Omnicell Return On Equity vs. Price To Sales

OMCL Stock  USD 45.96  0.27  0.59%   
Taking into consideration Omnicell's profitability measurements, Omnicell may not be well positioned to generate adequate gross income at this time. It has a very high odds of underperforming in December. Profitability indicators assess Omnicell's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
(0.02)
Current Value
(0.02)
Quarterly Volatility
0.20688597
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Omnicell's Price To Sales Ratio is quite stable compared to the past year. EV To Sales is expected to rise to 1.88 this year, although the value of Sales General And Administrative To Revenue will most likely fall to 0.29. At this time, Omnicell's Total Other Income Expense Net is quite stable compared to the past year. Interest Income is expected to rise to about 6.7 M this year, although the value of Operating Income is projected to rise to (33.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.570.4358
Significantly Up
Slightly volatile
For Omnicell profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Omnicell to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Omnicell utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Omnicell's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Omnicell over time as well as its relative position and ranking within its peers.
  

Omnicell's Revenue Breakdown by Earning Segment

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Is Health Care Technology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Omnicell. If investors know Omnicell will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Omnicell listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.558
Earnings Share
(0.39)
Revenue Per Share
23.218
Quarterly Revenue Growth
(0.05)
Return On Assets
(0.01)
The market value of Omnicell is measured differently than its book value, which is the value of Omnicell that is recorded on the company's balance sheet. Investors also form their own opinion of Omnicell's value that differs from its market value or its book value, called intrinsic value, which is Omnicell's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Omnicell's market value can be influenced by many factors that don't directly affect Omnicell's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Omnicell's value and its price as these two are different measures arrived at by different means. Investors typically determine if Omnicell is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Omnicell's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Omnicell Price To Sales vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Omnicell's current stock value. Our valuation model uses many indicators to compare Omnicell value to that of its competitors to determine the firm's financial worth.
Omnicell is rated below average in return on equity category among its peers. It is rated below average in price to sales category among its peers . At this time, Omnicell's Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Omnicell by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Omnicell Price To Sales vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Omnicell

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.0146
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Omnicell

P/S

 = 

MV Per Share

Revenue Per Share

 = 
2.00 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Omnicell Price To Sales Comparison

Omnicell is currently under evaluation in price to sales category among its peers.

Omnicell Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Omnicell, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Omnicell will eventually generate negative long term returns. The profitability progress is the general direction of Omnicell's change in net profit over the period of time. It can combine multiple indicators of Omnicell, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-13.4 M-14.1 M
Operating Income-34.9 M-33.1 M
Income Before Tax-20.1 M-19.1 M
Total Other Income Expense Net14.8 M15.5 M
Net Loss-20.4 M-19.4 M
Income Tax Expense263 K249.8 K
Net Income Applicable To Common Shares6.5 M6.2 M
Net Loss-34.4 M-32.7 M
Non Operating Income Net Other-117 K-122.8 K
Interest Income5.1 M6.7 M
Net Interest Income12.8 M13.4 M
Change To Netincome36.4 M21.5 M
Net Loss(0.45)(0.43)
Income Quality(8.89)(8.45)
Net Income Per E B T 1.01  1.06 

Omnicell Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Omnicell. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Omnicell position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Omnicell's important profitability drivers and their relationship over time.

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Our tools can tell you how much better you can do entering a position in Omnicell without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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When determining whether Omnicell is a strong investment it is important to analyze Omnicell's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Omnicell's future performance. For an informed investment choice regarding Omnicell Stock, refer to the following important reports:
Check out Your Equity Center.
For more information on how to buy Omnicell Stock please use our How to buy in Omnicell Stock guide.
You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
To fully project Omnicell's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Omnicell at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Omnicell's income statement, its balance sheet, and the statement of cash flows.
Potential Omnicell investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Omnicell investors may work on each financial statement separately, they are all related. The changes in Omnicell's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Omnicell's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.