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OMI

Owens & MinorNYSE:OMI Stock Report

Market Cap

US$3.1b

7D

-5.0%

1Y

60.6%

Updated

03 Dec, 2021

Data

Company Financials +
OMI fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance4/6
Financial Health3/6
Dividends0/6

OMI Stock Overview

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

Owens & Minor Competitors

McKesson

NYSE:MCK

US$33.4b

Cardinal Health

NYSE:CAH

US$13.2b

Henry Schein

NasdaqGS:HSIC

US$9.9b

Thermo Fisher Scientific

NYSE:TMO

US$250.7b

Price History & Performance

Summary of all time highs, changes and price drops for Owens & Minor
Historical stock prices
Current Share PriceUS$40.51
52 Week HighUS$49.16
52 Week LowUS$23.58
Beta0.34
1 Month Change-10.48%
3 Month Change4.09%
1 Year Change60.63%
3 Year Change482.04%
5 Year Change14.73%
Change since IPO951.70%

Recent News & Updates

Oct 05

Owens & Minor - Improved, But Extreme Care Is Still Warranted

I wrote about OMI, an investment I actually owned years ago, back in March. Since then, the company has been volatile, and some say the value is fair. I respectfully disagree with this assessment. there is a price where I'd buy OMI and call it a bargain. However, that price needs to consider the credit rating, history and other variables. I'll show you what price that is. For now, OMI is a "HOLD".

Shareholder Returns

OMIUS HealthcareUS Market
7D-5.0%-1.1%-2.7%
1Y60.6%13.5%16.6%

Return vs Industry: OMI exceeded the US Healthcare industry which returned 15.2% over the past year.

Return vs Market: OMI exceeded the US Market which returned 19.4% over the past year.

Price Volatility

Is OMI's price volatile compared to industry and market?
OMI volatility
OMI Average Weekly Movement7.8%
Healthcare Industry Average Movement6.5%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: OMI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: OMI's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188218,800Ed Pesickahttps://www.owens-minor.com

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.

Owens & Minor Fundamentals Summary

How do Owens & Minor's earnings and revenue compare to its market cap?
OMI fundamental statistics
Market CapUS$3.06b
Earnings (TTM)US$230.36m
Revenue (TTM)US$9.68b

13.3x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OMI income statement (TTM)
RevenueUS$9.68b
Cost of RevenueUS$8.11b
Gross ProfitUS$1.57b
ExpensesUS$1.34b
EarningsUS$230.36m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.05
Gross Margin16.22%
Net Profit Margin2.38%
Debt/Equity Ratio106.6%

How did OMI perform over the long term?

See historical performance and comparison

Dividends

0.02%

Current Dividend Yield

0.313%

Payout Ratio

Does OMI pay a reliable dividends?

See OMI dividend history and benchmarks
When do you need to buy OMI by to receive an upcoming dividend?
Owens & Minor dividend dates
Ex Dividend DateDec 14 2021
Dividend Pay DateDec 31 2021
Days until Ex dividend10 days
Days until Dividend pay date27 days

Does OMI pay a reliable dividends?

See OMI dividend history and benchmarks

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OMI ($40.51) is trading below our estimate of fair value ($115.05)

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


Price To Earnings Ratio

PE vs Industry: OMI is good value based on its PE Ratio (13.3x) compared to the US Healthcare industry average (20.8x).

PE vs Market: OMI is good value based on its PE Ratio (13.3x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: OMI is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: OMI is overvalued based on its PB Ratio (3.4x) compared to the US Healthcare industry average (2.7x).


Future Growth

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

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OMI's forecast earnings growth (4.3% per year) is above the savings rate (2%).

Earnings vs Market: OMI's earnings (4.3% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: OMI's earnings are forecast to grow, but not significantly.

Revenue vs Market: OMI's revenue (1.2% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: OMI's revenue (1.2% 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 high in 3 years time (21.5%)


Past Performance

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

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OMI has a large one-off loss of $75.2M impacting its September 30 2021 financial results.

Growing Profit Margin: OMI's current net profit margins (2.4%) are higher than last year (0.4%).


Past Earnings Growth Analysis

Earnings Trend: OMI's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: OMI's earnings growth over the past year (620.3%) exceeds its 5-year average (7.7% per year).

Earnings vs Industry: OMI earnings growth over the past year (620.3%) exceeded the Healthcare industry 32.5%.


Return on Equity

High ROE: Whilst OMI's Return on Equity (25.97%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Owens & Minor's financial position?


Financial Position Analysis

Short Term Liabilities: OMI's short term assets ($2.4B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: OMI's short term assets ($2.4B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: OMI's net debt to equity ratio (102.1%) is considered high.

Reducing Debt: OMI's debt to equity ratio has increased from 57.4% to 106.6% over the past 5 years.

Debt Coverage: OMI's debt is not well covered by operating cash flow (15.3%).

Interest Coverage: OMI's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet


Dividend

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

0.024%

Current Dividend Yield


Upcoming Dividend Payment

TodayDec 04 2021Ex Dividend DateDec 14 2021Dividend Pay DateDec 31 202117 days from Ex DividendBuy in the next 10 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: OMI's dividend (0.024%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: OMI's dividend (0.024%) is low compared to the top 25% of dividend payers in the US market (3.61%).


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?

2.9yrs

Average management tenure


CEO

Ed Pesicka (53 yo)

2.75yrs

Tenure

US$7,628,179

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 ($USD7.63M) is above average for companies of similar size in the US market ($USD5.28M).

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


Leadership Team

Experienced Management: OMI's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: OMI's board of directors are not considered experienced ( 2 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 2.6%.


Top Shareholders

Company Information

Owens & Minor, Inc.'s 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$3.057b
  • Shares outstanding: 75.46m
  • Website: https://www.owens-minor.com

Number of Employees


Location

  • Owens & Minor, Inc.
  • 9120 Lockwood Boulevard
  • Mechanicsville
  • Virginia
  • 23116-7626
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 23:55
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
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.