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Omega Healthcare
(NYSE:OHI)
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Rating:72Outperform
Price Target:
$51.00
▲(8.58% 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 momentum
Revenue 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 deceleration
The 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and profitability momentum
Revenue 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.
Read all positive factors
Omega Healthcare (OHI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.24B
Dividend Yield5.72%
Average Volume (3M)1.93M
Price to Earnings (P/E)16.3
Beta (1Y)0.08
Revenue Growth15.18%
EPS Growth72.69%
CountryUS
Employees69
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)2.89
Shares Outstanding303,013,000
10 Day Avg. Volume1,497,587
30 Day Avg. Volume1,933,155
Financial Highlights & Ratios
PEG Ratio0.77
Price to Book (P/B)2.53
Price to Sales (P/S)10.96
P/FCF Ratio14.94
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue14.84
Enterprise Value/Gross Profit20.63
Enterprise Value/Ebitda13.24
Forecast
1Y Price Target
$50.58Price Target Upside7.69% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)2.65
Revenue Forecast (FY)$1.09B
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 div...
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 l...
Omega Healthcare Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
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.
Read all updates
Q2-2026 Updates
Positive
Negative
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).
Read all positive updates
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
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
69
Positive
| 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
Positive
46.97
Price Trends
46.17
Positive
46.79
Positive
45.82
Positive
Market Momentum
-0.06
Negative
58.58
Neutral
86.71
Negative
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 46.97 is above the 20-day moving average (MA) of 45.37, above the 50-day MA of 46.17, and above the 200-day MA of 45.82, indicating a bullish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 86.71 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.74B | 22.97 | 8.54% | 4.07% | 53.07% | 32.48% | |
72 Outperform | $14.24B | 16.27 | 16.51% | 5.72% | 15.18% | 72.69% | |
66 Neutral | $11.76B | 78.67 | 3.67% | 1.87% | 16.39% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $5.05B | 74.92 | 2.34% | 6.07% | 18.43% | -65.50% | |
63 Neutral | $6.16B | -68.55 | -1.94% | 5.34% | -6.28% | 77.63% | |
62 Neutral | $13.68B | 55.31 | 3.30% | 6.30% | 5.52% | 48.98% |
* Real Estate Sector Average
OHI
Omega Healthcare
47.01
9.30
24.65%
DOC
Healthpeak Properties
19.36
2.48
14.70%
SBRA
Sabra Healthcare REIT
19.78
3.07
18.38%
HR
Healthcare Realty Trust
17.98
0.94
5.49%
CTRE
CareTrust REIT
36.98
3.06
9.01%
AHR
American Healthcare REIT, Inc.
53.55
10.34
23.94%
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 mas...
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, Gou...
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.