Pacific Health Care Organization (PFHO) AI Stock Analysis

• Market Cap: $16.90M
• Dividend Yield: N/A
• Average Volume (3M): 7.05K
• Price to Earnings (P/E): 11.4
• Beta (1Y): -0.29
• Revenue Growth: 8.72%
• EPS Growth: 66.72%
• Country: US
• Employees: 29
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 0.02
• Shares Outstanding: 12,800,000
• 10 Day Avg. Volume: 14,170
• 30 Day Avg. Volume: 7,053
• PEG Ratio: 0.69
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 1.52
• P/FCF Ratio: 13.83
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 2.15
• Enterprise Value/Gross Profit: 3.50
• Enterprise Value/Ebitda: 7.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $1.50 ▲(14.50% Upside)
• Action: Reiterated Date: 01/13/26
• Date: Action: Reiterated 01/13/26

The score is driven primarily by strong financial performance (improving profitability, strong recent growth, and minimal leverage). Technicals add support with an overall uptrend and positive MACD, partially offset by overbought Stochastic readings. Valuation is reasonably attractive on a ~11.7 P/E, with no dividend yield data to enhance the valuation profile.

Positive Factors

Financial Stability

The absence of debt and a high equity ratio indicate robust financial stability, reducing leverage risk and enhancing long-term resilience.

Profitability

Improving net margins reflect efficient expense management and operational effectiveness, supporting sustained profitability.

Revenue Growth

Consistent revenue growth demonstrates the company's ability to expand its market reach and enhance product adoption over time.

Negative Factors

Cash Flow Efficiency

Decreased cash flow efficiency can impact the company's ability to fund operations and growth initiatives, posing a long-term challenge.

Cash Flow Growth

Negative free cash flow growth suggests potential issues in cash generation, which could affect future investments and financial flexibility.

Cash Flow Conversion

Lower cash conversion efficiency may hinder the company's ability to effectively translate earnings into cash, impacting liquidity and investment capacity.

Pacific Health Care Organization Business Overview & Revenue Model

Company Description

Pacific Health Care Organization, Inc., together with its subsidiaries, provides specialty workers' compensation managed care services for self-administered employers, insurers, third-party administrators, municipalities, and other industries in the United States. The company is involved in managing health care organizations (HCOs) and medical provider networks (MPNs); and negotiates legal agreements for the implementation of workers' compensation carve-outs for California customers. It also offers HCO, MPN, and medical case management programs; and claims-related services, including utilization and medical bill review, medical case management, lien representation, legal support, and Medicare set aside. The company was formerly known as Clear Air, Inc. and changed its name to Pacific Health Care Organization, Inc. in January 2001. Pacific Health Care Organization, Inc. was incorporated in 1970 and is based in Newport Beach, California.

How the Company Makes Money

PHCO generates revenue through several key streams including service fees charged for its medical management services, which encompass case management and utilization review. The organization also earns income from contractual agreements with insurance companies and employers who seek to improve their healthcare management processes. Additionally, PHCO may engage in partnerships with healthcare providers to offer integrated services, creating further avenues for revenue through shared savings programs and performance-based incentives. The company's focus on delivering quality care while managing costs allows it to maintain a sustainable revenue model.

Pacific Health Care Organization Financial Statement Overview

Summary

Strong overall financial quality: improving profitability and very strong TTM revenue acceleration, supported by a low-/no-debt balance sheet and solid free-cash-flow conversion. Risks include historical revenue volatility and an apparent inconsistency in TTM asset reporting versus prior annual periods.

Income Statement

PFHO shows strong profitability and a clear improvement in recent results. In 2024, revenue rose to $6.1M with healthy margins (about 43% gross and 15% net). TTM (Trailing-Twelve-Months) performance strengthened further: revenue is $6.7M with higher profitability (about 51% gross margin and 22% net margin) and very strong operating earnings. A key positive is the sharp TTM revenue acceleration (roughly +90% growth). Offsetting this, the longer history shows some revenue volatility (multiple down years earlier in the period), so the recent surge needs to prove durable.

Balance Sheet

The balance sheet is conservatively positioned with minimal leverage. Annual reports show extremely low debt relative to equity (debt-to-equity near zero across 2022–2024), and TTM indicates no debt. Profitability on shareholder capital has improved (return on equity rising from ~4% in 2022 to ~7.6% in 2024 and ~11.8% TTM), suggesting better earnings power. The main flag is data consistency: TTM total assets are reported far below prior years, which may indicate reporting classification differences and makes asset-based comparisons less reliable.

Cash Flow

Cash generation is generally solid and closely tracks reported earnings. Free cash flow has been consistently near net income (roughly 95%–99% across periods), which supports earnings quality. TTM (Trailing-Twelve-Months) is notably strong, with operating cash flow of ~$1.3M and free cash flow of ~$1.29M alongside very strong year-over-year free-cash-flow growth. The main weakness is variability in annual cash flow: operating cash flow coverage of net income was below 1.0 in several years (2020, 2021, 2023, 2024), indicating periodic working-capital or timing headwinds despite good longer-run conversion.

Breakdown	TTM	Dec 2024	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.67M	6.07M	5.63M	5.74M	5.40M	6.04M
Gross Profit	4.09M	2.58M	2.16M	2.18M	2.01M	2.37M
EBITDA	1.99M	1.30M	716.06K	700.12K	1.25M	875.70K
Net Income	1.45M	883.58K	767.93K	492.89K	995.02K	549.57K
Balance Sheet
Total Assets	13.29M	12.43M	11.82M	12.05M	11.33M	11.11M
Cash, Cash Equivalents and Short-Term Investments	12.01M	11.10M	10.44M	10.78M	10.09M	9.50M
Total Debt	0.00	35.30K	56.49K	50.14K	70.37K	769.98K
Total Liabilities	453.41K	745.60K	1.02M	735.07K	508.46K	1.28M
Stockholders Equity	12.84M	11.69M	10.80M	11.32M	10.82M	9.83M
Cash Flow
Free Cash Flow	1.29M	665.95K	914.84K	672.37K	368.01K	933.59K
Operating Cash Flow	1.31M	675.08K	932.36K	711.24K	386.39K	987.44K
Investing Cash Flow	-1.62M	-1.13M	806.79K	-8.76M	-18.38K	-53.85K
Financing Cash Flow	13.40K	35.30K	-1.21M	0.00	218.90K	460.70K

Pacific Health Care Organization Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFHO, the sentiment is Positive. The current price of 1.31 is above the 20-day moving average (MA) of 1.29, above the 50-day MA of 1.27, and above the 200-day MA of 1.09, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 42.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PFHO.

Pacific Health Care Organization Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFHO	78 Outperform	$16.90M	11.41	11.75%	―	8.72%	66.72%
ALHC	62 Neutral	$3.92B	-172.79	-15.06%	―	47.39%	85.35%
OSCR	59 Neutral	$3.66B	-7.40	-44.51%	―	37.38%	-912.18%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CNC	51 Neutral	$20.84B	-3.13	-28.79%	―	14.92%	-286.72%
CLOV	50 Neutral	$1.04B	-18.05	-16.90%	―	15.23%	38.79%
MOH	49 Neutral	$7.64B	17.02	11.02%	―	13.71%	-18.02%