Option Care Health (OPCH) AI Stock Analysis

• Market Cap: $4.55B
• Dividend Yield: N/A
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.60
• Revenue Growth: 17.06%
• EPS Growth: 5.03%
• Country: US
• Employees: 8,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.41
• Shares Outstanding: 162,295,060
• 10 Day Avg. Volume: 1,652,985
• 30 Day Avg. Volume: 1,785,324
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 6.02
• Enterprise Value/Ebitda: 15.58
• 1Y Price Target: $38.67
• Price Target Upside: 36.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• Price Target: $31.00 ▲(9.12% Upside)

Option Care Health's strong earnings call performance, with increased financial guidance and significant cash flow generation, is a major positive factor. However, the stock's bearish technical indicators and moderate valuation, along with challenges in cash flow and leverage, temper the overall score.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust demand for the company's services, enhancing its market position and supporting long-term financial stability.

Increased Financial Guidance

Raising financial guidance reflects management's confidence in sustained operational performance and strategic execution, which is positive for future growth.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Negative Factors

Gross Margin Pressure

Pressure on gross margins can affect profitability, requiring careful cost management to maintain financial health and competitive advantage.

Increasing Leverage

Rising debt levels may constrain financial flexibility and increase risk, necessitating prudent debt management to ensure long-term stability.

Declining Cash Flow

A decline in free cash flow can limit the company's ability to fund operations and growth initiatives, impacting its financial resilience.

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 primarily generates revenue through the provision of infusion therapy services to patients covered by various insurance plans, including Medicare, Medicaid, and private payers. The company bills health insurers directly for the infusion services provided, receiving reimbursement based on established rates for different therapies. Key revenue streams include the administration of intravenous medications, nutritional support, and related supplies. Additionally, Option Care Health may enter into partnerships with healthcare providers and hospitals, enabling them to offer comprehensive care solutions, which can further enhance their revenue opportunities. The company also benefits from its ability to manage costs efficiently while maintaining high standards of care, contributing to its overall profitability.

Option Care Health Financial Statement Overview

Summary

Option Care Health demonstrates strong financial performance with consistent revenue growth and robust cash flow generation. The company maintains low debt levels and a solid equity position, although there is room for improvement in net profitability and asset growth.

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	5.37B	5.00B	4.30B	3.94B	3.44B	3.03B
Gross Profit	1.06B	1.01B	981.22M	866.92M	779.61M	682.26M
EBITDA	408.35M	396.13M	483.16M	345.81M	252.30M	182.66M
Net Income	211.25M	211.82M	267.09M	150.56M	139.90M	-8.08M
Balance Sheet
Total Assets	3.38B	3.42B	3.22B	3.11B	2.79B	2.65B
Cash, Cash Equivalents and Short-Term Investments	198.82M	412.56M	343.85M	294.19M	119.42M	99.27M
Total Debt	1.23B	1.22B	1.17B	1.16B	1.16B	1.21B
Total Liabilities	2.02B	2.02B	1.80B	1.73B	1.62B	1.63B
Stockholders Equity	1.36B	1.40B	1.42B	1.39B	1.18B	1.02B
Cash Flow
Free Cash Flow	250.26M	287.79M	329.43M	232.19M	182.94M	100.52M
Operating Cash Flow	279.64M	323.39M	371.30M	267.55M	208.57M	127.39M
Investing Cash Flow	-156.59M	-36.47M	-56.51M	-108.05M	-111.54M	-26.33M
Financing Cash Flow	-301.11M	-218.21M	-265.13M	15.27M	-76.87M	-68.85M

Option Care Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 28.41 is below the 20-day moving average (MA) of 28.58, below the 50-day MA of 28.86, and below the 200-day MA of 30.17, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 47.30 is Neutral, neither overbought nor oversold. The STOCH value of 36.96 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
ADUS	77 Outperform	1.99B	24.22	7.58%	―	14.29%	7.85%
CHE	71 Outperform	6.66B	23.51	24.23%	0.46%	7.55%	-1.52%
OPCH	70 Outperform	$4.55B	22.33	15.25%	―	17.06%	5.03%
NHC	69 Neutral	1.79B	17.19	10.26%	2.07%	25.19%	13.44%
SGRY	60 Neutral	2.79B	-15.42	-10.32%	―	12.05%	-432.59%
AVAH	59 Neutral	1.69B	112.50	-154.73%	―	11.53%	0.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Option Care Health Corporate Events

Option Care Health Appoints New CFO Meenal Sethna

On August 20, 2025, Option Care Health announced the appointment of Meenal A. Sethna as Executive Vice President and Chief Financial Officer, effective October 1, 2025. Sethna, who previously held executive roles at Littelfuse, Inc. and Illinois Tool Works, will succeed Michael Shapiro, who will transition to a non-executive role until March 31, 2026. This leadership change is expected to support Option Care Health’s ongoing strategy and growth, as the company continues to strengthen its position as a leading provider of infusion therapy services.

The most recent analyst rating on (OPCH) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Option Care Health stock, see the OPCH Stock Forecast page.