One-glance verdict
Within fair range
$58.31 our estimate vs market $47.99
Wall Street consensus: $51.37 (-11.9% lower than our fair-value estimate)
18% below our estimate
Fundamentals snapshot
Omega Healthcare Investors, Inc.
OHI · NYQ · Real Estate · REIT - Healthcare Facilities
Current price
$47.99
52-week range
$41.53 - $52.39
Market cap
$15.32B
Balance sheet
Stretched
3.46x Stretched
Net debt $3.83B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 10.2% last year.
- Reward Returns 14.5% on equity, ahead of 83% of its peers.
- Risk Forward P/E (23.6x) is higher than trailing (19.9x) - earnings are expected to drop.
- Risk Insider ownership is only 0.2% (peer median: 0.5%).
What this company does
Omega Healthcare Investors, Inc.
Omega Healthcare Investors (OHI) is like a landlord for healthcare buildings, mainly owning places where people get skilled nursing care or assisted living. Most of its income comes from healthcare companies renting these buildings from OHI, where the renters handle most of the building's expenses like taxes and repairs. This setup matters because it means OHI gets a pretty steady stream of rent payments, which helps them pay out money to their investors.
How the company got here
Omega Healthcare Investors (OHI) was founded in 1992 and became a publicly traded company on the New York Stock Exchange in 1992. Over the years, it has grown by focusing on the healthcare real estate sector, particularly skilled nursing and assisted living facilities. Key milestones include the merger with Aviv REIT in 2015 and the acquisition of MedEquities Realty Trust in 2019, which expanded its portfolio and market presence. The company's strategy has consistently aimed to provide strong returns to investors while being a reliable capital partner for healthcare operators.
What it actually does
Omega Healthcare Investors is a real estate investment trust (REIT) that owns and finances healthcare properties. Instead of providing direct care to patients, Omega acts as a landlord and lender to healthcare companies that operate facilities like skilled nursing homes and assisted living centers. It generates revenue primarily through rental income from these properties and interest from mortgage loans it provides to operators. Essentially, Omega provides the real estate capital that allows healthcare providers to focus on patient care.
Healthcare Real Estate Investments
This is Omega's primary business. The company owns a large portfolio of real estate, mainly skilled nursing facilities (SNFs) and assisted living facilities (ALFs). Think of them as specialized buildings designed for long-term care and senior living. Omega leases these properties to various healthcare companies, who then manage the day-to-day operations, staffing, and resident care. The revenue from this segment comes from the rent these operators pay to Omega under long-term lease agreements, often structured as 'triple-net leases' where the tenant pays for property taxes, insurance, and maintenance. This segment represents the core of Omega's business and is the largest contributor to its revenue.
Mortgage Loans and Structured Finance
In addition to owning properties, Omega also provides financing to healthcare operators through mortgage loans and other structured finance arrangements. This means Omega lends money to these operators, secured by their real estate assets. The revenue from this segment comes from the interest payments these operators make on the loans. This business line complements its real estate ownership by offering flexible capital solutions to its partners, helping them grow or manage their operations. This segment is a smaller but important part of Omega's overall revenue generation.
What management is betting on now
Omega's current strategy focuses on enhancing the quality of its real estate portfolio and working closely with its operating partners. Management is selectively investing in well-maintained properties with experienced operators in demographically favorable locations. They are also expanding their investment strategies to include joint ventures and RIDEA (REIT Investment Diversification and Empowerment Act) structures, which allow for more direct participation in asset performance and growth. This approach aims to ensure consistent returns for investors while supporting the growth and operational success of their healthcare provider tenants.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$213.49M
FY2025 Q1
$161.78M
FY2025 Q2
$226.50M
FY2025 Q3
$205.48M
FY2025 Q4
$203.93M
FY2026 Q1
$206.74M
FY2026 Q2
$199.81M
FY2026 Q3
$166.44M
Revenue
$340.55M
Net income
$83.09M
Diluted EPS
0.27
Operating cash flow
$191.02M
Free cash flow
$166.44M
Fetching…
Sources
Revenue
$328.25M
Net income
$362.82M
Diluted EPS
1.19
Operating cash flow
$217.72M
Free cash flow
$199.81M
Fetching…
Sources
Revenue
$322.95M
Net income
$151.05M
Diluted EPS
0.47
Operating cash flow
$215.50M
Free cash flow
$206.74M
Fetching…
Sources
Revenue
$319.22M
Net income
$164.84M
Diluted EPS
0.56
Operating cash flow
$230.62M
Free cash flow
$203.93M
Fetching…
Sources
Revenue
$311.59M
Net income
$179.72M
Diluted EPS
0.59
Operating cash flow
$226.71M
Free cash flow
$205.48M
Fetching…
Sources
Revenue
$282.51M
Net income
$136.60M
Diluted EPS
0.46
Operating cash flow
$239.26M
Free cash flow
$226.50M
Fetching…
Sources
Revenue
$276.79M
Net income
$109.03M
Diluted EPS
0.33
Operating cash flow
$181.95M
Free cash flow
$161.78M
Fetching…
Sources
Revenue
$279.32M
Net income
$113.34M
Diluted EPS
0.41
Operating cash flow
$228.97M
Free cash flow
$213.49M
Fetching…
Sources
Is it cheap or expensive?
Fair value $58.31 vs current price $47.99
Wall Street consensus is the average analyst price target: $51.37 (-11.9% lower than our fair-value estimate).
Our most-likely fair value is $58.31 a share — about 21.5% away from today's price of $47.99, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $3.8B. Interest coverage 3.5x.
Net debt
$3.83B
Interest coverage
3.46x
Omega Healthcare Investors, Inc.'s profit covers its interest bill about 3.5 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
OHI
BASELINE
Omega Healthcare Investors, Inc.
Total debt $4.02B Interest coverage 3.46x This is the baseline the peer rows are being compared against.
Total debt $21.19B Interest coverage 0.54x -84% vs OHI Carries about 6.4x less debt cushion than OHI.
Total debt $12.67B Interest coverage 1.40x -60% vs OHI Carries about 2.5x less debt cushion than OHI.
Total debt $9.67B Interest coverage 1.78x -48% vs OHI Carries about 1.9x less debt cushion than OHI.
Total debt $2.44B Interest coverage 2.35x -32% vs OHI Carries about 1.5x less debt cushion than OHI.
Total debt $1.28B Interest coverage 3.53x +2% vs OHI Has roughly the same debt cushion as OHI.
What you should know
The case for and against OHI
3 Rewards
2 Risks
Rewards
-
Revenue grew 10.2% last year.
-
Returns 14.5% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (23.6x) is higher than trailing (19.9x) - earnings are expected to drop.
-
Insider ownership is only 0.2% (peer median: 0.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
19.91x
Forward P/E
23.57x
P/B
2.65x
P/S
12.17x
EV/EBITDA
16.21x
PEG ratio
11.99x
Profitability
How much profit each dollar creates
Gross margin
95.8%
Operating margin
68.2%
Net margin
60.5%
ROE
14.5%
ROA
5.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.70x
Current ratio
1.48x
Quick ratio
1.40x
Total debt
$4.02B
Total cash
$195.90M
Growth
How the business has been compounding
Revenue TTM
$1.31B
Revenue 5Y CAGR
2.9%
EPS TTM
2.41
EPS 5Y CAGR
2.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$854.87M
Free CF TTM
$797.68M
FCF margin
60.8%
Dividend
Shareholder payout
Yield
5.5%
Payout ratio
108.9%
Last ex-div date
2026-11-05