Option Care Health Inc (OPCH)
NASDAQ:OPCH
Want to see OPCH full AI Analyst Report?
Top Page
Option Care Health
(NASDAQ:OPCH)
Select Model
Select Model
Rating:64Neutral
Price Target:
$22.00
▼(-23.66% Downside)
Action:ReiteratedDate:05/01/26
OPCH scores as a moderate setup driven by strong underlying financial health (notably the no-debt balance sheet and positive cash generation) but tempered by margin compression and weaker recent cash conversion. The technical trend is the biggest near-term negative (deeply oversold and below all major moving averages), while valuation is only average and the earnings call signaled a meaningful 2026 revenue headwind despite maintained profitability guidance.
Positive Factors
Debt-free balance sheet
A zero-debt balance sheet provides durable financial flexibility: it lowers fixed interest burdens, supports capital deployment (organic investment, tuck-in M&A, buybacks), and helps absorb reimbursement volatility typical in infusion care, preserving strategic optionality over the next 2–6 months.
Negative Factors
Margin compression
Steady margin deterioration signals structural pressure from therapy mix, product-level economics, and payer dynamics. Sustained lower gross and net margins constrain reinvestment, reduce resilience to reimbursement cuts, and make long-run profitability more sensitive to drug-cost and mix shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A zero-debt balance sheet provides durable financial flexibility: it lowers fixed interest burdens, supports capital deployment (organic investment, tuck-in M&A, buybacks), and helps absorb reimbursement volatility typical in infusion care, preserving strategic optionality over the next 2–6 months.
Read all positive factors
Option Care Health (OPCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.22B
Dividend YieldN/A
Average Volume (3M)1.62M
Price to Earnings (P/E)23.3
Beta (1Y)0.38
Revenue Growth9.30%
EPS Growth2.24%
CountryUS
Employees8,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.29
Shares Outstanding157,027,510
10 Day Avg. Volume1,704,608
30 Day Avg. Volume1,619,108
Financial Highlights & Ratios
PEG Ratio6.12
Price to Book (P/B)3.89
Price to Sales (P/S)0.91
P/FCF Ratio19.98
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue0.54
Enterprise Value/Gross Profit2.98
Enterprise Value/Ebitda7.50
Forecast
1Y Price Target
$30.73Price Target Upside6.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)1.84
Revenue Forecast (FY)$5.74B
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 ...
How the Company Makes Money
Option Care Health primarily makes money by delivering home and alternate-site infusion therapy services that are reimbursed by third-party payors. Its revenue is largely generated from (1) dispensing and compounding infusion medications (specialt...
Option Care Health Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The call described a mixed quarter: strong execution in acute therapies, clinic utilization growth, patient satisfaction and preserved profitability guidance were offset by a material chronic portfolio reset (notably Stelara/CID), a larger-than-anticipated $55 million gross profit headwind, patient census declines and related revenue shortfall. Management communicated targeted commercial and operational actions, expanded liquidity, and confidence that the CID reset is largely a one-time event, but rebuilding chronic census and recovering revenue momentum will take time.Positive Updates
Quarterly Revenue
Q1 2026 revenue of $1.4 billion, up slightly over 1% year-over-year.
Negative Updates
Revenue Momentum Miss and Guide Reset
Company acknowledged revenue growth of only ~1% in Q1 did not meet expectations and full-year net revenue guidance was adjusted to $5.675 billion to $5.775 billion (just over 1% growth at midpoint).
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Revenue
Q1 2026 revenue of $1.4 billion, up slightly over 1% year-over-year.
Read all positive updates
Company Guidance
Option Care Health narrowed and updated its 2026 guidance: net revenue $5.675–$5.775 billion (just over 1% growth at the midpoint), adjusted EBITDA $480–$505 million (midpoint ≈5% growth), adjusted EPS $1.82–$1.92 (midpoint ≈9% growth), operating cash flow target of at least $320 million, net interest expense $50–$55 million and a tax rate of 26–28%. Management now expects an approximately $55 million gross profit headwind tied to the CID/Stelara reset (about a 600‑basis‑point revenue growth headwind versus the prior 400‑bp estimate); Q1 results showed $1.4 billion revenue (≈+1%), $105 million adjusted EBITDA (‑6% YoY), $0.40 adjusted EPS (flat), $12 million operating cash use, SG&A up 4% and net leverage of 2.2x. Near‑term cadence assumes Q2 sequential revenue mid‑single‑digit growth and Q2 EBITDA high‑single‑digit sequential growth; balance‑sheet actions include expanding the revolver from $400M to $850M and ~$17M of share repurchases in Q1.Option Care Health Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.67B | 5.65B | 5.00B | 4.30B | 3.94B | 3.44B |
| Gross Profit | 1.02B | 1.02B | 1.01B | 981.22M | 866.92M | 779.61M |
| EBITDA | 405.84M | 408.60M | 396.13M | 472.19M | 325.01M | 252.30M |
| Net Income | 206.19M | 207.59M | 211.82M | 267.09M | 150.56M | 139.90M |
Balance Sheet | ||||||
| Total Assets | 3.38B | 3.46B | 3.42B | 3.33B | 3.23B | 2.93B |
| Cash, Cash Equivalents and Short-Term Investments | 177.32M | 232.62M | 412.56M | 343.85M | 294.19M | 119.42M |
| Total Debt | 0.00 | 0.00 | 1.22B | 1.17B | 1.16B | 1.16B |
| Total Liabilities | 2.03B | 2.13B | 2.02B | 1.91B | 1.85B | 1.75B |
| Stockholders Equity | 1.35B | 1.33B | 1.40B | 1.42B | 1.39B | 1.18B |
Cash Flow | ||||||
| Free Cash Flow | 235.41M | 258.45M | 287.79M | 329.43M | 232.19M | 182.94M |
| Operating Cash Flow | 253.55M | 258.45M | 323.39M | 371.30M | 267.55M | 208.57M |
| Investing Cash Flow | -43.71M | -161.08M | -36.47M | -56.51M | -108.05M | -111.54M |
| Financing Cash Flow | -203.89M | -277.31M | -218.21M | -265.13M | 15.27M | -76.87M |
Option Care Health Technical Analysis
Neutral
28.82
Price Trends
30.61
Negative
31.76
Negative
30.10
Negative
Market Momentum
-0.45
Negative
49.03
Neutral
54.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPCH, the sentiment is Neutral. The current price of 28.82 is above the 20-day moving average (MA) of 28.09, below the 50-day MA of 30.61, and below the 200-day MA of 30.10, indicating a neutral trend. The MACD of -0.45 indicates Negative momentum. The RSI at 49.03 is Neutral, neither overbought nor oversold. The STOCH value of 54.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OPCH.
Option Care Health Risk Analysis
Option Care Health disclosed 33 risk factors in its most recent earnings report. Option Care Health reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Option Care Health Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.95B | 17.30 | 11.68% | 1.80% | 11.40% | 13.96% | |
77 Outperform | $1.86B | 17.26 | 9.34% | ― | 19.55% | 21.54% | |
75 Outperform | $5.63B | 19.48 | 25.33% | 0.51% | 2.07% | -11.26% | |
64 Neutral | $3.22B | 23.25 | 15.28% | ― | 9.30% | 2.24% | |
53 Neutral | $1.89B | -10.66 | -4.43% | ― | 5.38% | 61.15% | |
53 Neutral | $1.47B | 2.30 | 953.09% | ― | 20.19% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
OPCH
Option Care Health
20.51
-11.35
-35.62%
ADUS
Addus Homecare
99.57
-10.98
-9.93%
CHE
Chemed
424.26
-142.07
-25.09%
NHC
National Healthcare
188.82
88.68
88.55%
SGRY
Surgery Partners
14.44
-8.82
-37.92%
AVAH
Aveanna Healthcare Holdings
6.74
0.96
16.61%
Option Care Health Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and Financing
Option Care Health Updates 2026 Outlook After Mixed Quarter
Neutral
Apr 30, 2026
Option Care Health reported mixed financial results for the first quarter ended March 31, 2026, with net revenue rising 1.3% year over year to $1.35 billion, but GAAP net income slipping 3.0% to $45.3 million and adjusted EBITDA falling 6.3% to $1...
Business Operations and StrategyPrivate Placements and Financing
Option Care Health Expands Revolving Credit Facility Capacity
Positive
Apr 2, 2026
On March 30, 2026, Option Care Health, Inc. amended its Amended and Restated First Lien Credit Agreement by entering into a Fifth Amendment with Bank of America, N.A. as administrative agent and certain subsidiaries and lenders. The amendment incr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.