Option Care Health (OPCH) AI Stock Analysis

• Market Cap: $4.94B
• Dividend Yield: N/A
• Average Volume (3M): 2.38M
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.40
• 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: 1,943,491
• 30 Day Avg. Volume: 2,378,168
• 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: 1.11
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 5.12
• Enterprise Value/Ebitda: 11.93
• 1Y Price Target: $36.43
• Price Target Upside: 17.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.72
• Revenue Forecast (FY): $5.64B

• Rating: 70 Neutral
• Price Target: $31.00 ▼(-0.32% Downside)

Option Care Health's overall stock score is driven by strong financial performance and positive earnings call outcomes, showcasing robust revenue growth and improved guidance. Technical analysis indicates short-term bullish momentum, though valuation remains moderate. The absence of a dividend yield and gross margin pressures are notable considerations.

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 services in the United States. The company specializes in delivering high-quality, patient-centered care for individuals with complex medical conditions requiring infusion therapy. Operating across various sectors, including home health care and specialty pharmacy, OPCH offers a range of services such as intravenous (IV) therapy, nutritional support, and specialty medications, catering to patients with chronic illnesses, cancer, and other conditions.

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: 31.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 31.1 is above the 20-day moving average (MA) of 28.48, above the 50-day MA of 27.93, and above the 200-day MA of 30.52, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 69.70 is Neutral, neither overbought nor oversold. The STOCH value of 92.14 is Negative, 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	$2.22B	25.73	8.58%	―	18.77%	6.88%
NHC	72 Outperform	$2.11B	21.03	9.94%	1.97%	23.74%	-18.99%
OPCH	70 Neutral	$4.94B	24.69	15.02%	―	15.79%	5.34%
CHE	68 Neutral	$6.22B	23.22	24.11%	0.50%	6.45%	-4.77%
AVAH	54 Neutral	$1.95B	25.94	―	―	15.48%	―
SGRY	52 Neutral	$2.21B	―	-9.45%	―	10.14%	-182.12%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Option Care Health Corporate Events

Option Care Health’s Earnings Call Highlights Growth and Challenges

Option Care Health’s recent earnings call reflected a generally positive sentiment, highlighting strong revenue growth and an optimistic outlook with raised guidance. The company demonstrated effective capital management and expansion in infusion services, although challenges such as the impact of Stelara biosimilars and pressure on gross margins were noted.

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.