Omnicell (OMCL) AI Stock Analysis

• Market Cap: $1.45B
• Dividend Yield: N/A
• Average Volume (3M): 724.92K
• Price to Earnings (P/E): 68.2
• Beta (1Y): 0.31
• Revenue Growth: 3.00%
• EPS Growth: N/A
• Country: US
• Employees: 3,620
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.26
• Shares Outstanding: 46,843,605
• 10 Day Avg. Volume: 486,919
• 30 Day Avg. Volume: 724,925
• PEG Ratio: 0.56
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.66
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 2.58
• Enterprise Value/Ebitda: 5.59
• 1Y Price Target: $40.40
• Price Target Upside: 27.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 67 Neutral
• Price Target: $34.00 ▲(7.32%Upside)

Omnicell's overall stock score is bolstered by a robust financial position and positive corporate events, including a stock buyback program. However, high valuation concerns and tariff impacts on profitability weigh down the score. Technical indicators are mixed, offering a cautious outlook.

Positive Factors

Financial Guidance

Omnicell has lifted the low end of its adjusted EBITDA range for FY25 by $20 million, indicating a stronger financial performance outlook.

Product Innovation

Omnicell has executed well over the past few quarters utilizing product innovation and an improved demand environment to drive positive product revenue growth.

Stock Repurchase Program

The company announced a $75 million share repurchase program, suggesting confidence in the company's stock value.

Negative Factors

CFO Transition

Visibility remains challenged with a pending CFO change and still early days in new product growth.

Tariff Impact

There is a risk that tariffs could revert back to a high rate, which might negatively impact future adjusted EBITDA estimates.

Omnicell Business Overview & Revenue Model

Company Description

Omnicell, Inc., together with its subsidiaries, provides medication management solutions and adherence tools for healthcare systems and pharmacies the United States and internationally. The company offers point of care automation solutions to improve clinician workflows in patient care areas of the healthcare system; XT Series automated dispensing systems for medications and supplies used in nursing units and other clinical areas of the hospital, as well as specialized automated dispensing systems for operating room; Omnicell Interface Software that offers interface and integration between its medication-use products or supply products, and a healthcare facility's in-house information management systems; and robotic dispensing systems for handling the stocking and retrieval of boxed medications. It also provides central pharmacy automation solutions, including automated storage and retrieval systems, such as XR2 Automated Central Pharmacy System; IV compounding robots and workflow management systems; inventory management software; and controlled substance management systems. In addition, the company provides single-dose automation solutions that fill and label a variety of patient-specific, single-dose medication blister packaging based on incoming prescriptions; fully automated and semi-automated filling equipment for institutional pharmacies to warrant automated packaging of medications; and medication blister card packaging and packaging supplies to enhance medication adherence in non-acute care settings. Further, it offers EnlivenHealth Patient Engagement, a web-based nexus of solutions. The company was formerly known as Omnicell Technologies, Inc. and changed its name to Omnicell, Inc. in 2001. Omnicell, Inc. was incorporated in 1992 and is headquartered in Mountain View, California.

How the Company Makes Money

Omnicell generates revenue through the sale and leasing of its medication management and automation systems to hospitals, healthcare systems, and pharmacies. Key revenue streams include the direct sale of hardware products, such as automated dispensing cabinets, and software solutions for medication management. Additionally, Omnicell offers service contracts for maintenance and support, which provide a recurring revenue stream. The company also benefits from partnerships with healthcare providers and pharmaceutical companies, facilitating the integration of its solutions into broader healthcare management systems. These partnerships, along with ongoing advancements in healthcare technology, contribute significantly to Omnicell's earnings.

Omnicell Financial Statement Overview

Summary

Omnicell shows stable financial health with a strong balance sheet and good cash flow generation. However, it faces challenges in revenue growth and profitability margins, necessitating improvements in operational efficiency.

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.

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.

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.

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
90.09M	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
381.68M	467.97M	330.36M	349.05M	485.93M
	Total Assets
2.12B	2.23B	2.21B	2.14B	1.82B
	Total Debt
382.55M	614.09M	616.74M	528.06M	516.10M
	Net Debt
13.35M	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

• Technical Analysis Sentiment: Neutral
• Last Price: 31.68
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 31.68 is above the 20-day moving average (MA) of 29.33, above the 50-day MA of 30.31, and below the 200-day MA of 39.65, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 60.16 is Neutral, neither overbought nor oversold. The STOCH value of 84.31 is Negative, 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
PINC	76 Outperform	$1.89B	40.17	6.05%	3.66%	-17.69%	-10.24%
OMCL	67 Neutral	$1.45B	68.22	1.73%	―	3.00%	―
HSTM	64 Neutral	$870.89M	45.66	5.40%	0.41%	3.36%	7.51%
PHR	58 Neutral	$1.60B	―	-15.97%	―	16.29%	66.01%
SDGR	56 Neutral	$1.81B	―	-43.33%	―	22.29%	-32.89%
Sector *	54 Neutral	$5.31B	3.28	-45.10%	2.80%	16.76%	0.02%
TDOC	52 Neutral	$1.28B	―	-54.49%	―	-2.54%	-322.03%

Omnicell Corporate Events

Omnicell CFO Nchacha Etta to Step Down

Omnicell, Inc. announced that its Chief Financial Officer, Nchacha Etta, will step down from his role effective September 15, 2025, or until a successor is named. The company has entered into a separation agreement with Mr. Etta, extending his separation date to November 15, 2025, and outlining terms for his continued service and benefits, including a severance payment, bonus eligibility, and additional vesting credit for equity awards.

The most recent analyst rating on (OMCL) stock is a Buy with a $61.00 price target. To see the full list of analyst forecasts on Omnicell stock, see the OMCL Stock Forecast page.

Omnicell Stockholders Approve Key Proposals at Annual Meeting

On May 21, 2025, Omnicell, Inc. held its Annual Meeting where stockholders voted on several key proposals. Three directors, Edward P. Bousa, Mary Garrett, and Bruce E. Scott, were elected to the Board until 2028. The stockholders also approved executive officer compensation and an amendment to the 2009 Equity Incentive Plan, which includes an additional 1,750,000 shares for issuance. Additionally, Deloitte & Touche LLP was ratified as the independent accounting firm for 2025.

The most recent analyst rating on (OMCL) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Omnicell stock, see the OMCL Stock Forecast page.

Omnicell Updates 2025 Guidance and Stock Buyback Plan

On May 22, 2025, Omnicell announced an update to its second quarter and full-year 2025 guidance, reflecting improved profitability due to reduced tariff rates on imports from China. The company also introduced a new $75 million stock repurchase program, indicating confidence in its financial health and commitment to delivering innovative medication management solutions.

The most recent analyst rating on (OMCL) stock is a Buy with a $53.00 price target. To see the full list of analyst forecasts on Omnicell stock, see the OMCL Stock Forecast page.

Omnicell CFO Nchacha Etta Announces Departure

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.