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The Company is a provider of medication control and patient safety solutions for acute care health facilities.
Omnicell is a health care technology provider that supplies pharmaceutical distribution equipment to hospitals, clinics, nursing homes, and other various types of medical institutions.They are a small company with a market cap of approximately $1 billion and have about 300 employees. They are headquartered in Mountain View and conduct a majority of their business within the United States.Omnicell makes a majority of their money by selling their pharmaceutical distribution system to new customers. They also have a steady income stream from current customers that are upgrading their system software to Omnicell's latest version. They did $383 million in business in 2013 and they expect to do about $450 million and 2014. A majority of 2014 will come from installation of new equipment and upgrading their current customers to the latest version of their proprietary software. They are also running pilot programs in approximately 20 locations in China. Omnicell hopes to retain these locations and fully implement their system in China. They also acquired a pharmaceutical company in the UK which is expected to help their bottom line.One problem I see with Omnicell is that they are not selling their product all that quickly. Although things have improved I believe that they can do a much better job in marketing and delivering their equipment quicker and more efficiently. I believe they are on the right track and in the next few years we will see greater efficiency in this area. Another problem is the fact that their system runs on computer networks. As we know sometimes the networks crash and don't function properly. I have not found any examples of a major malfunction but I'm sure as they expand there may be some problems. Finally, they need to be aware of what the competition is doing. They need to keep their system efficient and be aware of changes in the market.Their stock price may be slightly high with the amount of revenue they're bringing in and their current assets but I think this will not be as big of a deal in the long term.
Long. Great growth story. Revs up 24% last quarter, earnings up 337%. Trading at 36x ttm earnings and 19x fye estimates so pricey but deservedly so for the growth.
Can OMCL flourish in a super managed care environment?
Finally a solution for a doctor's poor handwriting! Get it automated! In all seriousness however, my best friend's grandfather died after receiving the wrong medication while in the hospital. Having OMCL's medication-management products may have prevented such a terrible thing from happening. Although they aren't the biggest player in the market (Pyxis is), they are still gobbling up market share since they are ahead of the technology curve. Also, by specializing in medication-management products only, this allows the entire company to focus on its product. Oh and requiring 12-18 month software upgrades is nice too (for additional recurring revenues).
Large healthcare providers have implemented capital spending freezes which will directly affect Omnicell over the near future and will take at least a couple of years to become remotely profitable. The mobil solution company they recently purchased has proven to to be a failed venture as the quality of the product is lacking and hurting the Omnicell brand.
patient care #1
Growth rate is slow but in the long term this should be ok. Nothing special here. PE is half what it should be but this is related to the growth rate. I like this as a turtle in the race.
yea, the owner of this company has like 9 kids. he's pretty cool. i think this a good company. seanmcb doesn't know s h i t. he's my 13 year old brother
Bouncing off bottom
See ya around $7/share.
Hmmm why can't I pick this ... it's a long trem daed cat bounce play ... maybe they can turn it around.
The company has reported consistent growth in the last several quarters, is first-to-market with and innovative patient safey solution (Single Pointe) and has the increasing focus of Federal legislation relating to patient safety laying out the foundation for future growth.
OMCL is in the patient safety business. Their products are being embraced by hospitals and longterm care facilities, and the market for patient safety medication and supply chain management systems is not even close to what it should be. I hope Crazy Texan will one day embrace the patient safety and cost effiency perspective of the Omnicell systems. Taking about 10 seconds to access drugs or supplies is worth every penny- if you are the receiving patient! As an RN in clinical risk management/patient safety for several years- this is my favorite pick- the stock has been bashed for missing earnings by a small margin- company has lots of cash and no debt and huge market penetration potential!
safe bet since people want safety in medical centers. Also its pretty cheap right now.
I like this one. We will just hide and watch.
The high growth rate combined with a low PE makes it poised to move upward. Even with margins that are starting to compress, they are still in a strong position.
Great product and great balance sheet. This company's has been trending up nicely but I'm more than a little concerned about the massive insider selloff. If everything is on the up & up with this company, this price is a bargain.
Large drop got my attention, thought about buying at $18 but by the time I decided too it was over $19. I think I missed a good buying opp.
OMCL can be thought of as a software company that can enjoy >15% profit margins rather than a simple hospital equipment supply company. The company produces a system (software + lock box) to safely dispense drugs to patients by hospital pharmacies. The system allows nurses to accurately administer the right drug to the right patient at the right time which reduces inadvertent dosing (ie death) and mitigates liability risk by the hospital. Rx dispensing systems are in high demand however a small percentage of US hospitals have adopted the technology. OMCL systems can be sold at a premium and have a service revenue structure that allows for recurring revenue for units sold. (20% of revenue is from service) OMCL is out-competing its rivals in the field of hospital automation – a field which GE Medical systems has publicly announced it intends expand its business through acquisitions and product line offerings.
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