Omnicell, Inc. (OMCL) | Investment Case

1. Company Snapshot

1.a. Company Description

Omnicell, Inc., together with its subsidiaries, provides medication management solutions and adherence tools for healthcare systems and pharmacies the United States and internationally.The company offers point of care automation solutions to improve clinician workflows in patient care areas of the healthcare system; XT Series automated dispensing systems for medications and supplies used in nursing units and other clinical areas of the hospital, as well as specialized automated dispensing systems for operating room; Omnicell Interface Software that offers interface and integration between its medication-use products or supply products, and a healthcare facility's in-house information management systems; and robotic dispensing systems for handling the stocking and retrieval of boxed medications.It also provides central pharmacy automation solutions, including automated storage and retrieval systems, such as XR2 Automated Central Pharmacy System; IV compounding robots and workflow management systems; inventory management software; and controlled substance management systems.

In addition, the company provides single-dose automation solutions that fill and label a variety of patient-specific, single-dose medication blister packaging based on incoming prescriptions; fully automated and semi-automated filling equipment for institutional pharmacies to warrant automated packaging of medications; and medication blister card packaging and packaging supplies to enhance medication adherence in non-acute care settings.Further, it offers EnlivenHealth Patient Engagement, a web-based nexus of solutions.The company was formerly known as Omnicell Technologies, Inc.

and changed its name to Omnicell, Inc.in 2001.Omnicell, Inc.

was incorporated in 1992 and is headquartered in Mountain View, California.

Show Full description

1.b. Last Insights on OMCL

Omnicell's recent performance is driven by several positive factors. The company's expanding SaaS portfolio and overseas growth plans position it for sustained momentum. Additionally, its solid balance sheet and Q3 earnings beat, with $0.51 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, contribute to its growth. Analysts forecast a potential upside of 30.9% to 43.7%. Acadian Asset Management LLC also increased its holdings in Omnicell by 33.9%. The company's upcoming events, including the Piper Sandler 37th Annual Healthcare Conference and ASHP Midyear Industry Trade Show, may further boost its performance.

1.c. Company Highlights

Last Price	40.49
Change Percentage	2.23%
Open	39.61
Previous Close	39.61
Market Cap ( Millions)	1876
Volume	426719
Year High	47.82
Year Low	22.66
M A 50	33.34
M A 200	31.84

FCF Yield	5.94%
Dividend Yield	0.00%
ROE	1.60%
Debt / Equity	15.96%
Net Debt / EBIDTA	12.76%
Price To Book	1.54
Price Earnings Ratio	94.13
Price To FCF	16.83
Price To sales	1.59
EV / EBITDA	16.26

2. Omnicell's Q3 2025 Earnings: A Strong Performance

Omnicell reported a robust third quarter with total revenues reaching $311 million, a 10% increase compared to the same period last year and a 7% increase sequentially. Non-GAAP earnings per share were $0.51, beating estimates of $0.36, despite being down $0.05 from the third quarter of 2024. Non-GAAP gross margin was 44.2%, slightly down from 44.5% in the third quarter of 2024 and 44.7% in the prior quarter. The company's non-GAAP EBITDA was $41 million, up by $2 million compared to the third quarter of 2024 and up by $3 million compared to the prior quarter.

Publication Date: Nov -24

                                    📋 Highlights
                                    Revenue Growth Surpasses Guidance:
                                                Total revenue reached $311M, a 10% YoY increase and 7% sequential growth, exceeding upper guidance ranges.
Non-GAAP EPS Stability:
                                                Non-GAAP EPS was $0.51, down 9% YoY but up 13% sequentially, with full-year EPS guidance raised to $1.63–$1.73.
Significant Share Repurchase:
                                                Completed $75M stock buyback program, reducing outstanding shares by 5%, signaling confidence in capital allocation.
Tariff Impact Mitigated:
                                                Net tariff costs of $6M Q3 and $15M full-year 2025, offset by supply chain optimizations and pricing strategies.
Expanded Full-Year Guidance:
                                                Revised FY2025 EBITDA to $140M–$146M (up from $130M–$145M) and raised EPS midpoint by 17%.

                                

Revenue Growth and Guidance

The company's revenue growth was driven by its strong product and services roadmap, which is resonating with healthcare providers seeking to enhance visibility, cybersecurity, efficiency, and patient safety. Omnicell guided for fourth quarter 2025 total revenues to be between $306 million and $316 million, with non-GAAP EBITDA expected to be between $37 million and $43 million. For full-year 2025, the company revised its guidance, modestly raising the midpoint of its ranges for total revenues, non-GAAP EBITDA, and non-GAAP earnings per share.

Valuation Metrics

Omnicell's stock is trading at a P/E Ratio of 83.68, EV/EBITDA of 14.47, and P/S Ratio of 1.42. These valuation metrics indicate that the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 4.0%, which may not be sufficient to justify the current valuation. The company's ROE is 1.6%, and ROIC is 0.67%, indicating that the company is not generating significant returns on its investments.

Investment Highlights

Omnicell is making significant investments in robotics and AI, with the hiring of Perry Genova as a technical leader. The company is exploring ways to use robotics to capture detailed visibility of medication locations and apply intelligence to optimize outcomes. The company's innovation platform, OmniSphere, is currently in limited customer release, with some customers running it and others on OmniCenter. The company plans to migrate customers to OmniSphere in the long term.

Outlook

The buying environment is improving, with hospital systems preparing for a refresh cycle due to the sunsetting of old systems. Omnicell is well-positioned to take advantage of this opportunity with its innovative platforms, particularly OmniSphere and intelligence. The company has completed its share repurchase program, reducing the outstanding share count by 5%. The focus now is on potential options for investing in organic growth, acquisitions, and share repurchases.

3. NewsRoom

Omnicell to Host Innovation Update and Q&A Session at Upcoming ASHP Midyear Industry Trade Show

Dec -01

Source: businesswire.com

Wall Street Analysts Think Omnicell (OMCL) Could Surge 30.93%: Read This Before Placing a Bet

Nov -27

Source: zacks.com

Omnicell to Present at the Piper Sandler 37th Annual Healthcare Conference

Nov -20

Source: businesswire.com

OMCL or HIMS: Which Is the Better Value Stock Right Now?

Nov -20

Source: zacks.com

Campbell & CO Investment Adviser LLC Lowers Stake in Omnicell, Inc. $OMCL

Nov -18

Source: defenseworld.net

Acadian Asset Management LLC Boosts Stock Holdings in Omnicell, Inc. $OMCL

Nov -14

Source: defenseworld.net

Omnicell Achieves URAC Certification, Strengthening Compliance and Scalability for Health System-Owned Specialty Pharmacies

Nov -13

Source: businesswire.com

Wall Street Analysts Believe Omnicell (OMCL) Could Rally 34.53%: Here's is How to Trade

Nov -10

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.82%)

6. Segments

Connected Devices, Software Licenses, and Other

Expected Growth: 1.8%

Omnicell's 1.8% growth is driven by increasing adoption of connected devices in healthcare, rising demand for software licenses in medication management, and expansion of other services such as analytics and consulting, fueled by the need for improved patient safety and operational efficiency.

Technical Services

Expected Growth: 1.5%

Omnicell's Technical Services segment growth of 1.5% is driven by increasing adoption of automation solutions in healthcare, rising demand for efficient medication management, and growing need for IT infrastructure support. Additionally, the company's strategic partnerships and expanding customer base contribute to the segment's growth.

Advanced Services

Expected Growth: 2.2%

Omnicell's Advanced Services segment growth of 2.2% is driven by increasing adoption of automation and technology in healthcare, rising demand for efficient medication management, and expansion of services in outpatient settings. Additionally, the company's strategic partnerships and investments in innovation are contributing to its growth momentum.

Consumables

Expected Growth: 1.9%

Omnicell's Consumables segment growth of 1.9% is driven by increasing adoption of automated dispensing systems, rising demand for medication management solutions, and expansion into new markets. Additionally, the company's focus on improving operational efficiency and supply chain management is contributing to the growth.

7. Detailed Products

Omnicell XT Automated Dispensing Cabinets

Automated dispensing cabinets that provide secure, automated management of medications and supplies in healthcare facilities.

Omnicell IV Workflow

A comprehensive IV workflow management system that helps pharmacies streamline and standardize their IV compounding processes.

Omnicell Analytics

A data analytics platform that provides insights and visibility into medication management and supply chain operations.

Omnicell One

A cloud-based platform that integrates with Omnicell's automation and analytics solutions to provide a single, unified view of medication management and supply chain operations.

Omnicell Robotic Dispensing Systems

Robotic dispensing systems that automate the storage, retrieval, and dispensing of medications and supplies in healthcare facilities.

Omnicell SupplyX

A cloud-based platform that helps healthcare organizations manage their medical-surgical supplies and reduce costs.

8. Omnicell, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Omnicell, Inc. faces moderate threat from substitutes due to the presence of alternative medication management solutions.

Bargaining Power Of Customers

Omnicell, Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Omnicell, Inc. relies on a few key suppliers for its medication management solutions, giving them moderate bargaining power.

Threat Of New Entrants

The high barriers to entry in the medication management industry, including regulatory hurdles and capital requirements, reduce the threat of new entrants.

Intensity Of Rivalry

The medication management industry is highly competitive, with several established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	32.79%
Debt Cost	3.95%
Equity Weight	67.21%
Equity Cost	7.78%
WACC	6.52%
Leverage	48.80%

11. Quality Control: Omnicell, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

CareCloud

A-Score: 5.2/10

Value: 7.6

Growth: 6.9

Quality: 7.8

Yield: 0.0

Momentum: 8.0

Volatility: 1.0

1-Year Total Return ->

Privia Health Group

A-Score: 5.1/10

Value: 1.9

Growth: 8.0

Quality: 5.6

Yield: 0.0

Momentum: 9.0

Volatility: 6.3

1-Year Total Return ->

OptimizeRx

A-Score: 4.3/10

Value: 3.5

Growth: 6.0

Quality: 5.2

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

Phreesia

A-Score: 4.0/10

Value: 3.3

Growth: 5.9

Quality: 5.0

Yield: 0.0

Momentum: 6.0

Volatility: 3.7

1-Year Total Return ->

Definitive Healthcare

A-Score: 3.8/10

Value: 8.7

Growth: 5.3

Quality: 4.1

Yield: 0.0

Momentum: 2.5

Volatility: 2.3

1-Year Total Return ->

Omnicell

A-Score: 3.1/10

Value: 4.7

Growth: 3.3

Quality: 5.2

Yield: 0.0

Momentum: 1.0

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-3.07%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.52%

Omnicell, Inc. - US68213N1090

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on OMCL

1.c. Company Highlights

Weak Momentum

Medium Volatility

Average Yield

Earnings Beats

Revenues Beats

Average Quality

Fairly Valued

Stable Momentum

Revenues Miss

Strong Momentum

Expensive

Average Growth

2. Omnicell's Q3 2025 Earnings: A Strong Performance

Revenue Growth and Guidance

Valuation Metrics

Investment Highlights

Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.82%)

6. Segments

Connected Devices, Software Licenses, and Other

Expected Growth: 1.8%

Technical Services

Expected Growth: 1.5%

Advanced Services

Expected Growth: 2.2%

Consumables

Expected Growth: 1.9%

7. Detailed Products

Omnicell XT Automated Dispensing Cabinets

Omnicell IV Workflow

Omnicell Analytics

Omnicell One

Omnicell Robotic Dispensing Systems

Omnicell SupplyX

8. Omnicell, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Omnicell, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

40.49$

Current Price

40.49$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA