Option Care Health (OPCH) AI Stock Analysis

• Market Cap: $5.37B
• Dividend Yield: N/A
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.30
• Revenue Growth: 15.79%
• EPS Growth: 5.34%
• Country: US
• Employees: 8,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.46
• Shares Outstanding: 156,447,970
• 10 Day Avg. Volume: 1,487,744
• 30 Day Avg. Volume: 1,594,829
• PEG Ratio: 5.98
• Price to Book (P/B): 3.80
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 19.51
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: 11.23
• 1Y Price Target: $39.50
• Price Target Upside: 17.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.87
• Revenue Forecast (FY): $5.98B

• Rating: 71 Outperform
• Price Target: $40.00 ▲(19.05% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by solid fundamentals (strong multi-year growth and profitability, with some recent margin and cash-flow cooling) and supportive technical trend strength. Reaffirmed 2026 guidance and planned cash-flow improvement help offset near-term headwinds (Stelara/biosimilar impact, payer pressure) and a premium P/E valuation.

Positive Factors

Sustained Revenue Growth & Scale

Multi-year revenue expansion and a large, growing patient base underpin durable demand for home infusion services. Scale creates stickier payer/provider relationships, spreads fixed costs across higher volumes, and supports stable contract leverage and organic growth over the next several quarters.

Expanded Clinic Network & Pharma Partnerships

Clinic expansion and deep pharma partnerships diversify revenue channels and lock in limited-distribution therapies. This builds structural advantages in referral flows, formulary positioning and specialized services, improving long-term utilization and competitive differentiation.

Cash Generation and Capital Allocation

Consistent cash conversion and a clear plan to materially increase operating cash flow in 2026 support ongoing buybacks and reinvestment. Strong cash discipline and returning capital through repurchases signal durable financial flexibility and confidence in underlying cash generation.

Negative Factors

Margin Compression

Margins have softened as higher-growth, lower-reference-price chronic therapies scale and mix shifts. Persistent margin pressure can erode profitability and cash flow unless cost or pricing offsets are sustained, requiring continuous efficiency gains or better reimbursement outcomes.

Stelara / Biosimilar Headwind

Material revenue and gross-profit impact from biologic-to-biosimilar conversion represents structural reimbursement risk for high-concentration products. The headwind can persist through formulary adoption cycles, pressuring near-term growth and requiring offsetting margin or volume improvements to maintain earnings trajectory.

Leverage & Working-Capital Volatility

Elevated leverage and inventory needs for limited-distribution/high-cost therapies increase sensitivity to cash-flow swings. Seasonal and working-capital-driven cash variability limits flexibility for M&A or capital returns and raises refinancing and coverage risk if cash conversion weakens further.

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

Multi-year revenue growth and sustained profitability with solid cash conversion, but recent margin compression and declining operating/free cash flow versus 2023 temper the outlook. Balance sheet appears adequate but not conservative, with historical leverage and some TTM data consistency risk noted.

Income Statement

Revenue has grown strongly over time (2020–2024) with a sharp step-up in TTM (Trailing-Twelve-Months), but profitability has softened versus the 2023 peak. Gross margin and operating margin are down from 2023 levels, and net margin is modest in TTM (Trailing-Twelve-Months) despite remaining solidly positive (a clear improvement from the 2020 loss). Overall: good growth profile with some recent margin compression to monitor.

Balance Sheet

Returns on equity are consistently healthy (roughly low-to-high teens in recent years), indicating solid profitability on the capital base. Leverage appears meaningful with debt-to-equity generally around ~0.8–1.2 historically, which increases sensitivity to earnings or cash flow volatility; equity has also trended slightly down since 2023. The TTM (Trailing-Twelve-Months) snapshot shows total debt at 0 while leverage metrics still appear elevated, creating some data consistency risk—net, the balance sheet looks adequate but not particularly conservative.

Cash Flow

Cash generation is steady: free cash flow remains strong and generally tracks reported earnings well (free cash flow is close to net income in TTM (Trailing-Twelve-Months) and near ~0.87–0.89 in prior years). However, operating and free cash flow have declined from 2023 to 2024 and further into TTM (Trailing-Twelve-Months), with free cash flow growth turning negative—suggesting a cooling in cash momentum even though absolute cash flow remains healthy.

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

• Technical Analysis Sentiment: Negative
• Last Price: 33.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 33.6 is below the 20-day moving average (MA) of 34.49, below the 50-day MA of 33.94, and above the 200-day MA of 30.63, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 43.80 is Neutral, neither overbought nor oversold. The STOCH value of 54.37 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	75 Outperform	$1.94B	20.64	8.58%	―	18.77%	6.88%
CHE	74 Outperform	$6.63B	24.76	24.11%	0.51%	6.45%	-4.77%
NHC	74 Outperform	$2.44B	24.29	9.94%	1.80%	23.74%	-18.99%
OPCH	71 Outperform	$5.37B	26.42	15.20%	―	15.79%	5.34%
SGRY	53 Neutral	$1.99B	-11.43	-9.45%	―	10.14%	-182.12%
AVAH	52 Neutral	$1.47B	20.03	―	―	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.