Option Care Health, Inc.
Option Care Health, Inc. Fundamental Analysis
Option Care Health, Inc. (OPCH) shows moderate financial fundamentals with a PE ratio of 25.54, profit margin of 3.67%, and ROE of 15.39%. The company generates $5.8B in annual revenue with strong year-over-year growth of 13.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze OPCH's fundamental strength across five key dimensions:
Efficiency Score
WeakOPCH struggles to generate sufficient returns from assets.
Valuation Score
WeakOPCH trades at a premium to fair value.
Growth Score
ModerateOPCH shows steady but slowing expansion.
Financial Health Score
ExcellentOPCH maintains a strong and stable balance sheet.
Profitability Score
ModerateOPCH maintains healthy but balanced margins.
Key Financial Metrics
Is OPCH Expensive or Cheap?
P/E Ratio
OPCH trades at 25.54 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, OPCH's PEG of 32.43 indicates potential overvaluation.
Price to Book
The market values Option Care Health, Inc. at 4.00 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.41 times EBITDA. This signals the market has high growth expectations.
How Well Does OPCH Make Money?
Net Profit Margin
For every $100 in sales, Option Care Health, Inc. keeps $3.67 as profit after all expenses.
Operating Margin
Core operations generate 5.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.39 in profit for every $100 of shareholder equity.
ROA
Option Care Health, Inc. generates $6.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Option Care Health, Inc. generates limited operating cash flow of $265.29M, signaling weaker underlying cash strength.
Free Cash Flow
Option Care Health, Inc. produces free cash flow of $246.34M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.52 in free cash annually.
FCF Yield
OPCH converts 4.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
32.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.00
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How OPCH Stacks Against Its Sector Peers
| Metric | OPCH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.54 | 29.45 | Better (Cheaper) |
| ROE | 15.39% | 779.00% | Weak |
| Net Margin | 3.67% | -24936.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.26 | Strong (Low Leverage) |
| Current Ratio | 1.53 | 4.65 | Neutral |
| ROA | 6.01% | -19344.00% (disorted) | Weak |
OPCH outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Option Care Health, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
113.03%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
3039.28%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
131.99%
Industry Style: Defensive, Growth, Innovation
High Growth