Omega Healthcare Investors (BSP:O2HI34) Interest Coverage: 4.16 (As of Mar. 2026) — 61% Above Median


BSP:O2HI34 Omega Healthcare Investors Inc BSP:O2HI34
49 GF Score
Price R$77.02
GF Value R$62.11
Valuation Modestly Overvalued
! 6 Warning Signs
View Full Analysis

What is Omega Healthcare Investors Interest Coverage?

Omega Healthcare Investors BSP:O2HI34 -0.03% 49 Interest Coverage is 4.16 as of Mar. 2026, which is 61% above its 10-year median of 2.59. GuruFocus rates BSP:O2HI34 with a GF Score™ of 49/100 and a GF Value™ of R$62.11 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 701 REITs companies, Omega Healthcare Investors ranks better than 58.92% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Omega Healthcare Investors's Operating Income for the three months ended in Mar. 2026 was R$1,083 Mil. Omega Healthcare Investors's Interest Expense for the three months ended in Mar. 2026 was R$-260 Mil. Omega Healthcare Investors's interest coverage for the quarter that ended in Mar. 2026 was 4.16. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Omega Healthcare Investors's Interest Coverage or its related term are showing as below:

BSP:O2HI34' s Interest Coverage Range Over the Past 10 Years
Min: 1.68   Med: 2.59   Max: 3.74
Current: 3.74


BSP:O2HI34's Interest Coverage is ranked better than
58.92% of 701 companies
in the REITs industry
Industry Median: 3.12 vs BSP:O2HI34: 3.74

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Omega Healthcare Investors  (BSP:O2HI34) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Omega Healthcare Investors Interest Coverage Related Terms


Omega Healthcare Investors Interest Coverage Historical Data

* Premium members only.

The historical data trend for Omega Healthcare Investors's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Omega Healthcare Investors Interest Coverage Chart

Omega Healthcare Investors Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.41 1.68 2.08 2.98 3.46

Omega Healthcare Investors Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.99 3.40 3.55 3.90 4.16

BSP:O2HI34 vs DOC, AHR, CTRE: Interest Coverage Comparison

For the REIT - Healthcare Facilities subindustry, Omega Healthcare Investors's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Omega Healthcare Investors Interest Coverage vs REITs Industry

For the REITs industry and Real Estate sector, Omega Healthcare Investors's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Omega Healthcare Investors's Interest Coverage falls into.


BSP:O2HI34
49GF Score
Omega Healthcare Investors Inc BSP:O2HI34
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Omega Healthcare Investors Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Omega Healthcare Investors's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Omega Healthcare Investors's Interest Expense was R$-1,173 Mil. Its Operating Income was R$4,059 Mil. And its Long-Term Debt & Capital Lease Obligation was R$21,899 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*4058.719/-1173.166
=3.46

Omega Healthcare Investors's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Omega Healthcare Investors's Interest Expense was R$-260 Mil. Its Operating Income was R$1,083 Mil. And its Long-Term Debt & Capital Lease Obligation was R$21,004 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*1082.94/-260.199
=4.16

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 4.16 mean?
Omega Healthcare Investors (BSP:O2HI34) has a Interest Coverage of 4.16 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Omega Healthcare Investors and its competitors. This is 61% above median its historical median of 2.59. Over the past decade, Omega Healthcare Investors' Interest Coverage has ranged from 1.68 to 3.74. According to the industry distribution chart, Omega Healthcare Investors ranks #288 out of 701 companies in the REITs industry, placing it in the top 41.1%.
Is Omega Healthcare Investors' Interest Coverage too high?
Omega Healthcare Investors' current Interest Coverage of 4.16 is 61% above median its 10-year median of 2.59. Over the past 10 years, this metric has ranged from a low of 1.68 to a high of 3.74. The REITs industry median Interest Coverage is 3.12. Omega Healthcare Investors' value of 4.16 is 33.3% above this industry median. Based on the distribution chart, Omega Healthcare Investors ranks #288 out of 701 companies in the REITs industry, which is above the industry midpoint. Overall, Omega Healthcare Investors has a GF Score™ of 49/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Omega Healthcare Investors' Interest Coverage compare to DOC and AHR?
According to the REITs industry distribution chart, Omega Healthcare Investors ranks #288 out of 701 companies for Interest Coverage. This puts Omega Healthcare Investors in the upper half of its industry. The industry median Interest Coverage is 3.12. Omega Healthcare Investors' value of 4.16 is 33.3% above this benchmark. Historically, Omega Healthcare Investors' own Interest Coverage has ranged from 1.68 to 3.74 over the past decade. While the company's 10-year median is 2.59 vs. the industry median of 3.12, Omega Healthcare Investors has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a REITs company?
The median Interest Coverage among REITs companies is 3.12, based on 701 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Omega Healthcare Investors's current Interest Coverage of 4.16 is 33.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Omega Healthcare Investors and its competitors. For the REITs industry, the median Interest Coverage is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Omega Healthcare Investors's current Interest Coverage is 4.16, which is 61% above median its own 10-year median of 2.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Omega Healthcare Investors stock overvalued right now?
Based on GuruFocus' analysis, Omega Healthcare Investors (BSP:O2HI34) is currently considered Modestly Overvalued. The stock's GF Value™ is R$62.11, compared to a current price of R$77.02 — trading 24% above its estimated fair value. The current Interest Coverage is 4.16, which is 61% above median its 10-year median of 2.59 and 33.3% above the REITs industry median of 3.12. Omega Healthcare Investors' overall GF Score™ is 49/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Omega Healthcare Investors (BSP:O2HI34), the current Interest Coverage is 4.16 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Omega Healthcare Investors (BSP:O2HI34) Overvalued in 2026?

Based on GuruFocus' analysis, Omega Healthcare Investors stock appears to be overvalued. The current stock price of R$77.02 is trading 24% above its estimated GF Value™ of R$62.11. GuruFocus considers Omega Healthcare Investors to be Modestly Overvalued.

Key valuation signals for BSP:O2HI34:

  • Interest Coverage: 4.16 (61% above median its 10-year median of 2.59)
  • GF Value™: R$62.11 vs. price of R$77.02 (24% above fair value)
  • GF Score™: 49/100 with 6 warning signs
  • Industry Position: 33.3% above the REITs median (#288 of 701)

No single metric tells the full story. See the BSP:O2HI34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Omega Healthcare Investors Business Description

Industry Real EstateREITs
Address 303 International Circle, Suite 200, Hunt Valley, MD, USA, 21030
Omega Healthcare Investors Inc is a real estate investment trust that invests in healthcare-related real estate properties located in the United States (U.S.), the United Kingdom (U.K.), and Canada. The company's objective is to provide attractive returns to investors while serving as the preferred capital partner to its third-party healthcare operating companies and affiliates, as well as other third-party healthcare operators, allowing them to focus on delivering a high level of care to their resident patients. Omega's investment portfolio mainly consists of skilled nursing facilities, assisted living facilities (ALFs), including care homes in the U.K., independent living facilities, rehabilitation and acute care facilities, and continuing care retirement communities.
49GF Score

Get the complete analysis for BSP:O2HI34

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R$77.02
Price
R$62.11
GF Value