Omnicell, Inc. (NASDAQ: OMCL)

Sector: Healthcare Industry: Health Information Services CIK: 0000926326
Market Cap 2.38 Bn
P/B 1.95
P/E 119.51
P/S 2.02
ROIC (Qtr) 0.63
Div Yield % 0.00
Rev 1y % (Qtr) 9.99
Total Debt (Qtr) 194.89 Mn
Debt/Equity (Qtr) 0.16

About

Omnicell, Inc., a prominent player in the healthcare industry, is dedicated to resolving the complex challenges associated with medication management and elevating the role of healthcare professionals in patient care delivery. The company's primary focus is on equipping and empowering pharmacists and nurses to prioritize patient care over administrative tasks, thereby driving improved clinical, operational, and financial outcomes across various care settings. Omnicell's diverse range of products and services cater to the evolving continuum of care,...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 153.26M provides robust 0.79x coverage of total debt 194.89M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 1.04B provides 5.33x coverage of total debt 194.89M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 93.75M exceeds capital expenditure of 59.51M by 1.58x, indicating strong organic growth funding capability.
  • Retained earnings of 386.97M provide full 1.99x coverage of long-term debt 194.89M, indicating strong internal capital position.
  • Robust tangible asset base of 1.04B provides 5.12x coverage of working capital 203.03M, indicating strong operational backing.

Bear case

  • Operating cash flow of 153.26M barely covers its investment activities of (59.51M), with a coverage ratio of -2.58, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (59.51M) provide weak support for R&D spending of 92.16M, which is -0.65x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 153.26M provides insufficient coverage of deferred revenue obligations of 245.50M, which is 0.62x, raising concerns about future service delivery capabilities.
  • High receivables of 245.72M relative to inventory of 107.43M (2.29 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 153.26M shows concerning coverage of stock compensation expenses of 41.56M, with a 3.69 ratio indicating potential earnings quality issues.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Health Information Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TEM Tempus AI, Inc. 45.63 Bn -223.83 41.29 1.34 Bn
2 GEHC GE HealthCare Technologies Inc. 38.75 Bn 19.85 2.19 10.28 Bn
3 VEEV Veeva Systems Inc 37.30 Bn 43.36 12.11 0.09 Bn
4 DOCS Doximity, Inc. 7.81 Bn 30.87 12.57 0.01 Bn
5 BTSG BrightSpring Health Services, Inc. 7.70 Bn 59.42 0.62 2.70 Bn
6 HQY Healthequity, Inc. 7.32 Bn 38.14 5.67 1.03 Bn
7 WAY Waystar Holding Corp. 5.00 Bn 44.97 4.81 1.25 Bn
8 PRVA Privia Health Group, Inc. 2.79 Bn 153.67 1.37 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.21 2.77
EV to Cash from Ops. EV/CFO 15.36 -10.86
EV to Debt EV to Debt 12.08 161.93
EV to EBIT EV/EBIT 137.34 -106.48
EV to EBITDA EV/EBITDA 22.59 4.22
EV to Free Cash Flow [EV/FCF] EV/FCF 25.11 7.46
EV to Market Cap EV to Market Cap 0.99 -14.93
EV to Revenue EV/Rev 2.00 1.76
Price to Book Value [P/B] P/B 1.95 10.57
Price to Earnings [P/E] P/E 119.51 147.14
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -8.65
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.04
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.57
Interest Coverage Int. cover (Qtr) -1.00 -584.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -15.34 -24.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -68.45 172.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.05
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 126.31 -17.73
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 86.59 39.85
EBIT Growth (1y) % EBIT 1y % (Qtr) 148.39 -38.83
EBT Growth (1y) % EBT 1y % (Qtr) 307.13 -4.52
EPS Growth (1y) % EPS 1y % (Qtr) 210.26 2.60
FCF Growth (1y) % FCF 1y % (Qtr) -20.70 -48.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 18.46 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.60 0.66
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.39 1.87
Current Ratio Curr Ratio (Qtr) 1.45 3.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.16 -0.43
Interest Cover Ratio Int Coverage (Qtr) -1.00 -584.72
Times Interest Earned Times Interest Earned (Qtr) -1.00 -584.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.80 -435.80
EBIT Margin % EBIT Margin % (Qtr) 1.46 -464.70
EBT Margin % EBT Margin % (Qtr) 2.91 -461.74
Gross Margin % Gross Margin % (Qtr) 43.70 44.03
Net Profit Margin % Net Margin % (Qtr) 1.70 -468.01