Omega Healthcare Investors (OHI)
NYSE:OHI
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Omega Healthcare
(NYSE:OHI)
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Rating:74Outperform
Price Target:
$50.00
▲(11.78% Upside)
Action:ReiteratedDate:02/12/26
The score is driven primarily by improving financial performance and strong cash generation alongside balance-sheet de-leveraging. Technicals are supportive with a clear uptrend and moderate momentum. Valuation is helped by a near-6% dividend yield but moderated by a mid-20s P/E, while earnings-call risks (Genesis resolution, maturity/asset-sale headwinds, dilution, and RIDEA execution) keep the overall score from being higher.
Positive Factors
Improving cash generation
Sustained improvements in operating and free cash flow across 2024–2025 indicate durable internal funding for dividends, debt service, and reinvestment. Reliable cash conversion reduces reliance on external financing and supports distribution coverage and strategic acquisitions over the medium term.
Negative Factors
Exposure to Genesis bankruptcy
Direct credit exposure and loans tied to a major operator create structural counterparty risk; prolonged bankruptcy proceedings can depress near- and medium-term cash receipts, complicate asset realizations, and introduce uncertainty around recoveries and timing that affect AFFO and capital redeployment.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation
Sustained improvements in operating and free cash flow across 2024–2025 indicate durable internal funding for dividends, debt service, and reinvestment. Reliable cash conversion reduces reliance on external financing and supports distribution coverage and strategic acquisitions over the medium term.
Read all positive factors
Omega Healthcare (OHI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.22B
Dividend Yield6.11%
Average Volume (3M)1.97M
Price to Earnings (P/E)22.2
Beta (1Y)0.11
Revenue Growth13.50%
EPS Growth31.56%
CountryUS
Employees60
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.55
Shares Outstanding295,570,000
10 Day Avg. Volume1,976,300
30 Day Avg. Volume1,971,069
Financial Highlights & Ratios
PEG Ratio0.78
Price to Book (P/B)2.53
Price to Sales (P/S)10.96
P/FCF Ratio14.94
Enterprise Value/Market Cap1.32
Enterprise Value/Revenue14.59
Enterprise Value/Gross Profit17.18
Enterprise Value/Ebitda14.90
Forecast
1Y Price Target
$49.40Price Target Upside10.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)1.99
Revenue Forecast (FY)$1.08B
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 i...
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 percentag...
Omega Healthcare Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive operational and financial momentum: solid Q4 and full-year growth, meaningful capital deployment ($1.1B in 2025), improved portfolio coverage (EBITDAR 1.57x), deleveraging (> $700M of debt reductions), strong liquidity capacity, and explicit 2026 AFFO guidance ($3.15–$3.25). Notable risks include the ongoing Genesis bankruptcy (timing/outcome uncertainty), near-term headwinds from loan maturities and asset sales, modest on-balance cash and some shareholder dilution, plus incremental operational risk from the new RIDEA strategy. Overall, the positives around growth, balance sheet strengthening, and deal flow materially outweigh the challenges, though execution and timing on Genesis and loan redeployments bear watching.Positive Updates
Strong Quarterly Financial Performance
Q4 revenue $319M versus $279M year-ago (+~14%); net income $172M ($0.55/share) vs $116M ($0.41/share) (+~48%). Q4 adjusted FFO $250M ($0.80/share) and FAD $238M ($0.76/share). FAD improved $0.01 vs Q3.
Negative Updates
Genesis Bankruptcy and Timing Uncertainty
Genesis filed Chapter 11 (31 leased facilities; annual rent $52M). Omega holds a $129M term loan (first-lien secured) and committed $8M of a $30M DIP facility. Bankruptcy proceedings required a second auction; timeline now anticipated to conclude in Q3–Q4 2026, creating timing and outcome uncertainty despite management's view that loan collateral is sufficient.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly Financial Performance
Q4 revenue $319M versus $279M year-ago (+~14%); net income $172M ($0.55/share) vs $116M ($0.41/share) (+~48%). Q4 adjusted FFO $250M ($0.80/share) and FAD $238M ($0.76/share). FAD improved $0.01 vs Q3.
Read all positive updates
Company Guidance
Omega provided full‑year 2026 adjusted FFO guidance of $3.15–$3.25 per share, which includes the impact of new investments closed as of Feb 4 and the effect of scheduled loan repayments and potential asset sales but excludes any additional investments or capital‑markets transactions not disclosed; the guidance assumes $157M of the $213M in mortgages/real‑estate loans maturing in 2026 will be repaid (with the remainder converted to real estate) and $196M of $267M in non‑real‑estate loans will be repaid in 2026 (including $137M of Genesis loans) with the balance extended, embeds asset sales of roughly $15–$25M per quarter, and notes upside to the high end of the range from additional Maplewood cash, timing/extensions of repayments and asset sales and lower G&A—all set against 2025 momentum (AFFO/FAD growth >8% y/y and $1.1B capital deployed).Omega Healthcare Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
83
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.20B | 1.05B | 949.74M | 878.24M | 1.06B |
| Gross Profit | 533.17M | 1.04B | 934.72M | 862.74M | 1.05B |
| EBITDA | 1.17B | 947.11M | 810.84M | 1.00B | 992.70M |
| Net Income | 590.11M | 406.33M | 242.18M | 426.93M | 416.74M |
Balance Sheet | |||||
| Total Assets | 10.05B | 9.90B | 9.12B | 9.41B | 9.64B |
| Cash, Cash Equivalents and Short-Term Investments | 27.02M | 518.34M | 442.81M | 297.10M | 20.53M |
| Total Debt | 4.26B | 4.84B | 5.07B | 5.29B | 5.25B |
| Total Liabilities | 4.61B | 5.17B | 5.36B | 5.60B | 5.53B |
| Stockholders Equity | 5.18B | 4.54B | 3.57B | 3.61B | 3.91B |
Cash Flow | |||||
| Free Cash Flow | 878.55M | 712.69M | 588.53M | 578.51M | 627.07M |
| Operating Cash Flow | 878.55M | 749.43M | 626.54M | 625.73M | 722.14M |
| Investing Cash Flow | -539.79M | -671.16M | -9.78M | 442.85M | -524.17M |
| Financing Cash Flow | -838.26M | 26.32M | -473.31M | -789.45M | -341.12M |
Omega Healthcare Technical Analysis
Neutral
44.73
Price Trends
45.68
Negative
44.66
Positive
41.53
Positive
Market Momentum
-0.27
Positive
34.42
Neutral
4.30
Positive
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 44.73 is below the 20-day moving average (MA) of 47.14, below the 50-day MA of 45.68, and above the 200-day MA of 41.53, indicating a neutral trend. The MACD of -0.27 indicates Positive momentum. The RSI at 34.42 is Neutral, neither overbought nor oversold. The STOCH value of 4.30 is Positive, 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 37 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 2 New Risks
1.
We are exposed to operational risks with respect to our properties managed in RIDEA structures that could have a material adverse effect on our business, results of operations and financial condition. Q4, 2025
2.
The use of, or inability to use, artificial intelligence by us, our operators, managers, vendors and our investors presents risks and challenges that may adversely impact our business and operating results or the business and operating results of our operators, managers and vendors or may adversely impact the requirements and demand for properties. Q4, 2025
Omega Healthcare Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.39B | 18.09 | 8.99% | 3.56% | 59.25% | 88.37% | |
74 Outperform | $13.22B | 22.25 | 11.83% | 6.11% | 13.50% | 31.56% | |
70 Outperform | $5.00B | 29.37 | 5.63% | 6.47% | 8.12% | 75.95% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $6.01B | -24.09 | -5.13% | 6.56% | -6.59% | 33.35% | |
64 Neutral | $9.11B | 111.95 | 2.61% | 2.10% | 11.81% | ― | |
56 Neutral | $11.97B | 156.87 | 0.91% | 7.73% | 9.58% | -111.99% |
* Real Estate Sector Average
OHI
Omega Healthcare
44.73
9.63
27.44%
DOC
Healthpeak Properties
16.81
-2.05
-10.87%
SBRA
Sabra Healthcare REIT
19.84
3.55
21.77%
HR
Healthcare Realty Trust
17.23
1.47
9.31%
CTRE
CareTrust REIT
37.59
9.94
35.96%
AHR
American Healthcare REIT, Inc.
47.94
18.64
63.62%
Omega Healthcare Corporate Events
Business Operations and StrategyExecutive/Board Changes
Omega Healthcare Amends Executive Contracts, Enhances Severance Terms
Neutral
Jan 7, 2026
On January 1, 2026, Omega Healthcare Investors, Inc. amended the employment agreements of its named executive officers, extending their terms by one year to December 31, 2028 and adjusting annual salaries following a review by the board’s Co...
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.