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OPTION CARE HEALTH INC (OPCH) Stock Fundamental Analysis

NASDAQ:OPCH - Nasdaq - US68404L2016 - Common Stock - Currency: USD

31.205  +0.88 (+2.88%)

Fundamental Rating

5

Taking everything into account, OPCH scores 5 out of 10 in our fundamental rating. OPCH was compared to 109 industry peers in the Health Care Providers & Services industry. While OPCH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. OPCH is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year OPCH was profitable.
In the past year OPCH had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: OPCH reported negative net income in multiple years.
Each year in the past 5 years OPCH had a positive operating cash flow.
OPCH Yearly Net Income VS EBIT VS OCF VS FCFOPCH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M

1.2 Ratios

OPCH has a Return On Assets of 6.09%. This is amongst the best in the industry. OPCH outperforms 85.19% of its industry peers.
The Return On Equity of OPCH (14.64%) is better than 86.11% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.85%, OPCH belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OPCH is in line with the industry average of 8.15%.
The last Return On Invested Capital (8.85%) for OPCH is above the 3 year average (7.31%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.09%
ROE 14.64%
ROIC 8.85%
ROA(3y)6.05%
ROA(5y)2.98%
ROE(3y)13.85%
ROE(5y)6.48%
ROIC(3y)7.31%
ROIC(5y)5.29%
OPCH Yearly ROA, ROE, ROICOPCH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500 1K 1.5K 2K 2.5K

1.3 Margins

The Profit Margin of OPCH (4.37%) is better than 80.56% of its industry peers.
With a decent Operating Margin value of 6.69%, OPCH is doing good in the industry, outperforming 73.15% of the companies in the same industry.
In the last couple of years the Operating Margin of OPCH has grown nicely.
The Gross Margin of OPCH (20.76%) is worse than 61.11% of its industry peers.
In the last couple of years the Gross Margin of OPCH has declined.
Industry RankSector Rank
OM 6.69%
PM (TTM) 4.37%
GM 20.76%
OM growth 3Y26.02%
OM growth 5Y32.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.45%
GM growth 5Y-7.83%
OPCH Yearly Profit, Operating, Gross MarginsOPCH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20

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6

2. Health

2.1 Basic Checks

OPCH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for OPCH has been reduced compared to 1 year ago.
The number of shares outstanding for OPCH has been increased compared to 5 years ago.
Compared to 1 year ago, OPCH has an improved debt to assets ratio.
OPCH Yearly Shares OutstandingOPCH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
OPCH Yearly Total Debt VS Total AssetsOPCH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

OPCH has an Altman-Z score of 3.69. This indicates that OPCH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.69, OPCH is doing good in the industry, outperforming 74.07% of the companies in the same industry.
OPCH has a debt to FCF ratio of 3.79. This is a good value and a sign of high solvency as OPCH would need 3.79 years to pay back of all of its debts.
The Debt to FCF ratio of OPCH (3.79) is better than 78.70% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that OPCH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.77, OPCH perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 3.79
Altman-Z 3.69
ROIC/WACC1.04
WACC8.51%
OPCH Yearly LT Debt VS Equity VS FCFOPCH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

2.3 Liquidity

A Current Ratio of 1.73 indicates that OPCH should not have too much problems paying its short term obligations.
OPCH's Current ratio of 1.73 is fine compared to the rest of the industry. OPCH outperforms 62.96% of its industry peers.
A Quick Ratio of 1.32 indicates that OPCH should not have too much problems paying its short term obligations.
OPCH has a Quick ratio (1.32) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.73
Quick Ratio 1.32
OPCH Yearly Current Assets VS Current LiabilitesOPCH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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4

3. Growth

3.1 Past

OPCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.14%.
The Revenue has grown by 13.58% in the past year. This is quite good.
OPCH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 43.42% yearly.
EPS 1Y (TTM)-13.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)13.58%
Revenue growth 3Y12.36%
Revenue growth 5Y43.42%
Sales Q2Q%16.97%

3.2 Future

OPCH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.29% yearly.
Based on estimates for the next years, OPCH will show a quite strong growth in Revenue. The Revenue will grow by 9.80% on average per year.
EPS Next Y-16.12%
EPS Next 2Y-7.09%
EPS Next 3Y-0.29%
EPS Next 5YN/A
Revenue Next Year15.5%
Revenue Next 2Y10.86%
Revenue Next 3Y9.8%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
OPCH Yearly Revenue VS EstimatesOPCH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B 5B
OPCH Yearly EPS VS EstimatesOPCH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 -2 -4

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 26.22 indicates a quite expensive valuation of OPCH.
Based on the Price/Earnings ratio, OPCH is valued a bit cheaper than the industry average as 63.89% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.58, OPCH is valued at the same level.
The Price/Forward Earnings ratio is 24.59, which indicates a rather expensive current valuation of OPCH.
Based on the Price/Forward Earnings ratio, OPCH is valued a bit cheaper than 61.11% of the companies in the same industry.
OPCH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.47, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 26.22
Fwd PE 24.59
OPCH Price Earnings VS Forward Price EarningsOPCH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OPCH indicates a somewhat cheap valuation: OPCH is cheaper than 60.19% of the companies listed in the same industry.
OPCH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OPCH is cheaper than 76.85% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.12
EV/EBITDA 15.19
OPCH Per share dataOPCH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

4.3 Compensation for Growth

OPCH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.09%
EPS Next 3Y-0.29%

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0

5. Dividend

5.1 Amount

No dividends for OPCH!.
Industry RankSector Rank
Dividend Yield N/A

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OPTION CARE HEALTH INC

NASDAQ:OPCH (1/27/2025, 11:42:49 AM)

31.205

+0.88 (+2.88%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)10-30 2024-10-30/bmo
Earnings (Next)02-20 2025-02-20/amc
Inst Owners103.4%
Inst Owner Change-0.06%
Ins Owners0.51%
Ins Owner Change-5.11%
Market Cap5.31B
Analysts78.75
Price Target30.37 (-2.68%)
Short Float %2.24%
Short Ratio1.58
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.14%
Min EPS beat(2)-0.9%
Max EPS beat(2)7.17%
EPS beat(4)3
Avg EPS beat(4)6.83%
Min EPS beat(4)-0.9%
Max EPS beat(4)11.43%
EPS beat(8)6
Avg EPS beat(8)28.85%
EPS beat(12)9
Avg EPS beat(12)25.65%
EPS beat(16)12
Avg EPS beat(16)16.03%
Revenue beat(2)2
Avg Revenue beat(2)2.99%
Min Revenue beat(2)2.87%
Max Revenue beat(2)3.11%
Revenue beat(4)4
Avg Revenue beat(4)2.24%
Min Revenue beat(4)1.02%
Max Revenue beat(4)3.11%
Revenue beat(8)4
Avg Revenue beat(8)0.49%
Revenue beat(12)7
Avg Revenue beat(12)1.05%
Revenue beat(16)8
Avg Revenue beat(16)1.12%
PT rev (1m)-3.55%
PT rev (3m)-24.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.61%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)2.05%
Valuation
Industry RankSector Rank
PE 26.22
Fwd PE 24.59
P/S 1.11
P/FCF 18.12
P/OCF 15.7
P/B 3.72
P/tB N/A
EV/EBITDA 15.19
EPS(TTM)1.19
EY3.81%
EPS(NY)1.27
Fwd EY4.07%
FCF(TTM)1.72
FCFY5.52%
OCF(TTM)1.99
OCFY6.37%
SpS28.07
BVpS8.38
TBVpS-2.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 6.09%
ROE 14.64%
ROCE 11.99%
ROIC 8.85%
ROICexc 10.81%
ROICexgc 71.08%
OM 6.69%
PM (TTM) 4.37%
GM 20.76%
FCFM 6.14%
ROA(3y)6.05%
ROA(5y)2.98%
ROE(3y)13.85%
ROE(5y)6.48%
ROIC(3y)7.31%
ROIC(5y)5.29%
ROICexc(3y)8.18%
ROICexc(5y)5.85%
ROICexgc(3y)49.77%
ROICexgc(5y)35.74%
ROCE(3y)9.91%
ROCE(5y)7.17%
ROICexcg growth 3Y35.79%
ROICexcg growth 5Y40.92%
ROICexc growth 3Y38.59%
ROICexc growth 5Y38.61%
OM growth 3Y26.02%
OM growth 5Y32.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.45%
GM growth 5Y-7.83%
F-Score6
Asset Turnover1.39
Health
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 3.79
Debt/EBITDA 2.9
Cap/Depr 72.99%
Cap/Sales 0.94%
Interest Coverage 4.43
Cash Conversion 88.74%
Profit Quality 140.34%
Current Ratio 1.73
Quick Ratio 1.32
Altman-Z 3.69
F-Score6
WACC8.51%
ROIC/WACC1.04
Cap/Depr(3y)52.88%
Cap/Depr(5y)48.41%
Cap/Sales(3y)0.87%
Cap/Sales(5y)0.95%
Profit Quality(3y)136.09%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y-16.12%
EPS Next 2Y-7.09%
EPS Next 3Y-0.29%
EPS Next 5YN/A
Revenue 1Y (TTM)13.58%
Revenue growth 3Y12.36%
Revenue growth 5Y43.42%
Sales Q2Q%16.97%
Revenue Next Year15.5%
Revenue Next 2Y10.86%
Revenue Next 3Y9.8%
Revenue Next 5YN/A
EBIT growth 1Y7.09%
EBIT growth 3Y41.6%
EBIT growth 5Y90.32%
EBIT Next Year39.85%
EBIT Next 3Y15.92%
EBIT Next 5YN/A
FCF growth 1Y13.44%
FCF growth 3Y48.55%
FCF growth 5YN/A
OCF growth 1Y16.88%
OCF growth 3Y42.84%
OCF growth 5YN/A