Option Care Health (OPCH) AI Stock Analysis

• Market Cap: $4.99B
• Dividend Yield: N/A
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.59
• Revenue Growth: 16.98%
• EPS Growth: -17.76%
• Country: US
• Employees: 8,000
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Care Facilities
• EPS (TTM): 0.40
• Shares Outstanding: 163,747,250
• 10 Day Avg. Volume: 1,345,588
• 30 Day Avg. Volume: 1,494,853
• PEG Ratio: 5.65
• Price to Book (P/B): 3.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.47
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 6.10
• Enterprise Value/Ebitda: 3.99
• 1Y Price Target: $38.00
• Price Target Upside: 27.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 78 Outperform
• Price Target: $36.00 ▲(20.48%Upside)

Option Care Health's strong financial performance and positive earnings call, highlighted by revenue growth and strategic investments, are the primary drivers of its stock score. However, neutral technical indicators and moderate overvaluation slightly temper the overall outlook.

Positive Factors

Earnings

Revenue of $1.33 billion solidly beat the consensus estimate of $1.26 billion, showing 16.3% growth versus last year’s comparable quarter.

Financial Guidance

FY/25 financial guidance was updated in a positive manner for the second quarter in a row.

Market Share

Growth in the quarter was driven by both Chronic and Acute as the business begins to benefit from a competitor exit in the space, which should provide a tailwind to growth.

Negative Factors

Gross Margin

The relatively soft gross margin forecasted is primarily related to Stelara-related headwinds.

Stock Performance

Despite the strong results, shares sold off throughout the day and ended down about 7%.

Tariff Risk

The stock is pressured due to concerns that the potential tariffs on drugs could impact OPCH as it takes time for the payor reimbursement to catch up with higher drug prices.

Option Care Health Business Overview & Revenue Model

Company Description

Option Care Health, Inc. (OPCH) is a leading provider of home and alternate site infusion services in the United States. The company operates within the healthcare sector, specializing in the administration of infusion therapy to patients in non-hospital settings. With a focus on delivering high-quality, cost-effective care, Option Care Health offers a range of services including intravenous medications and nutrition support to patients with complex medical conditions.

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 demonstrates strong revenue growth and effective operational management. The company maintains low debt levels and generates robust cash flows, although there is room for improvement in net profit margins and asset growth.

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	5.19B	5.00B	4.30B	3.94B	3.44B	3.03B
Gross Profit	1.02B	1.01B	981.22M	866.92M	779.61M	682.26M
EBITDA	405.10M	407.65M	483.16M	345.81M	255.93M	182.66M
Net Income	213.77M	211.82M	267.09M	150.56M	139.90M	-8.08M
Balance Sheet
Total Assets	3.31B	3.42B	3.22B	3.11B	2.79B	2.65B
Cash, Cash Equivalents and Short-Term Investments	171.37M	412.56M	343.85M	294.19M	119.42M	99.27M
Total Debt	1.22B	1.22B	1.17B	1.08B	1.06B	1.12B
Total Liabilities	1.96B	2.02B	1.80B	1.73B	1.62B	1.63B
Stockholders Equity	1.35B	1.40B	1.42B	1.39B	1.18B	1.02B
Cash Flow
Free Cash Flow	345.81M	287.79M	329.43M	232.19M	182.94M	100.52M
Operating Cash Flow	384.96M	323.39M	371.30M	267.55M	208.57M	127.39M
Investing Cash Flow	-157.34M	-36.47M	-56.51M	-108.05M	-111.54M	-26.33M
Financing Cash Flow	-275.76M	-218.21M	-265.13M	15.27M	-76.87M	-68.85M

Option Care Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 29.88 is below the 20-day moving average (MA) of 31.45, below the 50-day MA of 31.91, and above the 200-day MA of 29.70, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 33.78 is Neutral, neither overbought nor oversold. The STOCH value of 6.08 is Positive, 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	$8.38B	27.38	17.66%	0.17%	16.80%	39.99%
ADUS	79 Outperform	$2.04B	25.06	9.18%	―	11.38%	10.29%
OPCH	78 Outperform	$4.99B	23.87	15.38%	―	16.98%	-17.76%
EHC	75 Outperform	$11.84B	24.25	25.33%	0.57%	11.21%	30.38%
AMED	71 Outperform	$3.19B	35.96	7.85%	―	5.34%	―
SEM	64 Neutral	$1.89B	10.97	10.38%	1.70%	-8.86%	-36.22%
Sector *	46 Neutral	C$201.94M	-3.14	-23.14%	2.74%	21.17%	-0.61%

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.