Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
As of Mar. 2026, Omega Healthcare Investors has a Sloan Ratio of 5.57%, indicating the company is in the safe zone and there is no funny business with accruals.
Omega Healthcare Investors (BSP:O2HI34) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, Omega Healthcare Investors has a Sloan Ratio of 5.57%, indicating the company is in the safe zone and there is no funny business with accruals.
Omega Healthcare Investors Sloan Ratio % Related Terms
Omega Healthcare Investors Sloan Ratio % Historical Data
* 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.
BSP:O2HI34 vs DOC, AHR, CTRE: Sloan Ratio % Comparison
For the REIT - Healthcare Facilities subindustry, Omega Healthcare Investors's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs REITs Industry
For the REITs industry and Real Estate sector, Omega Healthcare Investors's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Omega Healthcare Investors's Sloan Ratio % falls into.
Omega Healthcare Investors Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Omega Healthcare Investors's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 757.551 (Jun. 2025 ) + 963.833 (Sep. 2025 ) + 899.29 (Dec. 2025 ) + 789.926 (Mar. 2026 ) = R$3,411 Mil.
Omega Healthcare Investors's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 1326.916 (Jun. 2025 ) + 1215.867 (Sep. 2025 ) + 1258.194 (Dec. 2025 ) + 1126.989 (Mar. 2026 ) = R$4,928 Mil.
Omega Healthcare Investors's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -2570.739 (Jun. 2025 ) + -449.414 (Sep. 2025 ) + -63.87 (Dec. 2025 ) + -1412.06 (Mar. 2026 ) = R$-4,496 Mil.
* 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.
Omega Healthcare Investors (BSP:O2HI34) has a Sloan Ratio % of 5.57% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Omega Healthcare Investors and its competitors.
Is Omega Healthcare Investors' Sloan Ratio % too high?
Omega Healthcare Investors' current Sloan Ratio % is 5.57%. 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' Sloan Ratio % compare to DOC and AHR?
Omega Healthcare Investors' Sloan Ratio % of 5.57% can be compared against companies in the REITs industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a REITs company?
A good Sloan Ratio % depends on the REITs industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Omega Healthcare Investors and its competitors. Omega Healthcare Investors's current Sloan Ratio % is 5.57%. 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$60.64, compared to a current price of R$77.02 — trading 27% above its estimated fair value. The current Sloan Ratio % is 5.57%. 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 Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Omega Healthcare Investors (BSP:O2HI34), the current Sloan Ratio % is 5.57% 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 27% above its estimated GF Value™ of R$60.64.
GuruFocus considers Omega Healthcare Investors to be Modestly Overvalued.
Key valuation signals for BSP:O2HI34:
Sloan Ratio %: 5.57%
GF Value™: R$60.64 vs. price of R$77.02 (27% above fair value)
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 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
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