Owens & Minor Inc

OMI

Wholesale-Medical, Dental & Hospital Equipment & Supplies

Mkt Cap

$1.32B

PE

-34.04

Debt

$2.154B

Cash

$270.8M

EV

$3.202B

FCF

$323.5M

Market Cap

$1.32B

P/E Ratio

-34.04

Debt

$2.154B

Cash

$270.8M

EV

$3.202B

FCF

$323.5M

Charts data: {"Earnings":[{"time":"2014-12-30","value":65906000},{"time":"2015-12-30","value":102484000},{"time":"2016-12-30","value":107640000},{"time":"2017-12-30","value":71733000},{"time":"2018-12-30","value":-437012000},{"time":"2019-12-30","value":-62371000},{"time":"2020-12-30","value":29871000},{"time":"2021-12-30","value":221589000},{"time":"2022-12-30","value":22389000},{"time":"2023-12-30","value":-41301000}],"Sales":[{"time":"2014-12-30","value":9440182000},{"time":"2015-12-30","value":9772946000},{"time":"2016-12-30","value":9723431000},{"time":"2017-12-30","value":9318275000},{"time":"2018-12-30","value":9838708000},{"time":"2019-12-30","value":9210939000},{"time":"2020-12-30","value":8480177000},{"time":"2021-12-30","value":9785315000},{"time":"2022-12-30","value":9955475000},{"time":"2023-12-30","value":10333967000}],"Net Margins":[{"time":"2014-12-30","value":0.00698143319694472},{"time":"2015-12-30","value":0.01048650018121455},{"time":"2016-12-30","value":0.011070166487528938},{"time":"2017-12-30","value":0.00769809862876981},{"time":"2018-12-30","value":-0.04441762068759435},{"time":"2019-12-30","value":-0.006771405173783042},{"time":"2020-12-30","value":0.00352245006206828},{"time":"2021-12-30","value":0.02264505537123741},{"time":"2022-12-30","value":0.0022489132864077304},{"time":"2023-12-30","value":-0.003996625884328835}],"Assets":[{"time":"2014-12-30","value":2735406000},{"time":"2015-12-30","value":2777840000},{"time":"2016-12-30","value":2717752000},{"time":"2017-12-30","value":3376293000},{"time":"2018-12-30","value":3773788000},{"time":"2019-12-30","value":3643084000},{"time":"2020-12-30","value":3335639000},{"time":"2021-12-30","value":3536551000},{"time":"2022-12-30","value":5386283000},{"time":"2023-12-30","value":5093322000}],"Stockholders Equity":[{"time":"2014-12-30","value":990838000},{"time":"2015-12-30","value":992590000},{"time":"2016-12-30","value":960038000},{"time":"2017-12-30","value":1015479000},{"time":"2018-12-30","value":518419000},{"time":"2019-12-30","value":462154000},{"time":"2020-12-30","value":712054000},{"time":"2021-12-30","value":938501000},{"time":"2022-12-30","value":945604000},{"time":"2023-12-30","value":924166000}],"ROE":[{"time":"2014-12-30","value":0.06651541422513065},{"time":"2015-12-30","value":0.10324907565057073},{"time":"2016-12-30","value":0.11212056189442501},{"time":"2017-12-30","value":0.07063957009450712},{"time":"2018-12-30","value":-0.8429706472949486},{"time":"2019-12-30","value":-0.13495717877590588},{"time":"2020-12-30","value":0.04195047004861991},{"time":"2021-12-30","value":0.2361094980186489},{"time":"2022-12-30","value":0.023676930300633246},{"time":"2023-12-30","value":-0.0446900232209365}],"ROA":[{"time":"2014-12-30","value":0.05832260366468451},{"time":"2015-12-30","value":0.07212762434121475},{"time":"2016-12-30","value":0.07344268351196136},{"time":"2017-12-30","value":0.02643461334664971},{"time":"2018-12-30","value":-0.10392051699777519},{"time":"2019-12-30","value":0.02007941623086374},{"time":"2020-12-30","value":0.06119307275157773},{"time":"2021-12-30","value":0.1041899296800753},{"time":"2022-12-30","value":0.026532768515876347},{"time":"2023-12-30","value":0.02051863204407654}]}

Owens & Minor, Inc., together with its subsidiaries, operates as a healthcare solutions company worldwide. It operates in two segments, Products & Healthcare Services and Patient Direct. The Products & Healthcare Services 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, including supplier management, analytics, inventory management, and clinical supply management; and various programs to provide outsourced logistics and marketing solutions to its suppliers. The Patient Direct segment provides products and services for in-home care and delivery across diabetes treatment, home respiratory therapy, and obstructive sleep apnea treatment. This segment supplies a range of other home medical equipment, patient care products, including ostomy, wound care, urology, incontinence and other products and services. It serves 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.

Sector

10-Q
9/30/23
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6/30/23
10-Q
3/31/23
10-K
12/31/22
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3/31/22
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12/31/19
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3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Owens & Minor Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$323.5M	$399.7M	$485.5M	$579.7M	$680.3M	$784.3M	$888.1M	$987.4M	$1.077B	$1.153B	$1.211B	$12.11B
DCF		$347.5M	$367.1M	$381.2M	$388.9M	$389.9M	$384M	$371.2M	$352.2M	$327.9M	$299.4M	$2.994B
Value	$6.603B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 3.6%

Earnings Stability -49%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	1%	1.1%	0.77%	-4.4%	-0.68%	0.35%	2.3%	0.22%	-0.4%	-0.37%
ROA	7.2%	7.3%	2.6%	-10%	2%	6.1%	10%	2.7%	2.1%	2%
ROE	10%	11%	7.1%	-84%	-13%	4.2%	24%	2.4%	-4.5%	-4.3%

What is the average Net Margin?

The average Net Margin over the past 5 years is -0.45%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.71%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +2.14%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.96%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -12.01%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +13.32%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	2.50	3.66	154.71	34.30	14.15	3.81	12.72	15.79	3.94	6.66
Debt Equity	0.59	0.60	0.92	3.30	3.49	1.50	1.01	2.64	2.27	2.41
MIN
Graham Stability	-	-	78%	-470%	-	-	-	36%	-45%	-470%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 6.66.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -3.94.

What is the Graham’s Stability?

Graham’s Stability measure stands at -4.65.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	0.87%	0.99%	6.8%	3.8%	0.56%
Net Income	-	-	-	-	34%
Stockholders Equity	-0.54%	12%	9.1%	-2.3%	2.6%
FCF	19%	61%	24%	240%	6.5%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +0.99%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.56%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -37.61%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +33.68%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +12.26%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +2.62%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +60.58%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +6.49%.