15% | ― | |
60 Neutral | $7.01B | 70,273.67 | -5.13% | 6.56% | -6.92% | 60.09% |
* Real Estate Sector Average
OHI
Omega Healthcare
46.13
12.73
38.10%
DOC
Healthpeak Properties
19.66
3.45
21.25%
SBRA
Sabra Healthcare REIT
20.58
3.82
22.79%
HR
Healthcare Realty Trust
19.99
5.58
38.73%
CTRE
CareTrust REIT
39.50
11.70
42.10%
AHR
American Healthcare REIT, Inc.
49.60
18.14
57.66%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.