NasdaqGS:OMCL

Stock Analysis Report

Executive Summary

Omnicell, Inc., together with its subsidiaries, provides medication management automation solutions and adherence tools for healthcare systems and pharmacies worldwide.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Omnicell's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OMCL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.1%

OMCL

-0.5%

US Healthcare Services

2.4%

US Market


1 Year Return

-16.8%

OMCL

13.5%

US Healthcare Services

-10.0%

US Market

Return vs Industry: OMCL underperformed the US Healthcare Services industry which returned 14% over the past year.

Return vs Market: OMCL underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

OMCLIndustryMarket
7 Day2.1%-0.5%2.4%
30 Day-19.0%-4.9%-11.0%
90 Day-17.7%-1.8%-19.4%
1 Year-16.8%-16.8%13.8%13.5%-8.1%-10.0%
3 Year65.0%65.0%63.5%62.6%17.3%9.6%
5 Year86.9%86.9%42.1%40.7%36.1%21.1%

Price Volatility Vs. Market

How volatile is Omnicell's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Omnicell undervalued compared to its fair value and its price relative to the market?

15.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OMCL ($65.23) is trading below our estimate of fair value ($79.12)

Significantly Below Fair Value: OMCL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OMCL is poor value based on its PE Ratio (44.1x) compared to the Healthcare Services industry average (41.1x).

PE vs Market: OMCL is poor value based on its PE Ratio (44.1x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: OMCL is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: OMCL is good value based on its PB Ratio (3.3x) compared to the US Healthcare Services industry average (3.3x).


Next Steps

Future Growth

How is Omnicell forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

25.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OMCL's forecast earnings growth (25.2% per year) is above the savings rate (1.7%).

Earnings vs Market: OMCL's earnings (25.2% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OMCL's revenue (10.4% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: OMCL's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OMCL's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has Omnicell performed over the past 5 years?

19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OMCL has high quality earnings.

Growing Profit Margin: OMCL's current net profit margins (6.8%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: OMCL's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: OMCL's earnings growth over the past year (62.6%) exceeds its 5-year average (19.9% per year).

Earnings vs Industry: OMCL earnings growth over the past year (62.6%) exceeded the Healthcare Services industry 23.3%.


Return on Equity

High ROE: OMCL's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is Omnicell's financial position?


Financial Position Analysis

Short Term Liabilities: OMCL's short term assets ($483.2M) exceed its short term liabilities ($237.0M).

Long Term Liabilities: OMCL's short term assets ($483.2M) exceed its long term liabilities ($158.6M).


Debt to Equity History and Analysis

Debt Level: OMCL's debt to equity ratio (5.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if OMCL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: OMCL's debt is well covered by operating cash flow (290%).

Interest Coverage: OMCL's interest payments on its debt are well covered by EBIT (17.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Omnicell's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate OMCL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate OMCL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OMCL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OMCL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OMCL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Randy Lipps (62yo)

17.5s

Tenure

US$6,335,581

Compensation

Mr. Randall A. Lipps, also known as Randy, founded Omnicell, Inc. in September 1992 and has been its Chief Executive Officer and President since October 2002. Mr. Lipps had been Executive Chairman and Exec ...


CEO Compensation Analysis

Compensation vs Market: Randy's total compensation ($USD6.34M) is about average for companies of similar size in the US market ($USD5.71M).

Compensation vs Earnings: Randy's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Randall Lipps
Founder17.5yrsUS$6.34m1% $28.7m
Peter Kuipers
Executive VP & CFO4.67yrsUS$2.47m0.14% $3.9m
Nhat Ngo
Executive VP of Marketing8.08yrsUS$2.02m0.072% $2.1m
Scott Seidelmann
Executive VP & Chief Commercial Officer2yrsUS$2.40m0.084% $2.4m
Joseph Spears
Senior VP2.5yrsno data0.033% $952.7k
Giri Chodavarapu
Senior VP & Chief Information Officer0.58yrno datano data
Daniel Johnston
Executive VP5.17yrsUS$1.16m0.071% $2.0m
Niloy Sanyal
Senior VP & Chief Marketing officer0.58yrno datano data
Susan Moriconi
Senior VP & Chief Human Resources Officer0.58yrno datano data
Jorge Taborga
Executive Vice President of Engineering & Integration Management Officer12.75yrsno data0.082% $2.4m

3.6yrs

Average Tenure

55yo

Average Age

Experienced Management: OMCL's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Randall Lipps
Founder17.5yrsUS$6.34m1% $28.7m
James Judson
Lead Independent Directorno dataUS$286.21k0.045% $1.3m
Mark Parrish
Independent Director7.25yrsUS$224.95k0.072% $2.1m
Sara White
Independent Director17yrsUS$251.97k0.088% $2.5m
Robin Seim
Director1.08yrsUS$2.65m0.081% $2.3m
Joanne Bauer
Independent Director6.25yrsUS$231.22k0.037% $1.1m
Vance Moore
Independent Director7.92yrsUS$229.97k0.088% $2.5m
Bruce Scott
Independent Director0.92yrno data0.0048% $137.3k
Bruce Smith
Independent Director5.92yrsUS$224.95k0.048% $1.4m

6.8yrs

Average Tenure

63yo

Average Age

Experienced Board: OMCL's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: OMCL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.7%.


Top Shareholders

Company Information

Omnicell, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Omnicell, Inc.
  • Ticker: OMCL
  • Exchange: NasdaqGS
  • Founded: 1992
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: US$2.855b
  • Shares outstanding: 42.47m
  • Website: https://www.omnicell.com

Number of Employees


Location

  • Omnicell, Inc.
  • 590 East Middlefield Road
  • Mountain View
  • California
  • 94043
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OMCLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2001
OC9DB (Deutsche Boerse AG)YesCommon StockDEEURAug 2001

Biography

Omnicell, Inc., together with its subsidiaries, provides medication management automation solutions and adherence tools for healthcare systems and pharmacies worldwide. The company offers central pharmacy automation solutions, including automated storage and retrieval systems, such as XR2 Automated Central Pharmacy System, a building block of autonomous pharmacy vision; IV compounding robots and workflow management systems; inventory management software; and controlled substance management systems. It also provides point of care automation solutions to improve clinician workflows in patient care areas of the healthcare system; XT Series automated dispensing systems for medications and supplies used in nursing units and other clinical areas of the hospital, as well as specialized automated dispensing systems for operating room; Omnicell Interface Software that offers interface and integration between its medication-use products or supply products, and a healthcare facility’s in-house information management systems; and robotic dispensing systems used in hospitals and retail pharmacies for handling the stocking and retrieval of boxed medications. In addition, the company provides single dose automation solutions to fill and label for incoming prescriptions; medication blister card packaging and packaging supplies to enhance medication adherence in non-acute care settings; automated systems to help pharmacies in filling its multimed adherence packaging based on individual patient medication orders; and semi-automated filling equipment for the long-term care institutional pharmacy. Further, it offers Omnicell Patient Engagement, a web-based nexus of solutions; and patient communication tools, such as interactive voice response, outbound communications, and mobile app. The company was formerly known as Omnicell Technologies, Inc. and changed its name to Omnicell, Inc. in 2001. Omnicell, Inc. was founded in 1992 and is headquartered in Mountain View, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 05:46
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.