Owens & Minor Inc (OMI, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $1.74 billion. The current price of OMI stock is $22.77, reflecting a 12.75% gain over the past week and a significant 24.08% gain over the past three months. According to GuruFocus's valuation metrics, the stock is currently modestly undervalued with a GF Value of $31.05, down slightly from the past GF Value of $31.38. Previously, the stock was considered significantly undervalued, indicating a positive shift in market sentiment towards OMI.
Understanding Owens & Minor Inc
Owens & Minor Inc operates within the medical distribution industry, focusing on the distribution of consumable medical supplies, logistics, value-added services, and the manufacturing of medical surgical products. The company's business is divided into two segments: Products & Healthcare Services and Patient Direct. The former includes the U.S. distribution business, outsourced logistics, and value-added services, as well as the Global Products business, which manufactures and sources medical surgical products. The Patient Direct segment comprises home healthcare businesses such as Byram and Apria. 
Profitability Analysis
Owens & Minor's Profitability Rank stands at 6/10, which is a moderate score indicating a fair level of profitability within the industry. The company's Operating Margin is currently at 0.88%, which is better than 23.4% of its peers. However, the ROE is at -12.67%, and the ROA is at -2.20%, both of which are lower than the industry average. The ROIC of 1.57% is better than 28.42% of the companies in the industry. Owens & Minor has maintained profitability for 8 out of the past 10 years, which is better than 53.33% of its competitors.
Growth Prospects
The Growth Rank for Owens & Minor is currently at 1/10, indicating that the company's growth is lower than the majority of its industry counterparts. The 3-Year Revenue Growth Rate per Share is at -4.90%, and the 5-Year Revenue Growth Rate per Share is at -4.40%. Despite these negative growth rates in revenue, the company has seen a substantial 202.70% 3-Year EPS without NRI Growth Rate, which is better than 98.68% of the industry. The 5-Year EPS without NRI Growth Rate is at 13.90%, outperforming 68.97% of the industry.
Shareholder Insights
Among the notable shareholders of Owens & Minor are Jim Simons (Trades, Portfolio), holding 1,138,500 shares (1.49% share percentage), Paul Tudor Jones (Trades, Portfolio) with 193,377 shares (0.25% share percentage), and First Eagle Investment (Trades, Portfolio), owning 172,938 shares (0.23% share percentage). These investors' involvement provides a level of confidence in the company's management and future prospects.
Competitive Landscape
When compared to its competitors, Owens & Minor has a larger market capitalization than Zynex Inc (ZYXI, Financial) with $282.387 million, Edap TMS SA (EDAP, Financial) with $197.206 million, and Akso Health Group (AHG, Financial) with $20.237 million. This indicates that OMI holds a stronger market position within the medical distribution industry.
Conclusion
In summary, Owens & Minor Inc has shown a robust stock performance with a recent 24.08% gain over the past three months, and the valuation suggests it is modestly undervalued. The company's market position is solid, with a diverse range of operations in medical distribution and manufacturing. While profitability metrics show mixed results, the impressive EPS growth rates highlight the company's potential for future earnings expansion. The presence of significant shareholders like Jim Simons (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) adds to the company's credibility. Compared to its competitors, Owens & Minor's larger market cap suggests a dominant presence in the industry. Investors should consider these factors when evaluating the company's stock for their portfolios.
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.
