Owens & Minor (OMI) AI Stock Analysis

• Market Cap: $368.45M
• Dividend Yield: N/A
• Average Volume (3M): 2.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -17.10%
• EPS Growth: -2720.40%
• Country: US
• Employees: 23,200
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 0.26
• Shares Outstanding: 77,244,160
• 10 Day Avg. Volume: 3,796,490
• 30 Day Avg. Volume: 2,538,149
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 7.50
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 1.39
• Enterprise Value/Ebitda: -30.46
• 1Y Price Target: $6.12
• Price Target Upside: 28.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 41 Neutral
• Price Target: $5.00 ▲(4.82% Upside)

Owens & Minor's overall stock score reflects significant financial and valuation challenges. The company's financial performance is weak, with declining revenues and high leverage. Technical analysis indicates bearish momentum, and the valuation is unattractive due to negative profitability. While the earnings call provided some positive insights, the overall outlook remains cautious.

Positive Factors

Patient Direct Business Growth

Growth in the Patient Direct business indicates a successful strategic focus, enhancing revenue stability and expanding market presence in healthcare logistics.

Adjusted EBITDA Improvement

Improved EBITDA margins reflect operational efficiencies and effective cost management, contributing to better profitability and financial health.

Successful Cash Flow Management

Positive cash flow from operations highlights effective working capital management, ensuring liquidity and supporting ongoing business operations.

Negative Factors

Declining Revenue Growth

Declining revenue growth poses a risk to long-term sustainability, indicating challenges in maintaining market share and competitive positioning.

High Leverage and Negative Equity

High leverage and negative equity suggest financial instability, limiting strategic flexibility and increasing vulnerability to economic downturns.

Removal from S&P SmallCap 600

Removal from the S&P SmallCap 600 could reduce investor visibility and confidence, potentially impacting stock liquidity and market perception.

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 to healthcare providers, including hospitals, clinics, and nursing homes. The company's revenue model is based on the sale of products and services, with key revenue streams including the sale of medical supplies, logistics and supply chain management services, and contract distribution agreements with healthcare organizations. Additionally, Owens & Minor has established partnerships with various medical manufacturers, allowing them to offer a wide range of products while benefiting from favorable pricing agreements. The company's focus on value-added services, such as inventory management and customized supply chain solutions, also contributes to its earnings by enhancing customer satisfaction and loyalty.

Owens & Minor Financial Statement Overview

Summary

Owens & Minor faces significant profitability challenges despite revenue growth, with negative net income impacting overall financial health. The high leverage and fluctuating cash flow pose risks, necessitating focused management strategies to enhance profitability and stabilize cash flows.

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	8.73B	10.70B	10.33B	9.96B	9.79B	8.48B
Gross Profit	1.98B	2.22B	2.13B	1.83B	1.51B	1.28B
EBITDA	-90.76M	51.22M	400.29M	367.80M	415.46M	277.41M
Net Income	-1.20B	-362.69M	-41.30M	22.39M	221.59M	29.87M
Balance Sheet
Total Assets	4.15B	4.66B	5.09B	5.39B	3.54B	3.34B
Cash, Cash Equivalents and Short-Term Investments	38.26M	49.38M	243.04M	69.47M	55.71M	83.06M
Total Debt	463.98M	2.14B	2.32B	2.70B	1.15B	1.14B
Total Liabilities	4.44B	4.09B	4.17B	4.44B	2.60B	2.62B
Stockholders Equity	-281.01M	565.23M	924.17M	945.60M	938.50M	712.05M
Cash Flow
Free Cash Flow	-156.05M	-66.67M	532.82M	158.42M	74.49M	280.03M
Operating Cash Flow	100.85M	161.50M	740.71M	325.01M	124.18M	339.22M
Investing Cash Flow	-180.61M	-116.53M	-137.25M	-1.80B	-53.63M	80.07M
Financing Cash Flow	-118.21M	-267.60M	-417.33M	1.50B	-129.48M	-379.39M

Owens & Minor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 4.77 is below the 20-day moving average (MA) of 5.29, below the 50-day MA of 5.91, and below the 200-day MA of 8.50, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 37.67 is Neutral, neither overbought nor oversold. The STOCH value of 21.44 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
HSIC	69 Neutral	8.22B	21.11	11.29%	―	2.29%	14.98%
MCK	69 Neutral	94.60B	30.35	-160.85%	0.40%	20.35%	11.96%
CAH	61 Neutral	36.91B	23.96	-56.13%	1.36%	-1.94%	85.70%
COR	59 Neutral	59.78B	31.72	95.81%	0.74%	11.56%	5.31%
GRDN	47 Neutral	1.66B	-17.61	―	―	―	―
OMI	41 Neutral	$368.45M	―	-144.11%	―	-17.10%	-2720.40%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Owens & Minor Corporate Events

Owens & Minor Reports Q2 Results Amid Segment Sale

On August 11, 2025, Owens & Minor reported its second-quarter financial results, highlighting the classification of its Products & Healthcare Services segment as discontinued operations due to an impending sale. The company’s continuing operations, primarily the Patient Direct segment, showed solid performance and growth, with revenue increasing to $681.9 million from $660.4 million in the same quarter of the previous year. Despite a net loss from continuing operations, the adjusted net income and EBITDA showed improvement, reflecting the company’s strategic focus on the Patient Direct business. CEO Ed Pesicka expressed optimism about the company’s future as a pure-play Patient Direct business, supported by favorable demographic trends.

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 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.