OPTION CARE HEALTH INC (OPCH) Stock Fundamental Analysis
USA - NASDAQ:OPCH - US68404L2016 - Common Stock
28.2 USD
+0.36 (+1.29%)
28.2 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to OPCH. OPCH was compared to 101 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 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.
Of the past 5 years OPCH 4 years were profitable.
Each year in the past 5 years OPCH had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.24%, OPCH belongs to the best of the industry, outperforming 84.16% of the companies in the same industry.
OPCH's Return On Equity of 15.53% is amongst the best of the industry. OPCH outperforms 83.17% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for OPCH is in line with the industry average of 9.34%.
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
OPCH's Profit Margin of 3.93% is fine compared to the rest of the industry. OPCH outperforms 71.29% of its industry peers.
OPCH's Profit Margin has been stable in the last couple of years.
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.
OPCH's Operating Margin has improved in the last couple of years.
OPCH has a Gross Margin (19.67%) which is comparable to the rest of the industry.
OPCH's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OPCH is still creating some value.
Compared to 1 year ago, OPCH has less shares outstanding
The number of shares outstanding for OPCH has been reduced compared to 5 years ago.
Compared to 1 year ago, OPCH has an improved debt to assets ratio.
2.2 Solvency
OPCH has an Altman-Z score of 3.71. This indicates that OPCH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.71, OPCH is doing good in the industry, outperforming 66.34% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 4.60, OPCH is doing good in the industry, outperforming 70.30% of the companies in the same industry.
OPCH has a Debt/Equity ratio of 0.81. This is a neutral value indicating OPCH is somewhat dependend on debt financing.
OPCH has a Debt to Equity ratio of 0.81. This is comparable to the rest of the industry: OPCH outperforms 43.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 4.6 | ||
| Altman-Z | 3.71 |
ROIC/WACC1.05
WACC9.07%
2.3 Liquidity
A Current Ratio of 1.52 indicates that OPCH should not have too much problems paying its short term obligations.
OPCH's Current ratio of 1.52 is in line compared to the rest of the industry. OPCH outperforms 53.47% of its industry peers.
A Quick Ratio of 1.00 indicates that OPCH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, OPCH is doing worse than 69.31% of the companies in the same industry.
| 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.
OPCH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.07%.
Measured over the past years, OPCH shows a quite strong growth in Revenue. The Revenue has been growing by 16.69% on average per year.
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
The Earnings Per Share is expected to grow by 17.77% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.09% on average over the next years. This is quite good.
EPS Next Y42.55%
EPS Next 2Y27.19%
EPS Next 3Y21.78%
EPS Next 5Y17.77%
Revenue Next Year13.85%
Revenue Next 2Y11.17%
Revenue Next 3Y10.46%
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
A Price/Earnings ratio of 20.89 indicates a rather expensive valuation of OPCH.
68.32% of the companies in the same industry are more expensive than OPCH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of OPCH to the average of the S&P500 Index (26.83), we can say OPCH is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.29, the valuation of OPCH can be described as correct.
Based on the Price/Forward Earnings ratio, OPCH is valued cheaply inside the industry as 80.20% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of OPCH to the average of the S&P500 Index (22.88), we can say OPCH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.89 | ||
| Fwd PE | 14.29 |
4.2 Price Multiples
OPCH's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, OPCH is valued a bit cheaper than the industry average as 69.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.98 | ||
| EV/EBITDA | 13.57 |
4.3 Compensation for Growth
OPCH's 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.
OPCH's earnings are expected to grow with 21.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y27.19%
EPS Next 3Y21.78%
5. Dividend
5.1 Amount
OPCH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.2
+0.36 (+1.29%)
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 Change0.93%
Ins Owners0.66%
Ins Owner Change7.73%
Market Cap4.58B
Revenue(TTM)5.37B
Net Income(TTM)211.25M
Analysts85
Price Target39.27 (39.26%)
Short Float %4.38%
Short Ratio3.82
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)3.08%
EPS NQ rev (3m)1.58%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)27.72%
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 | 20.89 | ||
| Fwd PE | 14.29 | ||
| P/S | 0.85 | ||
| P/FCF | 18.98 | ||
| P/OCF | 16.37 | ||
| P/B | 3.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.57 |
EPS(TTM)1.35
EY4.79%
EPS(NY)1.97
Fwd EY7%
FCF(TTM)1.49
FCFY5.27%
OCF(TTM)1.72
OCFY6.11%
SpS33.11
BVpS8.38
TBVpS-3.53
PEG (NY)0.49
PEG (5Y)N/A
Graham Number15.95
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%
ROICexgc growth 3Y17%
ROICexgc 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 | 3.71 |
F-Score6
WACC9.07%
ROIC/WACC1.05
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 Y42.55%
EPS Next 2Y27.19%
EPS Next 3Y21.78%
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 2Y11.17%
Revenue Next 3Y10.46%
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%
OPTION CARE HEALTH INC / OPCH FAQ
What is the ChartMill fundamental rating of OPTION CARE HEALTH INC (OPCH) stock?
ChartMill assigns a fundamental rating of 6 / 10 to OPCH.
What is the valuation status for OPCH stock?
ChartMill assigns a valuation rating of 6 / 10 to OPTION CARE HEALTH INC (OPCH). This can be considered as Fairly Valued.
Can you provide the profitability details for OPTION CARE HEALTH INC?
OPTION CARE HEALTH INC (OPCH) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for OPCH stock?
The Earnings per Share (EPS) of OPTION CARE HEALTH INC (OPCH) is expected to grow by 42.55% in the next year.