Momentum Stock Watch: Owens & Minor Inc. (OMI)

Company Profile:

Owens & Minor, Inc. is a global healthcare services company. The Company provides supply chain assistance to the providers of healthcare services and the manufacturers of healthcare products, supplies and devices in the United States and Europe. The Company operates in two segments: Domestic and International. The Domestic segment includes all functions relating to its role as a medical supply logistics company providing distribution; kitting, including Medical Action Industries Inc., and logistics services to healthcare providers and manufacturers in the United States. The International segment consists of Movianto Group and ArcRoyal. The Company serves customers with a service portfolio that covers procurement, inventory management, delivery and sourcing for the healthcare market. With fully developed networks in the United States and Europe, it serves hospitals, integrated healthcare systems, group purchasing organizations, the United States federal government and pharmaceuticals. The company was founded in 1882 and is headquartered in Mechanicsville, Virginia.

Recent News:

Its board of directors has approved the payment of the second-quarter 2016 cash dividend in the amount of $0.255 per share. The cash dividend is payable on June 30, 2016, to shareholders of record as of June 15, 2016.

for the first quarter ended March 31, 2016, the company reported consolidated revenues of $2.46 billion, an increase of 2.7% when compared to revenues of $2.39 billion in the first quarter of 2015. Quarterly net income was $24.1 million, or $0.39 per diluted share. Adjusted net income (non-GAAP) was $31.3 million, or $0.50 per diluted share, compared to $0.44 per diluted share in last year’s first quarter.

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:

OMI’s strengths can be seen in its strong efficiency compared with its peers. Its revenue has 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 56.87. The P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry and the sector. We rate the Owens & Minor Inc. (OMI) a STRONG BUY.