Option Care Health (OPCH)
NASDAQ:OPCH
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Option Care Health
(NASDAQ:OPCH)
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Rating:63Neutral
Price Target:
$28.00
▼(-3.45% Downside)
Action:DowngradedDate:04/03/26
The score is driven primarily by solid fundamentals and a constructive earnings outlook with reaffirmed 2026 targets, partly offset by recent margin/cash-flow cooling and leverage considerations. Technicals are the main drag, with a pronounced downtrend despite oversold readings; valuation is broadly neutral with no dividend support.
Positive Factors
Revenue and volume growth
Sustained double-digit top-line growth and large patient volumes indicate durable demand for home and alternate-site infusion. High recurring treatment volumes create scale in pharmacy, nursing and coordination services, supporting long-term revenue stability and bargaining power with payors and suppliers.
Negative Factors
Margin pressure from mix & biosimilars
Structural shifts toward chronic therapies and biosimilar adoption compress reference prices and lower gross margins. Persistent product mix changes and manufacturer-driven pricing dynamics can erode per-unit economics, challenging margin sustainability even as revenue rises and requiring ongoing cost or scale offsets.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and volume growth
Sustained double-digit top-line growth and large patient volumes indicate durable demand for home and alternate-site infusion. High recurring treatment volumes create scale in pharmacy, nursing and coordination services, supporting long-term revenue stability and bargaining power with payors and suppliers.
Read all positive factors
Option Care Health (OPCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.54B
Dividend YieldN/A
Average Volume (3M)1.72M
Price to Earnings (P/E)24.3
Beta (1Y)0.40
Revenue Growth15.79%
EPS Growth5.34%
CountryUS
Employees8,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.46
Shares Outstanding156,447,970
10 Day Avg. Volume1,639,360
30 Day Avg. Volume1,717,859
Financial Highlights & Ratios
PEG Ratio5.98
Price to Book (P/B)3.80
Price to Sales (P/S)0.89
P/FCF Ratio19.51
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit3.95
Enterprise Value/Ebitda9.24
Forecast
1Y Price Target
$40.33Price Target Upside39.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)1.87
Revenue Forecast (FY)$5.94B
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:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveys a constructive operational and financial story: strong top-line growth, margin and automation gains, successful clinic and M&A integration, expanded pharma and payer partnerships, and a reaffirmation of 2026 guidance. Key near-term challenges include Stelara biosimilar-driven revenue and gross profit headwinds, a 2025 cash flow shortfall due to strategic inventory buys and elevated working capital needs, and persistent payer/market pressure. Management outlined concrete efficiency and cash-conversion actions and expects cash flow and EBITDA expansion in 2026, indicating confidence that headwinds are manageable.Positive Updates
Revenue Growth
Full year 2025 net revenue of $5.6 billion, up 13% year-over-year; 2026 revenue guidance reaffirmed at $5.8B–$6.0B (midpoint ~4% growth) despite known headwinds.
Negative Updates
Stelara and Biosimilar Headwinds
Stelara biosimilar adoption created a ~160 basis point revenue headwind in 2025; company forecasts a ~400 basis point revenue growth headwind in 2026 from Stelara IRA and biosimilar conversion and expects a $25M–$35M gross profit headwind for 2026 (to be realized evenly over the year).
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth
Full year 2025 net revenue of $5.6 billion, up 13% year-over-year; 2026 revenue guidance reaffirmed at $5.8B–$6.0B (midpoint ~4% growth) despite known headwinds.
Read all positive updates
Company Guidance
Option Care reaffirmed its January 2026 guidance: full‑year revenue of $5.8–$6.0 billion (about 4% growth at midpoint, with a 400‑basis‑point headwind from Stelara IRA/biosimilars conversion), adjusted EBITDA of $480–$505 million (which incorporates a $25–$35 million gross‑profit headwind from Stelara expected to be realized evenly over the year), adjusted diluted EPS of $1.82–$1.92, and operating cash flow of at least $340 million (>30% growth versus 2025). Management also assumed a Q1 share count of ~159 million, expects net interest expense of $50–$55 million and a full‑year tax rate of 26–28%, and reiterated cash seasonality with Q1 the low point; for context, FY2025 results included net revenue of $5.6 billion (+13%), gross profit up 7.4%, adjusted EBITDA of $471 million (8.3% margin), adjusted diluted EPS of $1.72 (+9%), operating cash flow of $258 million, year‑end net leverage of ~2.0x, and >$300 million of share repurchases (with a $500 million repurchase authorization added).Option Care Health Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.65B | 5.00B | 4.30B | 3.94B | 3.44B |
| Gross Profit | 1.09B | 1.01B | 981.22M | 866.92M | 779.61M |
| EBITDA | 474.45M | 396.13M | 472.19M | 325.01M | 252.30M |
| Net Income | 207.59M | 211.82M | 267.09M | 150.56M | 139.90M |
Balance Sheet | |||||
| Total Assets | 3.46B | 3.42B | 3.33B | 3.23B | 2.93B |
| Cash, Cash Equivalents and Short-Term Investments | 232.62M | 412.56M | 343.85M | 294.19M | 119.42M |
| Total Debt | 0.00 | 1.22B | 1.17B | 1.16B | 1.16B |
| Total Liabilities | 2.13B | 2.02B | 1.91B | 1.85B | 1.75B |
| Stockholders Equity | 1.33B | 1.40B | 1.42B | 1.39B | 1.18B |
Cash Flow | |||||
| Free Cash Flow | 258.45M | 287.79M | 329.43M | 232.19M | 182.94M |
| Operating Cash Flow | 258.45M | 323.39M | 371.30M | 267.55M | 208.57M |
| Investing Cash Flow | -161.08M | -36.47M | -56.51M | -108.05M | -111.54M |
| Financing Cash Flow | -277.31M | -218.21M | -265.13M | 15.27M | -76.87M |
Option Care Health Technical Analysis
Neutral
29.00
Price Trends
31.17
Negative
31.75
Negative
30.19
Negative
Market Momentum
-0.70
Negative
48.83
Neutral
89.29
Negative
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 29 is above the 20-day moving average (MA) of 28.33, below the 50-day MA of 31.17, and below the 200-day MA of 30.19, indicating a neutral trend. The MACD of -0.70 indicates Negative momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 89.29 is Negative, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.66B | 17.67 | 11.57% | 1.80% | 23.74% | -18.99% | |
75 Outperform | $1.72B | 20.66 | 9.24% | ― | 18.77% | 6.88% | |
72 Outperform | $5.31B | 23.23 | 23.91% | 0.51% | 6.45% | -4.77% | |
63 Neutral | $4.54B | 24.29 | 15.39% | ― | 15.79% | 5.34% | |
56 Neutral | $1.67B | -25.23 | -4.50% | ― | 10.14% | -182.12% | |
53 Neutral | $1.35B | 7.31 | 953.09% | ― | 15.48% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
OPCH
Option Care Health
29.00
-2.84
-8.92%
ADUS
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92.21
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-9.75%
CHE
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385.84
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-35.45%
NHC
National Healthcare
170.85
80.33
88.74%
SGRY
Surgery Partners
12.91
-8.41
-39.45%
AVAH
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6.22
1.51
32.06%
Option Care Health Corporate Events
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...
Business Operations and StrategyStock BuybackFinancial Disclosures
Option Care Health Issues 2025 Results and 2026 Outlook
Positive
Jan 12, 2026
On January 12, 2026, Option Care Health released preliminary unaudited results indicating fourth-quarter 2025 net revenue between $1.46 billion and $1.47 billion, GAAP net income of $59.1 million to $62.4 million, and adjusted EBITDA of $123.7 mil...
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.