Owens & Minor (OMI) AI Stock Analysis

• Market Cap: $721.71M
• Dividend Yield: N/A
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: 2.84%
• EPS Growth: -828.91%
• Country: US
• Employees: 23,200
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Distribution
• EPS (TTM): 0.23
• Shares Outstanding: 76,614,136
• 10 Day Avg. Volume: 1,708,957
• 30 Day Avg. Volume: 1,418,450
• PEG Ratio: 2.64
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.96
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.44
• Enterprise Value/Ebitda: 0.77
• 1Y Price Target: $8.80
• Price Target Upside: -5.27% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 51 Neutral
• Price Target: $8.00 ▼(-13.89%Downside)

Owens & Minor's overall score reflects its financial struggles, with negative profitability and high leverage being key concerns. While technical indicators show some positive momentum, valuation metrics and corporate events present significant risks. Earnings call insights offer some optimism with strategic growth initiatives, but these are overshadowed by external challenges such as tariffs and currency headwinds.

Positive Factors

Business Growth

Patient Direct had another strong quarter, with sleep and diabetes once again leading the way.

Long-term Outlook

The announcement of divesting the P&HS segment is viewed as ultimately favorable to the long-term outlook.

Strategic Focus

The decision not to move forward with the Rotech deal allows the company to focus on its core operations.

Negative Factors

Financial Impact

The termination of the Rotech deal has costs that will slow near-term debt paydown by approximately $100MM.

Macro Environment

Uncertainty around tariffs and an unstable macro environment are main concerns at this point.

Tariff Uncertainty

The potential $100-$150MM tariff exposure adds some incremental uncertainty to the forward outlook given current leverage and pending acquisition of Rotech.

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 primarily through the distribution of medical and surgical supplies and related services. The company earns money by purchasing products from manufacturers and distributing them to healthcare providers, charging a markup on these products to cover costs and generate profit. Key revenue streams include the sale of medical and surgical supplies, logistics and inventory management services, and healthcare management solutions. Significant partnerships with manufacturers and healthcare providers enhance its distribution network and client base, contributing to its earnings. The company's ability to efficiently manage the supply chain and provide value-added services is crucial to maintaining its competitive edge and profitability.

Owens & Minor Financial Statement Overview

Summary

Owens & Minor is experiencing significant profitability challenges, as evidenced by negative net income despite revenue growth. The high leverage and unstable cash flows further increase the financial risk.

Income Statement

Owens & Minor's revenue has shown a steady growth trajectory, with a notable increase over the past years. However, profitability metrics reveal challenges, with negative EBIT and net income in the most recent TTM period. The gross profit margin remains stable, but the negative net profit margin highlights ongoing operational struggles.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, suggesting significant leverage. Although the equity ratio indicates a solid proportion of assets financed by equity, the return on equity is negative, driven by consistent net losses, indicating financial stress.

Cash Flow

Cash flow analysis shows fluctuating free cash flow, with a negative trend in the most recent TTM. The operating cash flow to net income ratio indicates that cash from operations is relatively unaffected by net losses, providing some liquidity cushion. The negative free cash flow to net income ratio suggests cash flow generation challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.72B	10.70B	10.33B	9.96B	9.79B	8.48B
Gross Profit	2.08B	2.22B	2.13B	1.83B	1.51B	1.28B
EBITDA	82.68M	51.22M	400.29M	367.80M	415.46M	277.41M
Net Income	-365.78M	-362.69M	-41.30M	22.39M	221.59M	88.07M
Balance Sheet
Total Assets	4.86B	4.66B	5.09B	5.39B	3.54B	3.34B
Cash, Cash Equivalents and Short-Term Investments	59.44M	49.38M	243.04M	69.47M	55.71M	83.06M
Total Debt	373.98M	2.14B	2.32B	2.70B	1.11B	1.11B
Total Liabilities	4.29B	4.09B	4.17B	4.44B	2.60B	2.62B
Stockholders Equity	570.98M	565.23M	924.17M	945.60M	938.50M	712.05M
Cash Flow
Free Cash Flow	-55.44M	-66.67M	532.82M	158.42M	74.49M	280.03M
Operating Cash Flow	179.39M	161.50M	740.71M	325.01M	124.18M	339.22M
Investing Cash Flow	-162.86M	-116.53M	-137.25M	-1.80B	-53.63M	80.07M
Financing Cash Flow	-228.15M	-267.60M	-417.33M	1.50B	-129.48M	-379.39M

Owens & Minor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMI, the sentiment is Positive. The current price of 9.29 is above the 20-day moving average (MA) of 7.99, above the 50-day MA of 7.39, and below the 200-day MA of 10.75, indicating a neutral trend. The MACD of 0.47 indicates Negative momentum. The RSI at 70.57 is Negative, neither overbought nor oversold. The STOCH value of 94.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OMI.

Owens & Minor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COR	78 Outperform	$57.24B	34.27	161.58%	0.74%	12.18%	-5.92%
HSIC	71 Outperform	$9.07B	23.15	11.78%	―	1.75%	8.76%
PDCO	70 Outperform	$2.77B	20.21	14.15%	2.49%	-0.85%	-23.40%
CAH	70 Outperform	$39.24B	25.67	-43.80%	1.24%	0.78%	183.45%
MCK	70 Outperform	$90.90B	28.29	51.23%	0.39%	16.22%	15.29%
Sector *	59 Neutral	£5.95B	9.22	-57.69%	4.67%	15.15%	-8.16%
OMI	51 Neutral	$721.71M	―	-49.91%	―	2.84%	-828.91%

Owens & Minor Corporate Events

Owens & Minor Ends Merger with Rotech Healthcare

On June 3, 2025, Owens & Minor, Inc. and Rotech Healthcare Holdings Inc. mutually agreed to terminate their merger agreement, with Owens & Minor paying an $80 million termination fee to Rotech. The decision was influenced by regulatory challenges and the company will now focus on growing its Patient Direct business and deleveraging, while exploring potential sales of its Products and Healthcare Services business.

The most recent analyst rating on (OMI) stock is a Sell with a $7.00 price target. To see the full list of analyst forecasts on Owens & Minor stock, see the OMI Stock Forecast page.

Owens & Minor Shareholders Approve Key Governance Decisions

On May 15, 2025, Owens & Minor, Inc. held its Annual Meeting of Shareholders where key decisions were made. The shareholders elected nine directors for a one-year term and ratified KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Additionally, an advisory vote approved the compensation of the company’s named executive officers. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (OMI) stock is a Sell with a $18.00 price target. To see the full list of analyst forecasts on Owens & Minor stock, see the OMI Stock Forecast page.

Owens & Minor Reports Q1 2025 Financial Results

On May 8, 2025, Owens & Minor reported its first-quarter financial results, highlighting a mid-single-digit top-line growth in its Patient Direct segment, driven by strong performance in therapy categories like Diabetes and Sleep Supplies. The company also noted a 173 basis point expansion in the operating margin for this segment. Despite a net loss, the company reaffirmed its 2025 financial guidance, projecting revenue between $10.85 billion and $11.15 billion, and adjusted EBITDA between $560 million and $590 million. Owens & Minor remains engaged in the potential sale of its Products & Healthcare Services segment and is focused on disciplined capital deployment and integrating its planned acquisition of Rotech.

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.