Owens & Minor Inc (OMI, Financial) has recently caught the attention of investors with its notable stock performance. The company's market capitalization stands at $1.74 billion, with a current stock price of $22.69. Over the past week, OMI has seen a modest gain of 0.33%, while the past three months have been more impressive, with a 17.83% increase in stock price. According to GuruFocus's valuation metrics, the stock is currently modestly undervalued, with a GF Value of $31.74, slightly up from the past GF Value of $31.72. This marks a shift from being significantly undervalued three months ago to its current state, indicating a positive trend for the company's valuation.
Understanding Owens & Minor Inc
Owens & Minor Inc operates within the medical distribution industry, focusing on the distribution of consumable medical supplies, logistics, value-added services, and the manufacturing of medical surgical products. The company's business is divided into two segments: Products & Healthcare Services and Patient Direct. The former includes the U.S. distribution business, outsourced logistics, and value-added services, along with a Global Products business that manufactures and sources medical surgical products. The Patient Direct segment encompasses home healthcare businesses, such as Byram and Apria. 
Profitability Analysis
Owens & Minor's Profitability Rank stands at 6/10, which is a moderate score reflecting the company's ability to maintain profitability. The Operating Margin is currently at 0.88%, which is better than 22.68% of its peers in the industry. However, the company's ROE is at -12.67%, and its ROA is at -2.20%, both of which are areas of concern. The ROIC of 1.57% is modest but still better than over a quarter of the industry. Owens & Minor has managed to stay profitable for 8 out of the past 10 years, which is a testament to its resilience and operational efficiency. 
Growth Prospects
The company's Growth Rank is 4/10, indicating a relatively moderate growth trajectory. The 3-Year Revenue Growth Rate per Share has declined by 4.90%, and the 5-Year Revenue Growth Rate per Share has also decreased by 4.40%. However, the future looks more promising with an estimated Total Revenue Growth Rate of 2.63% over the next 3 to 5 years. Notably, the 3-Year EPS without NRI Growth Rate has surged by an impressive 202.70%, and the 5-Year EPS without NRI Growth Rate has increased by 13.90%. These figures suggest that while revenue growth has been challenging, earnings have seen significant improvement. 
Investor Holdings
Notable investors have taken an interest in Owens & Minor. Jim Simons (Trades, Portfolio) is the leading shareholder with 1,306,971 shares, representing 1.71% of the company. First Eagle Investment (Trades, Portfolio) holds 241,534 shares, accounting for 0.32%, and Joel Greenblatt (Trades, Portfolio) owns 51,924 shares, which equates to 0.07% of the company. These investments by prominent figures in the financial world underscore a level of confidence in the company's future performance.
Competitive Landscape
When compared to its competitors, Owens & Minor has a larger market capitalization than Zynex Inc (ZYXI, Financial) at $428.839 million and Edap TMS SA (EDAP, Financial) at $222.976 million but is smaller than Patterson Companies Inc (PDCO, Financial) at $2.63 billion. This positioning within the industry highlights Owens & Minor's significant presence and potential for growth among its peers.
Conclusion
In summary, Owens & Minor Inc has demonstrated a strong stock performance with an 18% gain over the past three months, moving from significantly undervalued to modestly undervalued according to the GF Value. The company's market position is solid within the medical distribution industry, and its operations span across distribution, logistics, and manufacturing. While profitability has been moderate, growth in earnings per share is robust, indicating potential for future revenue growth. The investment stakes held by significant shareholders such as Jim Simons (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), and Joel Greenblatt (Trades, Portfolio) add to the company's credibility. Finally, Owens & Minor's market capitalization suggests it is a considerable player in the industry, with room to expand and compete effectively against its peers.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
