Option Care Health (OPCH) AI Stock Analysis

• Market Cap: $5.14B
• Dividend Yield: N/A
• Average Volume (3M): 2.38M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.62
• Revenue Growth: 16.98%
• EPS Growth: -17.76%
• Country: US
• Employees: 8,000
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Care Facilities
• EPS (TTM): 0.40
• Shares Outstanding: 163,747,250
• 10 Day Avg. Volume: 1,630,560
• 30 Day Avg. Volume: 2,380,743
• PEG Ratio: 15.40
• Price to Book (P/B): 3.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.08
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 6.13
• Enterprise Value/Ebitda: 4.01
• 1Y Price Target: $38.50
• Price Target Upside: 19.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 78 Outperform
• Price Target: $37.00 ▲(15.19%Upside)

Option Care Health's strong financial performance and positive earnings call outlook are significant strengths, driving the overall score. Technical indicators suggest short-term caution, and valuation metrics highlight a relatively high valuation. The absence of a dividend yield and governance changes are less impactful on the current score.

Positive Factors

Financial Performance

Option Care delivered an across-the-board beat in the first quarter with strong double-digit organic growth, marking the sixth consecutive quarter of top-line double-digit growth.

Guidance and Forecasts

FY/25 financial guidance was updated in a positive manner for the second quarter in a row.

Market Positioning

Growth in the quarter was driven by both Chronic and Acute as the business begins to benefit from a competitor exit in the space, which should provide a tailwind to growth.

Negative Factors

Pricing Headwinds

The soft gross margin is primarily related to Stelara-related headwinds.

Stock Performance

Despite the strong results, shares sold off throughout the day and ended down about 7%.

Tariff Concerns

The stock is pressured due to concerns that the potential tariffs on drugs could impact OPCH as it takes time for the payor reimbursement to catch up with higher drug prices.

Option Care Health Business Overview & Revenue Model

Company Description

Option Care Health, Inc. offers home and alternate site infusion services in the United States. The company provides anti-infective therapies; home infusion services to treat heart failures; home parenteral nutrition and enteral nutrition support services for numerous acute and chronic conditions, such as stroke, cancer, and gastrointestinal diseases; immunoglobulin infusion therapies for the treatment of immune deficiencies; and treatments for chronic inflammatory disorders, including Crohn's disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, ulcerative colitis, and other chronic inflammatory disorders. It also offers treatments to manage the progression of neurological disorders, such as amyotrophic lateral sclerosis and duchenne muscular dystrophy; infusion therapies for bleeding disorders; therapies that women need to survive and thrive through high-risk pregnancies; and other infusion therapies to treat various conditions, including pain management, chemotherapy, and respiratory medications, as well as nursing services. Option Care Health, Inc. is headquartered in Bannockburn, Illinois.

How the Company Makes Money

Option Care Health generates revenue through its extensive portfolio of home and alternate site infusion services. The company's primary revenue streams include reimbursement from government and commercial insurance payers for providing infusion therapies and related services. Option Care Health collaborates with healthcare providers, hospitals, and pharmaceutical companies to deliver its services, ensuring accessibility and quality care for patients. Additionally, partnerships with pharmaceutical manufacturers allow the company to participate in the distribution and administration of specialty medications, further contributing to its earnings.

Option Care Health Financial Statement Overview

Summary

Option Care Health demonstrates strong revenue growth and stable operational margins. The company maintains a low debt-to-equity ratio and generates robust cash flows. However, there is room for improvement in net profitability and asset growth to ensure long-term competitiveness.

Income Statement

Option Care Health has demonstrated consistent revenue growth, with a strong TTM revenue of $5.19 billion, reflecting a growth rate of approximately 3.73% from the previous annual period. The company's gross profit margin has remained robust at around 19.72%. However, the net profit margin is modest at 4.12%, indicating room for improvement in profitability. The EBIT and EBITDA margins are stable at 6.40% and 7.25%, respectively, showcasing effective operational management.

Balance Sheet

The balance sheet shows a solid equity base, with a debt-to-equity ratio of approximately 0.07 in the TTM period, indicating low leverage risk. The return on equity stands at 15.83%, demonstrating efficient utilization of shareholder funds. The equity ratio is healthy at 40.82%, suggesting a stable financial position. However, the decrease in total assets and equity from previous periods highlights the need for cautious financial management.

Cash Flow

Option Care Health has exhibited strong cash flow performance, with a 23.38% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 1.80, suggesting strong cash generation relative to net income. The free cash flow to net income ratio of 1.66 further underscores the company's ability to generate substantial free cash flow. Despite this, a focus on maintaining positive investing cash flows is advisable to ensure long-term sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.19B	5.00B	4.30B	3.94B	3.44B	3.03B
	Gross Profit
1.02B	1.01B	981.22M	866.92M	779.61M	682.26M
	EBIT
331.99M	321.83M	314.60M	240.23M	190.84M	110.75M
	EBITDA
405.10M	407.65M	483.16M	345.81M	255.93M	182.66M
	Net Income Common Stockholders
213.77M	211.82M	267.09M	150.56M	139.90M	-8.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
171.37M	412.56M	343.85M	294.19M	119.42M	99.27M
	Total Assets
3.31B	3.42B	3.22B	3.11B	2.79B	2.65B
	Total Debt
1.22B	1.22B	1.17B	1.08B	1.06B	1.12B
	Net Debt
1.05B	805.41M	822.56M	789.40M	940.48M	1.02B
	Total Liabilities
1.96B	2.02B	1.80B	1.73B	1.62B	1.63B
	Stockholders Equity
1.35B	1.40B	1.42B	1.39B	1.18B	1.02B
Cash Flow		Free Cash Flow
345.81M	287.79M	329.43M	232.19M	182.94M	100.52M
	Operating Cash Flow
384.96M	323.39M	371.30M	267.55M	208.57M	127.39M
	Investing Cash Flow
-157.34M	-36.47M	-56.51M	-108.05M	-111.54M	-26.33M
	Financing Cash Flow
-275.76M	-218.21M	-265.13M	15.27M	-76.87M	-68.85M

Option Care Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.12
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPCH, the sentiment is Negative. The current price of 32.12 is below the 20-day moving average (MA) of 32.30, below the 50-day MA of 33.03, and above the 200-day MA of 29.68, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 47.65 is Neutral, neither overbought nor oversold. The STOCH value of 27.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPCH.

Option Care Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPCH	78 Outperform	$5.14B	25.09	15.38%	―	16.98%	-17.76%
ENSG	78 Outperform	$8.48B	27.70	17.66%	0.17%	16.80%	39.99%
ADUS	77 Outperform	$2.06B	25.34	9.18%	―	11.38%	10.29%
AMED	71 Outperform	$3.07B	34.58	7.85%	―	5.34%	―
EHC	68 Neutral	$12.20B	24.98	25.33%	0.56%	11.21%	30.38%
SEM	64 Neutral	$1.92B	11.10	10.38%	3.04%	-8.86%	-36.22%
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%

Option Care Health Corporate Events

Option Care Health Approves Governance Amendments at Annual Meeting

At the 2025 Annual Meeting of Stockholders held on May 14, 2025, Option Care Health‘s Board of Directors approved amendments to the company’s Certificate of Incorporation and Bylaws. These changes include allowing stockholders to request special meetings, limiting monetary liability for certain officers, and removing outdated provisions related to HC Group. The stockholders also elected directors, ratified KPMG LLP as the accounting firm, and approved executive compensation, reflecting a strategic shift to enhance governance and shareholder rights.

The most recent analyst rating on (OPCH) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Option Care Health stock, see the OPCH Stock Forecast page.