Pacific Health Care Organization (PFHO) AI Stock Analysis

• Market Cap: $14.72M
• Dividend Yield: N/A
• Average Volume (3M): 7.05K
• Price to Earnings (P/E): 10.5
• Beta (1Y): -0.32
• 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: -0.11
• Enterprise Value/Revenue: -0.24
• Enterprise Value/Gross Profit: -0.48
• Enterprise Value/Ebitda: -0.82
• 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: 71 Outperform
• Price Target: $1.00 ▼(-9.91% Downside)

Pacific Health Care Organization's stock is supported by strong financial performance and attractive valuation, suggesting it is undervalued. Technical analysis presents mixed signals, with potential short-term weakness but possible buying opportunities due to oversold conditions. The absence of earnings call and corporate events data does not impact the overall score.

Positive Factors

Strong Profit Margins

A 100% gross profit margin indicates an efficient business model with no direct cost of goods sold, enhancing profitability and competitive positioning.

Low Leverage

Having no debt enhances financial stability, reducing risk and providing flexibility for strategic investments or weathering economic downturns.

Revenue Growth

Consistent revenue growth reflects strong demand for services and effective market positioning, supporting long-term business expansion.

Negative Factors

Cash Flow Management

Decreasing operating cash flow suggests challenges in cash-generating efficiency, which could impact liquidity and limit growth investments.

Cash Flow Efficiency

Reduced cash flow efficiency can strain operational funding and necessitate improvements in working capital management to sustain growth.

Free Cash Flow Growth

Negative free cash flow growth may limit the company's ability to fund new projects or return capital to shareholders, affecting long-term strategic flexibility.

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

Pacific Health Care Organization exhibits strong financial health with robust profit margins, low leverage, and a solid equity position. The company shows stable profitability with a strong gross profit margin and improved net profit margin. However, cash flow management presents an area for potential enhancement.

Income Statement

Pacific Health Care Organization's income statement indicates stable profitability. The company maintained a strong gross profit margin, achieving 100% for the latest year, which is uncommon and suggests no direct cost of goods sold, likely due to its business model in the medical service sector. The net profit margin improved to 14.57% in 2024 from 13.64% in 2023, showcasing efficiency in expense management. Revenue growth was 7.73% from 2023 to 2024, indicating a positive upward trend. EBIT and EBITDA margins also reflect operational efficiency, with increases in both metrics year-over-year.

Balance Sheet

The balance sheet of PFHO is solid with a very low debt-to-equity ratio, as the company has no debt reported for 2024. This indicates financial stability and low leverage risk. Return on equity (ROE) improved to 7.56% in 2024 from 7.11% in 2023, showing better utilization of equity to generate profits. An equity ratio of 93.98% highlights a strong equity base compared to total assets, reducing risk exposure.

Cash Flow

The cash flow statement shows mixed results with a decline in operating cash flow from 2023 to 2024, yet free cash flow remains positive. The operating cash flow to net income ratio indicates a decrease in cash-generating efficiency at 0.76 for the latest year. The free cash flow to net income ratio is strong at 0.75, suggesting good cash conversion of earnings. Free cash flow growth was negative compared to the previous year, indicating potential areas for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.67M	6.07M	5.63M	5.74M	5.40M	6.04M
Gross Profit	3.38M	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	67.72K	12.43M	11.82M	12.05M	11.33M	11.11M
Cash, Cash Equivalents and Short-Term Investments	2.18M	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: 1.11
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.11 is below the 20-day moving average (MA) of 1.18, below the 50-day MA of 1.20, and above the 200-day MA of 0.94, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 5.80 is Positive, 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	71 Outperform	$14.72M	10.52	11.75%	―	8.72%	66.72%
MOH	61 Neutral	$7.62B	9.19	19.71%	―	13.71%	-18.02%
ALHC	59 Neutral	$3.85B	―	-15.06%	―	47.39%	85.35%
CNC	58 Neutral	$19.40B	―	-21.93%	―	14.92%	-286.72%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CLOV	50 Neutral	$1.27B	-21.16	-16.90%	―	15.23%	38.79%
OSCR	45 Neutral	$4.81B	-16.15	-22.32%	―	37.38%	-912.18%

Pacific Health Care Organization Corporate Events

Pacific Health Care Sues Former Executives for Breaches

On September 16, 2025, Pacific Health Care Organization, Inc.’s subsidiaries, Medex Healthcare, Inc. and Medex Medical Management, Inc., filed lawsuits in California’s Superior Court against former executives David Kim and Darshan Patel, respectively. The lawsuits allege multiple breaches, including contract violations and misappropriation of trade secrets, seeking damages exceeding $1 million, along with other legal remedies, which could significantly impact the company’s operations and stakeholder interests.