OPTION CARE HEALTH INC (OPCH) Stock Fundamental Analysis
NASDAQ:OPCH - Nasdaq - US68404L2016 - Common Stock - Currency: USD
Taking everything into account, OPCH scores 5 out of 10 in our fundamental rating. OPCH was compared to 106 industry peers in the Health Care Providers & Services industry. OPCH has an excellent profitability rating, but 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.
OPCH had a positive operating cash flow in the past year.
Of the past 5 years OPCH 4 years were profitable.
In the past 5 years OPCH always reported a positive cash flow from operatings.
1.2 Ratios
OPCH has a Return On Assets of 6.19%. This is amongst the best in the industry. OPCH outperforms 83.96% of its industry peers.
OPCH's Return On Equity of 15.08% is amongst the best of the industry. OPCH outperforms 83.96% of its industry peers.
OPCH has a better Return On Invested Capital (9.09%) than 82.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OPCH is in line with the industry average of 8.79%.
The 3 year average ROIC (8.38%) for OPCH is below the current ROIC(9.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 15.08% | ||
| ROIC | 9.09% |
ROA(3y)6.44%
ROA(5y)4.81%
ROE(3y)14.91%
ROE(5y)11.17%
ROIC(3y)8.38%
ROIC(5y)7%
1.3 Margins
The Profit Margin of OPCH (4.24%) is better than 77.36% of its industry peers.
In the last couple of years the Profit Margin of OPCH has remained more or less at the same level.
The Operating Margin of OPCH (6.44%) is better than 67.92% of its industry peers.
OPCH's Operating Margin has improved in the last couple of years.
The Gross Margin of OPCH (20.27%) is worse than 62.26% of its industry peers.
OPCH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.44% | ||
| PM (TTM) | 4.24% | ||
| GM | 20.27% |
OM growth 3Y5.08%
OM growth 5Y42.3%
PM growth 3Y1.37%
PM growth 5YN/A
GM growth 3Y-3.67%
GM growth 5Y-1.81%
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 reduced compared to 5 years ago.
OPCH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.80 indicates that OPCH is not in any danger for bankruptcy at the moment.
OPCH's Altman-Z score of 3.80 is fine compared to the rest of the industry. OPCH outperforms 75.47% of its industry peers.
OPCH has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as OPCH would need 3.86 years to pay back of all of its debts.
OPCH has a Debt to FCF ratio of 3.86. This is in the better half of the industry: OPCH outperforms 72.64% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that OPCH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.79, OPCH perfoms like the industry average, outperforming 42.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 3.8 |
ROIC/WACC1.1
WACC8.28%
2.3 Liquidity
A Current Ratio of 1.70 indicates that OPCH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.70, OPCH is in the better half of the industry, outperforming 62.26% of the companies in the same industry.
OPCH has a Quick Ratio of 1.20. This is a normal value and indicates that OPCH is financially healthy and should not expect problems in meeting its short term obligations.
OPCH has a Quick ratio of 1.20. This is comparable to the rest of the industry: OPCH outperforms 43.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
OPCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.01%.
OPCH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.58% yearly.
The Revenue has grown by 16.18% in the past year. This is quite good.
OPCH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.69% yearly.
EPS 1Y (TTM)-17.01%
EPS 3Y16.58%
EPS 5YN/A
EPS Q2Q%9.37%
Revenue 1Y (TTM)16.18%
Revenue growth 3Y13.28%
Revenue growth 5Y16.69%
Sales Q2Q%19.75%
3.2 Future
OPCH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.51% yearly.
Based on estimates for the next years, OPCH will show a quite strong growth in Revenue. The Revenue will grow by 9.26% on average per year.
EPS Next Y17.7%
EPS Next 2Y17.1%
EPS Next 3Y15.51%
EPS Next 5YN/A
Revenue Next Year9.88%
Revenue Next 2Y9.25%
Revenue Next 3Y9.26%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
OPCH is valuated quite expensively with a Price/Earnings ratio of 26.25.
OPCH's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of OPCH to the average of the S&P500 Index (28.29), we can say OPCH is valued inline with the index average.
A Price/Forward Earnings ratio of 22.30 indicates a rather expensive valuation of OPCH.
Based on the Price/Forward Earnings ratio, OPCH is valued a bit cheaper than 63.21% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, OPCH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 22.3 |
4.2 Price Multiples
OPCH's Enterprise Value to EBITDA ratio is in line with the industry average.
70.75% of the companies in the same industry are more expensive than OPCH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.27 | ||
| EV/EBITDA | 15.46 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
OPCH has a very decent profitability rating, which may justify a higher PE ratio.
OPCH's earnings are expected to grow with 15.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)N/A
EPS Next 2Y17.1%
EPS Next 3Y15.51%
5. Dividend
5.1 Amount
No dividends for OPCH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.02
-0.25 (-0.77%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.18%
Inst Owner Change0%
Ins Owners0.56%
Ins Owner Change16.79%
Market Cap5.26B
Analysts83.75
Price Target38.89 (21.46%)
Short Float %2.24%
Short Ratio1.98
Dividend
| Industry Rank | Sector 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)0.61%
Min EPS beat(2)-0.9%
Max EPS beat(2)2.12%
EPS beat(4)3
Avg EPS beat(4)4.96%
Min EPS beat(4)-0.9%
Max EPS beat(4)11.43%
EPS beat(8)7
Avg EPS beat(8)29.26%
EPS beat(12)9
Avg EPS beat(12)20.3%
EPS beat(16)12
Avg EPS beat(16)13.86%
Revenue beat(2)2
Avg Revenue beat(2)2.75%
Min Revenue beat(2)2.39%
Max Revenue beat(2)3.11%
Revenue beat(4)4
Avg Revenue beat(4)2.58%
Min Revenue beat(4)1.96%
Max Revenue beat(4)3.11%
Revenue beat(8)5
Avg Revenue beat(8)0.99%
Revenue beat(12)8
Avg Revenue beat(12)1.33%
Revenue beat(16)9
Avg Revenue beat(16)1.3%
PT rev (1m)3.74%
PT rev (3m)28.03%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)11.66%
EPS NY rev (1m)12.35%
EPS NY rev (3m)13.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.72%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)3.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 22.3 | ||
| P/S | 1.05 | ||
| P/FCF | 18.27 | ||
| P/OCF | 16.26 | ||
| P/B | 3.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.46 |
EPS(TTM)1.22
EY3.81%
EPS(NY)1.44
Fwd EY4.48%
FCF(TTM)1.75
FCFY5.47%
OCF(TTM)1.97
OCFY6.15%
SpS30.43
BVpS8.55
TBVpS-2.66
PEG (NY)1.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 15.08% | ||
| ROCE | 12.18% | ||
| ROIC | 9.09% | ||
| ROICexc | 10.77% | ||
| ROICexgc | 61.89% | ||
| OM | 6.44% | ||
| PM (TTM) | 4.24% | ||
| GM | 20.27% | ||
| FCFM | 5.76% |
ROA(3y)6.44%
ROA(5y)4.81%
ROE(3y)14.91%
ROE(5y)11.17%
ROIC(3y)8.38%
ROIC(5y)7%
ROICexc(3y)9.71%
ROICexc(5y)7.89%
ROICexgc(3y)58.03%
ROICexgc(5y)47.49%
ROCE(3y)11.24%
ROCE(5y)9.38%
ROICexcg growth 3Y17%
ROICexcg growth 5Y65.46%
ROICexc growth 3Y18.73%
ROICexc growth 5Y65.49%
OM growth 3Y5.08%
OM growth 5Y42.3%
PM growth 3Y1.37%
PM growth 5YN/A
GM growth 3Y-3.67%
GM growth 5Y-1.81%
F-Score6
Asset Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.87 | ||
| Cap/Depr | 56.07% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 4.5 | ||
| Cash Conversion | 83.93% | ||
| Profit Quality | 135.86% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.8 |
F-Score6
WACC8.28%
ROIC/WACC1.1
Cap/Depr(3y)59.17%
Cap/Depr(5y)49.85%
Cap/Sales(3y)0.86%
Cap/Sales(5y)0.84%
Profit Quality(3y)137.77%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.01%
EPS 3Y16.58%
EPS 5YN/A
EPS Q2Q%9.37%
EPS Next Y17.7%
EPS Next 2Y17.1%
EPS Next 3Y15.51%
EPS Next 5YN/A
Revenue 1Y (TTM)16.18%
Revenue growth 3Y13.28%
Revenue growth 5Y16.69%
Sales Q2Q%19.75%
Revenue Next Year9.88%
Revenue Next 2Y9.25%
Revenue Next 3Y9.26%
Revenue Next 5YN/A
EBIT growth 1Y2.31%
EBIT growth 3Y19.04%
EBIT growth 5Y66.04%
EBIT Next Year36.58%
EBIT Next 3Y18.44%
EBIT Next 5YN/A
FCF growth 1Y-12.64%
FCF growth 3Y16.29%
FCF growth 5Y91.41%
OCF growth 1Y-12.9%
OCF growth 3Y15.74%
OCF growth 5Y52.27%