Owens & Minor Inc (OMI, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $1.48 billion. The current price of $19.34 reflects a 5.45% gain over the past week and an impressive 21.87% gain over the past three months. According to GF Value, the stock is significantly undervalued, with a current GF Value of $31.59, up slightly from the past GF Value of $31.35. This valuation suggests that OMI's stock has considerable room to grow, maintaining its status as significantly undervalued both currently and in the past three months.
Understanding Owens & Minor Inc
Owens & Minor Inc operates within the medical distribution industry, focusing on the distribution of consumable medical supplies, logistics services, and the manufacturing of medical surgical products. The company is divided into two main segments: Products & Healthcare Services and Patient Direct. The former includes the U.S. distribution business, logistics, and value-added services, as well as the Global Products business, which is responsible for manufacturing and sourcing medical surgical products. The Patient Direct segment encompasses home healthcare businesses such as Byram and Apria. 
Profitability Analysis
Owens & Minor's Profitability Rank stands at 6/10, indicating a moderate level of profitability within the industry. The company's Operating Margin is currently at 0.88%, which is better than 21.74% of its peers. Despite a negative Return on Equity (ROE) of -12.67% and Return on Assets (ROA) of -2.20%, OMI's ROE and ROA are still better than 10.11% and 17.2% of its competitors, respectively. The Return on Invested Capital (ROIC) at 1.57% is also better than 26.88% of the industry. Over the past decade, Owens & Minor has maintained profitability for 8 years, outperforming 52.81% of its peers. 
Growth Prospects and Challenges
The company's Growth Rank is currently at a low 1/10, with a 3-Year Revenue Growth Rate per Share of -4.90% and a 5-Year Revenue Growth Rate per Share of -4.40%. However, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 4.37%, indicating potential for future improvement. The 3-Year EPS without NRI Growth Rate is an impressive 202.70%, and the 5-Year EPS without NRI Growth Rate stands at 13.90%, both of which are better than the majority of their industry counterparts. 
Notable Shareholders
Among the notable shareholders of Owens & Minor, Jim Simons (Trades, Portfolio) leads with 1,138,500 shares, representing a 1.49% stake in the company. Following him is Paul Tudor Jones (Trades, Portfolio), holding 193,377 shares, which equates to a 0.25% share percentage. First Eagle Investment (Trades, Portfolio) holds 172,938 shares, accounting for a 0.23% stake in OMI.
Competitive Landscape
When compared to its competitors, Owens & Minor Inc holds a significant lead in market capitalization. Zynex Inc (ZYXI, Financial) has a market cap of $307.812 million, Edap TMS SA (EDAP, Financial) stands at $177.264 million, and Acro Biomedical Co Ltd (ACBM, Financial) is at $6.304 million. This comparison highlights OMI's stronger market position within the medical distribution industry.
Conclusion
In summary, Owens & Minor Inc's stock performance has been robust, with significant gains over the past quarter and a GF Valuation indicating that the stock is significantly undervalued. The company's market position is solid, with a diverse range of business segments in medical distribution and manufacturing. While profitability metrics present a mixed picture, the company's growth in EPS is promising. The presence of notable shareholders like Jim Simons (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) adds a layer of investor confidence. Compared to its competitors, OMI's larger market capitalization suggests a dominant position in the industry. Investors may find Owens & Minor an attractive option, considering its potential for growth and current undervaluation.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
