Stock on Focus: Omnicell, Inc. (OMCL)

Company Profile:

Omnicell, Inc. is a provider of automation and business information solutions designed to enable healthcare systems to streamline the medication administration process and manage medical supplies for increased operational efficiency and enhanced patient safety. The Company has two operating segments: Automation and Analytics, and Medication Adherence. The Automation and Analytics segment is organized around the design, manufacturing, selling and servicing of medication and supply dispensing systems, pharmacy inventory management systems, and related software. The Medication Adherence segment primarily includes the manufacturing and selling of consumable medication blister cards, packaging equipment and ancillary products and services. The Company’s products include OmniRx, SinglePointe, AnywhereRN, OptiFlex MS, OptiFlex CL, AccuFlex, Autobond, AutoGen, and SureSeal, among others. Omnicell, Inc. was founded in 1992 and is headquartered in Mountain View, California.

Recent News:

Revenue for the fourth quarter of 2015 was $130.3 million, up $5.1 million or 4.1% from the third quarter of 2015, and up $8.8 million or 7.2% from the fourth quarter of 2014. Revenue for the year ended December 31, 2015 was $484.6 million, up $43.7 million or 9.9% from the year ended December 31, 2014.

Fourth quarter 2015 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $7.7 million, or $0.21 per diluted share. This compares to GAAP net income of $8.0 million, or $0.22 per diluted share, for the third quarter of 2015, and GAAP net income of $9.2 million, or $0.25 per diluted share, for the fourth quarter of 2014.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

OMCL’s strengths can be seen in its better growth, better profitability, better solvency and better efficiency. Its revenue and net income have increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 58.79. The current P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry and the sector. We rate Omnicell, Inc. (OMCL) a Strong BUY.