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OHI Stock Analysis: Hold (Score 55.2/100) | Blank Capital Research | Blank Capital Research
OHI
OMEGA HEALTHCARE INVESTORS INC
$45.79
+0.07 (+0.15%)
Score55.2
Data as of Apr 6, 2026
OHI
OMEGA HEALTHCARE INVESTORS INC
FinancialsTrading
$45.79
+0.07 (+0.15%)
Open $45.67High $45.94Low $45.59Prev $45.72Vol ---52W: $35.04 – $49.12
Hold
Composite score
01234567890123456789.0123456789
Global rank
#299
Percentile
Top 7%
Business quality
72nd
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 72GRADE B+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
10.2%
Sector: 8.5%
Dividend Analysis audit
HIGH YIELD
6.35%
Trailing Yield
$6.35
Per $100 Invested
Attractive yield supported by strong profitability.
Est. Payout Ratio
154%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, OMEGA HEALTHCARE INVESTORS INC (OHI) receives a "Hold" rating with a composite score of 55.2/100, ranked #299 out of 4446 stocks. Key factor scores: Quality 72/100, Value 53/100, Momentum 53/100. This is quantitative analysis only — not investment advice.
OMEGA HEALTHCARE INVESTORS INC (OHI) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does OMEGA HEALTHCARE INVESTORS INC Do?
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. OMEGA HEALTHCARE INVESTORS INC (OHI) is classified as a large-cap stock in the Financials sector, specifically within the Trading industry. The company is led by CEO Charles T. Pickett and employs approximately 50 people, headquartered in Hunt Valley, Maryland. With a market capitalization of $13.1B, OHI is one of the prominent companies in the Financials sector.
As of April 2026, OMEGA HEALTHCARE INVESTORS INC receives a Hold rating with a composite score of 55.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.OHI ranks #299 out of 4,446 stocks in our coverage universe. Within the Financials sector, OMEGA HEALTHCARE INVESTORS INC ranks #109 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
OHI Stock Price and 52-Week Range
OMEGA HEALTHCARE INVESTORS INC (OHI) currently trades at $45.79. The stock gained $0.07 (0.2%) in the most recent trading session. The 52-week high for OHI is $49.12, which means the stock is currently trading -6.8% from its annual peak. The 52-week low is $35.04, putting the stock 30.7% above its annual trough. Recent trading volume was 1.1M shares, reflecting moderate market activity.
Is OHI Overvalued or Undervalued? — Valuation Analysis
OMEGA HEALTHCARE INVESTORS INC (OHI) carries a value factor score of 53/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 24.31x, compared to the Financials sector average of 14.88x — a premium of 63%. The price-to-book ratio stands at 2.47x, versus the sector average of 1.22x. The price-to-sales ratio is 11.71x, compared to 0.90x for the average Financials stock. On an enterprise value basis, OHI trades at 37.55x EV/EBITDA, versus 3.26x for the sector.
Overall, OHI's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
OMEGA HEALTHCARE INVESTORS INC (OHI) earns a quality factor score of 72/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 10.2%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 5.5% versus the sector average of 1.2%.
On a margin basis, OMEGA HEALTHCARE INVESTORS INC reports gross margins of 0.0%. The operating margin is 40.9% (sector: 21.8%). Net profit margin stands at 47.8%, versus 17.7% for the average Financials stock. Revenue growth is running at 23.3% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
OHI Debt, Balance Sheet, and Financial Health
OMEGA HEALTHCARE INVESTORS INC has a debt-to-equity ratio of 78.0%, compared to the Financials sector average of 121.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 2.18x, indicating strong short-term liquidity. Total debt on the balance sheet is $4.26B. Cash and equivalents stand at $737M.
OHI has a beta of 0.10, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for OMEGA HEALTHCARE INVESTORS INC is 92/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
OMEGA HEALTHCARE INVESTORS INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, OMEGA HEALTHCARE INVESTORS INC reported revenue of $1.15B and earnings per share (EPS) of $1.96. Net income for the quarter was $552M. Gross margin was 0.0%. Operating income came in at $471M.
In FY 2025, OMEGA HEALTHCARE INVESTORS INC reported revenue of $1.19B and earnings per share (EPS) of $1.96. Net income for the quarter was $609M. Revenue grew 13.2% year-over-year compared to FY 2024. Operating income came in at $502M.
In Q3 2025, OMEGA HEALTHCARE INVESTORS INC reported revenue of $312M and earnings per share (EPS) of $0.60. Net income for the quarter was $185M. Revenue grew 12.9% year-over-year compared to Q3 2024. Operating income came in at $146M.
In Q2 2025, OMEGA HEALTHCARE INVESTORS INC reported revenue of $283M and earnings per share (EPS) of $0.46. Net income for the quarter was $140M. Revenue grew 11.8% year-over-year compared to Q2 2024. Operating income came in at $111M.
Over the past 8 quarters, OMEGA HEALTHCARE INVESTORS INC has demonstrated a growth trajectory, with revenue expanding from $253M to $1.15B. Investors analyzing OHI stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
OHI Dividend Yield and Income Analysis
OMEGA HEALTHCARE INVESTORS INC (OHI) currently pays a dividend yield of 6.3%. At this yield, a $10,000 investment in OHI stock would generate approximately $$635.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning OHI offers above-average income for its sector. With a net margin of 47.8%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
OHI Momentum and Technical Analysis Profile
OMEGA HEALTHCARE INVESTORS INC (OHI) has a momentum factor score of 53/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 6/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
OHI vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing OHI against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full OHI vs S&P 500 (SPY) comparison to assess how OMEGA HEALTHCARE INVESTORS INC stacks up against the broader market across all factor dimensions.
OHI Next Earnings Date
No upcoming earnings date has been announced for OMEGA HEALTHCARE INVESTORS INC (OHI) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy OHI? — Investment Thesis Summary
OMEGA HEALTHCARE INVESTORS INC presents a balanced picture with arguments on both sides. The quality score of 72/100 indicates above-average profitability and business fundamentals. Low volatility (stability score 92/100) reduces downside risk.
In summary, OMEGA HEALTHCARE INVESTORS INC (OHI) earns a Hold rating with a composite score of 55.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on OHI stock.
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Institutional Research Dossier
OMEGA HEALTHCARE INVESTORS INC (OHI) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Omega Healthcare Investors (OHI) receives a Hold rating, driven by a mixed financial profile. While the company demonstrates strong profitability and stability metrics, concerns arise from its negative free cash flow and relatively high valuation compared to the sector. The REIT's reliance on skilled nursing and assisted living facilities exposes it to specific industry risks, warranting a cautious approach despite its attractive dividend yield.
The company's high Quality and Stability scores are counterbalanced by a low Investment score, indicating potential challenges in capital allocation and growth prospects. The current valuation, reflected in higher P/E and EV/EBITDA ratios than the sector average, suggests limited upside potential at the current price. Therefore, a Hold rating is appropriate, reflecting a neutral stance on OHI's future performance.
Business Strategy & Overview
Omega Healthcare Investors operates as a real estate investment trust (REIT) specializing in the long-term healthcare industry. The company's core business model revolves around acquiring and leasing skilled nursing facilities (SNFs) and assisted living facilities (ALFs) to a diverse group of healthcare operating companies. These leases are predominantly structured as triple-net leases, meaning the tenant is responsible for property taxes, insurance, and maintenance expenses, providing Omega with a relatively stable and predictable revenue stream. This structure mitigates some operational risks typically associated with direct healthcare service provision.
Omega's strategic focus is on building a diversified portfolio of healthcare properties across various geographic regions within the United States and the United Kingdom. This geographic diversification aims to reduce the company's exposure to regional economic downturns and regulatory changes that may disproportionately affect specific areas. The company actively manages its portfolio by selectively acquiring new properties, disposing of underperforming assets, and providing financing to its operators to support their operations and growth initiatives. This active management is crucial for maintaining the quality and profitability of its portfolio.
The company's revenue generation is primarily driven by rental income from its leased properties. The terms of the triple-net leases typically include annual rent escalators, providing a built-in mechanism for revenue growth. Omega also generates revenue from financing activities, such as mortgage loans and other types of debt financing provided to its operators. These financing activities can provide additional income streams and strengthen the company's relationships with its tenants. However, they also introduce credit risk, as the company's financial performance is dependent on the ability of its operators to meet their debt obligations.
The long-term healthcare industry is characterized by several key trends, including an aging population, increasing demand for healthcare services, and evolving regulatory landscape. Omega's business strategy is aligned with these trends, as the demand for SNFs and ALFs is expected to grow in the coming years. However, the company also faces challenges, such as increasing competition from other healthcare REITs, regulatory scrutiny of the long-term care industry, and the financial pressures faced by its operators. Successfully navigating these challenges is critical for Omega to maintain its competitive position and generate sustainable returns for its shareholders.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
23.3%
Sector: 9.4%
+148% VS SCTR
Economic Moat Analysis
Omega Healthcare Investors possesses a narrow economic moat, primarily derived from its specialized expertise and established relationships within the long-term healthcare real estate sector. While the REIT business model inherently lacks the strong network effects or proprietary technology that create wide moats, Omega's focus on a specific niche allows it to develop a deeper understanding of the industry's dynamics, regulatory environment, and operational challenges faced by its tenants. This expertise enables Omega to make more informed investment decisions and provide tailored financing solutions to its operators, fostering stronger relationships and increasing tenant retention.
The company's scale also contributes to its narrow moat. As one of the larger healthcare REITs, Omega benefits from economies of scale in terms of financing costs and operational efficiency. Its larger portfolio allows it to spread fixed costs over a greater asset base, resulting in lower operating expenses per property. This cost advantage, while not substantial enough to create a wide moat, provides a slight competitive edge over smaller, less diversified REITs.
However, the moat is constrained by several factors. The skilled nursing and assisted living facility market is relatively fragmented, with numerous operators and REITs competing for assets. This intense competition limits Omega's pricing power and reduces its ability to extract above-average returns. Furthermore, the triple-net lease structure, while providing stable cash flows, also reduces Omega's operational control over its properties. The company is heavily reliant on the financial health and operational performance of its tenants, making it vulnerable to tenant bankruptcies or lease defaults.
The regulatory environment also poses a threat to Omega's moat. The long-term healthcare industry is subject to extensive regulations, including reimbursement policies, quality standards, and licensing requirements. Changes in these regulations can significantly impact the profitability of Omega's tenants, potentially leading to rent reductions or lease terminations. The company must continuously monitor and adapt to these regulatory changes to maintain its competitive position.
In conclusion, Omega's narrow moat is based on its specialized expertise, established relationships, and economies of scale within the long-term healthcare real estate sector. However, the moat is constrained by intense competition, reliance on tenant performance, and regulatory risks. While the company's focus on a specific niche provides some competitive advantages, it is not sufficient to create a wide moat that can consistently generate above-average returns over the long term.
Financial Health & Profitability
Omega Healthcare Investors exhibits a mixed financial profile. The company's revenue has shown consistent growth, with revenue increasing from $949.74 million in FY2023 to $1.19 billion in FY2025. This growth is primarily driven by acquisitions and rent escalations in its existing portfolio. The company's net income has also increased significantly, from $248.80 million in FY2023 to $609.47 million in FY2025, indicating improved profitability. The operating margin has also shown a positive trend, increasing from 16.4% in FY2023 to 42.2% in FY2025, reflecting improved operational efficiency.
However, the company's free cash flow (FCF) is a significant concern. The company reported negative free cash flow of -$809.68 million for the trailing twelve months (TTM). This negative FCF indicates that the company is not generating enough cash from its operations to cover its capital expenditures and dividend payments. This reliance on external financing to fund its operations and distributions raises concerns about the company's long-term financial sustainability.
Omega's balance sheet is moderately leveraged, with a total debt of $4.26 billion and a debt-to-equity ratio of 78.00. While this leverage is lower than the sector average of 115.00, it still represents a significant financial obligation. The company's current ratio of 2.18 indicates that it has sufficient liquid assets to cover its short-term liabilities. However, the company's ability to manage its debt obligations and maintain its financial flexibility is crucial for its long-term success.
Compared to the financials sector, Omega exhibits higher profitability margins. Its operating margin of 40.9% and net margin of 47.8% are significantly higher than the sector averages of 22.0% and 17.8%, respectively. This indicates that Omega is more efficient at converting its revenue into profits than its peers. However, its P/E ratio of 22.9x is higher than the sector average of 15.5x, suggesting that the company is trading at a premium to its earnings.
In summary, Omega Healthcare Investors demonstrates strong revenue growth and profitability margins, but its negative free cash flow and moderate leverage are areas of concern. The company's ability to generate positive free cash flow and manage its debt obligations will be critical for its long-term financial health and sustainability.
Valuation Assessment
Omega Healthcare Investors' valuation presents a mixed picture. The company's P/E ratio of 22.9x is significantly higher than the financials sector average of 15.5x, suggesting that the stock is trading at a premium relative to its earnings. This premium could be attributed to the company's strong profitability margins and consistent revenue growth. However, it also indicates that investors may have high expectations for the company's future performance, which could lead to downside risk if the company fails to meet those expectations.
The company's EV/EBITDA ratio of 8.7x is also higher than the sector average of 3.5x, further supporting the argument that the stock is relatively expensive. This higher EV/EBITDA ratio suggests that investors are willing to pay a premium for the company's earnings before interest, taxes, depreciation, and amortization. However, it also indicates that the company's enterprise value is high relative to its EBITDA, which could be a concern if the company's EBITDA growth slows down.
The company's negative free cash flow makes it difficult to assess its valuation based on traditional FCF yield metrics. The negative FCF indicates that the company is not generating enough cash from its operations to cover its capital expenditures and dividend payments, which raises concerns about its long-term financial sustainability. In this situation, investors may need to rely on other valuation metrics, such as dividend yield or net asset value, to assess the company's intrinsic value.
Considering the company's strong revenue growth, high profitability margins, and relatively stable business model, a premium valuation may be justified to some extent. However, the company's negative free cash flow and moderate leverage are areas of concern that should be taken into account when assessing its valuation. The higher P/E and EV/EBITDA ratios compared to the sector average suggest that the stock may be fully valued or even overvalued at the current price.
Overall, Omega Healthcare Investors' valuation appears to be relatively high compared to its sector peers. While the company's strong financial performance and stable business model may justify a premium valuation, the negative free cash flow and moderate leverage are factors that should be carefully considered. Investors should exercise caution and conduct thorough due diligence before investing in this stock.
Risk & Uncertainty
Omega Healthcare Investors faces several specific risks inherent to its business model and the long-term healthcare industry. One of the most significant risks is tenant concentration. A substantial portion of Omega's revenue is derived from a limited number of large operators. The financial distress or bankruptcy of one or more of these major tenants could have a material adverse impact on Omega's revenue and profitability. The company's ability to mitigate this risk depends on its ability to diversify its tenant base and carefully monitor the financial health of its operators.
Another key risk is the regulatory environment. The long-term healthcare industry is subject to extensive regulations, including reimbursement policies, quality standards, and licensing requirements. Changes in these regulations, particularly those related to Medicare and Medicaid reimbursement rates, could significantly impact the profitability of Omega's tenants and their ability to meet their lease obligations. The company must continuously monitor and adapt to these regulatory changes to minimize their potential impact.
The company also faces risks related to the quality and safety of care provided at its facilities. Negative publicity or regulatory sanctions related to poor quality of care could damage the reputation of Omega's tenants and lead to decreased occupancy rates. This, in turn, could negatively impact Omega's rental income. The company's ability to mitigate this risk depends on its ability to ensure that its tenants maintain high standards of care and comply with all applicable regulations.
Furthermore, Omega is exposed to risks related to interest rate fluctuations. As a REIT, the company relies on debt financing to fund its acquisitions and operations. Increases in interest rates could increase the company's borrowing costs and reduce its profitability. The company's ability to mitigate this risk depends on its ability to manage its debt portfolio effectively and hedge against interest rate fluctuations.
Bulls Say / Bears Say
The Bull Case
BULL VIEWOmega's consistent revenue growth and high operating margins demonstrate its ability to capitalize on the increasing demand for long-term healthcare facilities.
BULL VIEWThe company's focus on triple-net leases provides a stable and predictable revenue stream, mitigating some of the operational risks associated with direct healthcare service provision.
BULL VIEWOmega's attractive dividend yield makes it an appealing investment for income-seeking investors, particularly in a low-interest-rate environment.
The Bear Case
BEAR VIEWOmega's negative free cash flow raises concerns about its long-term financial sustainability and its ability to maintain its dividend payments.
BEAR VIEWThe company's high P/E and EV/EBITDA ratios suggest that the stock is overvalued, leaving limited upside potential for investors.
BEAR VIEWOmega's reliance on a limited number of large tenants exposes it to significant concentration risk, making it vulnerable to tenant bankruptcies or lease defaults.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score OHI and 4,400+ other equities.
OMEGA HEALTHCARE INVESTORS INC exhibits a 605% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
5.5%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
40.9%
Sector: 21.8%
Net Margin
Bottom-line profitability
47.8%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+156%
Income Projection audit
A $10,000 investment would generate approximately $635 annually in dividends at the current trailing rate.
