NYSE:OMI

Stock Analysis Report

Executive Summary

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


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.8%

OMI

13.7%

US Healthcare

10.5%

US Market


1 Year Return

34.4%

OMI

-3.4%

US Healthcare

-11.5%

US Market

Return vs Industry: OMI exceeded the US Healthcare industry which returned -3.4% over the past year.

Return vs Market: OMI exceeded the US Market which returned -11.5% over the past year.


Shareholder returns

OMIIndustryMarket
7 Day-6.8%13.7%10.5%
30 Day-19.3%-9.1%-15.4%
90 Day9.1%-18.9%-21.4%
1 Year34.7%34.4%-2.2%-3.4%-9.6%-11.5%
3 Year-82.6%-84.1%18.6%13.4%12.6%5.4%
5 Year-81.1%-83.7%23.4%15.1%32.8%18.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OMI ($5.51) is trading below our estimate of fair value ($12.18)

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


Price To Earnings Ratio

PE vs Industry: OMI is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.

PE vs Market: OMI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OMI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OMI is good value based on its PB Ratio (0.7x) compared to the US Healthcare industry average (2.4x).


Next Steps

Future Growth

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

103.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OMI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: OMI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OMI's is expected to become profitable in the next 3 years.

Revenue vs Market: OMI's revenue is expected to decline over the next 3 years (-2.5% per year).

High Growth Revenue: OMI's revenue is forecast to decline over the next 3 years (-2.5% 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 (7.8%).


Next Steps

Past Performance

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

-59.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OMI is currently unprofitable.

Growing Profit Margin: OMI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OMI is unprofitable, and losses have increased over the past 5 years at a rate of -59.4% per year.

Accelerating Growth: Unable to compare OMI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OMI is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (14.1%).


Return on Equity

High ROE: OMI has a negative Return on Equity (-4.89%), as it is currently unprofitable.


Next Steps

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 ($1.8B).


Debt to Equity History and Analysis

Debt Level: OMI's debt to equity ratio (338.5%) is considered high.

Reducing Debt: OMI's debt to equity ratio has increased from 61.4% to 338.5% over the past 5 years.


Balance Sheet

Inventory Level: OMI has a high level of physical assets or inventory.

Debt Coverage by Assets: OMI's debt is covered by short term assets (assets are 1.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: OMI has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: OMI has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

0.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OMI's dividend (0.18%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: OMI's dividend (0.18%) is low compared to the top 25% of dividend payers in the US market (5.45%).


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?

1.0yrs

Average management tenure


CEO

Ed Pesicka (51yo)

1

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 ($USD5.73M) is above average for companies of similar size in the US market ($USD2.14M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Edward Pesicka
President1yrUS$5.73m0.61% $2.1m
Nicholas Pace
Executive VP4.17yrsUS$1.58m0.19% $663.8k
Christopher Lowery
President of Global Products1.17yrsUS$1.84m0.18% $613.3k
Andrew Long
Executive VP & CFO0.33yrno data0.079% $275.5k
Jeffrey Jochims
Executive VP & Chief Operating Officer0.33yrno data0.079% $275.5k
Michael Lowry
Senior VP1.75yrsUS$310.84k0.11% $390.2k
Chuck Graves
Director of Finance & Investor Relationsno datano datano data
Shana Neal
Executive VP & Chief Human Resources Office2yrsno data0.099% $343.8k
Mark Zacur
Executive VP & Chief Commercial Officer0.67yrno data0.079% $275.5k
David Myers
Senior VP & Chief Procurement Officer0.25yrno datano data

1.0yrs

Average Tenure

53yo

Average Age

Experienced Management: OMI's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Edward Pesicka
President1yrUS$5.73m0.61% $2.1m
G. Minor
Chairman Emeritus6.92yrsUS$366.50kno data
Craig Smith
Chairman Emeritusno dataUS$44.50kno data
Robert Sledd
Independent Chairman1.33yrsUS$1.44m0.23% $786.5k
Eddie Moore
Independent Director14.92yrsUS$226.25k0.12% $404.7k
Mark McGettrick
Independent Director2yrsUS$233.75k0.13% $447.1k
Michael Riordan
Independent Director0.25yrUS$72.92k0.012% $40.6k
Robert Henkel
Independent Director0.42yrUS$122.40k0.028% $97.5k
Mark Beck
Independent Director0.58yrUS$156.25k0.037% $126.9k
Gwendolyn Bingham
Independent Directorno datano data0.0056% $19.4k

1.2yrs

Average Tenure

62.5yo

Average Age

Experienced Board: OMI's board of directors are not considered experienced ( 1.2 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$347.406m
  • Shares outstanding: 63.05m
  • Website: https://www.owens-minor.com

Number of Employees


Location

  • Owens & Minor, Inc.
  • 9120 Lockwood Boulevard
  • Mechanicsville
  • Virginia
  • 23116
  • 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 Products. The Global Solutions segment offers a portfolio of products and services to healthcare providers and manufacturers. Its portfolio of medical and surgical supplies includes branded products and its proprietary products. This segment also offers services to healthcare providers, which include supplier management, analytics, inventory management, and clinical supply management; various programs to provide logistics and marketing solutions to its suppliers; and contract logistics services to the pharmaceutical, biotechnology, and medical device industries offering a range of supply chain logistics services to manufacturers. In addition, it offers business services comprising order-to-cash, re-labeling, customer service, and returns management; and warehousing and transportation services consisting of storage, controlled-substance handling, cold-chain, emergency and export delivery, inventory management, and pick and pack services. The Global Products segment manufactures and sources medical supplies and solutions for the prevention of healthcare-associated infections across the acute and alternate site channels. Its products portfolio includes sterilization wraps, surgical drapes and gowns, facial protection products, protective apparel, medical exam gloves, custom and minor procedure kits, and other medical products. The company provides its products and services to multi-facility networks of healthcare providers, independent hospitals, surgery centers, physicians’ practices, and networks of hospitals directly, as well as indirectly through third-party distributors. Owens & Minor, Inc. was founded in 1882 and is headquartered in Mechanicsville, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 00:50
End of Day Share Price2020/03/27 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.