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 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. While showing a medium growth rate, OPCH is valued expensive at the moment.
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.
OPCH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OPCH has a better Return On Assets (6.46%) than 84.31% of its industry peers.
Looking at the Return On Equity, with a value of 15.83%, OPCH belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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 9.60%.
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
OPCH's Profit Margin of 4.12% is fine compared to the rest of the industry. OPCH outperforms 74.51% of its industry peers.
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 6.40%, OPCH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
OPCH's Operating Margin has improved in the last couple of years.
The Gross Margin of OPCH (20.01%) is worse than 60.78% 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.
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 3.95. This indicates that OPCH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.95, OPCH is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
OPCH has a debt to FCF ratio of 3.21. This is a good value and a sign of high solvency as OPCH would need 3.21 years to pay back of all of its debts.
OPCH has a better Debt to FCF ratio (3.21) than 74.51% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that OPCH is somewhat dependend on debt financing.
OPCH has a Debt to Equity ratio (0.82) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | 3.95 |
ROIC/WACC1.13
WACC8.42%
2.3 Liquidity
A Current Ratio of 1.54 indicates that OPCH should not have too much problems paying its short term obligations.
OPCH has a Current ratio (1.54) which is in line with its industry peers.
A Quick Ratio of 1.02 indicates that OPCH should not have too much problems paying its short term obligations.
OPCH has a worse Quick ratio (1.02) than 69.61% of its industry peers.
| 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.
OPCH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.98%.
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)-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
OPCH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.12% yearly.
The Revenue is expected to grow by 9.91% on average over the next years. This is quite good.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 25.69.
OPCH's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.35. OPCH is around the same levels.
Based on the Price/Forward Earnings ratio of 19.61, the valuation of OPCH can be described as rather expensive.
OPCH's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.20, OPCH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.69 | ||
| Fwd PE | 19.61 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as OPCH.
Based on the Price/Free Cash Flow ratio, OPCH is valued a bit cheaper than 74.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.08 | ||
| EV/EBITDA | 15.63 |
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)2.09
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 |
NASDAQ:OPCH (5/28/2025, 3:40:33 PM)
31.85
-0.27 (-0.84%)
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 Change-0.11%
Ins Owners0.56%
Ins Owner Change16.36%
Market Cap5.22B
Analysts85
Price Target39.02 (22.51%)
Short Float %2.97%
Short Ratio2.1
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)0.33%
PT rev (3m)21.91%
EPS NQ rev (1m)-4.58%
EPS NQ rev (3m)3.93%
EPS NY rev (1m)-8.02%
EPS NY rev (3m)7.17%
Revenue NQ rev (1m)1.32%
Revenue NQ rev (3m)4.15%
Revenue NY rev (1m)2.18%
Revenue NY rev (3m)5.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.69 | ||
| Fwd PE | 19.61 | ||
| P/S | 1.01 | ||
| P/FCF | 15.08 | ||
| P/OCF | 13.55 | ||
| P/B | 3.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.63 |
EPS(TTM)1.24
EY3.89%
EPS(NY)1.62
Fwd EY5.1%
FCF(TTM)2.11
FCFY6.63%
OCF(TTM)2.35
OCFY7.38%
SpS31.66
BVpS8.25
TBVpS-3.62
PEG (NY)2.09
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 | 3.95 |
F-Score5
WACC8.42%
ROIC/WACC1.13
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%