OptimizeRx (OPRX) AI Stock Analysis

• Market Cap: $284.64M
• Dividend Yield: N/A
• Average Volume (3M): 295.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.10
• Revenue Growth: 24.19%
• EPS Growth: N/A
• Country: US
• Employees: 128
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.20
• Shares Outstanding: 18,640,652
• 10 Day Avg. Volume: 242,080
• 30 Day Avg. Volume: 295,283
• PEG Ratio: -0.65
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 18.61
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 3.73
• Enterprise Value/Gross Profit: 5.71
• Enterprise Value/Ebitda: 35.46
• 1Y Price Target: $24.97
• Price Target Upside: 63.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.75
• Revenue Forecast (FY): $108.18M

• Rating: 61 Neutral
• Price Target: $17.00 ▲(11.33% Upside)

OptimizeRx's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting revenue growth and strategic improvements. However, technical analysis indicates bearish momentum, and valuation metrics suggest potential overvaluation, which weigh down the overall score.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Operational Efficiency

Improved gross margins reflect better cost management and economies of scale, enhancing profitability and competitive positioning.

Debt Reduction

Accelerated debt repayment strengthens the balance sheet, reducing financial risk and increasing financial flexibility for future investments.

Negative Factors

Profitability Challenges

Minimal profitability limits the company's ability to reinvest in growth and could affect long-term sustainability if not addressed.

Operating Expenses

Rising operating expenses can erode margins and reduce operational leverage, potentially impacting future profitability.

Q4 Revenue Expectations

Flat revenue expectations for Q4 could indicate challenges in maintaining growth momentum, affecting investor confidence and future performance.

OptimizeRx Business Overview & Revenue Model

Company Description

OptimizeRx Corporation, a digital health technology company, provides various solutions to life sciences organizations, healthcare providers, and patients. The company's products and applications include financial messaging, a virtual patient support center that allows doctors and staff to access sample vouchers, co-pay coupons, and other patient support through their EMR and/or e-prescribe systems; and brand awareness and therapeutic support messaging services, such as brand awareness messages, reminder ads, and therapeutic support and unbranded messages. It also offers brand support services, which focuses on educating and working with pharmaceutical manufacturers on identifying, formulating, and implementing eRx media strategies, including drug file integration, sales force training, and strategy development services for promoting their products. In addition, the company operates cloud based Mobile Health Messenger platform that provides interactive health messaging for enhanced medication adherence and care coordination; and HIPAA-compliant automated mobile messaging platform, which allows pharmaceutical manufactures and related entities to directly engage with patients to enhance regimen compliance. Further, it offers patient programs with treatment and affordability information, lifestyle and condition trackers, internet device connectivity, forms, and surveys. Additionally, the company provides evidence-based physician engagement solution applied to real-world data to assist healthcare providers in identifying patients who may be qualified for specific therapies, raise awareness of patient access pathways, and identify early indicators of non-adherence among patient populations. It also offers therapy initiation workflow focused on accelerating patient access to treatments where time-consuming medical documentation is required of HCPs prior to pharmacies dispensing prescribed drugs. The company was found in 2006 and is headquartered in Rochester, Michigan.

How the Company Makes Money

OptimizeRx generates revenue primarily through its digital health platform by charging pharmaceutical manufacturers for the services it provides, including access to patient support programs and tools that enhance medication adherence. Key revenue streams include fees for data analytics, patient engagement solutions, and other services that enable drug manufacturers to effectively communicate with healthcare providers and patients. Additionally, the company may generate income through partnerships with healthcare providers and payers, leveraging its platform to facilitate transactions and improve medication access, which further contributes to its earnings.

OptimizeRx Financial Statement Overview

Summary

OptimizeRx shows steady revenue growth and strong gross margins, with improved operational efficiency and cash flow generation. However, profitability remains a challenge due to a very low net profit margin. The balance sheet is robust with low leverage, providing a stable financial foundation.

Income Statement

OptimizeRx has shown a positive revenue growth rate of 4.54% TTM, indicating a steady increase in sales. The gross profit margin is strong at 65.31%, reflecting efficient cost management. However, the net profit margin is extremely low at 0.03%, suggesting minimal profitability. The EBIT and EBITDA margins have improved to 4.66% and 8.03% respectively, showing better operational efficiency compared to previous periods.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.03 TTM, indicating strong financial stability and low leverage. Return on equity is marginally positive at 0.03%, showing slight profitability for shareholders. The equity ratio is not calculated, but the overall balance sheet suggests a solid financial position with a focus on equity financing.

Cash Flow

OptimizeRx has demonstrated a significant free cash flow growth rate of 14.69% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.64, showing a healthy conversion of income to cash. The free cash flow to net income ratio is high at 0.99, suggesting effective cash management despite low net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	109.51M	92.13M	71.52M	62.45M	61.29M	43.31M
Gross Profit	71.52M	59.38M	42.90M	38.97M	35.64M	24.11M
EBITDA	11.51M	-8.90M	-21.31M	-9.42M	2.33M	646.89K
Net Income	34.00K	-20.11M	-17.57M	-11.44M	378.08K	-2.21M
Balance Sheet
Total Assets	170.32M	171.17M	183.37M	134.65M	140.99M	60.33M
Cash, Cash Equivalents and Short-Term Investments	19.52M	13.38M	13.85M	74.14M	84.68M	10.52M
Total Debt	28.61M	33.19M	36.82M	234.43K	327.71K	448.75K
Total Liabilities	48.06M	54.17M	56.82M	8.54M	9.61M	10.35M
Stockholders Equity	122.26M	117.00M	126.55M	126.11M	131.38M	49.97M
Cash Flow
Free Cash Flow	11.66M	4.78M	-8.11M	10.41M	240.04K	-6.44M
Operating Cash Flow	11.82M	4.89M	-7.24M	10.65M	726.04K	-6.31M
Investing Cash Flow	-258.00K	-450.00K	-25.34M	-58.18M	-486.00K	-124.72K
Financing Cash Flow	-8.17M	-4.91M	28.22M	-18.95M	73.92M	-1.90M

OptimizeRx Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPRX, the sentiment is Negative. The current price of 15.27 is below the 20-day moving average (MA) of 16.22, below the 50-day MA of 18.07, and above the 200-day MA of 13.30, indicating a neutral trend. The MACD of -1.03 indicates Negative momentum. The RSI at 41.89 is Neutral, neither overbought nor oversold. The STOCH value of 79.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPRX.

OptimizeRx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPOK	71 Outperform	$273.54M	16.59	10.88%	9.41%	1.47%	11.33%
OMCL	69 Neutral	$1.64B	85.62	1.62%	―	10.67%	―
HSTM	67 Neutral	$746.15M	36.86	5.87%	0.49%	3.68%	5.62%
OPRX	61 Neutral	$284.64M	―	0.03%	―	24.19%	―
TBRG	60 Neutral	$288.37M	-22.76	1.57%	―	3.75%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SOPH	51 Neutral	$316.27M	-4.26	-86.09%	―	13.66%	-2.65%

OptimizeRx Corporate Events

OptimizeRx Earnings Call: Strong Q3 and Upbeat Outlook

The recent earnings call for OptimizeRx Corporation showcased a strong financial performance in the third quarter, marked by significant revenue and EBITDA growth. The company has raised its guidance for the current and upcoming fiscal years, while also making strategic moves to reduce debt. Despite these achievements, the company remains conservative in its expectations for the fourth quarter, citing increased operating expenses due to higher variable compensation. Overall, the sentiment of the call was positive, with a clear focus on sustained growth and operational excellence.

OptimizeRx Reports Strong Q3 Growth and Raises Guidance

OptimizeRx Corporation, headquartered in Waltham, Massachusetts, is a prominent healthcare technology company that specializes in connecting life science brands with patients and healthcare providers through innovative AI-driven tools. The company’s platform facilitates timely and relevant engagement, enhancing healthcare outcomes.