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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Ensign Group, Inc.

Azenta, Inc.

Amedisys, Inc.

Encompass Health Corp.

Agilon Health, Inc.

Option Care Health, Inc.

Teladoc Health, Inc.

Guardant Health, Inc.

Acadia Healthcare Co., Inc.

DaVita, Inc.

Ginkgo Bioworks Holdings, Inc.

Why is Option Care Health, Inc. ?

Healthy long term growth as Net Sales has grown by an annual rate of 13.25% and Operating profit at 24.99%

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 587.53
DEBT-EQUITY RATIO (HY) Highest at 80.89 %
INVENTORY TURNOVER RATIO(HY) Lowest at 11.84 times

With ROCE of 14.83%, it has a attractive valuation with a 2.29 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 -30.32%, its profits have risen by 0.7% ; the PEG ratio of the company is 2.6

High Institutional Holdings at 100%

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

Below par performance in long term as well as near term

Along with generating -30.32% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Option Care Health, Inc.

-30.32%

-0.57

41.40%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.25%

EBIT Growth (5y)

24.99%

EBIT to Interest (avg)

4.18

Debt to EBITDA (avg)

2.95

Net Debt to Equity (avg)

0.71

Sales to Capital Employed (avg)

1.95

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

3.22

EV to EBIT

15.47

EV to EBITDA

12.80

EV to Capital Employed

2.29

EV to Sales

0.93

PEG Ratio

2.64

Dividend Yield

ROCE (Latest)

14.83%

ROE (Latest)

15.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

RAW MATERIAL COST(Y)

Fallen by 1.42% (YoY

-8What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 587.53

DEBT-EQUITY RATIO (HY)

Highest at 80.89 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.84 times

OPERATING PROFIT(Q)

Lowest at USD 88.2 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.53 %

PRE-TAX PROFIT(Q)

Lowest at USD 59.3 MM

NET PROFIT(Q)

Lowest at USD 44.07 MM

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

Raw Material Cost

Fallen by 1.42% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Interest Coverage Ratio

Lowest at 587.53

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at USD 88.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 6.53 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 59.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 44.07 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 80.89 %

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

Inventory Turnover Ratio

Lowest at 11.84 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio