Option Care Health (OPCH) AI Stock Analysis

• Market Cap: $4.25B
• Dividend Yield: N/A
• Average Volume (3M): 1.89M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.50
• Revenue Growth: 17.06%
• EPS Growth: 5.03%
• Country: US
• Employees: 8,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.45
• Shares Outstanding: 162,295,060
• 10 Day Avg. Volume: 1,713,855
• 30 Day Avg. Volume: 1,887,274
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $36.50
• Price Target Upside: 40.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 69 Neutral
• Price Target: $29.00 ▲(11.41% Upside)

Option Care Health's overall stock score is driven by strong financial performance and positive earnings call highlights, including raised guidance and revenue growth. However, technical indicators suggest bearish momentum, and valuation metrics indicate moderate attractiveness. The absence of a dividend yield and pressure on gross margins are notable risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective service delivery, supporting long-term business expansion.

Increased Financial Guidance

Raising financial guidance reflects management's confidence in sustained performance and strategic execution, enhancing investor trust.

Cash Flow Generation

Strong cash flow generation supports operational flexibility and investment capacity, crucial for long-term growth and stability.

Negative Factors

Declining Cash Flow

A decline in cash flow can limit the company's ability to invest in growth opportunities and manage debt, impacting financial resilience.

Gross Margin Pressure

Sustained margin pressure could erode profitability, necessitating cost management improvements to maintain financial health.

Increasing Leverage

Rising leverage may constrain financial flexibility, increasing risk if cash flows do not sufficiently cover debt obligations.

Option Care Health Business Overview & Revenue Model

Company Description

Option Care Health (OPCH) is a leading provider of home and alternate site infusion therapy services in the United States. The company specializes in delivering high-quality, patient-centric care through a wide range of infusion therapies, including antibiotics, biologics, and pain management, among others. Operating in the healthcare sector, Option Care Health focuses on enhancing patient outcomes while minimizing hospital stays by providing services in homes, outpatient centers, and other community settings.

How the Company Makes Money

Option Care Health primarily generates revenue through the provision of infusion therapy services to patients covered by various insurance plans, including Medicare, Medicaid, and private payers. The company bills health insurers directly for the infusion services provided, receiving reimbursement based on established rates for different therapies. Key revenue streams include the administration of intravenous medications, nutritional support, and related supplies. Additionally, Option Care Health may enter into partnerships with healthcare providers and hospitals, enabling them to offer comprehensive care solutions, which can further enhance their revenue opportunities. The company also benefits from its ability to manage costs efficiently while maintaining high standards of care, contributing to its overall profitability.

Option Care Health Financial Statement Overview

Summary

Option Care Health demonstrates solid revenue growth and profitability, with stable margins and effective equity utilization. However, the company faces challenges with declining cash flow and increasing leverage, which could impact future financial flexibility. Overall, the financial health is sound but requires careful management of cash flows and debt levels.

Income Statement

Option Care Health has shown consistent revenue growth, with a TTM revenue growth rate of 3.64%. The gross profit margin has slightly decreased over time, currently at 19.67% TTM, indicating some pressure on cost management. The net profit margin is stable at 3.93% TTM, reflecting steady profitability. However, the EBIT and EBITDA margins have slightly declined, suggesting potential efficiency challenges.

Balance Sheet

The company's debt-to-equity ratio is 0.90 TTM, indicating a moderate level of leverage. Return on equity is healthy at 15.25% TTM, showcasing effective use of equity capital. The equity ratio is stable, suggesting a balanced capital structure. However, the increasing debt levels could pose a risk if not managed carefully.

Cash Flow

The free cash flow has decreased by 27.63% TTM, which is a concern for liquidity. The operating cash flow to net income ratio is 0.36 TTM, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is strong at 0.89 TTM, reflecting good cash conversion despite recent declines.

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	483.16M	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	3.22B	3.11B	2.79B	2.65B
Cash, Cash Equivalents and Short-Term Investments	309.82M	412.56M	343.85M	294.19M	119.42M	99.27M
Total Debt	121.15M	1.22B	1.17B	1.16B	1.16B	1.21B
Total Liabilities	2.12B	2.02B	1.80B	1.73B	1.62B	1.63B
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: Negative
• Last Price: 26.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPCH, the sentiment is Negative. The current price of 26.03 is below the 20-day moving average (MA) of 27.43, below the 50-day MA of 27.92, and below the 200-day MA of 30.72, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 36.07 is Neutral, neither overbought nor oversold. The STOCH value of 60.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPCH.

Option Care Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADUS	―	$2.17B	26.01	8.54%	―	14.29%	7.85%
NHC	―	$1.85B	17.81	10.65%	2.05%	25.19%	13.44%
OPCH	―	$4.25B	20.88	15.02%	―	17.06%	5.03%
CHE	―	$6.28B	22.80	24.11%	0.45%	6.45%	-4.77%
SGRY	―	$2.81B	―	-9.75%	―	12.05%	-432.59%
AVAH	―	$1.95B	124.20	―	―	11.53%	―
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Option Care Health Corporate Events

Option Care Health Reports Strong Q3 2025 Results

Option Care Health, Inc., the largest independent provider of home and alternate site infusion services in the United States, offers a comprehensive range of infusion therapies for patients with acute and chronic conditions across all 50 states.

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.

The most recent analyst rating on (OPCH) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Option Care Health stock, see the OPCH Stock Forecast page.

Option Care Health Appoints New CFO Meenal Sethna

On August 20, 2025, Option Care Health announced the appointment of Meenal A. Sethna as Executive Vice President and Chief Financial Officer, effective October 1, 2025. Sethna, who previously held executive roles at Littelfuse, Inc. and Illinois Tool Works, will succeed Michael Shapiro, who will transition to a non-executive role until March 31, 2026. This leadership change is expected to support Option Care Health’s ongoing strategy and growth, as the company continues to strengthen its position as a leading provider of infusion therapy services.

The most recent analyst rating on (OPCH) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Option Care Health stock, see the OPCH Stock Forecast page.

Option Care Health Reports Strong Q2 2025 Results

Option Care Health Inc., the largest independent provider of home and alternate site infusion services in the United States, has released its financial results for the second quarter of 2025, showcasing its continued growth and resilience in the healthcare sector.

Option Care Health’s Earnings Call Highlights Robust Growth

Option Care Health’s recent earnings call painted a picture of robust growth and strategic expansion, despite facing some challenges. The company reported significant revenue growth and increased its guidance for the full year, reflecting a positive outlook. However, gross margins were pressured by product mix, and there was a notable negative impact from Stelara. Nevertheless, strong cash flow and ongoing investments underpin the company’s optimistic future.