NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- OHI's revenue growth has slightly outpaced the industry average of 17.9%. Since the same quarter one year prior, revenues rose by 19.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 541.1% when compared to the same quarter one year prior, rising from -$5.91 million to $26.08 million.
- Net operating cash flow has increased to $49.54 million or 28.00% when compared to the same quarter last year. In addition, OMEGA HEALTHCARE INVS INC has also modestly surpassed the industry average cash flow growth rate of 25.82%.
- The gross profit margin for OMEGA HEALTHCARE INVS INC is rather high; currently it is at 60.90%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 30.90% trails the industry average.
Omega Healthcare Investors, Inc. operates as a real estate investment trust (REIT) in the United States. The company invests in healthcare facilities, principally long-term healthcare facilities in the United States. The company has a P/E ratio of 25.8, below the average real estate industry P/E ratio of 26.1 and above the S&P 500 P/E ratio of 17.7. Omega Healthcare Investors has a market cap of $2.24 billion and is part of the
industry. Shares are up 8.5% year to date as of the close of trading on Wednesday.
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-- Written by a member of TheStreet Ratings Staff
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.