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Omega Healthcare Investors (OHI)
NYSE:OHI
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Omega Healthcare (OHI) AI Stock Analysis

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OHI

Omega Healthcare

(NYSE:OHI)

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Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
$56.00
▲(8.28% Upside)
Action:Reiterated
Date:07/31/26
OHI’s score is driven primarily by improving fundamentals (revenue/profitability strength and better leverage) and a supportive earnings update (slightly raised/tightened FFO guidance plus meaningful liquidity improvement). Technicals add support via a clear uptrend versus key moving averages. The main offsets are the sharp recent free-cash-flow decline and a valuation profile that looks less compelling on P/E despite a strong dividend yield.
Positive Factors
Material deleveraging
Sustained reduction in leverage improves credit flexibility and lowers refinancing risk for a rate-sensitive REIT. A stronger balance sheet supports dividend coverage, enables accretive redeployment from asset sales, and increases resilience to operator stress over the next 2–6 months.
Negative Factors
Sharp FCF deceleration
A marked decline in free cash flow weakens near-term internal funding capacity and reduces margin for error on distributions or reinvestments. Even with healthy absolute cash levels, persistent FCF volatility could constrain redeployment timing and dividend flexibility over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Material deleveraging
Sustained reduction in leverage improves credit flexibility and lowers refinancing risk for a rate-sensitive REIT. A stronger balance sheet supports dividend coverage, enables accretive redeployment from asset sales, and increases resilience to operator stress over the next 2–6 months.
Read all positive factors

Omega Healthcare (OHI) vs. SPDR S&P 500 ETF (SPY)

Omega Healthcare Business Overview & Revenue Model

Company Description
Omega Healthcare Investors, Inc. functions as a Real Estate Investment Trust (REIT) primarily focused on the long-term healthcare sector. The company strategically invests in properties providing skilled nursing and assisted living services. A div...
How the Company Makes Money
Omega Healthcare Investors makes money primarily by providing real estate capital to healthcare operators and earning contractual payments tied to that capital. The company’s key revenue streams are: (1) Rental income from long-term leases (often ...

Omega Healthcare Earnings Call Summary

Earnings Call Date:Jul 29, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call emphasized strong underlying fundamentals: year-over-year revenue and AFFO growth, significant liquidity and deleveraging, strategic asset sales executed at attractive economics, improved portfolio coverage, a robust investment pipeline (including first U.K. RIDEA), and a modestly tightened upward guidance. Near-term results are being muted by intentional strategic asset sales and loan repayments, and a small number of operator-specific issues (Genesis bankruptcy, Ciena transitions, localized occupancy gaps) and regulatory risks create some near-term uncertainty. Overall, management projects these actions will strengthen credit support and enable accretive redeployment in H2 2026 and 2027.
Positive Updates
Revenue and Earnings Growth Year-over-Year
Q2 2026 revenue was $328M vs $283M in Q2 2025, a year-over-year increase of approximately 15.9%. Net income available to common shareholders was $363M ($1.19/share) vs $137M ($0.46/share) in Q2 2025 (net income per share increased ~158.7% YoY, primarily reflecting a $247M gain on asset sales).
Negative Updates
Near-Term Earnings Headwind from Asset Sales and Loan Repayments
Management noted significant asset dispositions ($563M–$597M referenced) and ~$209M in loan repayments over the past two quarters that muted sequential AFFO growth. Neal indicated the timing of late-quarter sales and repayments reduced Q2 AFFO by approximately $7.5M and created a temporary headwind expected to impact Q3 as well. Guidance includes roughly $9M of quarterly revenue impact associated with assets sold/loans repaid.
Read all updates
Q2-2026 Updates
Negative
Revenue and Earnings Growth Year-over-Year
Q2 2026 revenue was $328M vs $283M in Q2 2025, a year-over-year increase of approximately 15.9%. Net income available to common shareholders was $363M ($1.19/share) vs $137M ($0.46/share) in Q2 2025 (net income per share increased ~158.7% YoY, primarily reflecting a $247M gain on asset sales).
Read all positive updates
Company Guidance
Omega tightened and raised full‑year adjusted FFO guidance to $3.22–$3.26 per share (midpoint $3.24, up $0.02 from April), reflecting a near‑term headwind of about $9 million of quarterly revenue tied to assets sold and loans repaid late in Q2; the guidance includes new investments closed as of July 29 but excludes other transactions, assumes $56 million converts to fee simple of $144 million of mortgages/loans maturing in 2026 and that $180 million of non‑real‑estate loans (including ~ $148 million of Genesis loans) will be repaid in 2026, contemplates continued portfolio pruning of $15–$25 million of asset sales per quarter, incorporates the $0.01 common dividend increase, and notes the high end of the range could benefit from timing or extensions of repayments/sales, additional cash‑basis operator payments, RIDEA and JV operating exposure, and lower G&A.

Omega Healthcare Financial Statement Overview

Summary
Financials are improving overall: steady revenue growth and materially higher TTM profitability, plus a multi-year leverage improvement with debt-to-equity now below 1.0x. Offsetting this, cash flow has recently decelerated sharply (TTM free cash flow down 41.1%) and reported margin volatility reduces confidence in earnings quality/consistency.
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
69
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.29B1.20B1.05B949.74M878.24M1.06B
Gross Profit929.73M533.17M1.04B934.72M862.74M1.05B
EBITDA1.45B1.17B947.11M810.84M1.00B992.70M
Net Income858.31M590.11M406.33M242.18M426.93M416.74M
Balance Sheet
Total Assets10.04B10.05B9.90B9.12B9.41B9.64B
Cash, Cash Equivalents and Short-Term Investments39.04M27.02M518.34M442.81M297.10M20.53M
Total Debt4.02B4.26B4.84B5.07B5.29B5.25B
Total Liabilities4.37B4.61B5.17B5.36B5.60B5.53B
Stockholders Equity5.39B5.18B4.54B3.57B3.61B3.91B
Cash Flow
Free Cash Flow903.33M878.55M712.69M588.53M578.51M627.07M
Operating Cash Flow890.56M878.55M749.43M626.54M625.73M722.14M
Investing Cash Flow186.54M-539.79M-671.16M-9.78M442.85M-524.17M
Financing Cash Flow-1.66B-838.26M26.32M-473.31M-789.45M-341.12M

Omega Healthcare Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price51.72
Price Trends
50DMA
47.28
Positive
100DMA
46.29
Positive
200DMA
44.64
Positive
Market Momentum
MACD
0.36
Positive
RSI
47.13
Neutral
STOCH
20.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OHI, the sentiment is Neutral. The current price of 51.72 is above the 20-day moving average (MA) of 49.36, above the 50-day MA of 47.28, and above the 200-day MA of 44.64, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 47.13 is Neutral, neither overbought nor oversold. The STOCH value of 20.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OHI.

Omega Healthcare Risk Analysis

Omega Healthcare disclosed 74 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 0 New Risks

Omega Healthcare Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$9.91B26.718.54%3.35%58.48%70.32%
74
Outperform
$15.34B17.5216.51%5.18%15.18%72.69%
66
Neutral
$11.60B95.475.87%1.74%12.24%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
65
Neutral
$5.34B32.872.31%5.37%13.50%7.25%
63
Neutral
$7.20B-80.10-1.94%4.49%-6.44%46.41%
62
Neutral
$15.42B69.213.30%5.48%2.71%-19.70%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OHI
Omega Healthcare
48.46
10.57
27.89%
DOC
Healthpeak Properties
21.41
5.74
36.60%
SBRA
Sabra Healthcare REIT
21.04
3.52
20.07%
HR
Healthcare Realty Trust
19.97
4.10
25.85%
CTRE
CareTrust REIT
41.22
9.62
30.43%
AHR
American Healthcare REIT, Inc.
56.74
17.22
43.56%

Omega Healthcare Corporate Events

Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Omega Healthcare Shareholders Approve Directors and Compensation
Positive
Jun 5, 2026
On June 5, 2026, Omega Healthcare Investors, Inc. held its 2026 annual meeting of stockholders, where all director nominees were elected, Ernst Young LLP was ratified as independent auditor for 2026, and the company’s executive compensation...
Business Operations and StrategyExecutive/Board Changes
Omega Healthcare unveils leadership succession and governance transition
Positive
May 21, 2026
Omega Healthcare Investors, Inc., a REIT investing in long-term healthcare real estate such as skilled nursing and assisted living facilities in the U.S. and U.K., relies on a predominantly triple-net lease model with a diverse operator base. The ...
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.Date of analysis: Jul 31, 2026