Omega Healthcare (OHI) AI Stock Analysis

• Market Cap: $10.48B
• Dividend Yield: 7.4%
• Average Volume (3M): 2.63M
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.17
• Revenue Growth: 10.56%
• EPS Growth: 45.37%
• Country: US
• Employees: 60
• Sector: Real Estate
• Sector Strength: 64
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.33
• Shares Outstanding: 289,395,000
• 10 Day Avg. Volume: 2,622,402
• 30 Day Avg. Volume: 2,634,256
• PEG Ratio: 5.28
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.98
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: 9.66
• Enterprise Value/Ebitda: 2.80
• 1Y Price Target: $40.83
• Price Target Upside: 12.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: $40.00 ▲( 10.50% Upside)

Omega Healthcare's overall score reflects strong financial performance and a positive earnings outlook, tempered by neutral technical indicators and valuation concerns. Key strengths include profitability and cash flow efficiency, while risks involve operational challenges and market conditions.

Positive Factors

Earnings

1Q25 adj. FFO of $0.75/share (+9.7% y/y) beat the Street's $0.73.

Financial Performance

Omega Healthcare Investors reported 4Q24 core FFO of $0.74, beating expectations due to higher-than-expected NOI and interest income.

Growth Potential

Management has been opportunistic with equity capital raising, allowing the company to build an excess cash position ahead of debt maturities, providing potential for acquisitions.

Negative Factors

Liquidity Concerns

Genesis (4.9% of NOI) didn't pay March rent with the shortfall handled using a letter-of-credit.

Regulatory Risks

There are risks due to exposure to PACS Group, one of its largest operators, and uncertainties around potential Medicaid cost-cutting efforts.

Valuation Risks

The stock is considered fairly valued at a multiple that reflects increased risk related to PACS and uncertainties with the new administration's agenda.

Omega Healthcare Business Overview & Revenue Model

Company Description

Omega Healthcare Investors, Inc. (OHI) is a real estate investment trust (REIT) that specializes in providing financing and capital to the long-term healthcare industry, with a particular focus on skilled nursing facilities and assisted living facilities. Founded in 1992 and headquartered in Hunt Valley, Maryland, Omega Healthcare Investors operates primarily in the United States and the United Kingdom. The company invests in healthcare properties through long-term, triple-net leases to healthcare operators, which means the lessee is responsible for property taxes, insurance, and maintenance expenses.

How the Company Makes Money

Omega Healthcare Investors makes money primarily through rental income generated from its portfolio of healthcare properties. The company leases its properties to skilled nursing and assisted living facility operators under long-term, triple-net lease agreements, which provide a stable and predictable revenue stream. These leases typically include rent escalations, ensuring revenue growth over time. Additionally, Omega may engage in strategic acquisitions and partnerships to expand its property portfolio and improve its revenue base. The company's earnings are also influenced by factors such as property occupancy rates, operator financial performance, and government reimbursement policies related to healthcare services.

Omega Healthcare Financial Statement Overview

Summary

Omega Healthcare's financial performance is commendable, with strong profitability, moderate revenue growth, and efficient cash conversion. The balance sheet is stable with a healthy mix of debt and equity, supporting continued investment and growth opportunities. While the company performs well in profitability and cash flow, there is room for enhancement in return on equity.

Income Statement

Omega Healthcare demonstrates strong profitability with a high gross profit margin of 98.70% and a net profit margin of 41.29% for TTM (Trailing-Twelve-Months), indicating efficient cost management. The revenue growth rate from 2024 to TTM is 3.18%, showing moderate growth. The EBIT margin of 62.80% and EBITDA margin of 91.21% further highlight robust operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.94, reflecting a balanced leverage position. Return on equity (ROE) stands at 9.45%, which is solid but could be improved. The equity ratio is 48.85%, indicating a healthy proportion of equity financing. Overall, the balance sheet reflects stability with a reasonable degree of leverage.

Cash Flow

Omega Healthcare's cash flow shows a positive trajectory with a free cash flow growth rate of 4.06% from 2024 to TTM. The operating cash flow to net income ratio of 1.74 and the free cash flow to net income ratio of 1.74 indicate strong cash conversion efficiency, ensuring the company generates ample cash from its operations.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.08B	1.05B	949.74M	878.24M	1.06B	892.38M
	Gross Profit
1.07B	1.04B	890.16M	861.27M	1.05B	878.62M
	EBIT
681.17M	659.66M	761.27M	390.28M	564.88M	452.25M
	EBITDA
989.65M	947.11M	810.84M	722.69M	906.89M	782.18M
	Net Income Common Stockholders
448.00M	406.33M	242.18M	426.93M	416.74M	159.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
361.77M	518.34M	442.81M	297.10M	20.53M	163.53M
	Total Assets
9.01B	9.90B	9.12B	9.41B	9.64B	9.50B
	Total Debt
5.03B	4.84B	5.07B	5.29B	5.25B	5.17B
	Net Debt
4.67B	4.32B	4.62B	4.99B	5.23B	5.01B
	Total Liabilities
5.31B	5.17B	5.36B	5.60B	5.53B	5.46B
	Stockholders Equity
3.51B	4.54B	3.57B	3.61B	3.91B	3.84B
Cash Flow		Free Cash Flow
779.91M	749.43M	617.74M	578.51M	627.07M	633.14M
	Operating Cash Flow
779.91M	749.43M	617.74M	625.73M	722.14M	708.26M
	Investing Cash Flow
-604.45M	-671.16M	-770.00K	442.85M	-524.17M	-89.06M
	Financing Cash Flow
-135.36M	26.32M	-473.31M	-789.45M	-341.12M	-485.55M

Omega Healthcare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OHI, the sentiment is Negative. The current price of 36.2 is below the 20-day moving average (MA) of 36.59, below the 50-day MA of 36.91, and below the 200-day MA of 37.24, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 45.99 is Neutral, neither overbought nor oversold. The STOCH value of 35.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OHI.

Omega Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTRE	80 Outperform	$5.48B	31.16	7.02%	4.21%	43.27%	80.97%
SBRA	76 Outperform	$4.15B	29.52	5.15%	6.88%	7.81%	179.16%
AHR	72 Outperform	$5.54B	―	-1.93%	2.91%	11.66%	―
OHI	71 Outperform	$10.48B	22.70	10.53%	7.40%	10.56%	45.37%
DOC	69 Neutral	$11.97B	42.44	3.26%	7.16%	23.65%	12.82%
Sector *	60 Neutral	$2.76B	10.33	0.49%	8507.90%	5.95%	-17.56%
HR	49 Neutral	$5.04B	―	-6.83%	8.64%	-7.26%	18.45%

Omega Healthcare Corporate Events

Omega Healthcare Revises Operator Updates Slide

On May 12, 2025, Omega Healthcare Investors, Inc. announced a revision to the Operator Updates slide in its investor presentation. This update is part of Omega’s ongoing efforts to provide stakeholders with current information, potentially impacting the company’s operations and its positioning within the healthcare real estate investment sector.

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