Omnicell (OMCL) AI Stock Analysis

• Market Cap: $1.49B
• Dividend Yield: N/A
• Average Volume (3M): 585.71K
• Price to Earnings (P/E): 66.4
• Beta (1Y): 0.31
• Revenue Growth: 6.39%
• EPS Growth: N/A
• Country: US
• Employees: 3,620
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.45
• Shares Outstanding: 45,934,250
• 10 Day Avg. Volume: 473,623
• 30 Day Avg. Volume: 585,709
• PEG Ratio: -1.02
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 1.84
• P/FCF Ratio: 13.55
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 2.65
• Enterprise Value/Ebitda: 14.23
• 1Y Price Target: $41.75
• Price Target Upside: 31.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 70 Outperform
• Price Target: $36.00 ▲(12.99% Upside)

Omnicell's overall stock score reflects a stable financial performance with strong cash flow generation, positive technical momentum, and a favorable earnings call sentiment. However, the high P/E ratio suggests potential overvaluation, and challenges in revenue growth and operational efficiency remain concerns.

Omnicell Business Overview & Revenue Model

Company Description

Omnicell, Inc. is a leading healthcare technology company that specializes in medication management solutions and supply chain automation for hospitals and other healthcare facilities. Established to enhance patient safety and streamline pharmacy operations, Omnicell offers a range of products including automated dispensing systems, medication adherence solutions, and analytics software. The company primarily operates in the healthcare sector and serves various healthcare providers by optimizing medication delivery and inventory management.

How the Company Makes Money

Omnicell generates revenue through several key streams, primarily by selling its automated medication management systems and related services to healthcare providers. The company offers a subscription-based model for its software solutions, which provides ongoing revenue through software licenses and support services. Additionally, Omnicell benefits from recurring revenue through maintenance contracts and upgrades for its hardware systems. Strategic partnerships with healthcare organizations and technology providers further enhance its market reach and contribute to its earnings. The company also invests in research and development to innovate its product offerings, ensuring they meet the evolving needs of the healthcare sector, which can lead to increased sales and market penetration.

Omnicell Financial Statement Overview

Summary

Omnicell's financials reflect a stable yet unremarkable performance. The company maintains healthy profit margins and a stable equity base, but faces challenges in revenue growth and operational efficiency. Cash flow generation remains strong, providing a cushion against potential downturns. However, the decline in free cash flow growth could pose a risk if not addressed.

Income Statement

The company shows a mixed performance in its income statement. The TTM Gross Profit Margin is 43.7%, indicating good control over production costs. However, the Net Profit Margin is low at 2.0%, highlighting challenges in managing other operating expenses. Revenue has decreased when comparing the recent annual figures, showing a decline of 12.1% from 2022 to 2023. EBIT and EBITDA margins in the TTM are also low, at 1.3% and 5.2% respectively, indicating low operational efficiency.

Balance Sheet

The balance sheet indicates a moderate financial position. The Debt-to-Equity Ratio stands at 0.29, suggesting a manageable level of debt relative to equity. The Return on Equity (ROE) for the TTM is 1.8%, which is relatively low but positive. The Equity Ratio is healthy at 58.9%, showing a strong equity base relative to total assets, contributing to financial stability.

Cash Flow

Cash flow statements reveal a positive outlook, with a TTM Operating Cash Flow to Net Income Ratio of 6.4, indicating robust cash generation relative to net income. However, the Free Cash Flow Growth Rate from the previous annual report is negative at -32.3%, indicating a decline in free cash flow. The Free Cash Flow to Net Income Ratio is 4.4, showing good cash flow coverage of net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.15B	1.11B	1.15B	1.30B	1.13B	892.21M
Gross Profit	502.64M	471.00M	499.93M	588.99M	554.65M	413.29M
EBITDA	93.75M	90.09M	60.69M	96.85M	174.44M	107.12M
Net Income	23.09M	12.53M	-20.37M	5.65M	77.85M	32.19M
Balance Sheet
Total Assets	2.15B	2.12B	2.23B	2.21B	2.14B	1.82B
Cash, Cash Equivalents and Short-Term Investments	399.00M	381.68M	467.97M	330.36M	349.05M	485.93M
Total Debt	372.56M	382.55M	614.09M	616.74M	528.06M	516.10M
Total Liabilities	881.88M	877.65M	1.04B	1.08B	995.81M	857.00M
Stockholders Equity	1.26B	1.24B	1.19B	1.13B	1.15B	967.50M
Cash Flow
Free Cash Flow	102.37M	151.26M	126.08M	17.04M	173.47M	131.00M
Operating Cash Flow	147.75M	187.72M	181.09M	77.78M	231.81M	185.87M
Investing Cash Flow	-58.57M	-52.79M	-55.02M	-58.67M	-412.50M	-279.87M
Financing Cash Flow	-238.31M	-235.58M	23.42M	-20.95M	47.36M	456.27M

Omnicell Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 31.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMCL, the sentiment is Neutral. The current price of 31.86 is below the 20-day moving average (MA) of 32.37, above the 50-day MA of 30.55, and below the 200-day MA of 35.16, indicating a neutral trend. The MACD of 0.51 indicates Positive momentum. The RSI at 50.08 is Neutral, neither overbought nor oversold. The STOCH value of 37.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OMCL.

Omnicell Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSTM	75 Outperform	$832.62M	42.22	5.81%	0.42%	3.50%	13.99%
OMCL	70 Outperform	$1.49B	66.43	1.87%	―	6.39%	―
PHR	66 Neutral	$1.60B	―	-8.76%	―	15.31%	77.02%
PINC	61 Neutral	$2.24B	122.95	3.56%	3.10%	-24.79%	-78.38%
Sector *	51 Neutral	$7.90B	-0.36	-43.38%	2.23%	22.34%	-2.15%
SDGR	50 Neutral	$1.43B	―	-44.40%	―	18.59%	10.96%
TDOC	49 Neutral	$1.39B	―	-14.18%	―	-2.57%	79.86%

Omnicell Corporate Events

Omnicell Appoints New CFO Baird Radford

Omnicell, Inc. announced the appointment of Baird Radford as Executive Vice President and Chief Financial Officer, effective August 26, 2025. Radford, with over 30 years of experience in healthcare and technology finance, succeeds Nchacha Etta, who will remain as an executive adviser until November 2025. This leadership change is part of Omnicell’s strategy to align its financial strategy with its innovation roadmap, enhancing its position as a digitally-enabled medication management technology company.