NYSE:OMI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Owens & Minor, Inc., together with its subsidiaries, operates as a healthcare solutions company in the United States and internationally. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Owens & Minor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OMI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: OMI's weekly volatility has decreased from 19% to 12% over the past year.


Market Performance


7 Day Return

30.0%

OMI

-0.7%

US Healthcare

-3.6%

US Market


1 Year Return

398.0%

OMI

25.9%

US Healthcare

36.5%

US Market

Return vs Industry: OMI exceeded the US Healthcare industry which returned 25.3% over the past year.

Return vs Market: OMI exceeded the US Market which returned 36.4% over the past year.


Shareholder returns

OMIIndustryMarket
7 Day30.0%-0.7%-3.6%
30 Day17.0%-1.4%2.7%
90 Day32.0%1.6%7.5%
1 Year398.5%398.0%27.4%25.9%39.5%36.5%
3 Year117.9%105.1%36.8%31.2%53.5%43.6%
5 Year-3.4%-14.8%76.9%63.7%117.5%93.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Owens & Minor undervalued compared to its fair value and its price relative to the market?

45.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OMI ($34.01) is trading below our estimate of fair value ($62.87)

Significantly Below Fair Value: OMI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OMI's PE Ratio (24.5x) is in line with the US Healthcare industry average.

PE vs Market: OMI is poor value based on its PE Ratio (24.5x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: OMI is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: OMI's PB Ratio (3.5x) is in line with the US Healthcare industry average.


Next Steps

Future Growth

How is Owens & Minor forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

24.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OMI's forecast earnings growth (24.5% per year) is above the savings rate (2%).

Earnings vs Market: OMI's earnings (24.5% per year) are forecast to grow faster than the US market (20.1% per year).

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

Revenue vs Market: OMI's revenue (3.8% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: OMI's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OMI's Return on Equity is forecast to be low in 3 years time (19.6%).


Next Steps

Past Performance

How has Owens & Minor performed over the past 5 years?

-37.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OMI has a large one-off loss of $34.9M impacting its December 31 2020 financial results.

Growing Profit Margin: OMI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: OMI has become profitable over the past 5 years, growing earnings by -37% per year.

Accelerating Growth: OMI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: OMI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (20.5%).


Return on Equity

High ROE: OMI's Return on Equity (12.4%) is considered low.


Next Steps

Financial Health

How is Owens & Minor's financial position?


Financial Position Analysis

Short Term Liabilities: OMI's short term assets ($2.1B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: OMI's short term assets ($2.1B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: OMI's debt to equity ratio (145%) is considered high.

Reducing Debt: OMI's debt to equity ratio has increased from 57.3% to 145% over the past 5 years.

Debt Coverage: OMI's debt is well covered by operating cash flow (32.9%).

Interest Coverage: OMI's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Owens & Minor current dividend yield, its reliability and sustainability?

0.03%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: OMI's dividend (0.03%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: OMI's dividend (0.03%) is low compared to the top 25% of dividend payers in the US market (3.77%).


Stability and Growth of Payments

Stable Dividend: OMI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: OMI is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: OMI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OMI'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?

2.0yrs

Average management tenure


CEO

Ed Pesicka (52 yo)

1.92yrs

Tenure

US$5,731,407

Compensation

Mr. Edward A. Pesicka, also known as Ed, has been the Chief Executive Officer, President and Director of Owens & Minor, Inc. since March 7, 2019. Mr. Pesicka served as Chief Commercial Officer of Thermo Fi...


CEO Compensation Analysis

Compensation vs Market: Ed's total compensation ($USD5.73M) is about average for companies of similar size in the US market ($USD4.98M).

Compensation vs Earnings: Insufficient data to compare Ed's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Edward Pesicka
President1.92yrsUS$5.73m2.1%
$ 52.5m
Nicholas Pace
Executive VP5.08yrsUS$1.58m0.38%
$ 9.5m
Christopher Lowery
President of Global Products2.08yrsUS$1.84m0.43%
$ 10.9m
Andrew Long
Executive VP & CFO1.25yrsno data0.13%
$ 3.2m
Jeffrey Jochims
Executive VP & Chief Operating Officer1.25yrsno data0.14%
$ 3.4m
Michael Lowry
Senior VP2.67yrsUS$310.84k0.16%
$ 3.9m
Chandrika Nigam
Director of Finance & Investor Relationsno datano datano data
Shana Neal
Executive VP & Chief Human Resources Officer2.92yrsno data0.22%
$ 5.5m
Mark Zacur
Executive VP & Chief Commercial Officer1.58yrsno data0.13%
$ 3.2m
David Myers
Senior VP & Chief Procurement Officer1.17yrsno datano data
Jonathan Leon
Senior VP & Corporate Treasurer2.75yrsno data0.16%
$ 4.1m
Trudi Allcott
Director of Media Relationsno datano datano data

2.0yrs

Average Tenure

53yo

Average Age

Experienced Management: OMI's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Pesicka
President1.92yrsUS$5.73m2.1%
$ 52.5m
G. Minor
Chairman Emeritus7.83yrsUS$366.50kno data
Robert Sledd
Independent Director13.25yrsUS$1.44m0.40%
$ 9.9m
Eddie Moore
Independent Director15.83yrsUS$226.25k0.084%
$ 2.1m
Mark McGettrick
Independent Director2.92yrsUS$233.75k0.11%
$ 2.8m
Michael Riordan
Independent Director1.17yrsUS$72.92k0.061%
$ 1.5m
Robert Henkel
Independent Director1.33yrsUS$122.40k0.029%
$ 714.2k
Mark Beck
Independent Chairman0.42yrUS$156.25k0.031%
$ 783.2k
Gwendolyn Bingham
Independent Director0.92yrno data0.028%
$ 705.7k

1.9yrs

Average Tenure

62yo

Average Age

Experienced Board: OMI's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 16.9%.


Top Shareholders

Company Information

Owens & Minor, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Owens & Minor, Inc.
  • Ticker: OMI
  • Exchange: NYSE
  • Founded: 1882
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: US$2.500b
  • Shares outstanding: 73.50m
  • Website: https://www.owens-minor.com

Number of Employees


Location

  • Owens & Minor, Inc.
  • Post Office Box 27626
  • Richmond
  • Virginia
  • 23116-7626
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OMINYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1972
6OMDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972

Biography

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 Produ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/28 23:04
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.