Owens & Minor (OMI) AI Stock Analysis

• Market Cap: $630.34M
• Dividend Yield: N/A
• Average Volume (3M): 2.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: 3.55%
• EPS Growth: -757.75%
• Country: US
• Employees: 23,200
• Sector: Healthcare
• Sector Strength: 77
• Industry: Medical - Distribution
• EPS (TTM): -4.71
• Shares Outstanding: 77,247,284
• 10 Day Avg. Volume: 1,234,005
• 30 Day Avg. Volume: 2,000,300
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.06
• Price to Cash Flow (P/CF): 2.50
• P/FCF Ratio: 4.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.72
• Price Target Upside: 31.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

Owens & Minor's stock score reflects significant financial and operational challenges. The company's weak financial performance and valuation metrics are major concerns. Technical analysis indicates bearish conditions, further affirming the stock's current struggles. While recent earnings calls and corporate events provide some strategic positives, the overall outlook remains cautious, with financial instability overshadowing potential growth opportunities.

Positive Factors

Financial Performance

OMI reported adjusted EPS of $0.55, which was ahead of both internal estimates and Visible Alpha consensus.

Shareholder Value

The company announced a $100MM stock repurchase program, which is often viewed as a positive move for shareholder value.

Strategic Shift

OMI's decision to evaluate selling its Products & Healthcare Services (P&HS) segment is a strategic pivot to focus more heavily on Patient Direct (PD), which is a faster-growing business with a higher margin structure.

Negative Factors

Earnings Guidance

The adjusted EBITDA guide is below expectations, which may be a concern for some investors.

Growth Challenges

The patient eligibility backlog from the Change outage is seeming to take longer to clear, creating a near-term headwind weighing on growth for OMI's key high growth/high margin segment.

Market Sentiment

The new price objective considers a lower valuation framework reflecting elevated execution risk.

Owens & Minor Business Overview & Revenue Model

Company Description

Owens & Minor, Inc., together with its subsidiaries, operates as a healthcare solutions company in the United States and internationally. It operates through two segments, Global Solutions and Global Products. The Global Solutions segment offers a portfolio of products and services to healthcare providers and manufacturers. Its portfolio of medical and surgical supplies includes branded products and its proprietary products. This segment also offers services to healthcare providers, which include supplier management, analytics, inventory management, and clinical supply management; and various programs to provide logistics and marketing solutions to its suppliers. The Global Products segment manufactures and sources medical surgical products for the prevention of healthcare-associated infections across the acute and alternate site channels. This segments products portfolio includes sterilization wraps, surgical drapes and gowns, facial protection products, protective apparel, medical exam gloves, custom and minor procedure kits, and other medical products. It provides its products and services to multi-facility networks of healthcare providers, independent hospitals, surgery centers, physicians' practices, and networks of hospitals directly, as well as indirectly through third-party distributors. The company was founded in 1882 and is headquartered in Richmond, Virginia.

How the Company Makes Money

Owens & Minor generates revenue through its diverse business operations in the healthcare supply chain sector. The company's primary revenue streams include the distribution of medical and surgical supplies to healthcare facilities and the provision of supply chain management services. Additionally, Owens & Minor earns income from its proprietary product lines, which include a range of medical supplies and devices. The company maintains strategic partnerships with healthcare providers and manufacturers to enhance its service offerings and expand its market reach. Key factors contributing to the company's earnings include its ability to efficiently manage inventory and logistics, as well as its focus on providing value-added services that streamline healthcare operations for its clients.

Owens & Minor Financial Statement Overview

Summary

Owens & Minor is experiencing significant financial challenges, with declining revenues, negative profitability margins, and a deteriorating balance sheet. The absence of cash flow generation further compounds the company's financial instability. Immediate strategic focus on improving operational efficiency and strengthening liquidity is crucial to stabilize the company's financial health.

Income Statement

Owens & Minor has experienced inconsistent revenue growth, with a significant revenue decline in the most recent fiscal year. Gross profit margins have decreased sharply from 20.57% in the previous year to nearly zero, indicating pressure on cost management or revenue mix. The net profit margin is negative, driven by a substantial net loss in the latest period, reflecting operational challenges and possibly non-recurring expenses. EBIT and EBITDA margins have also turned negative, suggesting weakened operational efficiency.

Balance Sheet

The balance sheet shows a concerning drop in equity, primarily due to accumulated losses, leading to a negative equity position. The debt-to-equity ratio is not calculable due to zero equity, indicating significant financial instability. With total liabilities at zero for the latest year, this suggests potential restructuring or data inaccuracies. Historical data shows a high leverage position, posing a risk if cash flows remain weak. The equity ratio is currently zero, further highlighting the weak financial foundation.

Cash Flow

Owens & Minor's cash flow situation is troubling, with no reported operating or free cash flow in the latest year, pointing to liquidity issues. Historically, the company had a positive operating cash flow, but the recent absence of cash flow generation is a significant concern. The lack of free cash flow growth and negative operating cash flow to net income ratios reflect operational inefficiencies and financial distress.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.70B	10.33B	9.96B	9.79B	8.48B
	Gross Profit
20.74K	2.13B	1.83B	1.51B	1.28B
	EBIT
-1.94K	104.51M	194.80M	368.47M	204.12M
	EBITDA
-1.94K	400.29M	367.80M	415.46M	277.41M
	Net Income Common Stockholders
-362.69M	-41.30M	22.39M	221.59M	88.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
49.38M	243.04M	69.47M	55.71M	83.06M
	Total Assets
4.66B	5.09B	5.39B	3.54B	3.34B
	Total Debt
2.14B	2.32B	2.70B	1.11B	1.11B
	Net Debt
2.09B	2.08B	2.63B	1.05B	1.02B
	Total Liabilities
4.09B	4.17B	4.44B	2.60B	2.62B
	Stockholders Equity
565.23M	924.17M	945.60M	938.50M	712.05M
Cash Flow		Free Cash Flow
-66.67M	532.82M	158.42M	74.49M	280.03M
	Operating Cash Flow
161.50M	740.71M	325.01M	124.18M	339.22M
	Investing Cash Flow
-116.53M	-137.25M	-1.80B	-53.63M	80.07M
	Financing Cash Flow
-267.60M	-417.33M	1.50B	-129.48M	-379.39M

Owens & Minor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMI, the sentiment is Negative. The current price of 8.16 is below the 20-day moving average (MA) of 9.17, below the 50-day MA of 9.38, and below the 200-day MA of 13.08, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 47.65 is Neutral, neither overbought nor oversold. The STOCH value of 28.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OMI.

Owens & Minor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCK	77 Outperform	$85.61B	31.31	51.23%	0.40%	14.29%	-1.20%
HCA	73 Outperform	$81.65B	15.07	-230.22%	0.81%	8.67%	15.32%
HSIC	70 Outperform	$8.13B	21.45	11.07%	―	2.71%	-3.26%
CAH	61 Neutral	$31.31B	24.20	-43.80%	1.56%	2.85%	110.82%
BAX	54 Neutral	$14.77B	136.07	-9.24%	3.19%	-14.00%	-184.82%
Sector *	48 Neutral	$6.36B	1.14	-49.00%	2.63%	17.14%	1.39%
OMI	43 Neutral	$630.34M	―	-48.70%	―	3.55%	-757.75%

Owens & Minor Corporate Events

Owens & Minor Announces $1 Billion Notes Offering

On April 2, 2025, Owens & Minor announced the upsize and pricing of a $1 billion offering of 10.000% Senior Secured Notes due 2030, intended to finance the acquisition of Rotech Healthcare Holdings Inc. The offering is not contingent on the acquisition’s completion, and funds will be used for acquisition-related expenses and general corporate purposes. The acquisition is subject to customary closing conditions, and the notes will be secured by the company’s existing assets.

Owens & Minor Announces $600M Senior Notes Offering

On March 26, 2025, Owens & Minor announced a private offering of $600 million in Senior Secured Notes due 2030 to finance its proposed acquisition of Rotech Healthcare Holdings Inc. The offering is intended to support the acquisition and related transactions, including debt repayment and acquisition-related expenses, with any remaining proceeds used for working capital and general corporate purposes. The acquisition is subject to customary closing conditions, and the offering is not contingent upon its completion, highlighting strategic financial maneuvers to enhance the company’s market position.

Owens & Minor to Acquire Rotech Healthcare for $1.36B

Owens & Minor, Inc. announced a definitive agreement to acquire Rotech Healthcare Holdings, Inc., aiming to enhance its presence in the home healthcare market. The transaction, valued at $1.36 billion, is expected to close in the first half of 2025, subject to FTC review, and is anticipated to create a more competitive and diversified company, expanding its existing home-based care businesses.

Owens & Minor Reports 2024 Financial Results and Debt Reduction

On February 28, 2025, Owens & Minor announced its financial results for the fourth quarter and full year of 2024, highlighting a total debt reduction of $647 million over two years. The company is in active discussions to potentially sell its Products & Healthcare Services segment and has authorized a $100 million share repurchase program. The 2025 financial outlook indicates expectations for double-digit growth in adjusted EBITDA and EPS, with a focus on the high-growth Patient Direct segment.

Owens & Minor Reports 2024 Financial Results

On February 3, 2025, Owens & Minor, Inc. announced preliminary financial results for the fourth quarter and full year 2024 ahead of its scheduled earnings announcement. The company is initiating financing to support its acquisition of Rotech Healthcare Holdings, Inc., leveraging the current favorable capital market conditions. Despite a challenging year marked by a non-cash goodwill impairment charge of approximately $310 million, attributed to financial market changes and contract pricing adjustments, the company reported healthy growth in its Patient Direct segment and reduced total debt by over $240 million.