Omega Healthcare (OHI) AI Stock Analysis

• Market Cap: $14.22B
• Dividend Yield: 6.11%
• Average Volume (3M): 2.08M
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.08
• Revenue Growth: 13.50%
• EPS Growth: 31.56%
• Country: US
• Employees: 60
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.55
• Shares Outstanding: 295,570,000
• 10 Day Avg. Volume: 1,680,191
• 30 Day Avg. Volume: 2,076,161
• PEG Ratio: 0.78
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 10.96
• P/FCF Ratio: 14.94
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 15.47
• Enterprise Value/Gross Profit: 18.22
• Enterprise Value/Ebitda: 15.80
• 1Y Price Target: $48.90
• Price Target Upside: 1.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 1.99
• Revenue Forecast (FY): $1.08B

• Rating: 74 Outperform
• Price Target: $50.00 ▲(3.93% Upside)
• Action: Reiterated Date: 02/12/26
• Date: Action: Reiterated 02/12/26

The score is driven primarily by improving financial performance and strong cash generation alongside balance-sheet de-leveraging. Technicals are supportive with a clear uptrend and moderate momentum. Valuation is helped by a near-6% dividend yield but moderated by a mid-20s P/E, while earnings-call risks (Genesis resolution, maturity/asset-sale headwinds, dilution, and RIDEA execution) keep the overall score from being higher.

Positive Factors

Improving cash generation

Sustained improvements in operating and free cash flow across 2024–2025 indicate durable internal funding for dividends, debt service, and reinvestment. Reliable cash conversion reduces reliance on external financing and supports distribution coverage and strategic acquisitions over the medium term.

Balance-sheet de‑leveraging and liquidity

Meaningful deleveraging and substantial revolver capacity materially improve financial flexibility. Lower leverage and available liquidity reduce interest-rate and refinancing strain, enabling continued capital deployment and dividend resilience through cycles in the healthcare real-estate sector.

Proven capital deployment and diversified pipeline

A track record of sizable, diversified investments (senior housing, U.K. care homes) and targeted high-yield transactions (e.g., 10.6% lease yield) shows disciplined deployment. Diversified sector/geography sourcing and conservative underwriting support sustainable AFFO growth and long-term portfolio resilience.

Negative Factors

Exposure to Genesis bankruptcy

Direct credit exposure and loans tied to a major operator create structural counterparty risk; prolonged bankruptcy proceedings can depress near- and medium-term cash receipts, complicate asset realizations, and introduce uncertainty around recoveries and timing that affect AFFO and capital redeployment.

Sizable absolute debt and refinancing sensitivity

Despite deleveraging, large absolute indebtedness leaves Omega sensitive to interest rates and capital markets cycles. Significant outstanding debt raises refinancing risk and can constrain acquisition or dividend flexibility if funding conditions tighten, a durable constraint for capital-intensive REIT models.

RIDEA/SHOP strategy increases operational risk

Moving from primarily triple-net leases into RIDEA/SHOP increases reliance on operator performance and operational oversight. This structural shift raises underwriting complexity and earnings volatility until scale and repeatable execution are proven, potentially pressuring AFFO consistency and capital allocation.

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 in a triple-net lease structure. The assets span all regions within the US, as well as in the UK.

How the Company Makes Money

Omega Healthcare generates revenue primarily through rental income from its leased properties. The company enters into long-term lease agreements with operators of skilled nursing and assisted living facilities, which pay rent based on a percentage of revenues or a fixed rate. Additionally, Omega Healthcare may earn income from mortgage loans and other financing arrangements with operators. Key revenue streams include monthly rental payments, interest from loans, and potential ancillary fees. The company also benefits from partnerships with various healthcare operators, ensuring a stable occupancy rate and continuous demand for its properties, which contributes to its overall earnings.

Omega Healthcare Financial Statement Overview

Summary

Solid recent operating trajectory with improving revenue/earnings and strong, improving operating cash flow/free cash flow that supports dividends and debt service. Balance sheet has de-levered meaningfully, but absolute debt remains a key REIT risk and results have shown historical volatility.

Income Statement

Revenue has been growing steadily over the last three years (2023–2025), with 2025 showing solid growth on a higher base. Profitability is strong overall, with net margin improving from 2023 to 2025 and net income rising meaningfully. A key weakness is volatility earlier in the period (notably the revenue decline in 2022), suggesting results can be sensitive to portfolio/rent dynamics even though recent momentum is favorable.

Balance Sheet

Leverage has improved materially, with debt-to-equity declining from elevated levels in 2022–2023 to under 1.0 by 2025, indicating better balance-sheet flexibility. Equity has grown and returns on equity have strengthened into 2025. The main risk remains a sizable absolute debt load, which can amplify refinancing and interest-rate sensitivity typical for REITs.

Cash Flow

Cash generation is strong and improving: operating cash flow and free cash flow increased in 2024 and again in 2025, with positive free-cash-flow growth in both years. Cash flow comfortably covers reported earnings (free cash flow roughly matching net income in recent years), and operating cash flow coverage remains robust, supporting dividend capacity and debt service. The softer spot is that free cash flow dipped in 2021–2022 before re-accelerating.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.20B	1.05B	949.74M	878.24M	1.06B
Gross Profit	533.17M	1.04B	934.72M	862.74M	1.05B
EBITDA	1.17B	947.11M	810.84M	1.00B	992.70M
Net Income	590.11M	406.33M	242.18M	426.93M	416.74M
Balance Sheet
Total Assets	10.05B	9.90B	9.12B	9.41B	9.64B
Cash, Cash Equivalents and Short-Term Investments	27.02M	518.34M	442.81M	297.10M	20.53M
Total Debt	4.26B	4.84B	5.07B	5.29B	5.25B
Total Liabilities	4.61B	5.17B	5.36B	5.60B	5.53B
Stockholders Equity	5.18B	4.54B	3.57B	3.61B	3.91B
Cash Flow
Free Cash Flow	878.55M	712.69M	588.53M	578.51M	627.07M
Operating Cash Flow	878.55M	749.43M	626.54M	625.73M	722.14M
Investing Cash Flow	-539.79M	-671.16M	-9.78M	442.85M	-524.17M
Financing Cash Flow	-838.26M	26.32M	-473.31M	-789.45M	-341.12M

Omega Healthcare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 48.11 is above the 20-day moving average (MA) of 45.85, above the 50-day MA of 44.48, and above the 200-day MA of 40.46, indicating a bullish trend. The MACD of 1.09 indicates Negative momentum. The RSI at 70.54 is Negative, neither overbought nor oversold. The STOCH value of 80.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OHI.

Omega Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTRE	79 Outperform	$9.13B	25.92	9.21%	3.56%	59.25%	88.37%
OHI	74 Outperform	$14.22B	24.89	11.79%	6.11%	13.50%	31.56%
SBRA	70 Outperform	$5.19B	32.29	5.59%	6.47%	8.12%	75.95%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AHR	65 Neutral	$10.05B	124.86	2.50%	2.10%	11.81%	―
HR	64 Neutral	$6.43B	-25.89	-5.04%	6.56%	-6.59%	33.35%
DOC	53 Neutral	$12.55B	174.53	0.89%	7.73%	9.58%	-111.99%

Omega Healthcare Corporate Events

Omega Healthcare Amends Executive Contracts, Enhances Severance Terms

On January 1, 2026, Omega Healthcare Investors, Inc. amended the employment agreements of its named executive officers, extending their terms by one year to December 31, 2028 and adjusting annual salaries following a review by the board’s Compensation Committee. The changes made for President Matthew Gourmand and Chief Legal Officer and General Counsel Gail Makode were particularly significant: Gourmand’s bonus opportunity was substantially increased at all performance levels, his severance protection in the case of termination without cause or for good reason was raised from two to three times the sum of base salary and average bonus and payable over three years, and his post-employment non-compete and non-solicitation covenants were extended from two to three years. For Makode, severance protection in similar termination scenarios was increased from one and a half to two times the sum of base salary and average bonus, payable over two years, and her post-employment restrictive covenants were lengthened from 18 months to two years, underscoring Omega Healthcare’s emphasis on executive retention and protection of corporate relationships and know-how.

The most recent analyst rating on (OHI) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on Omega Healthcare stock, see the OHI Stock Forecast page.