Omnicell Inc. Common Stock ($0.001 par value) (OMCL)

FairStock Score: 25/100 — RISKY

Key Financials

Strengths

• Generates $95 million in annual free cash flow (5.7% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.17, providing financial flexibility

Concerns

• Trades significantly above Graham Number ($5) with negative 632% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

Omnicell Inc. Common Stock ($0.001 par value) is a micro-cap healthcare company valued at $1.7 billion. Revenue stands at $1.2 billion, though the company is currently unprofitable. From a quality standpoint, Omnicell shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and Altman Z-Score of 1.9 in the grey zone. On valuation, the stock is commanding a steep 909.3x multiple, with trades far above its Graham Number ($5) with no margin of safety. Growth dynamics show revenue growing at 2.3% and profit growth of -112.8%. Our composite FairStock Score of 25/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $95 million in annual free cash flow (5.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 909x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer