Omega Healthcare (OHI) AI Stock Analysis

• Market Cap: $10.56B
• Dividend Yield: 7.34%
• Average Volume (3M): 2.56M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.14
• Revenue Growth: 10.56%
• EPS Growth: 45.37%
• Country: US
• Employees: 60
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.33
• Shares Outstanding: 289,395,000
• 10 Day Avg. Volume: 2,935,477
• 30 Day Avg. Volume: 2,560,220
• PEG Ratio: 5.24
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.71
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 3.58
• Enterprise Value/Gross Profit: 13.79
• Enterprise Value/Ebitda: 4.00
• 1Y Price Target: $40.67
• Price Target Upside: 11.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: $41.00 ▲(12.36%Upside)

Omega Healthcare presents a strong financial performance with robust profitability and stable cash flow. While the technical analysis indicates neutral momentum, the company's valuation remains attractive due to its high dividend yield. Despite the positive earnings call and supportive corporate events, concerns about specific operator issues and regulatory changes present potential risks. Overall, the stock is positioned well but with noted challenges to monitor.

Positive Factors

Financial Performance

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

Investment Opportunities

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

Market Valuation

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

Regulatory Challenges

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

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 demonstrates strong profitability with high margins and efficient cost management. The balance sheet reflects stability with a balanced leverage position. Cash flow conversion is robust, although there is room for improvement 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
EBITDA	989.65M	947.11M	810.84M	722.69M	906.89M	782.18M
Net Income	448.00M	406.33M	242.18M	426.93M	416.74M	159.33M
Balance Sheet
Total Assets	9.71B	9.90B	9.12B	9.41B	9.64B	9.50B
Cash, Cash Equivalents and Short-Term Investments	367.96M	518.34M	442.81M	297.10M	20.53M	163.53M
Total Debt	4.45B	4.84B	5.07B	5.29B	5.25B	5.17B
Total Liabilities	4.77B	5.17B	5.36B	5.60B	5.53B	5.46B
Stockholders Equity	4.74B	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: 36.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 36.49 is below the 20-day moving average (MA) of 36.90, below the 50-day MA of 36.81, and below the 200-day MA of 37.25, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 45.36 is Neutral, neither overbought nor oversold. The STOCH value of 34.37 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	78 Outperform	$5.88B	33.45	7.02%	4.36%	43.27%	80.97%
SBRA	77 Outperform	$4.39B	31.25	5.15%	6.50%	7.81%	179.16%
OHI	75 Outperform	$10.56B	22.88	10.53%	7.34%	10.56%	45.37%
DOC	68 Neutral	$13.01B	46.14	3.26%	6.66%	23.65%	12.82%
AHR	68 Neutral	$5.87B	―	-1.93%	2.75%	11.30%	―
HR	59 Neutral	$5.64B	―	-6.83%	7.72%	-7.26%	18.45%
Sector *	53 Neutral	$1.20B	3.25	-0.13%	7.08%	-1.64%	-127.49%

Omega Healthcare Corporate Events

Omega Healthcare Announces $600M Senior Notes Offering

On June 10, 2025, Omega Healthcare Investors, Inc. announced the pricing of a $600 million public offering of 5.200% Senior Notes due 2030. The net proceeds of approximately $591.1 million are intended for general corporate purposes, including debt repayment and potential acquisitions in healthcare-related real estate. This move is expected to strengthen Omega’s financial position and support its growth strategy in the healthcare real estate sector.

The most recent analyst rating on (OHI) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Omega Healthcare stock, see the OHI Stock Forecast page.

Omega Healthcare Extends Stock Purchase and Dividend Plan

On June 6, 2025, Omega Healthcare Investors, Inc. announced the continuation of its Dividend Reinvestment and Common Stock Purchase Plan by filing a prospectus supplement with the SEC. The plan allows existing stockholders and new investors to purchase common stock and reinvest dividends, with 22,447,054 shares registered for issuance, enhancing investment opportunities and potentially strengthening the company’s market position.

The most recent analyst rating on (OHI) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Omega Healthcare stock, see the OHI Stock Forecast page.

Omega Healthcare Shareholders Approve Key Proposals

At Omega Healthcare‘s Annual Meeting, shareholders voted on several key proposals, including the election of directors, ratification of Ernst & Young LLP as the independent auditor for fiscal year 2025, approval of executive compensation on an advisory basis, and an amendment to increase the number of authorized shares of common stock. All proposals were approved, and changes to the board’s committee memberships were announced, with Stephen D. Plavin being appointed to the Investment Committee.

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.

Omega Healthcare Revises Investor Presentation Update

On June 2, 2025, Omega Healthcare Investors, Inc. announced a revision to the Operator Updates slide in its investor presentation, which is available on their website. This update may affect stakeholders by providing new insights into the company’s operations and potentially influencing its market positioning.

The most recent analyst rating on (OHI) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Omega Healthcare stock, see the OHI Stock Forecast page.

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.