Omnicell (OMCL) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: N/A
• Average Volume (3M): 721.51K
• Price to Earnings (P/E): 56.7
• Beta (1Y): 0.22
• Revenue Growth: 3.00%
• EPS Growth: N/A
• Country: US
• Employees: 3,620
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.26
• Shares Outstanding: 46,843,605
• 10 Day Avg. Volume: 905,425
• 30 Day Avg. Volume: 721,510
• PEG Ratio: 0.56
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.66
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 2.58
• Enterprise Value/Ebitda: 5.59
• 1Y Price Target: $43.17
• Price Target Upside: 67.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Omnicell's overall stock score reflects a stable financial position with strong cash flow and a robust balance sheet. However, challenges such as declining revenue, high valuation, and bearish technical indicators weigh on the stock. The earnings call highlights both growth in revenue and challenges due to tariffs, affecting profitability. Strategic efforts to mitigate these issues could improve future prospects.

Positive Factors

Positive Performance

Revenue for the first quarter was up 9.6% to $269.7M, with SaaS & Expert Services as the primary growth drivers.

Product Innovation

The launch of the XT Amplify/Extend products that enhance and extend the installed base of XT cabinets is gaining traction and enhancing gross margins.

Recurring Revenue

SaaS & Expert Services are growing at a ~10% pace, driving recurring revenue higher.

Negative Factors

Guidance Reduction

OMCL dropped 15% as investors reacted to a reduction in FY25 non-GAAP EBITDA and EPS guidance due to tariff impacts, mainly with China.

Regulatory Issues

Regulatory and federal budget issues, such as Medicaid supplemental payments, may arise for Omnicell’s hospital and health system clients.

Tariff Impacts

Significant tariff impacts create uncertainty on the bottom line.

Omnicell Business Overview & Revenue Model

Company Description

Omnicell, Inc. (OMCL) is a leading provider of medication management solutions and adherence tools for healthcare systems and pharmacies. The company operates in the healthcare technology sector, offering a suite of products designed to enhance medication management and patient safety. Its core products include automated dispensing systems, medication adherence solutions, and analytics software that enable healthcare providers to improve operational efficiency, reduce medication errors, and ensure regulatory compliance.

How the Company Makes Money

Omnicell makes money primarily through the sale and leasing of its automated medication management systems and related services. The company generates revenue from several key streams: product sales, which include automated dispensing cabinets and medication adherence tools; service and maintenance contracts that provide ongoing support and ensure system functionality; and subscription-based software solutions that offer analytics and reporting services. Partnerships with healthcare facilities, pharmacies, and integrated delivery networks play a significant role in expanding its customer base and driving sales. Additionally, Omnicell benefits from recurring revenue through multi-year service agreements and software subscriptions, contributing to a stable and growing income stream.

Omnicell Financial Statement Overview

Summary

Omnicell shows stable financial health with a strong balance sheet and good cash flow generation. However, it faces challenges in revenue growth and profitability margins, necessitating improvements in operational efficiency.

Income Statement

Omnicell's income statement presents a mixed performance. The TTM (Trailing-Twelve-Months) revenue shows a decline, with a revenue growth rate of -3.04% compared to the previous year. The gross profit margin is 42.57%, indicating a solid ability to manage production costs. However, the net profit margin is only 1.13%, reflecting challenges in controlling operating expenses. EBIT and EBITDA margins are below industry standards, at 0.31% and 4.16%, respectively, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet of Omnicell is relatively strong, with a debt-to-equity ratio of 0.30, demonstrating a conservative use of leverage. The return on equity (ROE) is 1.01%, which is low, indicating limited returns on shareholders' equity. The equity ratio stands at 58.62%, which is robust, showing a healthy proportion of equity financing relative to total assets. Overall, the balance sheet reflects stability with manageable liabilities.

Cash Flow

Omnicell's cash flow statement shows a positive trajectory. The free cash flow growth rate is 10.58%, signaling good cash generation capability. The operating cash flow to net income ratio is 14.98, which is strong, suggesting that operating cash flow significantly exceeds net income. The free cash flow to net income ratio is 11.12, reinforcing efficient cash generation. However, high capital expenditures could be a potential concern if not managed effectively.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.11B	1.15B	1.30B	1.13B	892.21M
	Gross Profit
471.00M	499.93M	588.99M	554.65M	413.29M
	EBIT
337.00K	-34.87M	-2.32M	89.51M	35.53M
	EBITDA
90.09M	60.69M	96.85M	174.44M	107.12M
	Net Income Common Stockholders
12.53M	-20.37M	5.65M	77.85M	32.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
381.68M	467.97M	330.36M	349.05M	485.93M
	Total Assets
2.12B	2.23B	2.21B	2.14B	1.82B
	Total Debt
382.55M	614.09M	616.74M	528.06M	516.10M
	Net Debt
13.35M	146.12M	286.38M	179.01M	30.17M
	Total Liabilities
877.65M	1.04B	1.08B	995.81M	857.00M
	Stockholders Equity
1.24B	1.19B	1.13B	1.15B	967.50M
Cash Flow		Free Cash Flow
151.26M	126.08M	17.04M	173.47M	131.00M
	Operating Cash Flow
187.72M	181.09M	77.78M	231.81M	185.87M
	Investing Cash Flow
-52.79M	-55.02M	-58.67M	-412.50M	-279.87M
	Financing Cash Flow
-235.58M	23.42M	-20.95M	47.36M	456.27M

Omnicell Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMCL, the sentiment is Negative. The current price of 25.78 is below the 20-day moving average (MA) of 29.60, below the 50-day MA of 32.46, and below the 200-day MA of 40.45, indicating a bearish trend. The MACD of -1.83 indicates Positive momentum. The RSI at 38.38 is Neutral, neither overbought nor oversold. The STOCH value of 37.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OMCL.

Omnicell Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PINC	74 Outperform	$1.90B	40.41	6.05%	3.64%	-17.69%	-10.24%
HSTM	64 Neutral	$849.82M	44.55	5.40%	0.41%	3.36%	7.51%
PHR	59 Neutral	$1.43B	―	-22.67%	―	17.83%	59.64%
OMCL	58 Neutral	$1.21B	56.73	1.73%	―	3.00%	―
SDGR	53 Neutral	$1.75B	―	-43.33%	―	22.29%	-32.89%
Sector *	52 Neutral	$5.15B	3.56	-42.52%	2.83%	14.56%	-0.50%
TDOC	48 Neutral	$1.25B	―	-54.49%	―	-2.54%	-322.03%

Omnicell Corporate Events

Omnicell CFO Nchacha Etta Announces Departure

On March 12, 2025, Omnicell announced that Nchacha Etta will step down as Executive Vice President and Chief Financial Officer, effective September 15, 2025, or until a successor is named. Etta will assist in the transition while the company conducts a national search for his replacement. His departure is not due to any disagreement with the company, and he is credited with significant contributions to Omnicell’s growth. Additionally, Omnicell reiterated its first quarter and full year 2025 guidance, emphasizing its focus on strategic priorities and long-term revenue growth.

Omnicell Secures CEO Randall Lipps Through 2027

On March 4, 2025, Omnicell, Inc. announced an employment agreement with Randall A. Lipps, ensuring his role as President and CEO through December 31, 2027. The agreement outlines compensation and benefits, including a base salary, bonuses, and equity incentives. It also details severance packages and conditions under which Mr. Lipps would receive them, impacting the company’s leadership stability and potentially influencing investor confidence.