Option Care Health (OPCH) AI Stock Analysis

• Market Cap: $5.16B
• Dividend Yield: N/A
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): 25.8
• Beta (1Y): 0.35
• Revenue Growth: 15.79%
• EPS Growth: 5.34%
• Country: US
• Employees: 8,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.45
• Shares Outstanding: 158,732,710
• 10 Day Avg. Volume: 2,080,903
• 30 Day Avg. Volume: 1,967,507
• PEG Ratio: -1.08
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 13.83
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 5.12
• Enterprise Value/Ebitda: 11.93
• 1Y Price Target: $36.60
• Price Target Upside: 12.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 1.72
• Revenue Forecast (FY): $5.64B

• Rating: 73 Outperform
• Price Target: $34.00 ▲(4.58% Upside)

Option Care Health's overall stock score reflects strong financial performance and positive technical indicators. The raised guidance and strategic refinancing efforts further bolster its outlook. However, valuation concerns and margin pressures slightly temper the score.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Debt Management

Effective debt management through refinancing improves financial flexibility, supporting sustainable growth and operational efficiency.

Cash Flow Generation

Strong cash flow generation enhances the company's ability to invest in growth opportunities and manage financial obligations efficiently.

Negative Factors

Gross Margin Pressure

Pressure on gross margins due to external factors like Stelara biosimilars could limit profitability, affecting long-term financial health.

Impact of Biosimilars

The impact of biosimilars on revenue highlights vulnerability to market changes, potentially affecting future growth and competitive position.

Margin Sustainability

Declining margins suggest challenges in maintaining profitability, which could impact long-term financial performance and strategic flexibility.

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 primarily through its infusion therapy services, which are reimbursed by a combination of private payers, Medicare, and Medicaid. The company bills for the services rendered, including the administration of medications and the provision of necessary medical supplies. Key revenue streams include home infusion services, nursing services, and pharmacy operations. Additionally, OPCH has established partnerships with various healthcare providers, hospitals, and insurance companies, which not only enhance its service offerings but also expand its patient base, contributing significantly to its earnings. The company's focus on patient-centered care and operational efficiency also plays a crucial role in driving profitability.

Option Care Health Financial Statement Overview

Summary

Option Care Health demonstrates solid financial performance with consistent revenue growth and effective leverage management. While profitability margins have seen slight pressure, the company maintains operational efficiency. Cash flow generation is strong, though there is room for optimization. Overall, the financial health of the company is stable with positive growth prospects.

Income Statement

Option Care Health shows consistent revenue growth with a TTM growth rate of 2.91% and a strong historical trend. However, margins have slightly declined over the TTM, with Gross Profit Margin at 19.41% and Net Profit Margin at 3.78%, indicating some pressure on profitability. The company maintains a stable EBIT and EBITDA margin, reflecting operational efficiency.

Balance Sheet

The company's balance sheet is stable with a low Debt-to-Equity Ratio of 0.09 in the TTM, indicating strong financial leverage management. Return on Equity is healthy at 15.29%, showing effective use of equity. However, the Equity Ratio is not explicitly provided, which could provide further insights into asset financing.

Cash Flow

Option Care Health's cash flow is robust with a Free Cash Flow to Net Income ratio of 0.96 in the TTM, indicating strong cash generation relative to net income. Free Cash Flow Growth is positive at 2.97%, showing improvement. However, the Operating Cash Flow to Net Income ratio is lower, suggesting potential areas for cash flow optimization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.53B	5.00B	4.30B	3.94B	3.44B	3.03B
Gross Profit	1.07B	1.01B	981.22M	866.92M	779.61M	682.26M
EBITDA	460.64M	396.13M	472.19M	325.01M	252.30M	180.42M
Net Income	209.21M	211.82M	267.09M	150.56M	139.90M	-8.08M
Balance Sheet
Total Assets	3.48B	3.42B	3.33B	3.23B	2.93B	2.77B
Cash, Cash Equivalents and Short-Term Investments	309.82M	412.56M	343.85M	294.19M	119.42M	99.27M
Total Debt	1.28B	1.22B	1.17B	1.16B	1.16B	1.21B
Total Liabilities	2.12B	2.02B	1.91B	1.85B	1.75B	1.76B
Stockholders Equity	1.36B	1.40B	1.42B	1.39B	1.18B	1.02B
Cash Flow
Free Cash Flow	248.34M	287.79M	329.43M	232.19M	182.94M	100.52M
Operating Cash Flow	258.68M	323.39M	371.30M	267.55M	208.57M	127.39M
Investing Cash Flow	-158.64M	-36.47M	-56.51M	-108.05M	-111.54M	-26.33M
Financing Cash Flow	-273.24M	-218.21M	-265.13M	15.27M	-76.87M	-68.85M

Option Care Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPCH, the sentiment is Positive. The current price of 32.51 is above the 20-day moving average (MA) of 31.54, above the 50-day MA of 29.24, and above the 200-day MA of 30.45, indicating a bullish trend. The MACD of 1.11 indicates Negative momentum. The RSI at 62.96 is Neutral, neither overbought nor oversold. The STOCH value of 70.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPCH.

Option Care Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADUS	74 Outperform	$2.09B	24.15	8.58%	―	18.77%	6.88%
NHC	74 Outperform	$2.20B	21.85	9.94%	1.77%	23.74%	-18.99%
OPCH	73 Outperform	$5.16B	25.81	15.02%	―	15.79%	5.34%
CHE	68 Neutral	$6.17B	23.02	24.11%	0.51%	6.45%	-4.77%
AVAH	58 Neutral	$1.90B	25.25	―	―	15.48%	―
SGRY	53 Neutral	$2.03B	-11.58	-9.45%	―	10.14%	-182.12%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Option Care Health Corporate Events

Option Care Health Amends Credit Agreement for Refinancing

On September 22, 2025, Option Care Health Inc. announced a significant amendment to its First Lien Credit Agreement. The amendment involves refinancing existing term loans with a new class of loans at a lower interest rate, incurring additional term loans totaling approximately $49.6 million, and extending the maturity date of revolving credit commitments. This financial restructuring aims to optimize the company’s debt profile, potentially enhancing its financial flexibility and operational efficiency.