Wholesale-Medical, Dental & Hospital Equipment & Supplies
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.
Discounted Cash Flow Valuation of Owens & Minor Inc
Growth
%
%
Discount
%
%
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 |
In the chart Earnings are multiplied by this value.
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.
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% |
The average Net Margin over the past 5 years is -0.45%.
The trend of Net Margin over the past 5 years is +0.71%.
The average ROA over the past 5 years is +2.14%.
The trend of ROA over the past 5 years is +1.96%.
The average ROE over the past 5 years is -12.01%.
The trend of ROE over the past 5 years is +13.32%.
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.
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% |
The Debt/FCF trailing twelve month is 6.66.
The trend of Debt/FCF over the past 5 years is -3.94.
Graham’s Stability measure stands at -4.65.
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.
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% |
The Revenue CAGR over the past 5 years is +0.99%.
The trend of Revenue growth rate over the past 5 years is +0.56%.
The Earnings CAGR over the past 5 years is -37.61%.
The trend of Earnings growth rate over the past 5 years is +33.68%.
The Equity CAGR over the past 5 years is +12.26%.
The trend of Equity growth rate over the past 5 years is +2.62%.
The FCF CAGR over the past 5 years is +60.58%.
The trend of FCF growth rate over the past 5 years is +6.49%.