Owens & Minor Inc. (OMI) shares are trading at lower $24.91 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $26.83.
To add more color to this target, the company’s high over the last year is $27.75 and the low is $3.63. Over the last 52 weeks, OMI is up 278.00% while the S&P 500 is up 15.29%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, OMI reported a profit of $344.34 million. Owens & Minor Inc. also saw revenues increase to $2.19 billion. In addition, OMI has free cash flow of $241.82 million as of 09-2020. The company’s EBITDA came in at $96.24 million which compares well with its peers.
OMI booked profit margins of -0.80%, its Return on Equity (ROE) is -13.90%, and its Return on Assets is -1.70%. All told, it is clear that, OMI needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. OMI has a short ratio of 3.47 and outstanding shares of 60.79M.
OMI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.89 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.54. Owens & Minor Inc. OMI also noted assets of $3.3 billion at the end of the last quarter. Investors should also keep an eye on sector updates as OMI has historically followed its peers on positive news.
All told, Owens & Minor Inc. OMI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, OMI represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Owens & Minor Inc. OMI is now commanding a market cap of 1.85B. OMI is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of OMI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in OMI, either long or short, and we have not been compensated for this article.