OPTION CARE HEALTH INC (OPCH) Stock Fundamental Analysis
NASDAQ:OPCH - Nasdaq - US68404L2016 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to OPCH. OPCH was compared to 102 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 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.
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.
OPCH has a Return On Invested Capital of 9.54%. This is in the better half of the industry: OPCH outperforms 79.41% 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 9.60%.
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
Looking at the Profit Margin, with a value of 4.12%, OPCH is in the better half of the industry, outperforming 74.51% 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 6.40%, 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.
Looking at the Gross Margin, with a value of 20.01%, OPCH is doing worse than 60.78% of the companies in the same industry.
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.
OPCH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, OPCH has less shares outstanding
OPCH has a better debt/assets ratio than last year.
2.2 Solvency
OPCH has an Altman-Z score of 3.92. This indicates that OPCH is financially healthy and has little risk of bankruptcy at the moment.
OPCH has a better Altman-Z score (3.92) than 76.47% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 3.21, OPCH is in the better half of the industry, outperforming 74.51% of the companies in the same industry.
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 | 3.92 |
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 comparable to the rest of the 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.
OPCH's Quick ratio of 1.02 is on the low side compared to the rest of the industry. OPCH is outperformed by 70.59% 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.
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 16.98%.
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
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.
OPCH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.91% yearly.
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.
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
A Price/Earnings ratio of 25.90 indicates a quite expensive valuation of OPCH.
60.78% 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 (26.35), we can say OPCH is valued inline with the index average.
The Price/Forward Earnings ratio is 19.78, which indicates a rather expensive current valuation of OPCH.
OPCH's Price/Forward Earnings ratio is in line with the industry average.
OPCH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.9 | ||
| Fwd PE | 19.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OPCH is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, OPCH is valued a bit cheaper than the industry average as 75.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.21 | ||
| EV/EBITDA | 15.34 |
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.
OPCH's earnings are expected to grow with 15.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.11
PEG (5Y)N/A
EPS Next 2Y15.38%
EPS Next 3Y15.12%
5. Dividend
5.1 Amount
OPCH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.12
+0.71 (+2.26%)
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 Cap5.26B
Analysts85
Price Target39.02 (21.48%)
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 | 25.9 | ||
| Fwd PE | 19.78 | ||
| P/S | 1.01 | ||
| P/FCF | 15.21 | ||
| P/OCF | 13.66 | ||
| P/B | 3.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.34 |
EPS(TTM)1.24
EY3.86%
EPS(NY)1.62
Fwd EY5.06%
FCF(TTM)2.11
FCFY6.57%
OCF(TTM)2.35
OCFY7.32%
SpS31.66
BVpS8.25
TBVpS-3.62
PEG (NY)2.11
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 | 3.92 |
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%