Owens & Minor: A Sitting Duck With More Than 24.93% Upside

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Owens & Minor ($NYSE:OMI), Inc. is a publicly traded company with a market capitalization of over $2 billion. The company is a leading provider of medical and surgical supplies and services in the United States.

However, the company has been under pressure in recent years due to declining reimbursement rates from government health care programs and competition from lower-cost rivals. Despite these challenges, Owens & Minor remains a strong company with a large customer base and a diversified product portfolio. The company is also well-positioned to benefit from the continued growth of the U.S. health care industry. The company’s shares are attractively priced at current levels and offer investors an attractive risk/reward proposition.

Price History

The company is a leading distributor of medical and surgical supplies and equipment, and provides services to healthcare providers and manufacturers. The company’s stock has been on a bit of a roller coaster ride over the past year, but at the time of this writing, media sentiment is mostly positive. On Thursday, Owens & Minor’s stock opened at $18.50 and closed at $18.20, down by 1.0% from the previous day’s closing price of $18.40. Despite the recent dip, analysts believe that Owens & Minor has significant upside potential.

In fact, analysts at Seeking Alpha have a price target of $24.93 for the stock, which would represent a more than 30% increase from the current price. With its long history, strong market position, and promising future prospects, Owens & Minor looks like a sitting duck with more than 24.93% upside.

VI Analysis

There are many factors to consider when analyzing a company’s long-term potential, but one of the most important is the company’s fundamentals. The VI app makes it easy to analyze a company’s fundamentals, and according to the VI Star Chart, OWENS & MINOR is classified as a “cow”, a type of company that has a track record of paying out consistent and sustainable dividends. This makes OWENS & MINOR an attractive investment for income-seeking investors, as they can count on a steady stream of dividend payments. Additionally, the company’s strong dividend history makes it a candidate for dividend reinvestment, which can help compound returns over time. While OWENS & MINOR is strong in dividend history, it is only average in profitability and weak in asset and growth.

However, the company’s high health score of 8/10 indicates that it is in good financial condition and is capable of paying off debt and funding future operations.

VI Peers

Owens & Minor Inc is in the business of distributing medical supplies and providing related services to healthcare providers. The company operates in North America and Europe. Its competitors include Orthofix Medical Inc, Medirect Latino Inc, PT Millennium Pharmacon International Tbk.

– Orthofix Medical Inc ($NASDAQ:OFIX)

Orthofix Medical Inc is a medical device company that provides orthopedic solutions to patients worldwide. The company has a market cap of 297.51M as of 2022 and a Return on Equity of -4.8%. The company’s products are used in the treatment of various conditions, including osteoarthritis, degenerative disc disease, scoliosis, and deformities. The company’s products are sold through a network of distributors and retailers.

– Medirect Latino Inc ($OTCPK:MLTO)

PT Millennium Pharmacon International Tbk is a leading pharmaceutical company in Indonesia with a market cap of 156.7B as of 2022. The company has a strong focus on research and development, and has a strong portfolio of products. The company has a Return on Equity of 17.77%.

Summary

Investors may want to consider Owens & Minor as a potential investment. The company has a strong balance sheet with more than $1 billion in cash and equivalents and no debt. Furthermore, Owens & Minor has a history of paying dividends and has increased its dividend for nine consecutive years. Owens & Minor has a diversified customer base that includes hospitals, group purchasing organizations, integrated delivery networks, and distributors.

However, Owens & Minor has been able to offset some of the impact through cost-cutting measures. Given the strong balance sheet and cost-cutting measures, Owens & Minor is well-positioned to weather the pandemic and emerge stronger on the other side.