DCF Tool

OMI

Owens & Minor, Inc. – Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers
owens & minor, inc. (nyse: omi) is a leading healthcare logistics company dedicated to connecting the world of medical products to the point of care by providing vital supply chain services to healthcare providers and manufacturers of healthcare products. owens & minor provides logistics services across the spectrum of medical products from disposable medical supplies to devices and implants. with logistics platforms strategically located in the united states and europe, owens & minor serves markets where three quarters of global healthcare spending occurs. owens & minor's customers span the healthcare market from independent hospitals to large integrated healthcare networks, as well as group purchasing organizations, healthcare products manufacturers, and the federal government. a fortune 500 company, owens & minor is headquartered in richmond, virginia, and has annualized revenues exceeding $9 billion. for more information about owens & minor, visit the company website at www.owens-m
Analysis Results
Intrinsic Value $46.51
Latest Price $15.74
Relative Value 66% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 3.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 201 186
2024 207 179
2025 214 172
2026 222 165
2027 229 159
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 4180 million. This corresponds to a present value of 2700 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 862 million. Adding in the terminal value gives a total present value of 3560 million.

There are presently 76.5 million outstanding shares, so the intrinsic value per share is 46.51.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,295,185,000
Current Cash 69,467,000
Current Liabilities 1,566,466,000
Current Debt 0
Non-Cash Working Capital (NCWC) 659,252,000
Change in NCWC -262,827,000
EBIT 197,935,000
Tax Provision -11,498,000
Depreciation and Amortization 228,667,000
Capital Expenditure -166,582,000
Unlevered Free Cash Flow -2,807,000
Current Assets 2,321,812,000
Current Cash 55,712,000
Current Liabilities 1,344,021,000
Current Debt 0
Non-Cash Working Capital (NCWC) 922,079,000
Change in NCWC 214,999,000
EBIT 402,549,000
Tax Provision 55,165,000
Depreciation and Amortization 90,621,000
Capital Expenditure -49,690,000
Unlevered Free Cash Flow 578,239,453
Current Assets 2,135,865,000
Current Cash 83,058,000
Current Liabilities 1,345,727,000
Current Debt 0
Non-Cash Working Capital (NCWC) 707,080,000
Change in NCWC -217,014,000
EBIT 241,870,000
Tax Provision 21,834,000
Depreciation and Amortization 93,336,000
Capital Expenditure -59,193,000
Unlevered Free Cash Flow 10,949,817
Current Assets 2,407,283,000
Current Cash 67,030,000
Current Liabilities 1,416,159,000
Current Debt 0
Non-Cash Working Capital (NCWC) 924,094,000
Change in NCWC -39,106,000
EBIT 103,201,000
Tax Provision -6,135,000
Depreciation and Amortization 116,678,000
Capital Expenditure -52,228,000
Unlevered Free Cash Flow 128,545,000
Current Assets 2,538,578,000
Current Cash 103,367,000
Current Liabilities 1,472,011,000
Current Debt 0
Non-Cash Working Capital (NCWC) 963,200,000
Change in NCWC 195,550,000
EBIT 109,639,000
Tax Provision -32,183,000
Depreciation and Amortization 101,927,000
Capital Expenditure -65,685,000
Unlevered Free Cash Flow 341,431,000
Current Assets 2,181,905,000
Current Cash 104,522,000
Current Liabilities 1,309,733,000
Current Debt 0
Non-Cash Working Capital (NCWC) 767,650,000
Change in NCWC 25,737,000
EBIT 149,958,000
Tax Provision -15,315,000
Depreciation and Amortization 59,443,000
Capital Expenditure -50,737,000
Unlevered Free Cash Flow 184,401,000
Current Assets 1,962,039,000
Current Cash 185,488,000
Current Liabilities 1,034,638,000
Current Debt 0
Non-Cash Working Capital (NCWC) 741,913,000
Change in NCWC -8,178,000
EBIT 224,274,000
Tax Provision 63,755,000
Depreciation and Amortization 55,393,000
Capital Expenditure -30,121,000
Unlevered Free Cash Flow 158,497,806
Current Assets 1,974,700,000
Current Cash 161,020,000
Current Liabilities 1,063,589,000
Current Debt 0
Non-Cash Working Capital (NCWC) 750,091,000
Change in NCWC -59,288,000
EBIT 228,763,000
Tax Provision 69,801,000
Depreciation and Amortization 65,982,000
Capital Expenditure -36,616,000
Unlevered Free Cash Flow 106,652,984
Current Assets 1,870,706,000
Current Cash 56,772,000
Current Liabilities 1,004,555,000
Current Debt 0
Non-Cash Working Capital (NCWC) 809,379,000
Change in NCWC 174,531,000
EBIT 202,337,000
Tax Provision 59,980,000
Depreciation and Amortization 63,407,000
Capital Expenditure -70,808,000
Unlevered Free Cash Flow 273,515,976
Current Assets 1,725,932,000
Current Cash 101,905,000
Current Liabilities 989,179,000
Current Debt 0
Non-Cash Working Capital (NCWC) 634,848,000
Change in NCWC 28,129,000
EBIT 210,527,000
Tax Provision 74,103,000
Depreciation and Amortization 50,586,000
Capital Expenditure -60,129,000
Unlevered Free Cash Flow 144,778,149
Current Assets 1,628,894,000
Current Cash 97,888,000
Current Liabilities 924,287,000
Current Debt 0
Non-Cash Working Capital (NCWC) 606,719,000
Change in NCWC -50,803,000
EBIT 206,917,000
Tax Provision 74,353,000
Depreciation and Amortization 39,604,000
Capital Expenditure -38,963,000
Unlevered Free Cash Flow 72,847,739

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