Owens & Minor: Debt Limits Recovery Potential (Upgrade)
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Seeking Profits5.13K FollowersFollow5ShareSavePlay(9min)CommentsSummaryOwens & Minor (OMI) is now a pure-play home-based care company after divesting its Products & Healthcare Services business, improving near-term liquidity but retaining high leverage. OMI will net approximately $310 million from the P&HS sale, using proceeds to pay down $280 million in near-term maturities, yet leverage remains elevated at ~5x EBITDA. Core home care operations show mixed results, with stagnant diabetes growth and upcoming contract losses offsetting new distribution agreements; 2026 will be a challenging transition year. With shares trading below 3x free cash flow but deleveraging likely to take years, I rate OMI as 'hold'—no compelling reason to buy or sell at current levels. RECVISUAL/E+ via Getty Images For investors in Owens & Minor (OMI), 2025 has quite frankly been a year they would like to forget. Shares have lost about 75% of their value as the company backed off an ill-conceived acquisition andThis article was written bySeeking Profits5.13K FollowersFollowOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.