Education
About Us
Working with TipRanks
Follow Us
Owens & Minor (OMI)
NYSE:OMI
Top Page
Owens & Minor
(NYSE:OMI)39Underperform
Positive Factors
Shareholder Value
The company announced a $100MM stock repurchase program, which is often viewed as a positive move for shareholder value.
Strategic Focus
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
Financial Performance
The adjusted EBITDA guide is below expectations, which may be a concern for some investors.
Owens & Minor (OMI) vs. S&P 500 (SPY)
Market Cap
$738.70M
Dividend YieldN/A
Average Volume (3M)2.00M
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue Growth3.55%
EPS Growth-757.75%
CountryUS
Employees22,200
SectorHealthcare
Sector Strength74
IndustryMedical Distributors
Share Statistics
EPS (TTM)-4.71
Shares Outstanding77,247,284
10 Day Avg. Volume3,473,547
30 Day Avg. Volume2,004,908
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.07
Price to Cash Flow (P/CF)6.80
P/FCF Ratio78.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.90Price Target Upside12.26% Upside
Rating ConsensusHold
Number of Analyst Covering4
Owens & Minor Business Overview & Revenue Model
Company DescriptionOwens & Minor, Inc. (OMI) is a healthcare logistics company that specializes in the distribution of medical and surgical supplies, as well as the provision of supply chain management solutions. Operating primarily in the United States and Europe, Owens & Minor serves a wide range of healthcare providers including hospitals, integrated healthcare systems, and group purchasing organizations. The company also manufactures and distributes a variety of medical products, offering a comprehensive portfolio of solutions to enhance healthcare delivery.
How the Company Makes MoneyOwens & 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.45
Neutral
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.30
Negative
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.20
Very Negative
| 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
Negative
9.71
Price Trends
11.40
Negative
12.36
Negative
14.03
Negative
Market Momentum
-0.91
Negative
53.59
Neutral
90.34
Negative
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 9.71 is above the 20-day moving average (MA) of 7.89, below the 50-day MA of 11.40, and below the 200-day MA of 14.03, indicating a neutral trend. The MACD of -0.91 indicates Negative momentum. The RSI at 53.59 is Neutral, neither overbought nor oversold. The STOCH value of 90.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OMI.
Owens & Minor Risk Analysis
Owens & Minor disclosed 43 risk factors in its most recent earnings report. Owens & Minor 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
Owens & Minor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $80.67B | 29.50 | 51.23% | 0.41% | 14.29% | -1.20% | |
66 Neutral | $8.96B | 23.20 | 11.49% | ― | 2.71% | -3.26% | |
65 Neutral | $77.50B | 14.18 | -230.22% | 0.85% | 8.67% | 15.32% | |
60 Neutral | $31.28B | 24.17 | -43.80% | 1.56% | 2.85% | 110.82% | |
54 Neutral | $17.66B | 136.07 | -4.48% | 2.64% | -14.00% | -184.82% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
39 Underperform | $738.70M | ― | -64.17% | ― | 3.55% | -757.75% |
* Healthcare Sector Average
Performance Comparison
OMI
Owens & Minor
9.71
-14.91
-60.56%
BAX
Baxter International
34.79
-6.52
-15.78%
CAH
Cardinal Health
126.31
15.46
13.95%
HCA
HCA Healthcare
312.05
-1.04
-0.33%
HSIC
Henry Schein
70.31
-5.10
-6.76%
MCK
McKesson
643.69
117.29
22.28%
Owens & Minor Earnings Call Summary
Earnings Call Date: Feb 28, 2025 | % Change Since: 40.93% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Neutral
The earnings call revealed several positive developments, including debt reduction, growth in the Patient Direct segment, and a new share repurchase program. However, there were notable challenges such as the impact of IV fluid shortages, a significant goodwill impairment charge, increased expenses, and flat gross margins. Although there are positive long-term prospects, immediate challenges balance the sentiment.Highlights
Debt Reduction Achievement
Owens & Minor repaid $647 million of debt over the last two years, which provides financial flexibility for future acquisitions.
Mid-Single-Digit Growth in Patient Direct
The Patient Direct business outpaced market growth with mid-single-digit growth for both the quarter and the year, contributing over $13 million in incremental operating income.
Share Repurchase Program
The Board of Directors authorized a share repurchase program of up to $100 million.
2024 Financial Performance
Owens & Minor delivered mid-single-digit top-line growth and 13% growth in adjusted EPS while reinvesting in business operations.
Positive Demographic Trends
The company continues to leverage its footprint and product offering to support home-based care, bolstered by positive demographic trends.
Lowlights
IV Fluid Shortages Impact
IV fluid shortages impacted procedure volume and subsequently sales volume to some distribution customers.
Non-Cash Goodwill Impairment Charge
A $305 million net of tax goodwill impairment charge was recorded primarily due to adverse financial market changes.
Increases in DSNA Expenses
Distribution, selling, and administrative expenses were up due to increases in teammate benefit expenses and higher workers' compensation costs.
Flat Gross Margin
Gross profit margin was essentially flat compared to the previous year's fourth quarter.
Decline in Home Respiratory Therapies
Home respiratory therapies such as NIV and oxygen declined on a year-over-year basis.
Company Guidance
During the Owens & Minor fourth quarter and full year 2024 earnings call, the company provided several key metrics and guidance for 2025. The company reported a revenue of $2.7 billion for the fourth quarter, marking a 1.5% increase from the previous year, with the Patient Direct segment growing by 5%. The gross profit for the quarter was $580 million, representing 21.5% of net revenue, and an adjusted operating income of $95 million was reported. For 2025, Owens & Minor anticipates revenue to range between $10.85 billion and $11.15 billion, with a midpoint of $11.0 billion, driven largely by mid-single-digit percentage growth in the Patient Direct segment. The adjusted EBITDA is expected to be between $560 million and $590 million, translating to approximately 10% growth, while adjusted EPS is projected to be between $1.60 and $1.85 per share, indicating around 13% growth. The company plans to leverage $200 million for debt reduction and has authorized a $100 million share repurchase program. Moreover, they are awaiting regulatory approval for the acquisition of Rotech, expected to close in the first half of 2025, and remain optimistic about potential synergies exceeding initial projections.Owens & Minor Corporate Events
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Owens & Minor Reports 2024 Financial Results and Debt Reduction
Positive
Feb 28, 2025
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.
Private Placements and FinancingM&A TransactionsFinancial Disclosures
Owens & Minor Reports 2024 Financial Results
Neutral
Feb 3, 2025
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.
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.