Owens & Minor (OMI) AI Stock Analysis

• Market Cap: $425.62M
• Dividend Yield: N/A
• Average Volume (3M): 2.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -17.10%
• EPS Growth: -2720.40%
• Country: US
• Employees: 23,200
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 0.26
• Shares Outstanding: 77,244,160
• 10 Day Avg. Volume: 1,497,034
• 30 Day Avg. Volume: 2,436,661
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 6.49
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 1.39
• Enterprise Value/Ebitda: -30.46
• 1Y Price Target: $6.28
• Price Target Upside: 14.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 48 Neutral
• Price Target: $5.50 ▲(0.36% Upside)

Owens & Minor's overall stock score reflects significant financial challenges and a concerning valuation. While there are some positive signs in the earnings call regarding business growth and improved margins, the technical analysis suggests a bearish trend. The company's high leverage and negative equity further weigh down the score, indicating a need for strategic improvements to enhance financial stability and investor confidence.

Positive Factors

Patient Direct Business Growth

The growth of the Patient Direct business indicates a strong market position in a key segment, contributing to revenue stability and potential expansion opportunities.

Adjusted EBITDA Improvement

Improved EBITDA margins reflect operational efficiencies and a favorable product mix, enhancing profitability and financial health over the medium term.

Strong Category Performance

Growth in specific categories like sleep and urology suggests a robust product portfolio and market demand, supporting sustained revenue streams.

Negative Factors

High Leverage and Negative Equity

High leverage and negative equity pose risks to financial stability, limiting the company's ability to invest in growth and manage economic downturns.

Declining Revenue Growth

Declining revenue growth indicates challenges in market competitiveness and operational inefficiencies, potentially impacting long-term sustainability.

Rotech Acquisition Termination Costs

Significant costs from the Rotech acquisition termination strain financial resources, impacting cash flow and limiting strategic flexibility.

Owens & Minor Business Overview & Revenue Model

Company Description

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; and various programs to provide logistics and marketing solutions to its suppliers. The Global Products segment manufactures and sources medical surgical products for the prevention of healthcare-associated infections across the acute and alternate site channels. This segments 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. It 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. The company was founded in 1882 and is headquartered in Richmond, Virginia.

How the Company Makes Money

Owens & Minor generates revenue primarily through the distribution of medical and surgical supplies to healthcare providers, including hospitals, clinics, and nursing homes. The company's revenue model is based on the sale of products and services, with key revenue streams including the sale of medical supplies, logistics and supply chain management services, and contract distribution agreements with healthcare organizations. Additionally, Owens & Minor has established partnerships with various medical manufacturers, allowing them to offer a wide range of products while benefiting from favorable pricing agreements. The company's focus on value-added services, such as inventory management and customized supply chain solutions, also contributes to its earnings by enhancing customer satisfaction and loyalty.

Owens & Minor Financial Statement Overview

Summary

Owens & Minor faces significant profitability challenges despite revenue growth, with negative net income impacting overall financial health. The high leverage and fluctuating cash flow pose risks, necessitating focused management strategies to enhance profitability and stabilize cash flows.

Income Statement

Owens & Minor's revenue has shown a steady growth trajectory, with a notable increase over the past years. However, profitability metrics reveal challenges, with negative EBIT and net income in the most recent TTM period. The gross profit margin remains stable, but the negative net profit margin highlights ongoing operational struggles.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, suggesting significant leverage. Although the equity ratio indicates a solid proportion of assets financed by equity, the return on equity is negative, driven by consistent net losses, indicating financial stress.

Cash Flow

Cash flow analysis shows fluctuating free cash flow, with a negative trend in the most recent TTM. The operating cash flow to net income ratio indicates that cash from operations is relatively unaffected by net losses, providing some liquidity cushion. The negative free cash flow to net income ratio suggests cash flow generation challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.73B	10.70B	10.33B	9.96B	9.79B	8.48B
Gross Profit	1.98B	2.22B	2.13B	1.83B	1.51B	1.28B
EBITDA	-90.76M	51.22M	400.29M	367.80M	415.46M	277.41M
Net Income	-1.20B	-362.69M	-41.30M	22.39M	221.59M	29.87M
Balance Sheet
Total Assets	4.15B	4.66B	5.09B	5.39B	3.54B	3.34B
Cash, Cash Equivalents and Short-Term Investments	38.26M	49.38M	243.04M	69.47M	55.71M	83.06M
Total Debt	463.98M	2.14B	2.32B	2.70B	1.15B	1.14B
Total Liabilities	4.44B	4.09B	4.17B	4.44B	2.60B	2.62B
Stockholders Equity	-281.01M	565.23M	924.17M	945.60M	938.50M	712.05M
Cash Flow
Free Cash Flow	-156.05M	-66.67M	532.82M	158.42M	74.49M	280.03M
Operating Cash Flow	100.85M	161.50M	740.71M	325.01M	124.18M	339.22M
Investing Cash Flow	-180.61M	-116.53M	-137.25M	-1.80B	-53.63M	80.07M
Financing Cash Flow	-118.21M	-267.60M	-417.33M	1.50B	-129.48M	-379.39M

Owens & Minor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.48
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMI, the sentiment is Neutral. The current price of 5.48 is above the 20-day moving average (MA) of 4.86, above the 50-day MA of 5.08, and below the 200-day MA of 7.61, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 61.58 is Neutral, neither overbought nor oversold. The STOCH value of 89.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OMI.

Owens & Minor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCK	―	$99.72B	31.99	―	0.36%	20.35%	11.96%
HSIC	―	$7.74B	20.43	11.18%	―	2.29%	14.98%
CAH	―	$38.46B	25.10	―	1.24%	-1.94%	85.70%
COR	―	$64.51B	34.23	130.60%	0.65%	11.56%	5.31%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OMI	―	$425.62M	-0.35	-144.11%	―	-17.10%	-2720.40%
GRDN	―	$1.64B	―	-97.70%	―	―	―

Owens & Minor Corporate Events

Owens & Minor Sells Segment to Platinum Equity

On October 7, 2025, Owens & Minor announced a definitive agreement to sell its Products & Healthcare Services segment to Platinum Equity for $375 million in cash and a retained equity stake. This strategic move is part of Owens & Minor’s transformation into a pure-play leader in the home-based care market, allowing the company to focus on its core business and enhance value for stakeholders. The transaction, expected to close by the end of the year, is subject to customary closing conditions and regulatory approvals. The sale will enable Owens & Minor to concentrate on its more profitable segments, leveraging its leading brands and long-standing commitment to patient care to drive consistent revenue and profit growth.

The most recent analyst rating on (OMI) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Owens & Minor stock, see the OMI Stock Forecast page.

Owens & Minor Announces CIO Resignation

On September 15, 2025, Owens & Minor announced the resignation of Snehashish Sarkar, their Executive Vice President and Chief Information Officer, effective September 26, 2025. Sarkar, who joined the company in October 2022, has been credited with building a strong global team that is well-equipped to support the company’s strategic goals, indicating a smooth transition despite his departure.

The most recent analyst rating on (OMI) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Owens & Minor stock, see the OMI Stock Forecast page.

Owens & Minor’s Asset Sale: Potential Risks and Financial Implications

Owens & Minor faces significant business risks with the contemplated sale of certain assets in its P&HS segment, which could adversely affect its financial stability. The company may encounter substantial retained liabilities from divested businesses and sold assets, along with obligations to indemnify buyers against contingent liabilities. These factors, combined with potential disputes with buyers, could negatively impact Owens & Minor’s financial position, operations, and cash flows. Additionally, the divestiture could lead to a dilutive impact on future earnings if the company fails to offset the loss of revenue and profits, potentially resulting in significant write-offs and adversely affecting its financial condition.

Owens & Minor Reports Q2 2025 Earnings and Strategic Shift

Owens & Minor, Inc. is a Fortune 500 global healthcare solutions company that provides essential products and services supporting care from hospitals to homes, with a focus on delivering comfort and confidence in healthcare environments.

Owens & Minor’s Strategic Shift in Earnings Call

Owens & Minor’s recent earnings call highlighted a strategic shift towards becoming a pure-play Patient Direct business. The sentiment was generally positive, focusing on growth in specific categories and effective working capital management. However, the company faces challenges such as costs from the Rotech acquisition, disruptions in the diabetes segment, and potential increases in stranded costs.

Owens & Minor Reports Q2 Results Amid Segment Sale

On August 11, 2025, Owens & Minor reported its second-quarter financial results, highlighting the classification of its Products & Healthcare Services segment as discontinued operations due to an impending sale. The company’s continuing operations, primarily the Patient Direct segment, showed solid performance and growth, with revenue increasing to $681.9 million from $660.4 million in the same quarter of the previous year. Despite a net loss from continuing operations, the adjusted net income and EBITDA showed improvement, reflecting the company’s strategic focus on the Patient Direct business. CEO Ed Pesicka expressed optimism about the company’s future as a pure-play Patient Direct business, supported by favorable demographic trends.

The most recent analyst rating on (OMI) stock is a Sell with a $7.00 price target. To see the full list of analyst forecasts on Owens & Minor stock, see the OMI Stock Forecast page.