OWENS & MINOR INC (OMI) Stock Fundamental Analysis
NYSE:OMI - New York Stock Exchange, Inc. - US6907321029 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to OMI. OMI was compared to 103 industry peers in the Health Care Providers & Services industry. While OMI is still in line with the averages on profitability rating, there are concerns on its financial health. OMI scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
OMI had positive earnings in the past year.
OMI had a positive operating cash flow in the past year.
In multiple years OMI reported negative net income over the last 5 years.
Each year in the past 5 years OMI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of OMI (-7.53%) is worse than 73.79% of its industry peers.
The Return On Equity of OMI (-64.06%) is worse than 73.79% of its industry peers.
OMI has a Return On Invested Capital of 7.06%. This is in the better half of the industry: OMI outperforms 69.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OMI is below the industry average of 9.71%.
The last Return On Invested Capital (7.06%) for OMI is above the 3 year average (6.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.53% | ||
| ROE | -64.06% | ||
| ROIC | 7.06% |
ROA(3y)-2.73%
ROA(5y)-0.2%
ROE(3y)-22.09%
ROE(5y)-7.69%
ROIC(3y)6.37%
ROIC(5y)8.64%
1.3 Margins
OMI has a Operating Margin (2.41%) which is in line with its industry peers.
In the last couple of years the Operating Margin of OMI has grown nicely.
The Gross Margin of OMI (20.61%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of OMI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.41% | ||
| PM (TTM) | N/A | ||
| GM | 20.61% |
OM growth 3Y-17.34%
OM growth 5Y15.68%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.28%
GM growth 5Y11.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OMI is destroying value.
The number of shares outstanding for OMI has been increased compared to 1 year ago.
OMI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OMI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.54 indicates that OMI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.54, OMI perfoms like the industry average, outperforming 54.37% of the companies in the same industry.
A Debt/Equity ratio of 3.32 is on the high side and indicates that OMI has dependencies on debt financing.
With a Debt to Equity ratio value of 3.32, OMI is not doing good in the industry: 80.58% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.54 |
ROIC/WACC0.85
WACC8.27%
2.3 Liquidity
A Current Ratio of 1.13 indicates that OMI should not have too much problems paying its short term obligations.
OMI's Current ratio of 1.13 is on the low side compared to the rest of the industry. OMI is outperformed by 66.99% of its industry peers.
A Quick Ratio of 0.41 indicates that OMI may have some problems paying its short term obligations.
OMI has a Quick ratio of 0.41. This is amonst the worse of the industry: OMI underperforms 91.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.00% over the past year.
Measured over the past years, OMI shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.10% on average per year.
OMI shows a small growth in Revenue. In the last year, the Revenue has grown by 2.84%.
OMI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.04% yearly.
EPS 1Y (TTM)4%
EPS 3Y-28.62%
EPS 5Y22.1%
EPS Q2Q%21.05%
Revenue 1Y (TTM)2.84%
Revenue growth 3Y3.03%
Revenue growth 5Y3.04%
Sales Q2Q%0.74%
3.2 Future
Based on estimates for the next years, OMI will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.25% on average per year.
Based on estimates for the next years, OMI will show a small growth in Revenue. The Revenue will grow by 2.98% on average per year.
EPS Next Y8.44%
EPS Next 2Y14.35%
EPS Next 3Y17.14%
EPS Next 5Y14.25%
Revenue Next Year2.74%
Revenue Next 2Y2.63%
Revenue Next 3Y2.77%
Revenue Next 5Y2.98%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.90, which indicates a rather cheap valuation of OMI.
Compared to the rest of the industry, the Price/Earnings ratio of OMI indicates a rather cheap valuation: OMI is cheaper than 98.06% of the companies listed in the same industry.
OMI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 4.63, the valuation of OMI can be described as very cheap.
98.06% of the companies in the same industry are more expensive than OMI, based on the Price/Forward Earnings ratio.
OMI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.9 | ||
| Fwd PE | 4.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OMI is valued cheaper than 90.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.09 |
4.3 Compensation for Growth
OMI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OMI's earnings are expected to grow with 17.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)0.27
EPS Next 2Y14.35%
EPS Next 3Y17.14%
5. Dividend
5.1 Amount
OMI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.21
-0.08 (-0.86%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners102.66%
Inst Owner Change-1.47%
Ins Owners3.64%
Ins Owner Change19.58%
Market Cap705.58M
Analysts48.33
Price Target10.2 (10.75%)
Short Float %11.45%
Short Ratio6.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.75%
Min EPS beat(2)4.84%
Max EPS beat(2)16.66%
EPS beat(4)4
Avg EPS beat(4)7.71%
Min EPS beat(4)0.62%
Max EPS beat(4)16.66%
EPS beat(8)8
Avg EPS beat(8)7%
EPS beat(12)10
Avg EPS beat(12)15.12%
EPS beat(16)14
Avg EPS beat(16)15.59%
Revenue beat(2)0
Avg Revenue beat(2)-1.28%
Min Revenue beat(2)-1.97%
Max Revenue beat(2)-0.59%
Revenue beat(4)1
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)0.52%
Revenue beat(8)2
Avg Revenue beat(8)-0.38%
Revenue beat(12)5
Avg Revenue beat(12)0.33%
Revenue beat(16)8
Avg Revenue beat(16)0.48%
PT rev (1m)-4.94%
PT rev (3m)-11.66%
EPS NQ rev (1m)-6.72%
EPS NQ rev (3m)-14.31%
EPS NY rev (1m)-3.2%
EPS NY rev (3m)-6.68%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.9 | ||
| Fwd PE | 4.63 | ||
| P/S | 0.07 | ||
| P/FCF | N/A | ||
| P/OCF | 3.93 | ||
| P/B | 1.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.09 |
EPS(TTM)1.56
EY16.94%
EPS(NY)1.99
Fwd EY21.58%
FCF(TTM)-0.84
FCFYN/A
OCF(TTM)2.34
OCFY25.42%
SpS139.93
BVpS7.45
TBVpS-13.65
PEG (NY)0.7
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.53% | ||
| ROE | -64.06% | ||
| ROCE | 8.93% | ||
| ROIC | 7.06% | ||
| ROICexc | 7.21% | ||
| ROICexgc | 16.76% | ||
| OM | 2.41% | ||
| PM (TTM) | N/A | ||
| GM | 20.61% | ||
| FCFM | N/A |
ROA(3y)-2.73%
ROA(5y)-0.2%
ROE(3y)-22.09%
ROE(5y)-7.69%
ROIC(3y)6.37%
ROIC(5y)8.64%
ROICexc(3y)6.65%
ROICexc(5y)8.97%
ROICexgc(3y)17.92%
ROICexgc(5y)17.9%
ROCE(3y)8.06%
ROCE(5y)10.94%
ROICexcg growth 3Y-4.88%
ROICexcg growth 5Y26.45%
ROICexc growth 3Y-21.55%
ROICexc growth 5Y13.72%
OM growth 3Y-17.34%
OM growth 5Y15.68%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.28%
GM growth 5Y11.1%
F-Score3
Asset Turnover2.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.72 | ||
| Cap/Depr | 96.66% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 1.72 | ||
| Cash Conversion | 35.14% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 2.54 |
F-Score3
WACC8.27%
ROIC/WACC0.85
Cap/Depr(3y)77.12%
Cap/Depr(5y)69.93%
Cap/Sales(3y)1.94%
Cap/Sales(5y)1.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4%
EPS 3Y-28.62%
EPS 5Y22.1%
EPS Q2Q%21.05%
EPS Next Y8.44%
EPS Next 2Y14.35%
EPS Next 3Y17.14%
EPS Next 5Y14.25%
Revenue 1Y (TTM)2.84%
Revenue growth 3Y3.03%
Revenue growth 5Y3.04%
Sales Q2Q%0.74%
Revenue Next Year2.74%
Revenue Next 2Y2.63%
Revenue Next 3Y2.77%
Revenue Next 5Y2.98%
EBIT growth 1Y-16.96%
EBIT growth 3Y-14.84%
EBIT growth 5Y19.2%
EBIT Next Year97.3%
EBIT Next 3Y34.82%
EBIT Next 5YN/A
FCF growth 1Y-132.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-55.56%
OCF growth 3Y9.15%
OCF growth 5Y-0.56%