OPTION CARE HEALTH INC (OPCH)
US68404L2016 - Common Stock
We assign a fundamental rating of 5 out of 10 to OPCH. OPCH was compared to 108 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.
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.
1.2 Ratios
OPCH has a Return On Assets of 6.09%. This is amongst the best in the industry. OPCH outperforms 85.05% of its industry peers.
With an excellent Return On Equity value of 14.64%, OPCH belongs to the best of the industry, outperforming 85.05% of the companies in the same industry.
OPCH has a better Return On Invested Capital (8.85%) than 83.18% of its industry peers.
OPCH had an Average Return On Invested Capital over the past 3 years of 7.31%. This is in line with the industry average of 8.15%.
The 3 year average ROIC (7.31%) for OPCH is below the current ROIC(8.85%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
With an excellent Profit Margin value of 4.37%, OPCH belongs to the best of the industry, outperforming 80.37% of the companies in the same industry.
Looking at the Operating Margin, with a value of 6.69%, OPCH is in the better half of the industry, outperforming 72.90% of the companies in the same industry.
In the last couple of years the Operating Margin of OPCH has grown nicely.
OPCH has a Gross Margin of 20.76%. This is in the lower half of the industry: OPCH underperforms 60.75% of its industry peers.
In the last couple of years the Gross Margin of OPCH has declined.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OPCH is creating some value.
Compared to 1 year ago, OPCH has less shares outstanding
OPCH has more shares outstanding than it did 5 years ago.
OPCH has a better debt/assets ratio than last year.
2.2 Solvency
OPCH has an Altman-Z score of 3.31. This indicates that OPCH is financially healthy and has little risk of bankruptcy at the moment.
OPCH has a better Altman-Z score (3.31) than 73.83% of its industry peers.
The Debt to FCF ratio of OPCH is 3.79, which is a good value as it means it would take OPCH, 3.79 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of OPCH (3.79) is better than 78.50% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that OPCH is somewhat dependend on debt financing.
OPCH has a Debt to Equity ratio of 0.77. This is comparable to the rest of the industry: OPCH outperforms 42.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 3.31 |
ROIC/WACC1.07
WACC8.29%
2.3 Liquidity
OPCH has a Current Ratio of 1.73. This is a normal value and indicates that OPCH is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of OPCH (1.73) is better than 63.55% of its industry peers.
OPCH has a Quick Ratio of 1.32. This is a normal value and indicates that OPCH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.32, OPCH is in line with its industry, outperforming 50.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The earnings per share for OPCH have decreased strongly by -13.14% in the last year.
OPCH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.58%.
Measured over the past years, OPCH shows a very strong growth in Revenue. The Revenue has been growing by 43.42% on average per year.
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
The Earnings Per Share is expected to decrease by -0.29% on average over the next years.
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 Year15.32%
Revenue Next 2Y10.71%
Revenue Next 3Y9.8%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.17, which indicates a rather expensive current valuation of OPCH.
Based on the Price/Earnings ratio, OPCH is valued a bit cheaper than 71.03% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.54, OPCH is valued a bit cheaper.
OPCH is valuated rather expensively with a Price/Forward Earnings ratio of 17.98.
68.22% of the companies in the same industry are more expensive than OPCH, based on the Price/Forward Earnings ratio.
OPCH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.17 | ||
| Fwd PE | 17.98 |
4.2 Price Multiples
67.29% of the companies in the same industry are more expensive than OPCH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, OPCH is valued cheaper than 84.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.24 | ||
| EV/EBITDA | 11.83 |
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%
5. Dividend
5.1 Amount
OPCH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
OPTION CARE HEALTH INC
NASDAQ:OPCH (12/24/2024, 7:29:49 PM)
After market: 22.81 0 (0%)22.81
-0.11 (-0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners103.4%
Inst Owner Change0.2%
Ins Owners0.51%
Ins Owner Change-5.11%
Market Cap3.88B
Analysts80
Price Target31.49 (38.05%)
Short Float %3.02%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-21.59%
PT rev (3m)-21.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.56%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)-1.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.61%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.17 | ||
| Fwd PE | 17.98 | ||
| P/S | 0.81 | ||
| P/FCF | 13.24 | ||
| P/OCF | 11.48 | ||
| P/B | 2.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.83 |
EPS(TTM)1.19
EY5.22%
EPS(NY)1.27
Fwd EY5.56%
FCF(TTM)1.72
FCFY7.55%
OCF(TTM)1.99
OCFY8.71%
SpS28.07
BVpS8.38
TBVpS-2.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.31 |
F-Score6
WACC8.29%
ROIC/WACC1.07
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 Year15.32%
Revenue Next 2Y10.71%
Revenue Next 3Y9.8%
Revenue Next 5YN/A
EBIT growth 1Y7.09%
EBIT growth 3Y41.6%
EBIT growth 5Y90.32%
EBIT Next Year39.77%
EBIT Next 3Y15.87%
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