Omega Healthcare (OHI) AI Stock Analysis

• Market Cap: $12.22B
• Dividend Yield: 6.46%
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): 25.8
• Beta (1Y): 0.06
• Revenue Growth: 12.73%
• EPS Growth: 23.51%
• Country: US
• Employees: 60
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.46
• Shares Outstanding: 295,000,000
• 10 Day Avg. Volume: 2,019,970
• 30 Day Avg. Volume: 1,966,269
• PEG Ratio: 0.47
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 9.29
• P/FCF Ratio: 13.04
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 13.95
• Enterprise Value/Gross Profit: 14.12
• Enterprise Value/Ebitda: 15.20
• 1Y Price Target: $42.40
• Price Target Upside: 2.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 76 Outperform
• Price Target: $46.00 ▲(10.92% Upside)

Omega Healthcare's strong financial performance and positive earnings call are the most significant factors contributing to its overall score. The company's robust profitability and cash flow metrics, along with strategic corporate actions, bolster its position. However, technical indicators suggest caution due to potential overbought conditions, and valuation metrics indicate a higher-than-average P/E ratio. Despite these concerns, the high dividend yield remains attractive.

Positive Factors

Revenue Growth

Omega Healthcare's consistent revenue growth reflects its expanding market presence and effective portfolio management, ensuring long-term financial stability.

Strategic Investments

Strategic investments in innovative companies like MedaSync enhance Omega's service offerings and operational efficiency, supporting sustainable growth.

Strong Cash Flow Management

Omega's robust cash flow management ensures liquidity and financial flexibility, enabling continued investment in growth opportunities and debt management.

Negative Factors

High Leverage

High leverage, while currently manageable, could pose risks if interest rates rise or cash flows diminish, potentially impacting financial stability.

Genesis Bankruptcy

The bankruptcy of a major tenant like Genesis could disrupt rental income streams and necessitate costly restructuring efforts, affecting financial performance.

Potential Medicare Rate Cut

Potential Medicare rate cuts could reduce revenue from healthcare facilities, impacting profitability and necessitating strategic adjustments.

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 the leasing of its properties to skilled nursing and assisted living operators. The company typically enters into long-term triple-net leases, where the operators are responsible for property maintenance, taxes, and insurance, allowing Omega to receive a steady rental income. Key revenue streams include rental income from its diversified portfolio of healthcare properties and interest income from mortgages and loans provided to operators. Additionally, Omega may benefit from strategic partnerships with healthcare operators, enhancing its portfolio and occupancy rates, which further contributes to its earnings.

Omega Healthcare Financial Statement Overview

Summary

Omega Healthcare presents a solid financial position with strong profitability and cash flow metrics. The company maintains a healthy balance between debt and equity, though high leverage remains a potential risk. Continued revenue growth and effective cash management are key to sustaining financial health in the competitive REIT healthcare facilities industry.

Income Statement

Omega Healthcare shows strong profitability with a high gross profit margin of 98.78% and a net profit margin of 42.23% in TTM. Revenue growth is steady at 2.74% TTM, indicating positive momentum. EBIT and EBITDA margins are robust at 63.42% and 91.79%, respectively, reflecting efficient operations. However, the growth rate is moderate, suggesting room for improvement in revenue expansion.

Balance Sheet

The company's balance sheet reflects a balanced debt-to-equity ratio of 1.00 TTM, indicating manageable leverage. Return on equity is decent at 10.19%, showing effective use of equity. The equity ratio stands at 47.31%, suggesting a solid equity base. However, the relatively high debt levels could pose risks if not managed carefully.

Cash Flow

Omega Healthcare demonstrates strong cash flow management with a free cash flow growth rate of 7.07% TTM. The operating cash flow to net income ratio is healthy at 2.34, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is 1.0, showing efficient conversion of earnings to cash. Continued focus on cash flow growth will be beneficial.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	1.05B	949.74M	878.24M	1.06B	892.38M
Gross Profit	1.10B	1.04B	934.72M	862.74M	1.05B	880.07M
EBITDA	1.02B	947.11M	810.84M	1.00B	992.70M	715.64M
Net Income	470.73M	406.33M	242.18M	426.93M	416.74M	159.33M
Balance Sheet
Total Assets	10.55B	9.90B	9.12B	9.41B	9.64B	9.50B
Cash, Cash Equivalents and Short-Term Investments	734.18M	518.34M	442.81M	297.10M	20.53M	163.53M
Total Debt	5.00B	4.84B	5.07B	5.29B	5.25B	5.17B
Total Liabilities	5.36B	5.17B	5.36B	5.60B	5.53B	5.46B
Stockholders Equity	4.99B	4.54B	3.57B	3.61B	3.91B	3.84B
Cash Flow
Free Cash Flow	835.07M	749.43M	617.74M	578.51M	627.07M	633.14M
Operating Cash Flow	835.07M	749.43M	617.74M	625.73M	722.14M	708.26M
Investing Cash Flow	-859.48M	-671.16M	-770.00K	442.85M	-524.17M	-89.06M
Financing Cash Flow	752.80M	26.32M	-473.31M	-789.45M	-341.12M	-485.55M

Omega Healthcare Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 41.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 41.47 is below the 20-day moving average (MA) of 42.25, above the 50-day MA of 40.80, and above the 200-day MA of 37.24, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 47.72 is Neutral, neither overbought nor oversold. The STOCH value of 32.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	7.65B	28.60	4.30%	3.63%	50.84%	104.44%
OHI	76 Outperform	$12.22B	25.83	10.47%	6.46%	12.73%	23.51%
SBRA	74 Outperform	4.47B	24.52	6.72%	6.43%	6.89%	240.70%
AHR	70 Neutral	7.18B	-190.02	-1.35%	2.40%	11.62%	―
DOC	65 Neutral	13.24B	79.46	2.08%	6.55%	15.91%	-49.49%
HR	60 Neutral	6.23B	-15.32	-8.38%	6.62%	-7.16%	23.40%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Omega Healthcare Corporate Events

Omega Healthcare Revises Investor Presentation Update

On July 10, 2025, Omega Healthcare Investors, Inc. announced a revision to the Operator Updates slide in its investor presentation, which can be accessed on their website. This update reflects the company’s ongoing efforts to provide transparent and current information to its stakeholders, potentially impacting its operational strategies and market positioning within the healthcare real estate sector.

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.

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.

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.

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.