Pacific Health Care Organization (PFHO) AI Stock Analysis

• Market Cap: $15.68M
• Dividend Yield: N/A
• Average Volume (3M): 7.05K
• Price to Earnings (P/E): 12.0
• Beta (1Y): -0.25
• Revenue Growth: 8.72%
• EPS Growth: 66.72%
• Country: US
• Employees: 29
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): N/A
• Shares Outstanding: 12,800,000
• 10 Day Avg. Volume: 14,170
• 30 Day Avg. Volume: 7,053
• PEG Ratio: 0.20
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 2.48
• P/FCF Ratio: 14.63
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 3.36
• Enterprise Value/Ebitda: 8.06
• 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: 73 Outperform
• Price Target: $1.50 ▲(14.50% Upside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is driven primarily by strong financial performance, especially the low-leverage balance sheet and improved 2025 profitability alongside strong revenue growth. This is tempered by only mixed technical momentum and signs of uneven cash-flow growth/conversion, while valuation looks reasonable based on the ~12 P/E.

Positive Factors

Conservative balance sheet / low leverage

Very low or no debt materially reduces financial distress and gives management durable optionality to fund growth, absorb reimbursement shocks, or pursue acquisitions without raising leverage. Steady equity growth and improving ROE (~10.6% in 2025) signal improving capital efficiency while retaining low leverage risk.

Accelerating revenue growth and improved margins

A sharp acceleration in revenue alongside materially higher gross and net margins points to sustainable improvements in market traction or pricing/mix. Higher margins increase structural earnings power and buffer against cyclical cost pressure, supporting repeatable profitability over the medium term.

Consistent positive free cash flow and stronger operating cash

Consistent positive FCF that tracks net income indicates core earnings convert to cash, supporting reinvestment, debt reduction, or shareholder returns. The marked improvement in operating cash flow in 2025 suggests structural operational gains rather than one-off items, enhancing sustainable cash-generation capacity.

Negative Factors

Declining free cash flow growth / uneven cash conversion

FCF growth falling in 2024–2025 even as earnings rose points to working capital timing, capex, or billing/collection dynamics that can constrain internally funded growth. Persistent variability in cash conversion reduces predictability of cash available for strategic investments or capital returns over the medium term.

Volatile operating profitability

Wide swings in EBITDA margins across years weaken confidence in recurring earnings power and complicate forecasting. If margins depend on transient mix shifts or episodic gains, sustainable margin targets are less reliable, raising execution risk for long-term margin expansion plans.

Small scale and limited employee base

A very small workforce suggests limited operational scale and potential constraints in underwriting, network contracting, regulatory compliance, and distribution relative to larger peers. Small scale can translate into weaker negotiating leverage with payors and providers and less ability to absorb regulatory or operational shocks over time.

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.

Pacific Health Care Organization Financial Statement Overview

Summary

Strong overall fundamentals supported by accelerating revenue growth in 2025, improved profitability (higher gross and net margins), and a very conservative balance sheet with minimal to no debt. Offsetting factors include volatility in operating profitability over time and declining free cash flow growth in 2024–2025 despite higher earnings, indicating some variability in cash conversion.

Income Statement

Revenue growth accelerated meaningfully in the latest year (2025 up ~63% vs. 2024 up ~8%), and profitability improved with higher gross margin (~48%) and net margin (~21%) in 2025. Net income also stepped up versus prior years. The main drawback is volatility in operating profitability over time (EBITDA margin was much higher in 2021/2024 than 2022/2023/2025), suggesting earnings quality may be influenced by mix or period-specific items.

Balance Sheet

The balance sheet is very conservatively financed: debt is minimal to none (2025 shows zero debt; prior years were extremely low relative to equity), indicating low leverage risk. Equity has grown steadily from 2020 to 2025, and returns on equity improved in 2025 (~10.6%) versus 2024 (~7.6%). The key limitation is that returns, while improving, are not consistently high year-to-year.

Cash Flow

Free cash flow is consistently positive across the period and closely tracks net income in each year, which supports earnings quality. Operating cash flow improved strongly in 2025, helping cash generation. However, free cash flow growth was negative in both 2024 and 2025, and cash conversion has been uneven (in 2024, operating cash flow was below net income), pointing to some variability in working capital or timing.

Breakdown	Dec 2025	Dec 2024	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	6.72M	6.07M	5.63M	5.74M	5.40M
Gross Profit	3.22M	2.58M	2.16M	2.18M	2.01M
EBITDA	1.03M	1.30M	716.06K	700.12K	1.25M
Net Income	1.39M	883.58K	767.93K	492.89K	995.02K
Balance Sheet
Total Assets	13.48M	12.43M	11.82M	12.05M	11.33M
Cash, Cash Equivalents and Short-Term Investments	12.21M	11.10M	10.44M	10.78M	10.09M
Total Debt	0.00	35.30K	56.49K	50.14K	70.37K
Total Liabilities	401.85K	745.60K	1.02M	735.07K	508.46K
Stockholders Equity	13.07M	11.69M	10.80M	11.32M	10.82M
Cash Flow
Free Cash Flow	1.14M	665.95K	914.84K	672.37K	368.01K
Operating Cash Flow	1.16M	675.08K	932.36K	711.24K	386.39K
Investing Cash Flow	-990.15K	-1.13M	806.79K	-8.76M	-18.38K
Financing Cash Flow	-72.31K	35.30K	-1.21M	0.00	218.90K

Pacific Health Care Organization Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.31
• 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 PFHO, the sentiment is Negative. The current price of 1.31 is above the 20-day moving average (MA) of 1.24, above the 50-day MA of 1.27, and above the 200-day MA of 1.13, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 75.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	73 Outperform	$15.68M	11.99	11.75%	―	8.72%	66.72%
OSCR	61 Neutral	$3.76B	-8.51	-39.45%	―	37.38%	-912.18%
ALHC	60 Neutral	$3.54B	-88.83	-0.49%	―	47.39%	85.35%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CNC	51 Neutral	$16.92B	-3.03	-27.74%	―	14.92%	-286.72%
CLOV	50 Neutral	$991.62M	―	-25.73%	―	15.23%	38.79%
MOH	49 Neutral	$7.18B	18.68	10.99%	―	13.71%	-18.02%