Option Care Health Inc (OPCH)
NASDAQ:OPCH
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Option Care Health
(NASDAQ:OPCH)
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Rating:63Neutral
Price Target:
$23.00
▼(-20.19% Downside)
Action:Reiterated
Date:05/23/26
OPCH scores above average primarily due to strong underlying financial health (notably zero debt) and continued growth, but the overall score is capped by clear technical weakness (price below key moving averages and negative MACD) and a mixed forward outlook after guidance reflected a meaningful CID-related headwind and slower revenue momentum.
Positive Factors
Balance sheet strength
Zero total debt and a sizable equity base materially reduce refinancing and solvency risk, providing durable financial flexibility. That optionality supports working-capital management, the revolver expansion, tuck-in M&A, and measured buybacks while the company rebuilds chronic census over several quarters.
Negative Factors
CID/Stelara gross-profit headwind
A $55M gross-profit hit from the CID/Stelara reset is a material structural drag on revenue and margins. Management notes patient reverification and census losses; rebuilding chronic volumes and payer coverage takes multiple quarters, constraining revenue recovery and margin normalization in the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Zero total debt and a sizable equity base materially reduce refinancing and solvency risk, providing durable financial flexibility. That optionality supports working-capital management, the revolver expansion, tuck-in M&A, and measured buybacks while the company rebuilds chronic census over several quarters.
Read all positive factors
Option Care Health (OPCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.23B
Dividend YieldN/A
Average Volume (3M)4.08M
Price to Earnings (P/E)15.6
Beta (1Y)0.39
Revenue Growth9.30%
EPS Growth2.24%
CountryUS
Employees8,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.29
Shares Outstanding157,027,510
10 Day Avg. Volume3,306,831
30 Day Avg. Volume4,077,675
Financial Highlights & Ratios
PEG Ratio6.12
Price to Book (P/B)3.89
Price to Sales (P/S)0.91
P/FCF Ratio19.98
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue0.55
Enterprise Value/Gross Profit3.04
Enterprise Value/Ebitda7.64
Forecast
1Y Price Target
$30.73Price Target Upside6.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)1.83
Revenue Forecast (FY)$5.74B
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 ...
How the Company Makes Money
Option Care Health primarily makes money by delivering home and alternate-site infusion therapy services that are reimbursed by third-party payors. Its revenue is largely generated from (1) dispensing and compounding infusion medications (specialt...
Option Care Health Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The call described a mixed quarter: strong execution in acute therapies, clinic utilization growth, patient satisfaction and preserved profitability guidance were offset by a material chronic portfolio reset (notably Stelara/CID), a larger-than-anticipated $55 million gross profit headwind, patient census declines and related revenue shortfall. Management communicated targeted commercial and operational actions, expanded liquidity, and confidence that the CID reset is largely a one-time event, but rebuilding chronic census and recovering revenue momentum will take time.Positive Updates
Quarterly Revenue
Q1 2026 revenue of $1.4 billion, up slightly over 1% year-over-year.
Negative Updates
Revenue Momentum Miss and Guide Reset
Company acknowledged revenue growth of only ~1% in Q1 did not meet expectations and full-year net revenue guidance was adjusted to $5.675 billion to $5.775 billion (just over 1% growth at midpoint).
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Revenue
Q1 2026 revenue of $1.4 billion, up slightly over 1% year-over-year.
Read all positive updates
Company Guidance
Option Care Health narrowed and updated its 2026 guidance: net revenue $5.675–$5.775 billion (just over 1% growth at the midpoint), adjusted EBITDA $480–$505 million (midpoint ≈5% growth), adjusted EPS $1.82–$1.92 (midpoint ≈9% growth), operating cash flow target of at least $320 million, net interest expense $50–$55 million and a tax rate of 26–28%. Management now expects an approximately $55 million gross profit headwind tied to the CID/Stelara reset (about a 600‑basis‑point revenue growth headwind versus the prior 400‑bp estimate); Q1 results showed $1.4 billion revenue (≈+1%), $105 million adjusted EBITDA (‑6% YoY), $0.40 adjusted EPS (flat), $12 million operating cash use, SG&A up 4% and net leverage of 2.2x. Near‑term cadence assumes Q2 sequential revenue mid‑single‑digit growth and Q2 EBITDA high‑single‑digit sequential growth; balance‑sheet actions include expanding the revolver from $400M to $850M and ~$17M of share repurchases in Q1.Option Care Health Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.67B | 5.65B | 5.00B | 4.30B | 3.94B | 3.44B |
| Gross Profit | 1.02B | 1.02B | 1.01B | 981.22M | 866.92M | 779.61M |
| EBITDA | 405.84M | 408.60M | 396.13M | 472.19M | 325.01M | 252.30M |
| Net Income | 206.19M | 207.59M | 211.82M | 267.09M | 150.56M | 139.90M |
Balance Sheet | ||||||
| Total Assets | 3.38B | 3.46B | 3.42B | 3.33B | 3.23B | 2.93B |
| Cash, Cash Equivalents and Short-Term Investments | 177.32M | 232.62M | 412.56M | 343.85M | 294.19M | 119.42M |
| Total Debt | 0.00 | 0.00 | 1.22B | 1.17B | 1.16B | 1.16B |
| Total Liabilities | 2.03B | 2.13B | 2.02B | 1.91B | 1.85B | 1.75B |
| Stockholders Equity | 1.35B | 1.33B | 1.40B | 1.42B | 1.39B | 1.18B |
Cash Flow | ||||||
| Free Cash Flow | 235.41M | 258.45M | 287.79M | 329.43M | 232.19M | 182.94M |
| Operating Cash Flow | 253.55M | 258.45M | 323.39M | 371.30M | 267.55M | 208.57M |
| Investing Cash Flow | -43.71M | -161.08M | -36.47M | -56.51M | -108.05M | -111.54M |
| Financing Cash Flow | -203.89M | -277.31M | -218.21M | -265.13M | 15.27M | -76.87M |
Option Care Health Technical Analysis
Negative
28.82
Price Trends
24.66
Negative
28.90
Negative
29.01
Negative
Market Momentum
-1.06
Negative
38.37
Neutral
34.65
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 28.82 is above the 20-day moving average (MA) of 20.67, above the 50-day MA of 24.66, and below the 200-day MA of 29.01, indicating a bearish trend. The MACD of -1.06 indicates Negative momentum. The RSI at 38.37 is Neutral, neither overbought nor oversold. The STOCH value of 34.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPCH.
Option Care Health Risk Analysis
Option Care Health disclosed 33 risk factors in its most recent earnings report. Option Care Health reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Option Care Health Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.86B | 23.04 | 11.68% | 1.80% | 11.40% | 13.96% | |
77 Outperform | $1.69B | 16.76 | 9.34% | ― | 19.55% | 21.54% | |
77 Outperform | $5.54B | 21.96 | 25.33% | 0.51% | 2.07% | -11.26% | |
63 Neutral | $3.23B | 15.61 | 15.28% | ― | 9.30% | 2.24% | |
63 Neutral | $1.41B | 5.31 | 241.47% | ― | 20.49% | 4335.46% | |
53 Neutral | $1.80B | -23.23 | -4.43% | ― | 5.38% | 61.15% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
OPCH
Option Care Health
20.54
-11.16
-35.21%
ADUS
Addus Homecare
90.45
-22.23
-19.73%
CHE
Chemed
417.21
-148.13
-26.20%
NHC
National Healthcare
183.35
80.71
78.63%
SGRY
Surgery Partners
13.77
-9.51
-40.85%
AVAH
Aveanna Healthcare Holdings
6.47
0.94
17.00%
Option Care Health Corporate Events
Business Operations and StrategyShareholder Meetings
Option Care Health Shareholders Back Board, Pay, Auditor
Positive
May 22, 2026
Option Care Health, Inc. held its 2026 Annual Meeting of Stockholders on May 20, 2026, where shareholders elected nine directors to serve until the next annual meeting and ensured continuity of the company’s board leadership. Stockholders al...
Business Operations and StrategyStock Buyback
Option Care Health Highlights 2026 Growth and Capital Priorities
Positive
May 12, 2026
On May 12, 2026, Option Care Health management participated in the Bank of America Global Healthcare Conference, using an investor presentation to highlight its national infusion network, secular tailwinds toward lower-cost home and alternate site...
Executive/Board Changes
Option Care Health Announces Chief Growth Officer Transition
Neutral
May 5, 2026
On May 5, 2026, Option Care Health, Inc. reported that Christopher L. Grashoff will leave his position as Chief Growth Officer, with his departure to take effect on May 8, 2026. The executive transition is structured under the company’s exis...
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and Financing
Option Care Health Updates 2026 Outlook After Mixed Quarter
Neutral
Apr 30, 2026
Option Care Health reported mixed financial results for the first quarter ended March 31, 2026, with net revenue rising 1.3% year over year to $1.35 billion, but GAAP net income slipping 3.0% to $45.3 million and adjusted EBITDA falling 6.3% to $1...
Business Operations and StrategyPrivate Placements and Financing
Option Care Health Expands Revolving Credit Facility Capacity
Positive
Apr 2, 2026
On March 30, 2026, Option Care Health, Inc. amended its Amended and Restated First Lien Credit Agreement by entering into a Fifth Amendment with Bank of America, N.A. as administrative agent and certain subsidiaries and lenders. The amendment incr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.