Option Care Health (OPCH) AI Stock Analysis

• Market Cap: $5.09B
• Dividend Yield: N/A
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 27.6
• Beta (1Y): 0.33
• 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: 1,586,582
• 30 Day Avg. Volume: 1,729,261
• 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: 1.08
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 5.12
• Enterprise Value/Ebitda: 11.93
• 1Y Price Target: $37.00
• Price Target Upside: 6.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $39.00 ▲(12.23% Upside)

The score is driven primarily by solid underlying financial performance (stable leverage, healthy ROE, and strong cash conversion) and supportive technical momentum with the stock trading above major moving averages. Recent guidance and shareholder-return actions add confidence, while a relatively high P/E and margin pressures (including biosimilar impacts) temper the overall rating.

Positive Factors

Market position — home and alternate-site infusion leader

Option Care Health’s focused platform in home and alternate-site infusion creates durable competitive advantages: scale across payers and providers, recurring medically necessary services, and high barriers for entrants. This supports predictable demand and long-term revenue resilience.

Strong free cash flow generation

Near-par conversion of net income to free cash flow and positive FCF growth indicate consistent cash generation. Durable cash flow enables reinvestment in clinical capabilities, debt reduction, and shareholder returns without relying on volatile capital markets.

Conservative balance sheet and reduced leverage

Very low debt-to-equity and management’s progress in lowering net leverage to ~1.9x provide financial flexibility. This durable strength supports investment in growth, M&A optionality, and resilience to reimbursement cycles or temporary margin pressure.

Negative Factors

Biosimilar-driven chronic portfolio pressure

Ongoing adoption of Stelara biosimilars is a structural headwind that materially reduces pricing and mix for chronic therapies. Persistent biosimilar penetration can compress revenues and gross margins in the chronic portfolio for multiple quarters to years.

Sustained margin compression

Relatively low and slipping net margins constrain the firm’s ability to absorb reimbursement cuts or input cost inflation. If structural mix shifts toward lower-margin therapies continue, margin restoration will be challenging without cost or pricing improvements.

Operating cash conversion weakness / OCF pressure

While FCF conversion is strong, a weaker operating cash flow to net income ratio and preliminary OCF < $320M highlight variability in cash receipts and timing. Durable operational cash conversion issues could limit discretionary spend and make payouts less predictable.

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: 34.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 34.75 is above the 20-day moving average (MA) of 32.51, above the 50-day MA of 30.67, and above the 200-day MA of 30.32, indicating a bullish trend. The MACD of 0.52 indicates Positive momentum. The RSI at 70.38 is Negative, neither overbought nor oversold. The STOCH value of 57.56 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	$2.06B	23.47	8.58%	―	18.77%	6.88%
NHC	74 Outperform	$2.08B	20.93	9.94%	1.80%	23.74%	-18.99%
OPCH	72 Outperform	$5.09B	27.59	15.02%	―	15.79%	5.34%
CHE	68 Neutral	$6.32B	23.71	24.11%	0.51%	6.45%	-4.77%
SGRY	53 Neutral	$2.11B	-11.86	-9.45%	―	10.14%	-182.12%
AVAH	52 Neutral	$1.83B	23.58	―	―	15.48%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Option Care Health Corporate Events

Option Care Health Issues 2025 Results and 2026 Outlook

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 million to $127.7 million, with full-year 2025 net revenue expected at $5.645 billion to $5.655 billion, GAAP net income of $208.2 million to $211.5 million, adjusted diluted EPS of $1.72 to $1.76 and adjusted EBITDA of $469.0 million to $473.0 million, alongside cash flow from operations below $320 million. The company also issued preliminary 2026 guidance calling for net revenue of $5.8 billion to $6.0 billion, adjusted diluted EPS of $1.82 to $1.92 and adjusted EBITDA of $480 million to $505 million, and on January 9, 2026 its board doubled the 2025 share repurchase authorization from $500 million to $1.0 billion—after buying back about $307 million of stock in 2025—signaling continued confidence in cash generation and shareholder returns as it prepares to showcase its outlook at the J.P. Morgan Healthcare Conference on January 13, 2026.

The most recent analyst rating on (OPCH) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Option Care Health stock, see the OPCH Stock Forecast page.