Opko Health (OPK) AI Stock Analysis

• Market Cap: $1.10B
• Dividend Yield: N/A
• Average Volume (3M): 2.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -7.31%
• EPS Growth: 29.84%
• Country: US
• Employees: 2,997
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.19
• Shares Outstanding: 793,782,800
• 10 Day Avg. Volume: 2,012,917
• 30 Day Avg. Volume: 2,542,122
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 5.37
• Enterprise Value/Ebitda: 19.56
• 1Y Price Target: $3.36
• Price Target Upside: 143.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 48 Neutral
• Price Target: $1.50 ▲(8.70% Upside)

Opko Health's overall stock score reflects significant financial challenges, including declining revenues and profitability issues. While there are strategic advancements and some technical indicators suggest moderate upward momentum, the negative P/E ratio and lack of dividend yield weigh heavily on the valuation. The earnings call provided some positive strategic updates, but financial challenges remain a concern.

Positive Factors

Analyst Rating

Analyst maintains an OUTPERFORM investment rating with a price target of $2.25, representing an 89% upside.

Lab Business Improvement

The operating loss in the lab business narrowed sequentially from $23.9 million in Q1 to $18.2 million in Q2.

Prescription Trends

Recent prescription trends for NGENLA are positive, and solid growth is expected in the latter half of the year.

Negative Factors

Earnings

Reported EPS of ($0.19) were soft versus our $0.15 estimate.

Financial Guidance

Management slightly reduced certain elements of its financial guidance for the fiscal year, including total revenue and NGENLA gross profit share.

Revenue Performance

Total revenue of $156.8 million was a bit light relative to the estimate of $165.3 million.

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, including the sale of pharmaceutical products and diagnostic services. The company earns money from the sale of its proprietary drugs, which are marketed directly to healthcare providers and patients. Additionally, Opko's diagnostics segment generates revenue from laboratory testing services, which may involve partnerships with healthcare facilities and insurance companies to provide comprehensive diagnostic solutions. Significant partnerships, such as collaborations with other pharmaceutical companies and healthcare organizations, also contribute to Opko's earnings by facilitating product development, expanding market reach, and enhancing service offerings. Furthermore, Opko benefits from licensing agreements and royalties from its intellectual property, which provide additional financial resources.

Opko Health Financial Statement Overview

Summary

Opko Health is facing significant financial challenges, with declining revenues and profitability issues. The company struggles with generating positive cash flow and maintaining profitability, as indicated by its negative margins and free cash flow. While the balance sheet shows a reasonable level of debt, the continuous decline in equity and cash flow issues may impact future financial stability.

Income Statement

Opko Health's income statement reveals significant challenges. The company is experiencing a declining revenue trend, with a revenue drop from 2021 to 2025. Gross and net profit margins are negative in the TTM period, reflecting unprofitability. The EBIT and EBITDA margins are also negative for the TTM, indicating operating inefficiencies. Despite these challenges, there was a slight improvement in gross profit margin in the TTM compared to the previous year, suggesting some cost management efforts.

Balance Sheet

The balance sheet of Opko Health indicates moderate financial health. The debt-to-equity ratio remains manageable, reflecting a stable leverage situation. Return on equity is negative, indicating that the company is not generating profits for its shareholders. However, the equity ratio suggests a strong reliance on equity financing. The decrease in stockholders' equity over the years could be a concern for future financing capabilities.

Cash Flow

Opko Health's cash flow statement shows negative free cash flow growth, a critical concern for sustaining operations. The operating cash flow to net income ratio is negative, indicating poor cash conversion from operations. Despite the challenges, the company managed to increase its cash reserves in the TTM, possibly through financing activities. However, consistent negative free cash flow poses a risk to long-term liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	664.03M	713.14M	863.50M	1.00B	1.77B	1.44B
Gross Profit	216.81M	218.51M	318.13M	288.20M	672.55M	541.00M
EBITDA	59.53M	135.28M	-65.52M	-270.81M	83.57M	139.09M
Net Income	-177.14M	-53.22M	-188.86M	-328.40M	-30.14M	30.59M
Balance Sheet
Total Assets	1.97B	2.20B	2.01B	2.17B	2.40B	2.47B
Cash, Cash Equivalents and Short-Term Investments	271.72M	431.94M	95.88M	153.20M	134.70M	72.20M
Total Debt	395.74M	504.44M	326.56M	213.50M	187.90M	222.00M
Total Liabilities	676.09M	834.76M	622.48M	605.70M	714.60M	801.50M
Stockholders Equity	1.30B	1.37B	1.39B	1.56B	1.69B	1.67B
Cash Flow
Free Cash Flow	-259.29M	-208.50M	-44.47M	-119.77M	6.18M	5.79M
Operating Cash Flow	-239.46M	-183.49M	-28.20M	-95.19M	38.34M	39.48M
Investing Cash Flow	401.46M	352.21M	-18.20M	91.04M	35.95M	-18.33M
Financing Cash Flow	82.16M	184.17M	-11.30M	22.97M	-10.35M	-35.08M

Opko Health Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPK, the sentiment is Neutral. The current price of 1.38 is above the 20-day moving average (MA) of 1.36, above the 50-day MA of 1.35, and below the 200-day MA of 1.48, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 33.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OPK.

Opko Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSTL	59 Neutral	$669.80M	30.59	-2.15%	―	20.40%	-165.41%
CDNA	56 Neutral	$697.27M	12.83	20.73%	―	14.72%	―
MYGN	52 Neutral	$631.77M	―	-70.03%	―	3.83%	-137.31%
Sector *	51 Neutral	$7.91B	-0.36	-41.71%	2.23%	23.45%	-1.86%
OPK	48 Neutral	$1.10B	―	-13.16%	―	-7.31%	29.84%
NEO	48 Neutral	$1.14B	―	-11.76%	―	9.70%	-30.94%
NEOG	45 Neutral	$1.25B	―	-41.88%	―	-3.20%	-11471.95%

Opko Health Corporate Events

Opko Health Grants Stock Options and Bonuses

On May 27, 2025, Opko Health‘s Compensation Committee granted stock options and approved bonuses for its executive officers and non-executive employees. This decision reflects the company’s commitment to incentivizing its leadership and workforce, potentially impacting its operational efficiency and stakeholder confidence.