Omega Healthcare (OHI) AI Stock Analysis

• Market Cap: $12.99B
• Dividend Yield: 6.1%
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.11
• Revenue Growth: 13.50%
• EPS Growth: 31.56%
• Country: US
• Employees: 60
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.59
• Shares Outstanding: 295,529,000
• 10 Day Avg. Volume: 2,068,241
• 30 Day Avg. Volume: 1,798,840
• 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: 1.34
• Enterprise Value/Revenue: 15.17
• Enterprise Value/Gross Profit: 15.35
• Enterprise Value/Ebitda: 15.70
• 1Y Price Target: $46.80
• Price Target Upside: 6.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.9
• Revenue Forecast (FY): $978.89M

• Rating: 76 Outperform
• Price Target: $52.00 ▲(18.26% Upside)

Omega Healthcare's strong financial performance and strategic investments are key strengths, supported by positive technical indicators and a robust credit facility. However, high valuation metrics and potential regulatory risks present challenges.

Positive Factors

Strong Financial Performance

Omega's robust AFFO and FAD indicate strong cash flow generation, supporting dividend sustainability and potential for reinvestment in growth.

Strategic Investments and Partnerships

Significant investments and partnerships enhance Omega's portfolio diversification and growth potential, strengthening its market position.

Improved Leverage Management

Improved leverage ratios enhance financial stability and flexibility, allowing Omega to pursue strategic opportunities with reduced risk.

Negative Factors

Genesis Bankruptcy

The bankruptcy of a major tenant poses a risk to Omega's rental income stability, potentially impacting cash flows and financial health.

Medicare and Medicaid Funding Concerns

Potential cuts in Medicare and Medicaid funding could pressure Omega's tenants, affecting their ability to pay rent and impacting Omega's revenue.

Regulatory Environment Challenges

Regulatory uncertainties can create operational challenges and financial unpredictability for Omega, affecting long-term planning and stability.

Omega Healthcare Business Overview & Revenue Model

Company Description

Omega Healthcare Investors, Inc. (OHI) is a real estate investment trust (REIT) that primarily invests in the healthcare sector, focusing on skilled nursing facilities and assisted living facilities. The company owns and leases properties across the United States and the United Kingdom, providing a critical source of capital to operators of healthcare facilities. Omega Healthcare aims to generate stable cash flows and long-term capital appreciation through its diverse portfolio of healthcare real estate assets.

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

Omega Healthcare demonstrates strong profitability and cash flow generation, with improving leverage ratios. While revenue and free cash flow growth are positive, attention to cost management and debt levels is necessary to sustain financial health.

Income Statement

Omega Healthcare shows strong profitability with a high gross profit margin of 98.83% and a net profit margin of 47.29% in TTM. Revenue growth is positive at 3.19%, indicating a steady upward trend. However, the EBIT margin has decreased compared to previous years, suggesting potential cost management issues.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.99 in TTM, showing better leverage management. Return on equity is moderate at 11.27%, reflecting decent profitability. The equity ratio stands at 52.39%, indicating a balanced capital structure. However, the high level of total debt remains a concern.

Cash Flow

Omega Healthcare's free cash flow growth is robust at 6.54% in TTM, and the free cash flow to net income ratio is strong at 1.01, indicating efficient cash generation. The operating cash flow to net income ratio is not available, which limits a full assessment of cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.15B	1.05B	949.74M	878.24M	1.06B	892.38M
Gross Profit	1.14B	1.04B	934.72M	862.74M	1.05B	880.07M
EBITDA	1.11B	947.11M	810.84M	1.00B	992.70M	715.64M
Net Income	538.69M	406.33M	242.18M	426.93M	416.74M	159.33M
Balance Sheet
Total Assets	10.60B	9.90B	9.12B	9.41B	9.64B	9.50B
Cash, Cash Equivalents and Short-Term Investments	737.19M	518.34M	442.81M	297.10M	20.53M	163.53M
Total Debt	4.99B	4.84B	5.07B	5.29B	5.25B	5.17B
Total Liabilities	5.35B	5.17B	5.36B	5.60B	5.53B	5.46B
Stockholders Equity	5.04B	4.54B	3.57B	3.61B	3.91B	3.84B
Cash Flow
Free Cash Flow	840.89M	749.43M	617.74M	578.51M	627.07M	633.14M
Operating Cash Flow	876.55M	749.43M	617.74M	625.73M	722.14M	708.26M
Investing Cash Flow	-809.16M	-671.16M	-770.00K	442.85M	-524.17M	-89.06M
Financing Cash Flow	345.62M	26.32M	-473.31M	-789.45M	-341.12M	-485.55M

Omega Healthcare Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 43.97
• 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 43.97 is below the 20-day moving average (MA) of 45.07, above the 50-day MA of 42.98, and above the 200-day MA of 38.88, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 46.36 is Neutral, neither overbought nor oversold. The STOCH value of 31.34 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	80 Outperform	$8.11B	27.07	8.13%	3.56%	59.25%	88.37%
SBRA	77 Outperform	$4.66B	25.70	6.29%	6.42%	8.12%	75.95%
OHI	76 Outperform	$12.99B	24.70	11.28%	6.10%	13.50%	31.56%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AHR	64 Neutral	$9.03B	341.83	1.12%	2.10%	11.81%	―
DOC	58 Neutral	$11.35B	-283.51	-0.48%	7.63%	9.58%	-111.99%
HR	56 Neutral	$5.92B	-15.92	-7.26%	6.53%	-6.59%	33.35%

Omega Healthcare Corporate Events

Omega Healthcare Announces New $2 Billion Equity Offering

On November 3, 2025, Omega Healthcare Investors, Inc. announced a new ‘at-the-market’ equity offering sales agreement, allowing the issuance and sale of up to $2 billion in common stock. This agreement replaces a previous one from September 2024 and involves multiple financial institutions as sales agents, forward sellers, and forward purchasers. The sales will be conducted through various methods, including the New York Stock Exchange, and are subject to market conditions. This strategic move aims to enhance Omega Healthcare’s financial flexibility and market positioning, potentially impacting its stakeholders by providing additional capital for growth and operations.

Omega Healthcare Redeems $600M Senior Notes

On October 15, 2025, Omega Healthcare Investors, Inc. redeemed its $600 million 5.250% Senior Notes due 2026, originally issued in 2015. This action terminated the obligations under the Notes and the related Indenture, impacting Omega’s financial structure by discharging these debts.

Omega Healthcare Secures $2.3 Billion Credit Facility

On September 30, 2025, Omega Healthcare Investors, Inc. announced the closing of a new $2.3 billion senior unsecured credit facility, which includes a $2.0 billion revolving credit facility and a $300 million delayed draw term loan facility. This new facility replaces the previous $1.45 billion revolving credit facility and was supported by over 20 financial institutions, indicating strong market confidence. The credit facility is expected to support Omega’s refinancing, acquisitions, and other corporate purposes, potentially enhancing its market positioning and operational capabilities.

Omega Healthcare to Redeem Senior Notes in October

On September 15, 2025, Omega Healthcare Investors announced its decision to redeem all outstanding 5.250% Senior Notes due 2026 on October 15, 2025. This strategic move involves redeeming the notes at their principal amount plus accrued interest, potentially impacting the company’s financial operations and signaling a shift in its financial strategy.