tiprankstipranks
Trending News
More News >
Owens & Minor (OMI)
:OMI
Advertisement

Owens & Minor (OMI) AI Stock Analysis

Compare
548 Followers

Top Page

OMI

Owens & Minor

(NYSE:OMI)

Select Model
Select Model
Select Model
Underperform 38 (OpenAI - 4o)
Rating:38Underperform
Price Target:
$3.00
▼(-10.45% Downside)
Owens & Minor's overall stock score is heavily impacted by its poor financial performance and bearish technical indicators. The company's significant financial challenges, including declining revenues, negative profitability, and high leverage, are the most critical factors. The technical analysis further indicates a strong downtrend, with the stock being oversold. Valuation metrics also reflect financial distress, with a negative P/E ratio and no dividend yield. While the earnings call provided some positive strategic insights, these are not enough to offset the current financial and technical weaknesses.
Positive Factors
Strategic Shift to Home-Based Care
Focusing on home-based care aligns with industry trends towards personalized healthcare, potentially stabilizing revenue and improving cash flow.
Growth in Key Categories
Growth in specialized medical categories indicates strong demand and potential for increased market share in these profitable segments.
Improved Free Cash Flow
Positive free cash flow generation enhances financial flexibility, enabling investment in strategic initiatives and debt reduction.
Negative Factors
Declining Revenue and Profitability
Significant revenue and margin declines indicate operational challenges, potentially affecting long-term competitiveness and financial health.
High Leverage and Negative Equity
High debt levels and negative equity limit financial flexibility, increasing risk and potentially constraining future growth opportunities.
Adjusted EBITDA Decline
Declining EBITDA suggests weakening operational performance, which could hinder the company's ability to invest in growth and innovation.

Owens & Minor (OMI) vs. SPDR S&P 500 ETF (SPY)

Owens & Minor Business Overview & Revenue Model

Company DescriptionOwens & Minor (OMI) is a global healthcare logistics company that specializes in providing medical and surgical supplies to healthcare providers. The company operates primarily in the healthcare distribution and supply chain management sectors, offering a range of products that include surgical and examination gloves, gowns, and other medical supplies. With a focus on improving patient outcomes and operational efficiencies, Owens & Minor also provides services such as inventory management and logistics solutions to hospitals and healthcare systems.
How the Company Makes MoneyOwens & 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 Earnings Call Summary

Earnings Call Date:Oct 30, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strategic shifts, including a major divestiture and focus on home-based care, which is expected to drive future growth. Despite positive developments, such as growth in key segments and improved free cash flow, challenges remain, including a decline in adjusted EBITDA and operational issues in the P&HS segment.
Q3-2025 Updates
Positive Updates
Divestiture Agreement with Platinum Equity
Owens & Minor announced a definitive agreement to sell the Products & Healthcare Services segment to Platinum Equity, retaining equity interest due to Platinum's operational expertise.
Focus on Home-Based Care
The company will rebrand and focus exclusively on the Patient Direct business, which is expected to generate improved and consistent cash flow.
Growth in Key Categories
Year-over-year growth in sleep therapy, ostomy, and urology segments. Revenue for the third quarter was $697 million, up from $687 million the previous year.
Improved Free Cash Flow
Continuing operations generated $28 million of free cash flow in the third quarter and $78 million for the first nine months.
Negative Updates
Adjusted EBITDA Decline
Adjusted EBITDA for the third quarter was $92 million, down from $108 million in the previous year's third quarter, partially due to a $6 million onetime benefit the previous year.
Challenges with P&HS Segment
Temporary inventory imbalance due to start-up issues at a new kitting facility, impacting cash flow negatively.
Large Customer Loss
A significant customer loss in continuing operations is expected to impact the full year of 2026.
Company Guidance
During the Owens & Minor third quarter 2025 earnings call, the company provided guidance for the full year, projecting revenue between $2.76 billion and $2.82 billion, with adjusted net income expected to range from $1.02 to $1.07 per share and adjusted EBITDA between $376 million and $382 million. The company emphasized its strategic shift towards focusing on the home-based care market, highlighted by the sale of its Products & Healthcare Services segment. This focus is expected to enhance cash flow consistency, with debt repayment prioritized to enhance financial flexibility. The company plans to invest in technology and automation to optimize cost efficiency and customer experience. It also anticipates a stable free cash flow trend going into 2026, despite the upcoming loss of a large customer contract, which is not expected to significantly impact profitability due to its low-margin nature.

Owens & Minor Financial Statement Overview

Summary
Owens & Minor is facing significant financial challenges. The income statement shows declining revenues and negative profitability, while the balance sheet reflects high leverage and negative equity. Cash flow issues further exacerbate the situation, with negative operating cash flow in the TTM period. The company needs to address these financial difficulties to stabilize and improve its financial health.
Income Statement
Owens & Minor's income statement reveals significant challenges. The TTM data shows a sharp decline in revenue by 23.18%, and the company is experiencing negative margins across the board, with a net profit margin of -19.98% and an EBIT margin of -4.52%. This indicates substantial operational difficulties. Historically, the company had positive revenue growth and margins, but recent performance has deteriorated significantly.
Balance Sheet
The balance sheet is concerning, with a negative stockholders' equity in the TTM period, leading to an undefined debt-to-equity ratio. Historically, the debt-to-equity ratio was high, indicating significant leverage. The return on equity has turned negative, reflecting poor profitability and financial instability.
Cash Flow
Cash flow analysis shows a negative operating cash flow in the TTM period, indicating cash flow challenges. The free cash flow to net income ratio is relatively high at 90.92%, suggesting that despite losses, the company manages to generate some free cash flow. However, the overall cash flow situation is weak, with declining free cash flow growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.71B10.70B10.33B9.96B9.79B8.48B
Gross Profit1.75B2.22B2.13B1.83B1.51B1.28B
EBITDA-26.90M59.05M400.29M367.80M415.46M277.41M
Net Income-1.34B-362.69M-41.30M22.39M221.59M29.87M
Balance Sheet
Total Assets4.04B4.66B5.09B5.39B3.54B3.34B
Cash, Cash Equivalents and Short-Term Investments32.84M49.38M243.04M69.47M55.71M83.06M
Total Debt2.20B2.14B2.32B2.70B1.15B1.14B
Total Liabilities4.47B4.09B4.17B4.44B2.60B2.62B
Stockholders Equity-429.51M565.23M924.17M945.60M938.50M712.05M
Cash Flow
Free Cash Flow-89.99M-66.67M532.82M158.42M74.49M280.03M
Operating Cash Flow-98.97M161.50M740.71M325.01M124.18M339.22M
Investing Cash Flow-192.88M-116.53M-137.25M-1.80B-53.63M80.07M
Financing Cash Flow262.48M-267.60M-417.33M1.50B-129.48M-379.39M

Owens & Minor Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.35
Price Trends
50DMA
4.91
Negative
100DMA
6.04
Negative
200DMA
7.19
Negative
Market Momentum
MACD
-0.40
Positive
RSI
24.19
Positive
STOCH
4.53
Positive
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 3.35 is below the 20-day moving average (MA) of 4.59, below the 50-day MA of 4.91, and below the 200-day MA of 7.19, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 24.19 is Positive, neither overbought nor oversold. The STOCH value of 4.53 is Positive, 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 47 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$66.80B35.44129.89%0.62%9.31%5.92%
70
Outperform
$104.69B33.580.36%17.23%66.17%
69
Neutral
$8.43B22.7511.39%3.51%29.65%
65
Neutral
$46.41B29.491.04%4.37%28.48%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
47
Neutral
$1.80B-19.71-97.70%
38
Underperform
$269.94M-184.47%-37.09%-2639.44%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OMI
Owens & Minor
3.12
-9.78
-75.81%
COR
Cencora
360.24
113.88
46.23%
CAH
Cardinal Health
197.99
79.14
66.59%
HSIC
Henry Schein
70.06
2.06
3.03%
MCK
McKesson
844.26
233.96
38.34%
GRDN
Guardian Pharmacy Services, Inc. Class A
28.49
7.08
33.07%

Owens & Minor Corporate Events

Owens & Minor Faces Financial Risks with P&HS Segment Asset Sale
Nov 1, 2025

The anticipated sale of assets related to Owens & Minor’s P&HS segment presents significant risks, including potential financial liabilities from divested businesses and obligations to indemnify buyers against unforeseen liabilities. These factors could adversely affect the company’s financial health if post-sale liabilities exceed expectations, impacting cash flows and operational results. Additionally, the divestiture could dilute future earnings if the company fails to compensate for lost revenue and profits, potentially leading to substantial write-offs of goodwill and intangible assets. Such outcomes could materially harm Owens & Minor’s financial condition and operational performance.

Owens & Minor’s Strategic Shift: Earnings Call Insights
Nov 1, 2025

Owens & Minor’s recent earnings call was a blend of optimism and caution, reflecting strategic shifts and ongoing challenges. The company announced significant changes, including a major divestiture and a renewed focus on home-based care, which are anticipated to drive future growth. While there were positive developments such as growth in key segments and improved free cash flow, the company also faces hurdles like a decline in adjusted EBITDA and operational issues in its Products & Healthcare Services (P&HS) segment.

Owens & Minor Transitions to Home-Based Care Focus
Oct 31, 2025

Owens & Minor, Inc. is a Fortune 500 global healthcare solutions company that provides essential products and services supporting care from hospitals to homes, with a focus on the home-based care sector. In its third quarter 2025 financial report, Owens & Minor announced a definitive agreement to sell its Products & Healthcare Services segment, positioning itself as a pure-play home-based care business. The company reported a slight increase in revenue to $697.3 million compared to $686.8 million in the same quarter last year. However, it recorded a net loss from continuing operations of $5.6 million, a decline from a net income of $1.3 million in the previous year. Adjusted net income from continuing operations was $19.9 million, down from $28.2 million in the prior year, while adjusted EBITDA was $92.2 million, a decrease from $107.7 million. Looking forward, Owens & Minor reaffirmed its financial guidance for 2025, projecting revenue between $2.76 billion and $2.82 billion, with adjusted EPS ranging from $1.02 to $1.07 and adjusted EBITDA between $376 million and $382 million. The company remains focused on its Patient Direct platform, aiming for sustainable growth and long-term value creation in the home-based care market.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
Owens & Minor Sells Segment, Focuses on Home Care
Neutral
Oct 30, 2025

On October 30, 2025, Owens & Minor announced its third-quarter financial results and a significant strategic shift by signing a definitive agreement to sell its Products & Healthcare Services segment. This move positions the company as a pure-play home-based care business, focusing on its Patient Direct platform. The company reported a revenue increase to $697.3 million for the third quarter, with a net loss from continuing operations of $5.6 million. The sale is expected to streamline operations and enhance focus on serving patients with chronic conditions at home, aiming for long-term growth and value creation.

The most recent analyst rating on (OMI) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Owens & Minor stock, see the OMI Stock Forecast page.

Business Operations and StrategyM&A Transactions
Owens & Minor Sells Segment to Platinum Equity
Positive
Oct 7, 2025

On October 7, 2025, Owens & Minor announced a definitive agreement to sell its Products & Healthcare Services segment to Platinum Equity for $375 million in cash and a retained equity stake. This strategic move is part of Owens & Minor’s transformation into a pure-play leader in the home-based care market, allowing the company to focus on its core business and enhance value for stakeholders. The transaction, expected to close by the end of the year, is subject to customary closing conditions and regulatory approvals. The sale will enable Owens & Minor to concentrate on its more profitable segments, leveraging its leading brands and long-standing commitment to patient care to drive consistent revenue and profit growth.

The most recent analyst rating on (OMI) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Owens & Minor stock, see the OMI Stock Forecast page.

Executive/Board Changes
Owens & Minor Announces CIO Resignation
Neutral
Sep 19, 2025

On September 15, 2025, Owens & Minor announced the resignation of Snehashish Sarkar, their Executive Vice President and Chief Information Officer, effective September 26, 2025. Sarkar, who joined the company in October 2022, has been credited with building a strong global team that is well-equipped to support the company’s strategic goals, indicating a smooth transition despite his departure.

The most recent analyst rating on (OMI) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Owens & Minor stock, see the OMI Stock Forecast page.

Owens & Minor’s Asset Sale: Potential Risks and Financial Implications
Aug 13, 2025

Owens & Minor faces significant business risks with the contemplated sale of certain assets in its P&HS segment, which could adversely affect its financial stability. The company may encounter substantial retained liabilities from divested businesses and sold assets, along with obligations to indemnify buyers against contingent liabilities. These factors, combined with potential disputes with buyers, could negatively impact Owens & Minor’s financial position, operations, and cash flows. Additionally, the divestiture could lead to a dilutive impact on future earnings if the company fails to offset the loss of revenue and profits, potentially resulting in significant write-offs and adversely affecting its financial condition.

Owens & Minor Reports Q2 2025 Earnings and Strategic Shift
Aug 12, 2025

Owens & Minor, Inc. is a Fortune 500 global healthcare solutions company that provides essential products and services supporting care from hospitals to homes, with a focus on delivering comfort and confidence in healthcare environments.

Owens & Minor’s Strategic Shift in Earnings Call
Aug 12, 2025

Owens & Minor’s recent earnings call highlighted a strategic shift towards becoming a pure-play Patient Direct business. The sentiment was generally positive, focusing on growth in specific categories and effective working capital management. However, the company faces challenges such as costs from the Rotech acquisition, disruptions in the diabetes segment, and potential increases in stranded costs.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
Owens & Minor Reports Q2 Results Amid Segment Sale
Positive
Aug 11, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Nov 07, 2025