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Omnicell (OMCL)
NASDAQ:OMCL
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Omnicell
(NASDAQ:OMCL)
60Neutral
Positive Factors
Guidance
The reaffirmed guidance is viewed as a positive.
Market Position
OMCL is a fairly unique HCIT asset, operating in a duopoly and generating a majority of revenue under sole source relationships with over half of the 300 largest U.S. health systems.
Revenue and Margins
Non-GAAP EBITDA was guided above ’25 consensus, underscoring the positive gross margin impact of the new XT products.
Negative Factors
Management Transition
The CFO transition adds incremental execution risk in the near term.
Product Bookings Guidance
OMCL ended the day 11% lower as investors responded to soft 2025 product bookings guidance.
Stock Price Objective
The price objective is lowered to $38 from $46, reflecting incremental execution risk given the management transition and peer group multiple compression.
Omnicell (OMCL) vs. S&P 500 (SPY)
Market Cap
$1.61B
Dividend YieldN/A
Average Volume (3M)571.56K
Price to Earnings (P/E)131.3
Beta (1Y)0.15
Revenue Growth-3.04%
EPS GrowthN/A
CountryUS
Employees3,650
SectorHealthcare
Sector Strength64
IndustryHealthcare Providers & Services
Share Statistics
EPS (TTM)0.26
Shares Outstanding46,759,415
10 Day Avg. Volume750,178
30 Day Avg. Volume571,564
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.43
Price to Cash Flow (P/CF)7.10
P/FCF Ratio8.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$49.00Price Target Upside38.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Omnicell Business Overview & Revenue Model
Company DescriptionOmnicell, Inc. (OMCL) is a leading provider of medication management solutions and adherence tools for healthcare systems and pharmacies. The company operates in the healthcare technology sector, offering a suite of products designed to enhance medication management and patient safety. Its core products include automated dispensing systems, medication adherence solutions, and analytics software that enable healthcare providers to improve operational efficiency, reduce medication errors, and ensure regulatory compliance.
How the Company Makes MoneyOmnicell makes money primarily through the sale and leasing of its automated medication management systems and related services. The company generates revenue from several key streams: product sales, which include automated dispensing cabinets and medication adherence tools; service and maintenance contracts that provide ongoing support and ensure system functionality; and subscription-based software solutions that offer analytics and reporting services. Partnerships with healthcare facilities, pharmacies, and integrated delivery networks play a significant role in expanding its customer base and driving sales. Additionally, Omnicell benefits from recurring revenue through multi-year service agreements and software subscriptions, contributing to a stable and growing income stream.
Omnicell Financial Statement Overview
Summary
Omnicell exhibits stable financial performance with strong cash flow generation and a solid balance sheet. However, challenges in revenue growth and profitability margins are apparent, necessitating improvements in operational efficiency and profitability.Income Statement
Omnicell's income statement presents a mixed performance. The TTM (Trailing-Twelve-Months) revenue shows a decline, with a revenue growth rate of -3.04% compared to the previous year. The gross profit margin is 42.57%, indicating a solid ability to manage production costs. However, the net profit margin is only 1.13%, reflecting challenges in controlling operating expenses. EBIT and EBITDA margins are below industry standards, at 0.31% and 4.16%, respectively, indicating room for improvement in operational efficiency.62
Positive
Balance Sheet
The balance sheet of Omnicell is relatively strong, with a debt-to-equity ratio of 0.30, demonstrating a conservative use of leverage. The return on equity (ROE) is 1.01%, which is low, indicating limited returns on shareholders' equity. The equity ratio stands at 58.62%, which is robust, showing a healthy proportion of equity financing relative to total assets. Overall, the balance sheet reflects stability with manageable liabilities.75
Positive
Cash Flow
Omnicell's cash flow statement shows a positive trajectory. The free cash flow growth rate is 10.58%, signaling good cash generation capability. The operating cash flow to net income ratio is 14.98, which is strong, suggesting that operating cash flow significantly exceeds net income. The free cash flow to net income ratio is 11.12, reinforcing efficient cash generation. However, high capital expenditures could be a potential concern if not managed effectively.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.11B | 1.15B | 1.30B | 1.13B | 892.21M | Gross Profit |
| 471.00M | 499.93M | 588.99M | 554.65M | 413.29M | EBIT |
| 337.00K | -34.87M | -2.32M | 89.51M | 35.53M | EBITDA |
| 337.00K | 60.69M | 96.85M | 174.44M | 107.12M | Net Income Common Stockholders |
| 12.53M | -20.37M | 5.65M | 77.85M | 32.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 369.20M | 467.97M | 330.36M | 349.05M | 485.93M | Total Assets |
| 2.12B | 2.23B | 2.21B | 2.14B | 1.82B | Total Debt |
| 371.84M | 614.09M | 616.74M | 528.06M | 516.10M | Net Debt |
| 2.64M | 146.12M | 286.38M | 179.01M | 30.17M | Total Liabilities |
| 877.65M | 1.04B | 1.08B | 995.81M | 857.00M | Stockholders Equity |
| 1.24B | 1.19B | 1.13B | 1.15B | 967.50M |
| Cash Flow | Free Cash Flow | |||
| 151.26M | 126.08M | 17.04M | 173.47M | 131.00M | Operating Cash Flow |
| 187.72M | 181.09M | 77.78M | 231.81M | 185.87M | Investing Cash Flow |
| -52.79M | -55.02M | -58.67M | -412.50M | -279.87M | Financing Cash Flow |
| -235.58M | 23.42M | -20.95M | 47.36M | 456.27M |
Omnicell Technical Analysis
Negative
35.35
Price Trends
39.22
Negative
42.58
Negative
39.91
Negative
Market Momentum
-1.36
Negative
44.93
Neutral
81.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMCL, the sentiment is Negative. The current price of 35.35 is above the 20-day moving average (MA) of 35.23, below the 50-day MA of 39.22, and below the 200-day MA of 39.91, indicating a neutral trend. The MACD of -1.36 indicates Negative momentum. The RSI at 44.93 is Neutral, neither overbought nor oversold. The STOCH value of 81.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OMCL.
Omnicell Risk Analysis
Omnicell disclosed 42 risk factors in its most recent earnings report. Omnicell reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Omnicell Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $65.67B | 37.88 | 6.92% | 1.71% | 5.89% | 42.05% | |
73 Outperform | $22.02B | 24.90 | 7.24% | 0.87% | 3.84% | -9.29% | |
67 Neutral | $13.64B | 19.45 | 15.78% | ― | 1.75% | 50.25% | |
64 Neutral | $9.09B | 116.65 | -25.23% | ― | 2.26% | -467.23% | |
60 Neutral | $1.61B | 131.34 | 1.03% | ― | -3.04% | ― | |
49 Neutral | $6.86B | 0.72 | -52.93% | 2.49% | 20.83% | 1.11% |
* Healthcare Sector Average
Performance Comparison
OMCL
Omnicell
35.35
6.72
23.47%
BDX
Becton Dickinson
228.71
-11.15
-4.65%
HOLX
Hologic
62.32
-13.80
-18.13%
MASI
Masimo
168.47
23.64
16.32%
ZBH
Zimmer Biomet Holdings
112.15
-16.73
-12.98%
Omnicell Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -20.35% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance with revenue growth, profitability, and significant customer wins. However, challenges include a decreased cash balance and flat product bookings outlook for 2025.Highlights
Impressive Revenue Growth
Total revenues for Q4 2024 were $307 million, an increase of $24 million over the prior quarter and $48 million over Q4 2023. Product revenues were $182 million, up $24 million from the previous quarter and $37 million from Q4 2023.
Return to Profitability
Omnicell reported a Q4 2024 GAAP earnings per share of $0.34, compared to a loss of $0.32 per share in Q4 2023.
Strong Bookings Performance
Full year 2024 bookings were $923 million, exceeding guidance and representing a $69 million increase compared to full year 2023.
Innovative Product Demand
Demand for XT Amplify program products and XTExtend showed solid growth, contributing to improved bookings performance.
Positive Customer Wins
Significant contracts were secured with NYC Health + Hospitals and other healthcare systems for XT automated cabinets and inventory optimization services.
Lowlights
Decreased Cash Balance
Cash and cash equivalents fell to $369 million at the end of Q4 2024 from $571 million in the previous quarter, primarily due to convertible senior notes transactions.
Flat Product Bookings Outlook
Product bookings for 2025 are projected to be flat to modestly down compared to 2024, reflecting the conclusion of the XT replacement cycle.
Competitive Market Pressures
The introduction of new dispensing cabinets by a competitor might increase pressure on Omnicell to secure market share.
Company Guidance
During the Omnicell Fourth Quarter and Full Year 2024 Financial Results Call, the company provided detailed guidance on several key metrics. For 2025, they anticipate product bookings to range between $500 million and $550 million, suggesting a flat to modest decline compared to 2024's $558 million. They also introduced a new metric, annual recurring revenue (ARR), expected to be between $610 million and $630 million, up from $580 million at the end of 2024. Total revenue for 2025 is projected to be between $1.105 billion and $1.155 billion, with non-GAAP EBITDA expected to range from $140 million to $155 million, reflecting an expansion of approximately 100 basis points. For the first quarter of 2025, total revenues are anticipated to be between $255 million and $265 million, with non-GAAP earnings per share expected to be between $0.15 and $0.25. These projections reflect the company's focus on driving growth through innovation, particularly in their XT Amplify offerings and expanding their SaaS and Expert Services.Omnicell Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Omnicell CFO Nchacha Etta Announces Departure
Neutral
Mar 12, 2025
On March 12, 2025, Omnicell announced that Nchacha Etta will step down as Executive Vice President and Chief Financial Officer, effective September 15, 2025, or until a successor is named. Etta will assist in the transition while the company conducts a national search for his replacement. His departure is not due to any disagreement with the company, and he is credited with significant contributions to Omnicell’s growth. Additionally, Omnicell reiterated its first quarter and full year 2025 guidance, emphasizing its focus on strategic priorities and long-term revenue growth.
Executive/Board Changes
Omnicell Secures CEO Randall Lipps Through 2027
Neutral
Mar 4, 2025
On March 4, 2025, Omnicell, Inc. announced an employment agreement with Randall A. Lipps, ensuring his role as President and CEO through December 31, 2027. The agreement outlines compensation and benefits, including a base salary, bonuses, and equity incentives. It also details severance packages and conditions under which Mr. Lipps would receive them, impacting the company’s leadership stability and potentially influencing investor confidence.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.