Omega Healthcare (OHI) AI Stock Analysis

Omega Healthcare

(NYSE:OHI)

Select Model

Rating:72Outperform

Price Target:$51.00▲(8.80% Upside)

Action:reiterated

Date:10/05/26

OHI scores strongest on fundamentals, supported by improving profitability and balance-sheet trends, plus constructive guidance and liquidity actions from the earnings call. The overall score is tempered by weakening near-term technical momentum and the recent sharp drop in free cash flow, with corporate actions adding incremental upside but with a meaningful one-time cost.

Positive Factors

Revenue and profitability momentumRevenue has continued to rise and TTM profitability is materially stronger, indicating improved earnings capacity. Although reported margins have been volatile, the combination of top-line momentum and higher net margin can support investment, debt service, and shareholder distributions over the next several quarters.

Negative Factors

Sharp free-cash-flow decelerationThe recent decline in free-cash-flow growth weakens confidence in the consistency of internally generated cash, even though the absolute level remains healthy. Lower conversion versus prior years could constrain reinvestment, debt reduction, or distributions if the deceleration persists.

Omega Healthcare (OHI) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $14.24B
Dividend Yield: 5.72%
Average Volume (3M): 1.90M
Price to Earnings (P/E): 16.3
Beta (1Y): 0.08
Revenue Growth: 15.18%
EPS Growth: 72.69%
Country: US
Employees: 69
Sector: Real Estate
Sector Strength: 65
Industry: REIT - Healthcare Facilities

Omega Healthcare Business Overview & Revenue Model

Company Description

Omega Healthcare Investors, Inc. functions as a Real Estate Investment Trust (REIT) primarily focused on the long-term healthcare sector. The company strategically invests in properties providing skilled nursing and assisted living services. A divers...

How the Company Makes Money

Omega Healthcare Investors primarily makes money by earning contractual payments from healthcare operators that use its properties and capital. Its key revenue streams include: (1) Rental income from long-term leases (typically structured as net leas...

Omega Healthcare Earnings Call Summary

Earnings Call Date:Jul 28, 2026(Q2-2026)|% Change Since:-7.51%|Next Earnings Date:Feb 03, 2027

Earnings Call SentimentPositive

The call emphasized strong underlying fundamentals: year-over-year revenue and AFFO growth, significant liquidity and deleveraging, strategic asset sales executed at attractive economics, improved portfolio coverage, a robust investment pipeline (including first U.K. RIDEA), and a modestly tightened upward guidance. Near-term results are being muted by intentional strategic asset sales and loan repayments, and a small number of operator-specific issues (Genesis bankruptcy, Ciena transitions, localized occupancy gaps) and regulatory risks create some near-term uncertainty. Overall, management projects these actions will strengthen credit support and enable accretive redeployment in H2 2026 and 2027.

Positive Updates

Revenue and Earnings Growth Year-over-Year

Q2 2026 revenue was $328M vs $283M in Q2 2025, a year-over-year increase of approximately 15.9%. Net income available to common shareholders was $363M ($1.19/share) vs $137M ($0.46/share) in Q2 2025 (net income per share increased ~158.7% YoY, primarily reflecting a $247M gain on asset sales).

Negative Updates

Near-Term Earnings Headwind from Asset Sales and Loan Repayments

Management noted significant asset dispositions ($563M–$597M referenced) and ~$209M in loan repayments over the past two quarters that muted sequential AFFO growth. Neal indicated the timing of late-quarter sales and repayments reduced Q2 AFFO by approximately $7.5M and created a temporary headwind expected to impact Q3 as well. Guidance includes roughly $9M of quarterly revenue impact associated with assets sold/loans repaid.

Company Guidance

Omega tightened and raised full‑year adjusted FFO guidance to $3.22–$3.26 per share (midpoint $3.24, up $0.02 from April), reflecting a near‑term headwind of about $9 million of quarterly revenue tied to assets sold and loans repaid late in Q2; the guidance includes new investments closed as of July 29 but excludes other transactions, assumes $56 million converts to fee simple of $144 million of mortgages/loans maturing in 2026 and that $180 million of non‑real‑estate loans (including ~ $148 million of Genesis loans) will be repaid in 2026, contemplates continued portfolio pruning of $15–$25 million of asset sales per quarter, incorporates the $0.01 common dividend increase, and notes the high end of the range could benefit from timing or extensions of repayments/sales, additional cash‑basis operator payments, RIDEA and JV operating exposure, and lower G&A.

Omega Healthcare Financial Statement Overview

Summary

Income statement strength (revenue +4.3% TTM and much higher TTM net margin) and improving leverage (debt-to-equity below 1.0x) support a solid score. Offsetting factors are the sharp TTM free-cash-flow decline (-41.1%) and notable year-to-year margin volatility, which reduce confidence in consistency.

Income Statement

82Very Positive

Balance Sheet

74Positive

Cash Flow

69Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.29B	1.20B	1.05B	949.74M	878.24M	1.06B
Gross Profit	929.73M	533.17M	1.04B	934.72M	862.74M	1.05B
EBITDA	1.45B	1.17B	947.11M	810.84M	1.00B	992.70M
Net Income	858.31M	590.11M	406.33M	242.18M	426.93M	416.74M
Balance Sheet
Total Assets	10.04B	10.05B	9.90B	9.12B	9.41B	9.64B
Cash, Cash Equivalents and Short-Term Investments	39.04M	27.02M	518.34M	442.81M	297.10M	20.53M
Total Debt	4.02B	4.26B	4.84B	5.07B	5.29B	5.25B
Total Liabilities	4.37B	4.61B	5.17B	5.36B	5.60B	5.53B
Stockholders Equity	5.39B	5.18B	4.54B	3.57B	3.61B	3.91B
Cash Flow
Free Cash Flow	903.33M	878.55M	712.69M	588.53M	578.51M	627.07M
Operating Cash Flow	890.56M	878.55M	749.43M	626.54M	625.73M	722.14M
Investing Cash Flow	186.54M	-539.79M	-671.16M	-9.78M	442.85M	-524.17M
Financing Cash Flow	-1.66B	-838.26M	26.32M	-473.31M	-789.45M	-341.12M

Omega Healthcare Technical Analysis

Technical Analysis SentimentPositive

Last Price46.88

Price Trends

50DMA46.16Positive

100DMA46.91Positive

200DMA45.92Positive

Market Momentum

MACD0.20Negative

RSI56.96Neutral

STOCH84.26Negative

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 46.88 is above the 20-day moving average (MA) of 45.54, above the 50-day MA of 46.16, and above the 200-day MA of 45.92, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 56.96 is Neutral, neither overbought nor oversold. The STOCH value of 84.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

0 New Risks

Omega Healthcare Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

OHI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTRE	80Outperform	$8.60B	22.45	8.54%	4.16%	53.07%	32.48%
OHI	72Outperform	$14.24B	16.26	16.51%	5.72%	15.18%	72.69%
DOC	70Outperform	$13.45B	37.46	3.30%	6.26%	5.52%	48.98%
AHR	68Neutral	$11.75B	79.02	3.67%	1.86%	16.39%	―
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
SBRA	64Neutral	$5.04B	116.00	2.34%	6.09%	18.43%	-65.50%
HR	60Neutral	$6.26B	-134.36	-1.04%	5.02%	-6.28%	77.63%

* Real Estate Sector Average

Performance Comparison

OHI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
OHI	Omega Healthcare Investors	47.00	5.78	14.03%
DOC	Healthpeak Properties, Inc.	19.48	2.75	16.44%
SBRA	Sabra Healthcare Reit	19.72	2.59	15.10%
HR	Healthcare Realty Trust Incorporated	19.12	2.08	12.18%
CTRE	CareTrust REIT	36.14	1.55	4.49%
AHR	American Healthcare REIT, Inc.	53.79	7.64	16.56%

Omega Healthcare Corporate Events

Business Operations and StrategyFinancial Disclosures

Omega Healthcare boosts Florida portfolio with PACS deal

Positive

Oct 5, 2026

On October 1, 2026, Omega Healthcare Investors transitioned operations of 32 Florida skilled nursing facilities from an operator affiliated with Airamid Health Services to subsidiaries of PACS Group, adding the assets to Omega’s existing master...

Executive/Board Changes

Omega Healthcare Announces New CEO and Board Transition

Neutral

Oct 1, 2026

On October 1, 2026, Omega Healthcare Investors implemented a planned leadership transition, with President Matthew P. Gourmand assuming the role of President and Chief Executive Officer, succeeding retiring CEO C. Taylor Pickett. Concurrently, Gourma...

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.

Date of analysis: Oct 05, 2026

Omega Healthcare AI Stock Analysis