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Option Care Health
(NASDAQ:OPCH)
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Rating:69Neutral
Price Target:
$24.50
▲(13.11% Upside)
Action:Reiterated
Date:07/29/26
The score is driven primarily by solid financial performance (strong growth and cash conversion, but pressured margins and moderate leverage) and a constructive earnings outlook with reaffirmed guidance, strong cash generation, and meaningful buybacks, tempered by CID-related headwinds and execution risk. Technically, the stock shows improving near-term trend but remains below longer-term averages, and valuation appears reasonable at a ~17.4 P/E with no dividend support provided.
Positive Factors
Cash generation
Consistently positive operating cash flow and very high FCF conversion (TTM ~93% of net income; Q2 OCF $184M) underpin durable ability to fund operations, invest in clinics/tech, pay down/ service debt and execute buybacks without relying on external financing.
Negative Factors
CID portfolio headwinds
Chronic inflammatory (CID) product weakness is a material mix and volume drag expected to reduce revenue and gross profit (~600bps revenue, ~$55M GP). This structural portfolio gap can persist and compress margins and growth until coverage or product mix normalizes.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistently positive operating cash flow and very high FCF conversion (TTM ~93% of net income; Q2 OCF $184M) underpin durable ability to fund operations, invest in clinics/tech, pay down/ service debt and execute buybacks without relying on external financing.
Read all positive factors
Option Care Health (OPCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.45B
Dividend YieldN/A
Average Volume (3M)2.33M
Price to Earnings (P/E)17.3
Beta (1Y)0.45
Revenue Growth5.95%
EPS Growth5.33%
CountryUS
Employees6,528
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.33
Shares Outstanding149,785,250
10 Day Avg. Volume1,961,194
30 Day Avg. Volume2,330,089
Financial Highlights & Ratios
PEG Ratio6.12
Price to Book (P/B)3.89
Price to Sales (P/S)0.91
P/FCF Ratio23.78
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$27.50Price Target Upside26.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)1.88
Revenue Forecast (FY)$5.75B
Option Care Health Business Overview & Revenue Model
Company Description
Option Care Health, Inc. delivers infusion services to patients in their homes and other non-hospital settings throughout the United States. The company offers a broad spectrum of specialized infusion treatments, including therapies for various in...
How the Company Makes Money
Option Care Health primarily makes money by providing infusion therapy services and the related pharmaceuticals and supplies used in those treatments. Revenue is generated when the company dispenses and administers infused medications (typically s...
Option Care Health Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Neutral
The call presented a balance of meaningful operational and financial positives — including sequential revenue and EBITDA growth, strong cash generation ($184M in Q2), active share repurchases ($150M), clinic expansion, and progress in key portfolios (acute, IG neuro, rare/orphan) — while acknowledging persistent headwinds tied to the CID portfolio that are expected to depress 2026 revenue (~600 bps) and gross profit (~$55M). Management emphasized execution of commercial, technology and cost initiatives to drive sequential improvement through the back half of the year, but several initiatives and new therapy launches carry timing and execution risk.Positive Updates
Revenue Growth (Q2 2026)
Reported revenue of $1.4 billion, up 2% year-over-year and up 7% sequentially from Q1 2026.
Negative Updates
CID Portfolio Headwinds and Revenue/Gross Profit Impact
Management expects year-over-year revenue headwinds of approximately 600 basis points for 2026 and gross profit headwinds of about $55 million driven by weakness earlier in the chronic inflammatory (CID) portfolio and related product mix shifts.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth (Q2 2026)
Reported revenue of $1.4 billion, up 2% year-over-year and up 7% sequentially from Q1 2026.
Read all positive updates
Company Guidance
Management reaffirmed full-year 2026 guidance of $5.675–$5.775 billion in revenue, adjusted EBITDA of $480–$495 million, and adjusted EPS of $1.85–$1.92, with net interest expense of $50–$55 million, a tax rate of 26–28%, and an operating cash flow target of at least $320 million; Q3 is expected to show sequential revenue growth in the low- to mid-single digits and sequential EBITDA growth in the mid-single-digit range (seasonality consistent with prior years, with H2 stronger). In Q2 the company posted $1.4 billion revenue (+2% YoY, +7% QoQ), $117.5 million adjusted EBITDA (+3% YoY, +12% QoQ), adjusted EPS $0.45 (+$0.04 YoY), operating cash flow $184 million, net debt leverage 2.1x, repurchased $150 million (~5% of shares) leaving $525 million buyback authorization, SG&A ~11% of revenue (-3% YoY), and gross profit dollars up 2% sequentially; they continue to expect ~600 bps of 2026 revenue headwinds from CID and ~$55 million gross profit headwinds, Stelara/biosimilars to be <1% of 2026 net revenue/gross profit, added five infusion clinics (visits +20% YoY), operate >190 facilities, and recorded >35% of nursing visits in suites/clinics.Option Care Health Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.69B | 5.65B | 5.00B | 4.30B | 3.94B | 3.44B |
| Gross Profit | 1.03B | 1.02B | 1.01B | 981.22M | 866.92M | 779.61M |
| EBITDA | 415.31M | 416.79M | 396.13M | 472.19M | 325.01M | 252.30M |
| Net Income | 209.58M | 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 | 193.77M | 232.62M | 412.56M | 343.85M | 294.19M | 119.42M |
| Total Debt | 1.27B | 1.27B | 1.22B | 1.17B | 1.16B | 1.16B |
| Total Liabilities | 2.12B | 2.13B | 2.02B | 1.91B | 1.85B | 1.75B |
| Stockholders Equity | 1.26B | 1.33B | 1.40B | 1.42B | 1.39B | 1.18B |
Cash Flow | ||||||
| Free Cash Flow | 346.81M | 217.14M | 287.79M | 329.43M | 232.19M | 182.94M |
| Operating Cash Flow | 346.81M | 258.45M | 323.39M | 371.30M | 267.55M | 208.57M |
| Investing Cash Flow | -46.37M | -161.08M | -36.47M | -56.51M | -108.05M | -111.54M |
| Financing Cash Flow | -305.49M | -277.31M | -218.21M | -265.13M | 15.27M | -76.87M |
Option Care Health Technical Analysis
Positive
21.66
Price Trends
21.70
Positive
23.52
Positive
27.59
Negative
Market Momentum
0.57
Negative
62.58
Neutral
63.30
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 21.66 is below the 20-day moving average (MA) of 22.43, below the 50-day MA of 21.70, and below the 200-day MA of 27.59, indicating a neutral trend. The MACD of 0.57 indicates Negative momentum. The RSI at 62.58 is Neutral, neither overbought nor oversold. The STOCH value of 63.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $2.16B | 21.35 | 9.57% | ― | 19.55% | 21.54% | |
77 Outperform | $7.07B | 26.72 | 29.45% | 0.47% | 3.31% | 1.56% | |
72 Outperform | $3.53B | 28.32 | 12.94% | 1.15% | 11.40% | 13.96% | |
69 Neutral | $3.45B | 17.32 | 15.83% | ― | 5.95% | 5.33% | |
69 Neutral | $2.04B | 7.41 | 241.47% | ― | 20.49% | 4335.46% | |
52 Neutral | $2.01B | -26.11 | -4.43% | ― | 5.38% | 61.15% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
OPCH
Option Care Health
23.79
-4.06
-14.58%
ADUS
Addus Homecare
119.68
7.73
6.90%
CHE
Chemed
552.72
122.31
28.42%
NHC
National Healthcare
215.54
113.86
111.98%
SGRY
Surgery Partners
15.53
-7.21
-31.71%
AVAH
Aveanna Healthcare Holdings
9.49
2.66
38.95%
Option Care Health Corporate Events
Business Operations and StrategyShareholder Meetings
Option Care Health Shareholders Back Board, Pay, Auditor
Positive
May 22, 2026
Option Care Health, Inc. held its 2026 Annual Meeting of Stockholders on May 20, 2026, where shareholders elected nine directors to serve until the next annual meeting and ensured continuity of the company’s board leadership. Stockholders al...
Business Operations and StrategyStock Buyback
Option Care Health Highlights 2026 Growth and Capital Priorities
Positive
May 12, 2026
On May 12, 2026, Option Care Health management participated in the Bank of America Global Healthcare Conference, using an investor presentation to highlight its national infusion network, secular tailwinds toward lower-cost home and alternate site...
Executive/Board Changes
Option Care Health Announces Chief Growth Officer Transition
Neutral
May 5, 2026
On May 5, 2026, Option Care Health, Inc. reported that Christopher L. Grashoff will leave his position as Chief Growth Officer, with his departure to take effect on May 8, 2026. The executive transition is structured under the company’s exis...
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...
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.