Opko Health (OPK) AI Stock Analysis

• Market Cap: $1.04B
• Dividend Yield: N/A
• Average Volume (3M): 7.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: -17.42%
• EPS Growth: 70.55%
• Country: US
• Employees: 2,997
• Sector: Healthcare
• Sector Strength: 77
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.09
• Shares Outstanding: 671,550,300
• 10 Day Avg. Volume: 3,390,230
• 30 Day Avg. Volume: 7,054,318
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.70
• Price to Cash Flow (P/CF): -1.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.56
• Price Target Upside: 67.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Opko Health's overall score reflects its financial struggles, with declining revenues and cash flow issues as significant concerns. However, the positive technical indicators and strategic asset sale to Labcorp provide some optimism. Mixed earnings call sentiment and a challenging valuation context moderate the outlook.

Positive Factors

Asset Sales

The agreement with Labcorp to sell select assets for up to $225 million could help streamline operations and accelerate OPKO's path towards profitability.

Collaborations

OPKO Health and Entera Bio have entered into a collaboration to advance the first oral dual agonist GLP-1/glucagon peptide as a once-daily tablet treatment for obesity and other disorders.

Negative Factors

Diagnostics Services

Risks include lower-than-projected growth of diagnostics services and inability to develop and secure regulatory approval for novel pharmaceuticals.

Revenue Decline

Diagnostics services revenue declined by 17% year-over-year due to lower clinical test volume, primarily from the sale of BioReference assets.

Opko Health Business Overview & Revenue Model

Company Description

OPKO Health, Inc., a healthcare company, engages in the diagnostics and pharmaceuticals businesses in the United States, Ireland, Chile, Spain, Israel, Mexico, and internationally. The company's Diagnostics segment operates BioReference Laboratories that offers laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases, including esoteric testing, molecular diagnostics, anatomical pathology, genetics, women's health, and correctional healthcare to physician offices, clinics, hospitals, employers and governmental units; and a novel diagnostic instrument system to provide blood test results in the point-of-care setting, as well as 4Kscore prostate cancer testing services. Its Pharmaceutical segment offers Rayaldee to treat secondary hyperparathyroidism in adults with stage 3 or 4 chronic kidney disease, and vitamin D insufficiency; OPK88004, an orally administered selective androgen receptor modulator; OPK88003, a once-weekly administered peptide for the treatment of type 2 diabetes and associated obesity that is in Phase IIb trials; and hGH-CTP, a once-weekly human growth hormone injection that completed Phase III clinical trial in partnership with Pfizer, Inc. This segment develops and commercializes longer-acting proprietary versions of already approved therapeutic proteins. The company also offers specialty APIs; develops, manufactures, markets, and sells pharmaceutical, nutraceutical, veterinary, and ophthalmic products; commercializes food supplements and over the counter products; manufactures and sells products primarily in the generics market; and imports, markets, distributes, and sells pharmaceutical products in a range of indications, including cardiovascular products, vaccines, antibiotics, gastro-intestinal products, hormones, and others. In addition, it operates pharmaceutical platforms in Ireland, Chile, Spain, and Mexico. The company was founded in 1991 and is headquartered in Miami, Florida.

How the Company Makes Money

OPKO Health generates revenue through several channels, primarily from its diagnostics and pharmaceutical segments. The diagnostics division earns income by providing laboratory testing services, with a significant portion derived from BioReference Laboratories, one of the largest full-service clinical laboratories in the United States. In the pharmaceutical segment, OPKO earns revenue through the sale and licensing of pharmaceuticals, including proprietary drugs and formulations developed in-house or acquired through strategic partnerships. Additionally, the company's biologics segment contributes to the revenue stream through the development and commercialization of biologic products. OPKO's revenue model is supported by collaborations and partnerships with other pharmaceutical and biotechnology companies, which provide opportunities for co-development and distribution of products, thereby expanding its market reach and potential earnings.

Opko Health Financial Statement Overview

Summary

Opko Health is experiencing financial difficulties, with declining revenues, consistent net losses, and negative cash flow. Despite a strong equity position, the increased reliance on debt and inability to generate positive free cash flow pose significant risks.

Income Statement

Opko Health has experienced a decline in total revenue over the years, with a significant decrease from 2020 to 2024. The company has faced consistent net losses, impacting the net profit margin negatively. The gross profit margin has also decreased, indicating challenges in maintaining cost efficiency. However, the gross profit margin remains positive, suggesting some level of operational control despite declining revenues.

Balance Sheet

The company's debt-to-equity ratio has increased over time, reflecting a higher reliance on debt financing. However, Opko Health maintains a strong equity position, with stockholders' equity consistently exceeding total liabilities. Return on equity is negative due to net losses. The equity ratio remains robust, indicating a solid financial structure despite ongoing losses.

Cash Flow

Opko Health's cash flow situation is concerning, with negative operating cash flows and free cash flows in recent years. The free cash flow growth rate has been negative, reflecting challenges in generating cash from operations. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to accounting losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
713.14M	863.50M	1.00B	1.77B	1.44B
	Gross Profit
311.03M	318.13M	288.20M	581.50M	541.00M
	EBIT
-152.06M	-157.02M	-246.20M	-47.70M	57.70M
	EBITDA
135.28M	-65.52M	-270.81M	83.57M	139.09M
	Net Income Common Stockholders
-53.22M	-188.86M	-328.00M	-29.50M	30.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
431.94M	95.88M	153.20M	134.70M	72.20M
	Total Assets
2.20B	2.01B	2.17B	2.40B	2.47B
	Total Debt
528.54M	326.56M	213.50M	187.90M	222.00M
	Net Debt
96.60M	230.68M	60.30M	53.20M	149.79M
	Total Liabilities
834.76M	622.48M	605.70M	714.60M	801.50M
	Stockholders Equity
1.37B	1.39B	1.56B	1.69B	1.67B
Cash Flow		Free Cash Flow
-208.50M	-44.47M	-119.77M	6.18M	5.79M
	Operating Cash Flow
-183.49M	-28.20M	-95.19M	38.34M	39.48M
	Investing Cash Flow
352.21M	-18.20M	91.04M	35.95M	-18.33M
	Financing Cash Flow
184.17M	-11.30M	22.97M	-10.35M	-35.08M

Opko Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPK, the sentiment is Negative. The current price of 1.53 is below the 20-day moving average (MA) of 1.73, below the 50-day MA of 1.69, and below the 200-day MA of 1.54, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.64 is Neutral, neither overbought nor oversold. The STOCH value of 8.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPK.

Opko Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REGN	78 Outperform	$62.69B	14.96	15.95%	0.15%	8.27%	10.35%
BMRN	78 Outperform	$11.50B	27.40	8.05%	―	17.35%	151.40%
GILD	75 Outperform	$133.70B	280.39	2.28%	2.89%	6.16%	-91.54%
AMGN	75 Outperform	$158.15B	38.94	67.55%	3.10%	18.64%	-39.39%
VRTX	64 Neutral	$122.02B	―	-3.15%	―	11.64%	-114.72%
OPK	54 Neutral	$1.04B	―	-3.87%	―	-17.42%	70.55%
Sector *	48 Neutral	$6.35B	1.19	-46.87%	2.63%	17.16%	1.34%

Opko Health Corporate Events

Opko Health Sells BioReference Assets to Labcorp

On March 10, 2025, OPKO Health and its subsidiary BioReference Health entered into an agreement to sell certain assets of BioReference’s oncology and oncology-related clinical testing services to Laboratory Corporation of America Holdings (Labcorp) for up to $225 million. This transaction, expected to close in the second half of 2025, is anticipated to enhance Labcorp’s leadership in oncology and expand its laboratory services, while OPKO Health aims to streamline operations and focus on its core clinical testing services in New York and New Jersey.

Opko Health Engages Investors at J.P. Morgan Conference

On January 15, 2025, OPKO Health, Inc. participated in the 43rd Annual J.P. Morgan Healthcare Conference, where company management engaged with investors. The presentation materials from this event are available on OPKO Health’s website, though they are not considered part of the official report or subject to certain regulatory liabilities.