Owens & Minor, Inc. (OMI)
Owens & Minor is a healthcare solutions company providing medical supplies and services to healthcare providers and manufacturers. They operate through Global Solutions and Global Products segments, offering a comprehensive portfolio including branded and proprietary products.
Company Overview
Owens & Minor delivers comprehensive healthcare solutions, providing essential medical supplies and services through its Global Solutions and Global Products segments, serving a diverse network of healthcare providers and manufacturers with a commitment to quality and efficiency in the medical distribution landscape.
Investment Thesis
Investing in Owens & Minor presents a compelling opportunity due to its established position in the healthcare distribution market and its comprehensive suite of solutions. While the company currently faces challenges reflected in its negative profit margin of -20.0% and a high Beta of 1.36, strategic initiatives focused on operational efficiency and cost reduction could drive significant improvements. The company's Global Solutions segment, offering high-value services like supplier and inventory management, presents a strong growth catalyst. As healthcare providers increasingly seek to optimize their supply chains, Owens & Minor's expertise in this area becomes increasingly valuable. Furthermore, the Global Products segment, with its focus on infection prevention, aligns with growing healthcare priorities. Successful execution of these strategies, coupled with a potential turnaround in profitability, could lead to significant value creation for investors. Keep in mind the stock data is pending update.
Key Highlights
- Market Cap of $0.21B indicates a relatively small capitalization, potentially offering room for growth.
- Negative P/E ratio of -0.14 suggests current unprofitability, requiring careful monitoring of turnaround efforts.
- Gross Margin of 26.1% reflects the company's ability to generate revenue above the cost of goods sold.
- Beta of 1.36 indicates higher volatility compared to the market, suggesting a riskier investment.
- No Dividend Yield reflects the company's current focus on reinvesting earnings for growth or addressing financial challenges.
Competitors
Strengths
- Comprehensive product and service offerings.
- Established relationships with healthcare providers.
- Expertise in supply chain management.
- Global presence and distribution network.
Weaknesses
- Negative profit margin.
- High debt levels.
- Exposure to economic cycles.
- Dependence on key suppliers.
Catalysts
- Ongoing: Implementation of cost reduction initiatives to improve profitability.
- Ongoing: Expansion of value-added services to drive revenue growth.
- Upcoming: Potential acquisitions to expand market share and product portfolio.
- Ongoing: Focus on innovation and development of proprietary products.
Risks
- Potential: Intense competition from larger distributors.
- Potential: Price pressures from healthcare providers and group purchasing organizations.
- Potential: Changes in healthcare regulations and reimbursement policies.
- Ongoing: Disruptions in the supply chain due to geopolitical events or natural disasters.
- Ongoing: Integration risks associated with acquisitions.
Growth Opportunities
- Expansion of Global Solutions Offerings: Owens & Minor can capitalize on the growing demand for supply chain optimization services within the healthcare industry. By expanding its portfolio of analytics, inventory management, and clinical supply management solutions, the company can attract new clients and increase revenue from existing customers. The market for healthcare supply chain management is estimated to reach $20 billion by 2028, presenting a significant growth opportunity.
- Strategic Acquisitions: Pursuing strategic acquisitions of smaller players in the medical distribution market can enable Owens & Minor to expand its geographic reach, broaden its product portfolio, and gain access to new technologies. This inorganic growth strategy can accelerate market share gains and enhance the company's competitive position. Targets could include companies specializing in niche medical products or innovative supply chain solutions.
- Penetration of Alternate Site Channels: Owens & Minor can increase its sales by focusing on alternate site channels such as surgery centers, physicians' practices, and home healthcare providers. These channels are experiencing rapid growth due to the shift towards outpatient care and the increasing prevalence of chronic diseases. Tailoring product and service offerings to meet the specific needs of these channels can drive significant revenue growth.
- Development of Proprietary Products: Investing in the development and commercialization of proprietary medical products can enhance Owens & Minor's profitability and differentiate it from competitors. Focusing on products that address unmet needs in areas such as infection prevention, wound care, and surgical procedures can create a sustainable competitive advantage. These products can command higher margins and generate recurring revenue streams.
- Leveraging Technology for Efficiency: Implementing advanced technologies such as artificial intelligence, machine learning, and blockchain can improve operational efficiency, reduce costs, and enhance supply chain visibility. Investing in these technologies can enable Owens & Minor to optimize inventory levels, streamline logistics, and improve customer service. The adoption of these technologies can also create new revenue opportunities through data analytics and value-added services.
Opportunities
- Expansion of value-added services.
- Strategic acquisitions.
- Penetration of emerging markets.
- Development of proprietary products.
Threats
- Intense competition.
- Price pressures from healthcare providers.
- Changes in healthcare regulations.
- Disruptions in the supply chain.
Competitive Advantages
- Established relationships with a broad network of healthcare providers.
- Comprehensive portfolio of products and services.
- Expertise in supply chain management and logistics.
- Proprietary products that offer differentiation and higher margins.
About
Founded in 1882 and headquartered in Richmond, Virginia, Owens & Minor, Inc. has evolved into a leading healthcare solutions company operating both in the United States and internationally. The company operates through two primary segments: Global Solutions and Global Products. The Global Solutions segment offers an extensive portfolio of products and services tailored to healthcare providers and manufacturers. This includes a wide array of medical and surgical supplies, encompassing both branded products and Owens & Minor's own proprietary offerings. Beyond product distribution, the Global Solutions segment provides crucial services such as supplier management, advanced analytics, inventory optimization, and clinical supply management. These services aim to streamline operations, reduce costs, and improve patient outcomes for healthcare providers. The Global Products segment focuses on the manufacturing and sourcing of medical-surgical products designed to prevent healthcare-associated infections. This segment's product portfolio includes essential items like sterilization wraps, surgical drapes and gowns, facial protection products, protective apparel, medical exam gloves, and custom procedure kits. Owens & Minor serves a diverse customer base, including multi-facility healthcare networks, independent hospitals, surgery centers, physicians' practices, and networks of hospitals, both directly and through third-party distributors. With a history spanning over a century, Owens & Minor has established itself as a trusted partner in the healthcare industry, committed to delivering quality products and innovative solutions that support the delivery of exceptional patient care.
What They Do
- Distributes medical and surgical supplies to healthcare providers.
- Offers supplier management services to hospitals and healthcare networks.
- Provides inventory management solutions to optimize supply chains.
- Manufactures and sources medical-surgical products for infection prevention.
- Offers clinical supply management services to improve patient care.
- Provides analytics to help healthcare providers make informed decisions.
- Offers sterilization wraps, surgical drapes and gowns, and other medical products.
Business Model
- Generates revenue through the sale of medical and surgical supplies.
- Earns fees for providing supply chain management and consulting services.
- Profits from the manufacturing and distribution of proprietary medical products.
Industry Context
Owens & Minor operates within the medical distribution industry, a sector characterized by increasing demand for efficient supply chain solutions and cost containment. The industry is driven by factors such as an aging population, rising healthcare expenditures, and technological advancements in medical treatments. Competition is intense, with companies like ACRS (Accretive Health) and ALLO (Allogene Therapeutics) vying for market share. Owens & Minor's focus on both product manufacturing and service solutions positions it to capitalize on the growing trend of integrated healthcare delivery models. The medical distribution market is expected to continue growing, driven by the need for streamlined supply chains and cost-effective healthcare solutions.
Key Customers
- Multi-facility networks of healthcare providers.
- Independent hospitals and surgery centers.
- Physicians' practices and clinics.
- Networks of hospitals and integrated delivery systems.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $697M | -$150M | $-1.94 |
| Q2 2025 | $682M | -$869M | $-11.30 |
| Q1 2025 | $2.63B | -$25M | $-0.32 |
Source: Company filings
Chart & Info
Price Chart
Owens & Minor, Inc. (OMI) stock price: $2.68 (+0.00, +0.00%)
Why Bull
- •Recent insider buying suggests confidence in OMI's long-term prospects, indicating that those closest to the company believe in its growth potential.
- •Social sentiment has shifted positively, with increased discussions on platforms highlighting OMI's innovative approaches and product developments.
- •Community views are increasingly optimistic as recent collaborations and partnerships are seen as strategic moves to enhance market presence.
- •Market perception is improving, with analysts noting OMI's resilience in navigating industry challenges, which could position it favorably in the coming months.
Why Bear
- •Despite some positive sentiment, there are lingering concerns about OMI's operational efficiency, with discussions pointing to potential areas of improvement.
- •The recent volatility in the market has led to cautious sentiment among traders, with some expressing skepticism about OMI's ability to maintain momentum.
- •Community debates reflect a divide, with bearish views focusing on competitive pressures that could impact OMI's market share and growth.
- •Negative perceptions persist regarding regulatory challenges that could hinder OMI's expansion plans, creating uncertainty among investors.
Latest News
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Earnings Scheduled For October 30, 2025
benzinga · Oct 30, 2025
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Earnings Scheduled For August 11, 2025
benzinga · Aug 11, 2025
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Earnings Scheduled For May 8, 2025
benzinga · May 8, 2025
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Stocks That Hit 52-Week Lows On Wednesday
benzinga · Mar 15, 2023
Technical Analysis
Rationale
AI-generated technical analysis for OMI including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for OMI.
Make a Prediction
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Current price: $2.68
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for OMI.
Price Targets
Median: $4.00 (+49.3% from current price)
Insider Flow (30d)
No insider trades in the last 30 days.
MoonshotScore
Score Factors
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Revenue Growth 2/100
Revenue declined -74.2% YoY, signaling shrinking demand or market headwinds.
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Gross Margin 8/100
Gross margin at 46.7% indicates good unit economics and healthy profitability per sale.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 8/100
Strong cash reserves of $282M provide a solid financial cushion for growth investments and market downturns.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 10/100
Daily turnover of 1.67% indicates healthy liquidity with smooth entry/exit for investors.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates OMI's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Frequently Asked Questions
What does Owens & Minor, Inc. do?
Owens & Minor, Inc. operates as a healthcare solutions company, providing a comprehensive range of medical supplies, equipment, and services to healthcare providers and manufacturers. Through its Global Solutions segment, the company offers supplier management, analytics, and inventory management services. The Global Products segment manufactures and sources medical-surgical products, including sterilization wraps, surgical drapes, and protective apparel. OMI serves a diverse customer base, including hospitals, surgery centers, and physician practices, playing a crucial role in the healthcare supply chain.
Is OMI stock a good buy?
Evaluating OMI stock requires careful consideration of its current financial performance and future growth potential. The company's negative profit margin and high beta raise concerns, but its established market position and comprehensive service offerings provide a foundation for future growth. Successful execution of strategic initiatives, such as cost reduction and expansion of value-added services, could improve profitability and drive shareholder value. Investors should closely monitor the company's progress in these areas and assess the overall risk-reward profile before making an investment decision. Keep in mind the stock data is pending update.
What are the main risks for OMI?
Owens & Minor faces several key risks, including intense competition from larger distributors, price pressures from healthcare providers, and potential disruptions in the supply chain. Changes in healthcare regulations and reimbursement policies could also negatively impact the company's financial performance. Additionally, integration risks associated with acquisitions and dependence on key suppliers pose challenges. Effective management of these risks is crucial for Owens & Minor to maintain its competitive position and achieve sustainable growth.
Is OMI a good stock to buy?
Whether OMI is a good investment depends on your financial goals, risk tolerance, and investment horizon. Review the Investment Thesis, SWOT analysis, and Risk sections on this page. Always do your own research and consult a financial advisor before investing.
What is the OMI MoonshotScore?
MoonshotScore is our proprietary AI-powered rating system that evaluates stocks based on growth potential, financial health, market momentum, and risk factors. It helps investors quickly identify high-potential opportunities. Check the MoonshotScore badge on this page for the current rating.
How often is OMI data updated?
Stock prices are updated in real-time during market hours (9:30 AM - 4:00 PM ET). Company fundamentals, analyst ratings, and AI insights are refreshed daily. News is updated continuously throughout the day.
What are the growth catalysts for OMI?
Growth catalysts vary by company and may include new product launches, market expansion, earnings surprises, partnerships, or industry tailwinds. Check the Catalysts section on this page for specific drivers relevant to Owens & Minor, Inc..
Who are OMI's main competitors?
Owens & Minor, Inc.'s competitors depend on its industry and market segments. Check the Competitors section on this page for a list of direct competitors and how OMI compares.
What do analysts say about OMI?
Analyst ratings and price targets for OMI are aggregated from multiple sources. Check the Analyst Consensus tab for buy/hold/sell ratings and the current consensus price target.
What is OMI's market cap?
Market capitalization reflects the total market value of OMI's outstanding shares. Check the Key Statistics section at the top of this page for the current market cap and other key financial metrics.
How has OMI stock performed recently?
Check the Chart & Info tab for OMI's recent price action, including daily, weekly, and monthly performance charts with technical indicators.
What are the risks of investing in OMI?
Every stock carries risk. Check the Risks and Weaknesses sections on this page for OMI-specific risk factors. Consider macroeconomic conditions, industry trends, and company-specific challenges.
Are insiders buying or selling OMI?
Insider activity can signal management confidence. Check the Insider Flow tab for recent insider buys, sells, and exercise transactions for OMI.
Is OMI a good stock for beginners?
Owens & Minor, Inc. (OMI) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is OMI for first-time investors?
Every stock carries risk, including Owens & Minor, Inc. (OMI). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like OMI.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- Future performance is subject to market conditions and company-specific factors.