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Last update on 2024-06-07

Omnicell (OMCL) - Piotroski F-Score Analysis for Year 2023 (Final Score: 5/9)

Omnicell (OMCL) Piotroski F-Score Analysis 2023: Comprehensive evaluation of profitability, liquidity, and efficiency. Score: 5/9, cash flow positive, declining ROA.

Knowledge hint:
The Piotroski F-Score is a number between 0 to 9 which reflects the strength of a company's financial position. It is based on 9 criteria involving profitability, liquidity, and leverage. This model helps investors identify stocks that are strong, undervalued investments.
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Short Analysis - Piotroski Score: 5

We're running Omnicell (OMCL) against the Piotroski 9-criteria scoring system to assess profitability, liquidity, and operating efficiency:

Criteria
Company has a positive net income?
0
Company has a positive cash flow?
1
Return on Assets (ROA) are growing?
0
Operating Cashflow are higher than Netincome?
1
Leverage is declining?
1
Current Ratio is growing?
1
Number of shares not diluted?
1
Cross Margin is growing?
0
Asset Turnover Ratio is growing?
0

Omnicell (OMCL) underwent analysis using the Piotroski F-Score, which assesses companies on profitability, liquidity, and operating efficiency. The company received a score of 5 out of 9. Key findings include: a negative net income for 2023, but positive cash flow from operations, and a slight decrease in leverage. Despite the positive cash flow, the company showed declining ROA, gross margins, and asset turnover. There's also an anomaly in the shares outstanding data, and the current ratio has improved, indicating better liquidity management.

Insights for Value Investors Seeking Stable Income

Based on the Piotroski F-Score analysis, Omnicell (OMCL) presents a mixed outlook. While certain indicators, like positive cash flow, and an improved current ratio, are favorable, the company has struggled with profitability and efficiency. Potential investors should be cautious and consider investigating these inconsistencies further before making any decisions. It might be worth exploring more stable and consistently performing stocks.

For those who are interested in delving deeper into the specifics, the subsequent section provides a comprehensive exploration of the criteria.

Profitability of Omnicell (OMCL)

Company has a positive net income?

Net income indicates a company's profitability after all expenses are deducted from total revenue. A positive net income is essential for assessing overall financial health.

Historical Net Income of Omnicell (OMCL)

For the fiscal year 2023, Omnicell (OMCL) reported a net income of -$20,371,000, which is negative. Thus, according to the Piotroski F-Score criteria for net income, the financial health of Omnicell is deemed unfavorable as it results in a score of 0. Investigating the historical trend, we observe volatility. The net income fluctuated significantly, revealing positive figures for a majority of the years but substantial volatility from 2003 to 2023. Notably, in 2021, Omnicell captured a high of $77,849,000, contrasted by a sharp decline to -$20,371,000 in 2023. This calls into question the consistency and predictability of the company's profitability.

Company has a positive cash flow?

Cash Flow from Operations (CFO) indicates the amount of cash a company generates from its regular business activities; it's important for liquidity.

Historical Operating Cash Flow of Omnicell (OMCL)

In 2023, Omnicell (OMCL) reported a positive Cash Flow from Operations (CFO) of $181,094,000. This represents an essential aspect of the firm's liquidity and solvency. Notably, looking at historical data over the past two decades, Omnicell has shown varied CFO results, with several years reporting negative values (e.g., 2004, 2005) and others achieving substantial positive values (e.g., 2019, 2021). The trend over recent years demonstrates an ability to generate considerable cash flows from operational activities, signifying improved financial health. Given the positive CFO for 2023, Omnicell earns 1 point for this criterion, highlighting a favorable liquidity position and efficient operational management.

Return on Assets (ROA) are growing?

Return on Assets (ROA) measures a company's ability to generate profit from its assets. A higher ROA indicates a more efficient use of assets.

Historical change in Return on Assets (ROA) of Omnicell (OMCL)

In 2023, Omnicell's ROA was -0.0092 compared to 0.0026 in 2022. This signifies a decline in profitability and efficiency, worsening from a positive return to a negative one. The negative trend (-2.18%) is alarming, particularly against an industry median ROA of 0.6708 in 2023. Thus, Omnicell's ROA did not improve; it deteriorated. Hence, we set this criterion to 0, indicating a negative trend. Additional chart data illustrates that while Omnicell's operating cash flow grew significantly, its inability to translate this into asset-efficient profitability highlights management inefficiencies or external market challenges.

Operating Cashflow are higher than Netincome?

Explain the criterion for Omnicell (OMCL) and why it is important to consider

Historical accruals of Omnicell (OMCL)

Operating Cash Flow higher than Net Income: Compare the Operating Cash Flow 181094000 with the Net Income -20371000 in 2023. If the operating cash flow is higher add 1 point if not set it to 0. Result: The Operating Cash Flow is higher than the NetIncome

Liquidity of Omnicell (OMCL)

Leverage is declining?

Change in Leverage measures the extent to which a company's debt levels have increased or decreased between periods.

Historical leverage of Omnicell (OMCL)

In 2022, Omnicell's leverage stood at 0.2741, compared to 0.271 in 2023. This indicates a minuscule decrease in leverage, albeit by 0.0031 points. Generally speaking, a decrease in leverage is seen positively as it generally implies a company is becoming less reliant on debt for its financing. However, in this case, the decrease is so slight that its significance is muted. Historically, Omnicell’s leverage has seen more substantial variations, notably dropping to 0.0186 in 2021 before rising again in 2022. Given the nominal nature of this year-on-year change, while theoretically positive, the practical significance is limited.

Current Ratio is growing?

The Current Ratio measures a company's ability to pay short-term obligations. An increase suggests a stronger short-term financial position.

Historical Current Ratio of Omnicell (OMCL)

The Current Ratio for Omnicell (OMCL) increased from 2.0582 in 2022 to 2.522 in 2023, signaling an improvement in the company's ability to cover its short-term liabilities. The 2023 ratio is quite robust and places Omnicell in a favorable position when viewed in the context of the industry median, which was 3.3822 in 2023. Historical data reveals fluctuating trends, with past peaks such as 4.7873 in 2011. Given this increase, Omnicell earns 1 point in the Piotroski Analysis.

Number of shares not diluted?

Change in Shares Outstanding examines the number of shares that a company has issued and is important in assessing potential dilution of existing shareholders or capital raising measures.

Historical outstanding shares of Omnicell (OMCL)

The Outstanding Shares for Omnicell (OMCL) have significantly increased from 44,398,000 in 2022 to 0 in 2023. Given data from the last 20 years, the trend shows a stable increase until 2022. The abrupt change to 0 warranted in 2023 denotes an anomaly, possibly from data misentry or significant corporate action. Such a decrease to zero is unusual and requires scrutiny, indicating a concerning trend if accurate. Hence, the point set would be 0.

Operating of Omnicell (OMCL)

Cross Margin is growing?

Gross Margin measures a company's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold.

Historical gross margin of Omnicell (OMCL)

Comparing Omnicell's Gross Margin from 2022 (0.4545) to that in 2023 (0.4331), we observe a decline. Therefore, for the Piotroski Analysis, Omnicell receives a score of 0 on this criterion. Evaluating a longer timeline indicates a continuing decrease: from 0.5842 in 2003 down to 0.4331 in 2023. This decline dramatically contrasts with the industry median Gross Margin which varies more, standing at 0.6708 in 2023. The deviation highlights Omnicell's struggle to maintain cost efficiency compared to industry norms.

Asset Turnover Ratio is growing?

Asset Turnover (Sales/Total Assets) measures how effectively a company uses its assets to generate sales. It’s a key efficiency ratio.

Historical asset turnover ratio of Omnicell (OMCL)

In 2023, Omnicell's Asset Turnover was 0.517, down from 0.5954 in 2022. This decrease is unfavorable, earning 0 points in the Piotroski Analysis. The downward trend, with the last 20 years showing a significant drop from 1.3616 in 2003 to 0.517 in 2023, suggests diminishing asset efficiency, a potential red flag for investors.


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