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 102 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 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
OMI had positive earnings in the past year.
In the past year OMI had a positive cash flow from operations.
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
OMI's Return On Assets of -7.79% is on the low side compared to the rest of the industry. OMI is outperformed by 73.53% of its industry peers.
OMI has a Return On Equity of -64.17%. This is in the lower half of the industry: OMI underperforms 73.53% of its industry peers.
The Return On Invested Capital of OMI (7.05%) is better than 68.63% of its industry peers.
OMI had an Average Return On Invested Capital over the past 3 years of 6.37%. This is below the industry average of 9.13%.
The last Return On Invested Capital (7.05%) for OMI is above the 3 year average (6.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.79% | ||
| ROE | -64.17% | ||
| ROIC | 7.05% |
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
Looking at the Operating Margin, with a value of 2.32%, OMI is in line with its industry, outperforming 48.04% of the companies in the same industry.
In the last couple of years the Operating Margin of OMI has grown nicely.
The Gross Margin of OMI (20.74%) 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 | 2.32% | ||
| PM (TTM) | N/A | ||
| GM | 20.74% |
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.
OMI has more shares outstanding than it did 1 year ago.
OMI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OMI has been reduced compared to a year ago.
2.2 Solvency
OMI has an Altman-Z score of 2.59. This is not the best score and indicates that OMI is in the grey zone with still only limited risk for bankruptcy at the moment.
OMI has a Altman-Z score of 2.59. This is comparable to the rest of the industry: OMI outperforms 59.80% of its industry peers.
A Debt/Equity ratio of 3.20 is on the high side and indicates that OMI has dependencies on debt financing.
OMI has a worse Debt to Equity ratio (3.20) than 80.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.59 |
ROIC/WACC0.89
WACC7.96%
2.3 Liquidity
OMI has a Current Ratio of 1.08. This is a normal value and indicates that OMI is financially healthy and should not expect problems in meeting its short term obligations.
OMI has a worse Current ratio (1.08) than 72.55% of its industry peers.
A Quick Ratio of 0.47 indicates that OMI may have some problems paying its short term obligations.
With a Quick ratio value of 0.47, OMI is not doing good in the industry: 90.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
OMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.76%, which is quite good.
The Earnings Per Share has been growing by 22.10% on average over the past years. This is a very strong growth
OMI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.55%.
The Revenue has been growing slightly by 3.04% on average over the past years.
EPS 1Y (TTM)11.76%
EPS 3Y-28.62%
EPS 5Y22.1%
EPS Q2Q%-20.29%
Revenue 1Y (TTM)3.55%
Revenue growth 3Y3.03%
Revenue growth 5Y3.04%
Sales Q2Q%1.5%
3.2 Future
OMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.25% yearly.
Based on estimates for the next years, OMI will show a small growth in Revenue. The Revenue will grow by 3.22% on average per year.
EPS Next Y15.01%
EPS Next 2Y17.31%
EPS Next 3Y17.35%
EPS Next 5Y14.25%
Revenue Next Year3.35%
Revenue Next 2Y3.14%
Revenue Next 3Y3.22%
Revenue Next 5YN/A
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
Based on the Price/Earnings ratio of 4.94, the valuation of OMI can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of OMI indicates a rather cheap valuation: OMI is cheaper than 99.02% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of OMI to the average of the S&P500 Index (28.22), we can say OMI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.30, the valuation of OMI can be described as very cheap.
Based on the Price/Forward Earnings ratio, OMI is valued cheaper than 99.02% of the companies in the same industry.
OMI is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.94 | ||
| Fwd PE | 4.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OMI indicates a rather cheap valuation: OMI is cheaper than 92.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.57 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as OMI's earnings are expected to grow with 17.35% in the coming years.
PEG (NY)0.33
PEG (5Y)0.22
EPS Next 2Y17.31%
EPS Next 3Y17.35%
5. Dividend
5.1 Amount
No dividends for OMI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.51
+0.54 (+7.75%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.93%
Inst Owner Change0.1%
Ins Owners2.19%
Ins Owner Change17.77%
Market Cap580.15M
Analysts48.33
Price Target10.73 (42.88%)
Short Float %7.37%
Short Ratio2.81
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)2.73%
Min EPS beat(2)0.62%
Max EPS beat(2)4.84%
EPS beat(4)4
Avg EPS beat(4)4.84%
Min EPS beat(4)0.62%
Max EPS beat(4)8.73%
EPS beat(8)8
Avg EPS beat(8)24.17%
EPS beat(12)10
Avg EPS beat(12)15.02%
EPS beat(16)14
Avg EPS beat(16)18.07%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-0.59%
Max Revenue beat(2)0.52%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)0.52%
Revenue beat(8)3
Avg Revenue beat(8)0.36%
Revenue beat(12)6
Avg Revenue beat(12)0.76%
Revenue beat(16)8
Avg Revenue beat(16)0.43%
PT rev (1m)-13.53%
PT rev (3m)-35.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.69%
EPS NY rev (1m)-1.03%
EPS NY rev (3m)-6.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.94 | ||
| Fwd PE | 4.3 | ||
| P/S | 0.05 | ||
| P/FCF | N/A | ||
| P/OCF | 3.59 | ||
| P/B | 1.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.57 |
EPS(TTM)1.52
EY20.24%
EPS(NY)1.75
Fwd EY23.28%
FCF(TTM)-0.86
FCFYN/A
OCF(TTM)2.09
OCFY27.84%
SpS138.52
BVpS7.32
TBVpS-13.78
PEG (NY)0.33
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.79% | ||
| ROE | -64.17% | ||
| ROCE | 8.92% | ||
| ROIC | 7.05% | ||
| ROICexc | 7.17% | ||
| ROICexgc | 17.77% | ||
| OM | 2.32% | ||
| PM (TTM) | N/A | ||
| GM | 20.74% | ||
| 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-Score4
Asset Turnover2.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.52 | ||
| Cap/Depr | 86.17% | ||
| Cap/Sales | 2.13% | ||
| Interest Coverage | 1.75 | ||
| Cash Conversion | 31.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 2.59 |
F-Score4
WACC7.96%
ROIC/WACC0.89
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)11.76%
EPS 3Y-28.62%
EPS 5Y22.1%
EPS Q2Q%-20.29%
EPS Next Y15.01%
EPS Next 2Y17.31%
EPS Next 3Y17.35%
EPS Next 5Y14.25%
Revenue 1Y (TTM)3.55%
Revenue growth 3Y3.03%
Revenue growth 5Y3.04%
Sales Q2Q%1.5%
Revenue Next Year3.35%
Revenue Next 2Y3.14%
Revenue Next 3Y3.22%
Revenue Next 5YN/A
EBIT growth 1Y-22.97%
EBIT growth 3Y-14.84%
EBIT growth 5Y19.2%
EBIT Next Year85.57%
EBIT Next 3Y28.73%
EBIT Next 5YN/A
FCF growth 1Y-112.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-78.2%
OCF growth 3Y9.15%
OCF growth 5Y-0.56%