Option Care Health (OPCH) AI Stock Analysis

• Market Cap: $4.56B
• Dividend Yield: N/A
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.59
• Revenue Growth: 17.06%
• EPS Growth: 5.03%
• Country: US
• Employees: 8,000
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Care Facilities
• EPS (TTM): 0.41
• Shares Outstanding: 162,295,060
• 10 Day Avg. Volume: 1,916,052
• 30 Day Avg. Volume: 1,512,270
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 6.02
• Enterprise Value/Ebitda: 17.51
• 1Y Price Target: $39.00
• Price Target Upside: 38.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 76 Outperform
• Price Target: $35.00 ▲(24.56% Upside)

Option Care Health's strong financial performance and positive earnings call guidance are the primary drivers of the stock score. Despite high valuation concerns and neutral technical indicators, the company's strategic initiatives and governance enhancements support a solid overall outlook.

Positive Factors

Financial Guidance

FY/25 financial guidance was updated in a positive manner for the third time this year and now includes an expectation of $5.50-5.65 billion in revenue, reinforcing confidence in the company's future performance.

Revenue Performance

Revenue of $1.42 billion solidly beat our estimate of $1.36 billion, demonstrating strong growth compared to the previous year, highlighting the company's ability to capture market share, especially in acute therapy.

Negative Factors

Gross Margin

Gross margin as a percentage came in slightly below expectations, although there was still an increase in gross margin dollars compared to the previous year.

Tariff Risk

Option Care is potentially exposed to tariff risk through the drugs it utilizes in providing infusion services.

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 the provision of home and alternate site infusion services. The company earns money by contracting with healthcare providers, insurance companies, and government health programs to deliver infusion therapies to patients. Key revenue streams include reimbursement from insurance plans for the administration of medications and related clinical services. Additionally, Option Care Health benefits from partnerships with pharmaceutical companies for the distribution and management of specialty infusion products. The company leverages its national network of facilities and skilled healthcare professionals to ensure efficient service delivery, which is a significant factor contributing to its earnings.

Option Care Health Financial Statement Overview

Summary

Option Care Health has shown consistent revenue growth and robust cash flow generation, with a low debt level and strong equity position. However, there is room for improvement in the net profit margin and asset growth to enhance financial performance further.

Income Statement

Option Care Health has demonstrated consistent revenue growth, with a strong TTM revenue of $5.19 billion, reflecting a growth rate of approximately 3.73% from the previous annual period. The company's gross profit margin has remained robust at around 19.72%. However, the net profit margin is modest at 4.12%, indicating room for improvement in profitability. The EBIT and EBITDA margins are stable at 6.40% and 7.25%, respectively, showcasing effective operational management.

Balance Sheet

The balance sheet shows a solid equity base, with a debt-to-equity ratio of approximately 0.07 in the TTM period, indicating low leverage risk. The return on equity stands at 15.83%, demonstrating efficient utilization of shareholder funds. The equity ratio is healthy at 40.82%, suggesting a stable financial position. However, the decrease in total assets and equity from previous periods highlights the need for cautious financial management.

Cash Flow

Option Care Health has exhibited strong cash flow performance, with a 23.38% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 1.80, suggesting strong cash generation relative to net income. The free cash flow to net income ratio of 1.66 further underscores the company's ability to generate substantial free cash flow. Despite this, a focus on maintaining positive investing cash flows is advisable to ensure long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.37B	5.00B	4.30B	3.94B	3.44B	3.03B
Gross Profit	1.06B	1.01B	981.22M	866.92M	779.61M	682.26M
EBITDA	363.30M	396.13M	483.16M	345.81M	255.93M	182.66M
Net Income	211.25M	211.82M	267.09M	150.56M	139.90M	-8.08M
Balance Sheet
Total Assets	3.38B	3.42B	3.22B	3.11B	2.79B	2.65B
Cash, Cash Equivalents and Short-Term Investments	198.82M	412.56M	343.85M	294.19M	119.42M	99.27M
Total Debt	0.00	1.22B	1.17B	1.08B	1.06B	1.12B
Total Liabilities	2.02B	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	250.26M	287.79M	329.43M	232.19M	182.94M	100.52M
Operating Cash Flow	279.64M	323.39M	371.30M	267.55M	208.57M	127.39M
Investing Cash Flow	-156.59M	-36.47M	-56.51M	-108.05M	-111.54M	-26.33M
Financing Cash Flow	-301.11M	-218.21M	-265.13M	15.27M	-76.87M	-68.85M

Option Care Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.10
• 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 28.1 is below the 20-day moving average (MA) of 29.75, below the 50-day MA of 30.95, and below the 200-day MA of 29.66, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 33.30 is Neutral, neither overbought nor oversold. The STOCH value of 23.87 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
ENSG	79 Outperform	$9.11B	28.51	17.57%	0.16%	17.71%	41.83%
ADUS	77 Outperform	$2.14B	25.35	8.54%	―	14.29%	―
OPCH	76 Outperform	$4.56B	22.24	15.25%	―	17.06%	5.03%
EHC	73 Outperform	$11.48B	22.18	25.35%	0.60%	11.80%	30.12%
AMED	73 Outperform	$3.27B	38.66	7.26%	―	4.92%	-7.34%
SEM	71 Outperform	$1.46B	11.03	8.15%	2.21%	-16.10%	-48.97%
Sector *	47 Neutral	C$187.88M	-2.96	-23.77%	3.19%	17.07%	2.49%

Option Care Health Corporate Events

Option Care Health Approves Governance Amendments at Annual Meeting

At the 2025 Annual Meeting of Stockholders held on May 14, 2025, Option Care Health‘s Board of Directors approved amendments to the company’s Certificate of Incorporation and Bylaws. These changes include allowing stockholders to request special meetings, limiting monetary liability for certain officers, and removing outdated provisions related to HC Group. The stockholders also elected directors, ratified KPMG LLP as the accounting firm, and approved executive compensation, reflecting a strategic shift to enhance governance and shareholder rights.

The most recent analyst rating on (OPCH) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Option Care Health stock, see the OPCH Stock Forecast page.