Owens & Minor (NYSE:OMI) shareholders are up 9.5% this past week, but still in the red over the last three years

Every investor on earth makes bad calls sometimes. But you want to avoid the really big losses like the plague. So take a moment to sympathize with the long term shareholders of Owens & Minor, Inc. (NYSE:OMI), who have seen the share price tank a massive 79% over a three year period. That would be a disturbing experience. And more recent buyers are having a tough time too, with a drop of 61% in the last year. The falls have accelerated recently, with the share price down 18% in the last three months.

On a more encouraging note the company has added US$50m to its market cap in just the last 7 days, so let's see if we can determine what's driven the three-year loss for shareholders.

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To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

We know that Owens & Minor has been profitable in the past. On the other hand, it reported a trailing twelve months loss, suggesting it isn't reliably profitable. Other metrics may better explain the share price move.

Revenue is actually up 3.2% over the three years, so the share price drop doesn't seem to hinge on revenue, either. It's probably worth investigating Owens & Minor further; while we may be missing something on this analysis, there might also be an opportunity.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

If you are thinking of buying or selling Owens & Minor stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Owens & Minor shareholders are down 61% for the year, but the market itself is up 11%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 0.7% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 3 warning signs for Owens & Minor (2 are a bit concerning) that you should be aware of.

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Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.