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1. Company Snapshot

1.a. Company Description

Owens & Minor, Inc., together with its subsidiaries, operates as a healthcare solutions company in the United States and internationally.It operates through two segments, Global Solutions and Global Products.The Global Solutions segment offers a portfolio of products and services to healthcare providers and manufacturers.


Its portfolio of medical and surgical supplies includes branded products and its proprietary products.This segment also offers services to healthcare providers, which include supplier management, analytics, inventory management, and clinical supply management; and various programs to provide logistics and marketing solutions to its suppliers.The Global Products segment manufactures and sources medical surgical products for the prevention of healthcare-associated infections across the acute and alternate site channels.


This segments products portfolio includes sterilization wraps, surgical drapes and gowns, facial protection products, protective apparel, medical exam gloves, custom and minor procedure kits, and other medical products.It provides its products and services to multi-facility networks of healthcare providers, independent hospitals, surgery centers, physicians' practices, and networks of hospitals directly, as well as indirectly through third-party distributors.The company was founded in 1882 and is headquartered in Richmond, Virginia.

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1.b. Last Insights on OMI

Owens & Minor's recent performance was negatively impacted by disastrous Q2 earnings, weak margins, and strategic missteps. The company's planned sale of its Products & Healthcare Services segment to Platinum Equity for $375 million highlights severe financial distress. Guidance was slashed dramatically, revealing ongoing operational weakness. However, the divestiture will allow the company to focus on a simpler business model and home-based care. Additionally, Allspring Global Investments Holdings LLC boosted its holdings by 75.5%, and VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake.

1.c. Company Highlights

2. Owens & Minor's Q3 Earnings: A Mixed Bag

Owens & Minor reported third quarter revenue of $697 million, a modest 1.2% increase from the same period last year. However, adjusted EBITDA was $92 million, down from $108 million in the third quarter of 2024. The company's adjusted earnings per share (EPS) came in at $0.25, beating analyst estimates of $0.23. The revenue growth was sluggish, and the decline in adjusted EBITDA was primarily due to expenses related to the exit of the previously planned Rotech acquisition and costs associated with a new kitting facility.

Publication Date: Nov -23

📋 Highlights
  • Divestiture of Products & Healthcare Services:: Agreement to sell segment to Platinum Equity aims to position Owens & Minor as a pure-play home-based care company. Net debt as of September 30: $2.1 billion.
  • 2025 Full-Year Guidance:: Revenue affirmed at $2.76 billion–$2.82 billion; adjusted net income of $1.02–$1.07/share; adjusted EBITDA of $376 million–$382 million.
  • Q3 Performance:: Revenue $697 million (+1.2% YoY); adjusted EBITDA $92 million (down from $108 million in Q3 2024).
  • Free Cash Flow:: $28 million in Q3 2025; $78 million through first 9 months of the year.
  • Net Debt Stability:: $2.1 billion net debt as of September 30; expects only a slight reduction by year-end despite exit costs and kitting facility challenges.

Segment Performance

The Patient Direct business, which has been a growth driver for Owens & Minor, continued to expand its payer relationships, product offerings, and capabilities. The company is well-positioned to capture future growth from tailwinds in the home-based care market. However, the Products & Healthcare Services (P&HS) segment faced headwinds, including start-up costs and inventory over-acquisition related to a new kitting facility outside the US.

Guidance and Outlook

Owens & Minor affirmed its guidance for 2025 full year revenue between $2.76 billion and $2.82 billion, adjusted net income between $1.02 and $1.07 per share, and adjusted EBITDA between $376 million and $382 million. The company expects full year revenue to come in toward the bottom of the guidance range. Analysts estimate a revenue decline of 5.5% for next year, which may be a concern.

Valuation and Cash Flow

With a P/S Ratio of 0.03, Owens & Minor's valuation appears to be relatively low. However, the company's EV/EBITDA ratio is -88.15, indicating that the market may be pricing in significant challenges. Owens & Minor generated $28 million of free cash flow in the third quarter and $78 million through the first 9 months of the year. The company's net debt was $2.1 billion at September 30, primarily due to expenses related to the exit of the Rotech acquisition and costs associated with the new kitting facility.

Future Prospects

Owens & Minor is optimistic about the outlook for its Home-Based Care business, expecting to improve margins and cash flow. The company's sale of the P&HS segment to Platinum Equity is expected to position it for future growth as a Pure-Play Home-Based Care company. With a focus on debt repayment, investing in technology, and lowering its cost to serve, Owens & Minor is poised to generate improved and more consistent cash flow. As Ed Pesicka, President and CEO, noted, "We are bullish on the outlook for the Home-Based Care business and recognize that it's a very exciting time in the history of Owens & Minor."

3. NewsRoom

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Owens & Minor, Inc. (OMI) Presents at Citi Annual Global Healthcare Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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Owens & Minor to Present at Upcoming Investor Conferences on December 2, 2025

Dec -02

Source: businesswire.com

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Orosur Mining Inc - Notification of Investor Q&A Session

Nov -21

Source: accessnewswire.com

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Orosur Mining Inc Announces Exercise of RSUs and options

Nov -04

Source: accessnewswire.com

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Owens & Minor, Inc. (OMI) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Owens & Minor Reports Third Quarter 2025 Financial Results

Oct -30

Source: businesswire.com

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Orosur Mining shares rise after strong drill results and expanding exploration footprint

Oct -30

Source: proactiveinvestors.co.uk

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VIRGINIA RETIREMENT SYSTEMS ET Al Acquires New Shares in Owens & Minor, Inc. $OMI

Oct -26

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.05%)

6. Segments

Products & Healthcare Services

Expected Growth: 7.95%

Owens & Minor's 7.95% growth in Products & Healthcare Services is driven by increasing demand for medical supplies and equipment, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on providing value-added services, such as logistics and inventory management, has contributed to its growth.

Patient Direct

Expected Growth: 8.37%

Owens & Minor's Patient Direct segment growth of 8.37% is driven by increasing demand for home healthcare, expansion of product offerings, and strategic partnerships. Additionally, the shift towards value-based care and aging population demographics contribute to the growth. Furthermore, the company's investments in digital platforms and logistics capabilities enhance customer experience, leading to increased adoption and retention.

7. Detailed Products

Surgical & Patient Care

Owens & Minor provides a wide range of surgical and patient care products, including surgical instruments, implantable devices, and patient care supplies.

Pharmaceutical & Biotech

Owens & Minor offers a variety of pharmaceutical and biotech products, including injectables, vaccines, and biologics.

Medical & Surgical Supplies

Owens & Minor provides a broad range of medical and surgical supplies, including wound care products, orthopedic implants, and surgical meshes.

Logistics & Distribution

Owens & Minor offers logistics and distribution services to help healthcare providers and manufacturers manage their supply chains.

Surgical Implants & Instruments

Owens & Minor provides a range of surgical implants and instruments, including orthopedic, neuro, and spinal implants.

Wound Care & Infection Prevention

Owens & Minor offers a range of wound care and infection prevention products, including dressings, bandages, and disinfectants.

8. Owens & Minor, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Owens & Minor, Inc. is medium due to the presence of alternative medical supplies and equipment providers.

Bargaining Power Of Customers

The bargaining power of customers for Owens & Minor, Inc. is low due to the company's strong relationships with its customers and its ability to provide customized solutions.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Owens & Minor, Inc. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Owens & Minor, Inc. is low due to the high barriers to entry in the medical supplies and equipment industry.

Intensity Of Rivalry

The intensity of rivalry for Owens & Minor, Inc. is high due to the presence of several competitors in the medical supplies and equipment industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 71.51%
Debt Cost 6.50%
Equity Weight 28.49%
Equity Cost 6.50%
WACC 6.50%
Leverage 251.03%

11. Quality Control: Owens & Minor, Inc. passed 3 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

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Utah Medical Products

A-Score: 5.4/10

Value: 4.7

Growth: 3.0

Quality: 8.4

Yield: 4.0

Momentum: 3.5

Volatility: 9.0

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Patterson Companies

A-Score: 5.3/10

Value: 6.5

Growth: 3.7

Quality: 5.6

Yield: 3.0

Momentum: 9.0

Volatility: 4.0

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Esperion Therapeutics

A-Score: 5.2/10

Value: 9.0

Growth: 5.9

Quality: 6.1

Yield: 0.0

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Volatility: 1.0

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ANI Pharmaceuticals

A-Score: 5.0/10

Value: 4.3

Growth: 6.0

Quality: 4.4

Yield: 0.0

Momentum: 9.5

Volatility: 5.7

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Zynex

A-Score: 3.4/10

Value: 8.0

Growth: 7.4

Quality: 3.8

Yield: 0.0

Momentum: 0.0

Volatility: 1.0

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Owens & Minor

A-Score: 2.9/10

Value: 10.0

Growth: 2.7

Quality: 3.8

Yield: 0.0

Momentum: 0.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.59$

Current Price

2.59$

Potential

-0.00%

Expected Cash-Flows