Option Care Health, Inc. (OPCH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Azenta, Inc.

Amedisys, Inc.

The Ensign Group, Inc.

Option Care Health, Inc.

Encompass Health Corp.

Teladoc Health, Inc.

Acadia Healthcare Co., Inc.

Guardant Health, Inc.

Agilon Health, Inc.

Ginkgo Bioworks Holdings, Inc.

DaVita, Inc.

Why is Option Care Health, Inc. ?

Healthy long term growth as Net Sales has grown by an annual rate of 14.07% and Operating profit at 46.92%

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 598.33
RAW MATERIAL COST(Y) Grown by 6.96% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 75.73 %

With ROCE of 14.36%, it has a very expensive valuation with a 2.68 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 33.42%, its profits have fallen by -12.6%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 33.42% in the last 1 year, much higher than market (S&P 500) returns of 12.33%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Option Care Health, Inc. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Option Care Health, Inc. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Option Care Health, Inc.

26.73%

0.26

33.15%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.07%

EBIT Growth (5y)

46.92%

EBIT to Interest (avg)

4.18

Debt to EBITDA (avg)

2.95

Net Debt to Equity (avg)

0.71

Sales to Capital Employed (avg)

1.83

Tax Ratio

26.34%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

11.37%

ROE (avg)

12.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.88

EV to EBIT

18.67

EV to EBITDA

15.63

EV to Capital Employed

2.68

EV to Sales

1.20

PEG Ratio

Dividend Yield

ROCE (Latest)

14.36%

ROE (Latest)

15.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

NET SALES(Q)

Highest at USD 1,416.09 MM

-6What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 598.33

RAW MATERIAL COST(Y)

Grown by 6.96% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 75.73 %

INTEREST(Q)

Highest at USD 16.66 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.04 %

Here's what is working for Option Care Health, Inc.

Net Sales

Highest at USD 1,416.09 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Here's what is not working for Option Care Health, Inc.

Interest Coverage Ratio

Lowest at 598.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 16.66 MM

in the last five periods and Increased by 8.01% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit Margin

Lowest at 7.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 75.73 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 6.96% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales