Omega Healthcare Investors Inc
NYSE:OHI
Intrinsic Value
Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities. [ Read More ]
The intrinsic value of one OHI stock under the Base Case scenario is 34.23 USD. Compared to the current market price of 31.67 USD, Omega Healthcare Investors Inc is Undervalued by 7%.
Valuation Backtest
Omega Healthcare Investors Inc
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Fundamental Analysis
Omega Healthcare Posts Strong Q4 and Gives 2024 Guidance
2023-Q4 Earnings Call
Omega Healthcare Investors reported FAD (Funds Available for Distribution) at $2.62 per share for the full year, marginally below their dividend of $2.68, indicating a 102% payout ratio. Despite uncertainty in first-quarter 2024 FAD, the long-term outlook appears strong, promising stable and increasing cash flow, especially from holdings like Maplewood. Improvement is notable, as EBITDAR coverage decreased from 27.5% to 13.2% of total rent, with significant portions of the portfolio transitioning to stronger performance or being sold. Fourth-quarter revenue surged to $239 million from the previous year's $145 million, attributed to strategic operator restructurings, new investments, and netting off asset sales. The solid balance sheet closed the quarter with over $440 million in cash after significant mortgage repayments. The company outlines its 2024 AFFO guidance to be in the range of $2.70 to $2.80 per share, premised on stable revenue recognition, the completion of operator restructurings, and anticipated asset sales totaling $94 million. Rent collections from LaVie and applicated security deposits from Guardian contributed to the fourth quarter's earnings. Encouragingly, core portfolio occupancy climbed from January 2022's low of 74.6% to 80.2% by mid-January 2024.
Balance Sheet Decomposition
Omega Healthcare Investors Inc
Current Assets | 669.4m |
Cash & Short-Term Investments | 442.8m |
Receivables | 226.5m |
Non-Current Assets | 8.4B |
Long-Term Investments | 197.1m |
PP&E | 5.9B |
Intangibles | 644.6m |
Other Non-Current Assets | 1.7B |
Current Liabilities | 276.2m |
Accrued Liabilities | 276.2m |
Non-Current Liabilities | 5.3B |
Long-Term Debt | 5.1B |
Other Non-Current Liabilities | 199.3m |
Earnings Waterfall
Omega Healthcare Investors Inc
Revenue
|
949.7m
USD
|
Cost of Revenue
|
-15m
USD
|
Gross Profit
|
934.7m
USD
|
Operating Expenses
|
-445.7m
USD
|
Operating Income
|
489m
USD
|
Other Expenses
|
-246.8m
USD
|
Net Income
|
242.2m
USD
|
Free Cash Flow Analysis
Omega Healthcare Investors Inc
What is Free Cash Flow?
OHI Profitability Score
Profitability Due Diligence
Omega Healthcare Investors Inc's profitability score is 62/100. The higher the profitability score, the more profitable the company is.
Score
Omega Healthcare Investors Inc's profitability score is 62/100. The higher the profitability score, the more profitable the company is.
OHI Solvency Score
Solvency Due Diligence
Omega Healthcare Investors Inc's solvency score is 30/100. The higher the solvency score, the more solvent the company is.
Score
Omega Healthcare Investors Inc's solvency score is 30/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
OHI Price Targets Summary
Omega Healthcare Investors Inc
According to Wall Street analysts, the average 1-year price target for OHI is 32.93 USD with a low forecast of 28.28 USD and a high forecast of 38.85 USD.
Ownership
OHI Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
OHI Price
Omega Healthcare Investors Inc
Average Annual Return | 0.23% |
Standard Deviation of Annual Returns | 10.91% |
Max Drawdown | -67% |
Market Capitalization | 7.8B USD |
Shares Outstanding | 250 000 000 |
Percentage of Shares Shorted | 7.14% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities. The company is headquartered in Hunt Valley, Maryland and currently employs 70 full-time employees. The firm maintains a portfolio of long-term healthcare facilities and mortgages on healthcare facilities located in the United States and the United Kingdom. The firm operates through the segment, which consists of investments in healthcare-related real estate properties located in the United States and the United Kingdom. The firm provides financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities (SNFs), assisted living facilities (ALFs), and to a lesser extent, independent living facilities (ILFs), rehabilitation and acute care facilities (specialty facilities) and medical office buildings (MOBs). The Company’s portfolio consists of long-term leases and mortgage loans with healthcare operating companies and affiliates. In addition, the Company selectively make loans to operators for working capital and capital expenditures.
Contact
IPO
Employees
Officers
The intrinsic value of one OHI stock under the Base Case scenario is 34.23 USD.
Compared to the current market price of 31.67 USD, Omega Healthcare Investors Inc is Undervalued by 7%.