OPTION CARE HEALTH INC (OPCH) Stock Fundamental Analysis
NASDAQ:OPCH - Nasdaq - US68404L2016 - Common Stock - Currency: USD
Overall OPCH gets a fundamental rating of 5 out of 10. We evaluated OPCH against 102 industry peers in the Health Care Providers & Services industry. OPCH scores excellent on profitability, but there are some minor concerns on its financial health. OPCH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
OPCH had positive earnings in the past year.
In the past year OPCH had a positive cash flow from operations.
OPCH had positive earnings in 4 of the past 5 years.
In the past 5 years OPCH always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.46%, OPCH belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
OPCH has a Return On Equity of 15.83%. This is amongst the best in the industry. OPCH outperforms 83.33% of its industry peers.
The Return On Invested Capital of OPCH (9.54%) is better than 79.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OPCH is in line with the industry average of 9.62%.
The 3 year average ROIC (8.38%) for OPCH is below the current ROIC(9.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.46% | ||
| ROE | 15.83% | ||
| ROIC | 9.54% |
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
Looking at the Profit Margin, with a value of 4.12%, OPCH is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
In the last couple of years the Profit Margin of OPCH has remained more or less at the same level.
OPCH has a Operating Margin of 6.40%. This is in the better half of the industry: OPCH outperforms 65.69% of its industry peers.
In the last couple of years the Operating Margin of OPCH has grown nicely.
OPCH has a Gross Margin of 20.01%. This is comparable to the rest of the industry: OPCH outperforms 40.20% of its industry peers.
OPCH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.4% | ||
| PM (TTM) | 4.12% | ||
| GM | 20.01% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OPCH is creating some value.
The number of shares outstanding for OPCH has been reduced compared to 1 year ago.
Compared to 5 years ago, OPCH has less shares outstanding
Compared to 1 year ago, OPCH has an improved debt to assets ratio.
2.2 Solvency
OPCH has an Altman-Z score of 3.93. This indicates that OPCH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.93, OPCH is doing good in the industry, outperforming 75.49% of the companies in the same industry.
The Debt to FCF ratio of OPCH is 3.21, which is a good value as it means it would take OPCH, 3.21 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of OPCH (3.21) is better than 74.51% of its industry peers.
OPCH has a Debt/Equity ratio of 0.82. This is a neutral value indicating OPCH is somewhat dependend on debt financing.
OPCH has a Debt to Equity ratio (0.82) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | 3.93 |
ROIC/WACC1.15
WACC8.31%
2.3 Liquidity
OPCH has a Current Ratio of 1.54. This is a normal value and indicates that OPCH is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.54, OPCH perfoms like the industry average, outperforming 54.90% of the companies in the same industry.
OPCH has a Quick Ratio of 1.02. 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 1.02, OPCH is doing worse than 67.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The earnings per share for OPCH have decreased strongly by -18.42% in the last year.
Measured over the past years, OPCH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.58% on average per year.
The Revenue has grown by 16.98% in the past year. This is quite good.
The Revenue has been growing by 16.69% on average over the past years. This is quite good.
EPS 1Y (TTM)-18.42%
EPS 3Y16.58%
EPS 5YN/A
EPS Q2Q%7.69%
Revenue 1Y (TTM)16.98%
Revenue growth 3Y13.28%
Revenue growth 5Y16.69%
Sales Q2Q%16.31%
3.2 Future
The Earnings Per Share is expected to grow by 15.12% on average over the next years. This is quite good.
Based on estimates for the next years, OPCH will show a quite strong growth in Revenue. The Revenue will grow by 9.91% on average per year.
EPS Next Y12.27%
EPS Next 2Y15.38%
EPS Next 3Y15.12%
EPS Next 5YN/A
Revenue Next Year12.28%
Revenue Next 2Y10.38%
Revenue Next 3Y9.91%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
OPCH is valuated quite expensively with a Price/Earnings ratio of 25.43.
Based on the Price/Earnings ratio, OPCH is valued a bit cheaper than the industry average as 61.76% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of OPCH to the average of the S&P500 Index (26.35), we can say OPCH is valued inline with the index average.
The Price/Forward Earnings ratio is 19.41, which indicates a rather expensive current valuation of OPCH.
The rest of the industry has a similar Price/Forward Earnings ratio as OPCH.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, OPCH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.43 | ||
| Fwd PE | 19.41 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as OPCH.
76.47% 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 | 14.93 | ||
| EV/EBITDA | 15.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates OPCH does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of OPCH may justify a higher PE ratio.
A more expensive valuation may be justified as OPCH's earnings are expected to grow with 15.12% in the coming years.
PEG (NY)2.07
PEG (5Y)N/A
EPS Next 2Y15.38%
EPS Next 3Y15.12%
5. Dividend
5.1 Amount
No dividends for OPCH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.53
-0.03 (-0.1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.89%
Inst Owner Change-0.1%
Ins Owners0.68%
Ins Owner Change16.36%
Market Cap5.16B
Analysts85
Price Target39.02 (23.76%)
Short Float %3.55%
Short Ratio2.77
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)-2.52%
Min EPS beat(2)-7.17%
Max EPS beat(2)2.12%
EPS beat(4)2
Avg EPS beat(4)0.31%
Min EPS beat(4)-7.17%
Max EPS beat(4)7.17%
EPS beat(8)6
Avg EPS beat(8)26.26%
EPS beat(12)8
Avg EPS beat(12)17.62%
EPS beat(16)12
Avg EPS beat(16)25.79%
Revenue beat(2)2
Avg Revenue beat(2)3.1%
Min Revenue beat(2)2.39%
Max Revenue beat(2)3.81%
Revenue beat(4)4
Avg Revenue beat(4)3.04%
Min Revenue beat(4)2.39%
Max Revenue beat(4)3.81%
Revenue beat(8)6
Avg Revenue beat(8)1.51%
Revenue beat(12)8
Avg Revenue beat(12)1.07%
Revenue beat(16)10
Avg Revenue beat(16)1.61%
PT rev (1m)0%
PT rev (3m)4.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.17%
EPS NY rev (1m)0%
EPS NY rev (3m)7.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.43 | ||
| Fwd PE | 19.41 | ||
| P/S | 1 | ||
| P/FCF | 14.93 | ||
| P/OCF | 13.41 | ||
| P/B | 3.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.4 |
EPS(TTM)1.24
EY3.93%
EPS(NY)1.62
Fwd EY5.15%
FCF(TTM)2.11
FCFY6.7%
OCF(TTM)2.35
OCFY7.46%
SpS31.66
BVpS8.25
TBVpS-3.62
PEG (NY)2.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.46% | ||
| ROE | 15.83% | ||
| ROCE | 12.79% | ||
| ROIC | 9.54% | ||
| ROICexc | 10.22% | ||
| ROICexgc | 51.52% | ||
| OM | 6.4% | ||
| PM (TTM) | 4.12% | ||
| GM | 20.01% | ||
| FCFM | 6.67% |
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-Score5
Asset Turnover1.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 3.21 | ||
| Debt/EBITDA | 2.78 | ||
| Cap/Depr | 60.65% | ||
| Cap/Sales | 0.76% | ||
| Interest Coverage | 4.73 | ||
| Cash Conversion | 97.08% | ||
| Profit Quality | 161.76% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 3.93 |
F-Score5
WACC8.31%
ROIC/WACC1.15
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)-18.42%
EPS 3Y16.58%
EPS 5YN/A
EPS Q2Q%7.69%
EPS Next Y12.27%
EPS Next 2Y15.38%
EPS Next 3Y15.12%
EPS Next 5YN/A
Revenue 1Y (TTM)16.98%
Revenue growth 3Y13.28%
Revenue growth 5Y16.69%
Sales Q2Q%16.31%
Revenue Next Year12.28%
Revenue Next 2Y10.38%
Revenue Next 3Y9.91%
Revenue Next 5YN/A
EBIT growth 1Y4.73%
EBIT growth 3Y19.04%
EBIT growth 5Y66.04%
EBIT Next Year37.66%
EBIT Next 3Y18.71%
EBIT Next 5YN/A
FCF growth 1Y19.74%
FCF growth 3Y16.29%
FCF growth 5Y91.41%
OCF growth 1Y18.6%
OCF growth 3Y15.74%
OCF growth 5Y52.27%