OPTION CARE HEALTH INC (OPCH) Stock Fundamental Analysis
USA - NASDAQ:OPCH - US68404L2016 - Common Stock
27.5 USD
-0.34 (-1.22%)
27.46 USD
-0.04 (-0.15%)
Overall OPCH gets a fundamental rating of 6 out of 10. We evaluated OPCH against 101 industry peers in the Health Care Providers & Services industry. While OPCH has a great profitability rating, 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
In the past year OPCH was profitable.
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
OPCH's Return On Assets of 6.24% is amongst the best of the industry. OPCH outperforms 83.17% of its industry peers.
With an excellent Return On Equity value of 15.53%, OPCH belongs to the best of the industry, outperforming 83.17% of the companies in the same industry.
OPCH has a Return On Invested Capital of 9.55%. This is in the better half of the industry: OPCH outperforms 78.22% of its industry peers.
OPCH had an Average Return On Invested Capital over the past 3 years of 8.38%. This is in line with the industry average of 9.20%.
The last Return On Invested Capital (9.55%) for OPCH is above the 3 year average (8.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 15.53% | ||
| ROIC | 9.55% |
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
With a decent Profit Margin value of 3.93%, OPCH is doing good in the industry, outperforming 70.30% 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.
Looking at the Operating Margin, with a value of 6.22%, OPCH is in the better half of the industry, outperforming 64.36% of the companies in the same industry.
In the last couple of years the Operating Margin of OPCH has grown nicely.
OPCH's Gross Margin of 19.67% is in line compared to the rest of the industry. OPCH outperforms 40.59% of its industry peers.
In the last couple of years the Gross Margin of OPCH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.22% | ||
| PM (TTM) | 3.93% | ||
| GM | 19.67% |
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.
OPCH has less shares outstanding than it did 1 year ago.
OPCH has less 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 3.70. This indicates that OPCH is financially healthy and has little risk of bankruptcy at the moment.
OPCH's Altman-Z score of 3.70 is fine compared to the rest of the industry. OPCH outperforms 70.30% of its industry peers.
OPCH has a debt to FCF ratio of 4.60. This is a neutral value as OPCH would need 4.60 years to pay back of all of its debts.
OPCH has a Debt to FCF ratio of 4.60. This is in the better half of the industry: OPCH outperforms 71.29% of its industry peers.
OPCH has a Debt/Equity ratio of 0.81. This is a neutral value indicating OPCH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.81, OPCH perfoms like the industry average, outperforming 42.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 4.6 | ||
| Altman-Z | 3.7 |
ROIC/WACC1.07
WACC8.95%
2.3 Liquidity
A Current Ratio of 1.52 indicates that OPCH should not have too much problems paying its short term obligations.
OPCH has a Current ratio (1.52) which is comparable to the rest of the industry.
A Quick Ratio of 1.00 indicates that OPCH may have some problems paying its short term obligations.
OPCH's Quick ratio of 1.00 is on the low side compared to the rest of the industry. OPCH is outperformed by 69.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.45% over the past year.
OPCH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.58% yearly.
Looking at the last year, OPCH shows a quite strong growth in Revenue. The Revenue has grown by 17.07% in the last year.
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)13.45%
EPS 3Y16.58%
EPS 5YN/A
EPS Q2Q%36.67%
Revenue 1Y (TTM)17.07%
Revenue growth 3Y13.28%
Revenue growth 5Y16.69%
Sales Q2Q%15.39%
3.2 Future
Based on estimates for the next years, OPCH will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.77% on average per year.
Based on estimates for the next years, OPCH will show a quite strong growth in Revenue. The Revenue will grow by 10.09% on average per year.
EPS Next Y42.73%
EPS Next 2Y27.36%
EPS Next 3Y21.4%
EPS Next 5Y17.77%
Revenue Next Year13.85%
Revenue Next 2Y11.21%
Revenue Next 3Y10.56%
Revenue Next 5Y10.09%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.37, the valuation of OPCH can be described as rather expensive.
68.32% of the companies in the same industry are more expensive than OPCH, based on the Price/Earnings ratio.
OPCH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.86.
A Price/Forward Earnings ratio of 13.90 indicates a correct valuation of OPCH.
OPCH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OPCH is cheaper than 79.21% of the companies in the same industry.
OPCH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.37 | ||
| Fwd PE | 13.9 |
4.2 Price Multiples
OPCH's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, OPCH is valued a bit cheaper than the industry average as 68.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.51 | ||
| EV/EBITDA | 13.44 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
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 21.40% in the coming years.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y27.36%
EPS Next 3Y21.4%
5. Dividend
5.1 Amount
No dividends for OPCH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.5
-0.34 (-1.22%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.45%
Inst Owner Change0%
Ins Owners0.66%
Ins Owner Change7.67%
Market Cap4.46B
Analysts85
Price Target39.27 (42.8%)
Short Float %3.44%
Short Ratio2.97
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)-2.71%
Min EPS beat(2)-9.25%
Max EPS beat(2)3.83%
EPS beat(4)2
Avg EPS beat(4)-1.05%
Min EPS beat(4)-9.25%
Max EPS beat(4)3.83%
EPS beat(8)6
Avg EPS beat(8)3.89%
EPS beat(12)9
Avg EPS beat(12)18.99%
EPS beat(16)12
Avg EPS beat(16)19.28%
Revenue beat(2)2
Avg Revenue beat(2)3.38%
Min Revenue beat(2)2.61%
Max Revenue beat(2)4.14%
Revenue beat(4)4
Avg Revenue beat(4)3.06%
Min Revenue beat(4)2.39%
Max Revenue beat(4)4.14%
Revenue beat(8)7
Avg Revenue beat(8)2.06%
Revenue beat(12)8
Avg Revenue beat(12)1.13%
Revenue beat(16)10
Avg Revenue beat(16)1.32%
PT rev (1m)0%
PT rev (3m)0.65%
EPS NQ rev (1m)3.69%
EPS NQ rev (3m)25.13%
EPS NY rev (1m)0.03%
EPS NY rev (3m)27.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.84%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.37 | ||
| Fwd PE | 13.9 | ||
| P/S | 0.83 | ||
| P/FCF | 18.51 | ||
| P/OCF | 15.96 | ||
| P/B | 3.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.44 |
EPS(TTM)1.35
EY4.91%
EPS(NY)1.98
Fwd EY7.2%
FCF(TTM)1.49
FCFY5.4%
OCF(TTM)1.72
OCFY6.27%
SpS33.11
BVpS8.38
TBVpS-3.53
PEG (NY)0.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 15.53% | ||
| ROCE | 12.8% | ||
| ROIC | 9.55% | ||
| ROICexc | 10.33% | ||
| ROICexgc | 52.24% | ||
| OM | 6.22% | ||
| PM (TTM) | 3.93% | ||
| GM | 19.67% | ||
| FCFM | 4.49% |
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 Turnover1.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 4.6 | ||
| Debt/EBITDA | 2.76 | ||
| Cap/Depr | 58.28% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 4.91 | ||
| Cash Conversion | 69.9% | ||
| Profit Quality | 114.16% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 3.7 |
F-Score6
WACC8.95%
ROIC/WACC1.07
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)13.45%
EPS 3Y16.58%
EPS 5YN/A
EPS Q2Q%36.67%
EPS Next Y42.73%
EPS Next 2Y27.36%
EPS Next 3Y21.4%
EPS Next 5Y17.77%
Revenue 1Y (TTM)17.07%
Revenue growth 3Y13.28%
Revenue growth 5Y16.69%
Sales Q2Q%15.39%
Revenue Next Year13.85%
Revenue Next 2Y11.21%
Revenue Next 3Y10.56%
Revenue Next 5Y10.09%
EBIT growth 1Y5.95%
EBIT growth 3Y19.04%
EBIT growth 5Y66.04%
EBIT Next Year38.9%
EBIT Next 3Y19.31%
EBIT Next 5Y14.25%
FCF growth 1Y-31.27%
FCF growth 3Y16.29%
FCF growth 5Y91.41%
OCF growth 1Y-28.26%
OCF growth 3Y15.74%
OCF growth 5Y52.27%