Omega Healthcare (OHI) AI Stock Analysis

• Market Cap: $12.58B
• Dividend Yield: 6.27%
• Average Volume (3M): 2.12M
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.10
• Revenue Growth: 12.73%
• EPS Growth: 23.51%
• Country: US
• Employees: 60
• Sector: Real Estate
• Sector Strength: 47
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.46
• Shares Outstanding: 295,000,000
• 10 Day Avg. Volume: 1,851,556
• 30 Day Avg. Volume: 2,116,813
• 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: 1.24
• Enterprise Value/Revenue: 13.95
• Enterprise Value/Gross Profit: 14.12
• Enterprise Value/Ebitda: 15.20
• 1Y Price Target: $42.67
• Price Target Upside: -1.09% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 76 Outperform
• Price Target: $46.00 ▲(6.63% 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

Earnings

2Q25 earnings beat with improvements in Maplewood and solid investment momentum.

Guidance

Guidance was also bumped ahead of Street driven by aforementioned factors, along with a change in planned debt refinancing away from new equity.

Negative Factors

Liquidity Concerns

Given unexpected GEN liquidity concerns, shares may react negatively with potential Medicaid.

State Regulations

Pennsylvania (4.2% of investments) remains challenging given state regulations.

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's financial performance is commendable, with strong profitability, moderate revenue growth, and efficient cash conversion. The balance sheet is stable with a healthy mix of debt and equity, supporting continued investment and growth opportunities. While the company performs well in profitability and cash flow, there is room for enhancement 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	1.11B	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: Positive
• Last Price: 43.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OHI, the sentiment is Positive. The current price of 43.14 is above the 20-day moving average (MA) of 41.54, above the 50-day MA of 39.05, and above the 200-day MA of 36.92, indicating a bullish trend. The MACD of 1.03 indicates Positive momentum. The RSI at 71.63 is Negative, neither overbought nor oversold. The STOCH value of 76.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$7.61B	28.20	8.36%	3.67%	50.84%	104.44%
OHI	76 Outperform	$12.58B	26.61	10.47%	6.27%	12.73%	23.51%
SBRA	74 Outperform	$4.58B	24.99	6.66%	6.29%	6.89%	240.70%
AHR	70 Neutral	$7.29B	―	-1.51%	2.34%	11.62%	―
DOC	65 Neutral	$12.74B	76.48	1.97%	6.19%	15.91%	-49.49%
Sector *	63 Neutral	$7.02B	13.29	-0.50%	6.92%	4.08%	-25.24%
HR	61 Neutral	$6.15B	―	-7.59%	6.69%	-7.16%	23.40%

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.