Opko Health (OPK) AI Stock Analysis

• Market Cap: $998.01M
• Dividend Yield: N/A
• Average Volume (3M): 3.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -9.75%
• EPS Growth: -31.28%
• Country: US
• Employees: 2,997
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.03
• Shares Outstanding: 767,701,300
• 10 Day Avg. Volume: 3,193,824
• 30 Day Avg. Volume: 3,387,251
• PEG Ratio: 0.28
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 1.43
• P/FCF Ratio: -4.89
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 1.83
• Enterprise Value/Gross Profit: 4.75
• Enterprise Value/Ebitda: 26.10
• 1Y Price Target: $2.46
• Price Target Upside: 92.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.26
• Revenue Forecast (FY): $580.97M

• Rating: 50 Neutral
• Price Target: $1.50 ▲(17.19% Upside)

Opko Health's overall stock score reflects significant financial challenges, with declining revenues and profitability issues being the most impactful factors. The strategic initiatives and partnerships highlighted in the earnings call provide some optimism, but technical and valuation metrics remain weak.

Positive Factors

Strategic Partnerships

The collaboration with Regeneron and potential milestone payments exceeding $1 billion enhance Opko's R&D capabilities and long-term growth prospects.

4Kscore Test Expansion

The FDA label expansion and increased test volume indicate strong demand and potential for sustained revenue growth in diagnostics.

Asset Sale for Focused Growth

The sale of non-core assets allows Opko to streamline operations and focus on profitable growth areas, enhancing long-term financial health.

Negative Factors

Declining Diagnostics Revenue

The decline in diagnostics revenue reflects challenges in maintaining market share and could impact future profitability if not addressed.

Negative Profitability

Sustained negative profitability margins indicate operational inefficiencies and financial strain, posing risks to long-term viability.

Cash Flow Challenges

Persistent cash flow issues limit Opko's ability to invest in growth opportunities and may affect its financial flexibility over time.

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 multiple streams, primarily from the sale of pharmaceuticals and diagnostic tests. The company markets its proprietary drugs and therapies, including treatments for endocrinology and urology. Additionally, Opko's 4Kscore Test contributes significantly to its revenue, being a leading diagnostic tool for prostate cancer detection. The company also engages in partnerships and collaborations with other healthcare organizations, which can result in shared revenue from co-developed products or licensing agreements. Furthermore, Opko has a focus on research and development, which may lead to new product offerings and additional revenue streams in the future.

Opko Health Financial Statement Overview

Summary

Opko Health is facing substantial financial difficulties with declining revenues, negative profitability, and cash flow challenges. Despite some stability in leverage, negative returns and cash flow inefficiencies pose significant risks.

Income Statement

Opko Health's income statement reveals a challenging financial environment. The company has experienced declining revenue over the past few years, with a TTM revenue growth rate of -3.31%. Profitability metrics are concerning, with a negative net profit margin of -26.68% and an EBIT margin of -5.29% in the TTM period. The gross profit margin has decreased to 32.65% from 43.61% in the previous year. These figures indicate significant pressure on the company's profitability and operational efficiency.

Balance Sheet

The balance sheet of Opko Health shows moderate leverage with a debt-to-equity ratio of 0.31 in the TTM period, which is an improvement from previous years. However, the return on equity remains negative at -13.18%, indicating that the company is not generating positive returns for its shareholders. The equity ratio stands at a reasonable level, suggesting a stable capital structure despite the ongoing losses.

Cash Flow

Opko Health's cash flow statement highlights significant challenges. The company has negative operating cash flow and free cash flow in the TTM period, with a free cash flow growth rate of -18.22%. The operating cash flow to net income ratio is -1.40, reflecting inefficiencies in converting income into cash. Although the free cash flow to net income ratio is positive at 1.08, it is primarily due to the negative net income, indicating cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	642.07M	713.14M	863.50M	1.00B	1.77B	1.44B
Gross Profit	247.95M	311.03M	318.13M	288.22M	581.52M	541.00M
EBITDA	45.12M	135.28M	-65.52M	-270.81M	83.57M	155.98M
Net Income	-140.80M	-53.22M	-188.86M	-328.40M	-30.14M	30.59M
Balance Sheet
Total Assets	2.00B	2.20B	2.01B	2.17B	2.40B	2.47B
Cash, Cash Equivalents and Short-Term Investments	415.20M	431.94M	95.88M	153.19M	134.71M	72.21M
Total Debt	395.42M	504.44M	326.56M	305.55M	254.75M	294.57M
Total Liabilities	690.02M	834.76M	622.48M	605.61M	714.59M	801.51M
Stockholders Equity	1.31B	1.37B	1.39B	1.56B	1.69B	1.67B
Cash Flow
Free Cash Flow	-212.06M	-208.50M	-44.47M	-119.77M	6.18M	5.79M
Operating Cash Flow	-197.03M	-183.49M	-28.20M	-95.19M	38.34M	39.48M
Investing Cash Flow	348.33M	352.21M	-18.20M	91.04M	35.95M	-18.33M
Financing Cash Flow	-140.19M	184.17M	-11.30M	22.97M	-10.35M	-35.08M

Opko Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.28 is below the 20-day moving average (MA) of 1.31, below the 50-day MA of 1.33, and below the 200-day MA of 1.38, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.01 is Neutral, neither overbought nor oversold. The STOCH value of 61.73 is Neutral, 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
CDNA	77 Outperform	$1.05B	17.25	24.11%	―	14.46%	―
CSTL	62 Neutral	$1.19B	-90.54	-2.69%	―	10.15%	-295.52%
NEO	55 Neutral	$1.71B	―	-12.99%	―	10.10%	-44.29%
FLGT	53 Neutral	$864.62M	-20.44	-3.80%	―	13.60%	74.64%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OPK	50 Neutral	$998.01M	-5.19	-13.32%	―	-9.75%	-31.28%
MYGN	41 Neutral	$569.54M	-1.39	-72.52%	―	0.21%	-233.51%