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. OPCH scores excellent on profitability, but there are some minor concerns on its financial health. OPCH is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years OPCH had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.46%, OPCH belongs to the top of the industry, outperforming 84.31% of the companies in the same industry.
OPCH has a better Return On Equity (15.83%) than 83.33% of its industry peers.
With a decent Return On Invested Capital value of 9.54%, OPCH is doing good in the industry, outperforming 79.41% of the companies in the same industry.
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
The Profit Margin of OPCH (4.12%) is better than 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.
The Operating Margin of OPCH (6.40%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of OPCH has grown nicely.
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
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
OPCH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for OPCH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.96 indicates that OPCH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.96, OPCH is in the better half of the industry, outperforming 76.47% 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.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | 3.96 |
ROIC/WACC1.14
WACC8.39%
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 has a Quick ratio of 1.02. This is in the lower half of the industry: OPCH underperforms 69.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
OPCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.42%.
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.
Looking at the last year, OPCH shows a quite strong growth in Revenue. The Revenue has grown by 16.98% in the last year.
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
Based on estimates for the next years, OPCH will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.12% on average per year.
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
OPCH is valuated quite expensively with a Price/Earnings ratio of 26.06.
The rest of the industry has a similar Price/Earnings ratio as OPCH.
OPCH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.90, the valuation of OPCH can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OPCH is on the same level as its industry peers.
OPCH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.06 | ||
| Fwd PE | 19.9 |
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 74.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.3 | ||
| EV/EBITDA | 15.69 |
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)2.12
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 |
NASDAQ:OPCH (5/30/2025, 10:08:01 AM)
32.32
+0.06 (+0.19%)
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 Cap5.29B
Analysts85
Price Target39.02 (20.73%)
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 | 26.06 | ||
| Fwd PE | 19.9 | ||
| P/S | 1.02 | ||
| P/FCF | 15.3 | ||
| P/OCF | 13.75 | ||
| P/B | 3.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.69 |
EPS(TTM)1.24
EY3.84%
EPS(NY)1.62
Fwd EY5.02%
FCF(TTM)2.11
FCFY6.53%
OCF(TTM)2.35
OCFY7.27%
SpS31.66
BVpS8.25
TBVpS-3.62
PEG (NY)2.12
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 | 3.96 |
F-Score5
WACC8.39%
ROIC/WACC1.14
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%