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

Azenta, Inc.

The Ensign Group, Inc.

Amedisys, Inc.

Encompass Health Corp.

Option Care Health, Inc.

Teladoc Health, Inc.

Acadia Healthcare Co., Inc.

Agilon Health, Inc.

Ginkgo Bioworks Holdings, Inc.

Guardant Health, Inc.

DaVita, Inc.

Why is Option Care Health, Inc. ?

Healthy long term growth as Net Sales has grown by an annual rate of 13.40% and Operating profit at 30.36%

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at USD 258.68 MM
RAW MATERIAL COST(Y) Grown by 5.86% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 12.45 times

With ROCE of 14.92%, it has a attractive valuation with a 2.46 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 -17.97%, its profits have risen by 3% ; the PEG ratio of the company is 3.4

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 -17.97% 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Option Care Health, Inc.

-17.24%

-0.06

31.50%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.40%

EBIT Growth (5y)

30.36%

EBIT to Interest (avg)

4.18

Debt to EBITDA (avg)

2.95

Net Debt to Equity (avg)

0.71

Sales to Capital Employed (avg)

1.88

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

3.39

EV to EBIT

16.45

EV to EBITDA

13.67

EV to Capital Employed

2.46

EV to Sales

0.99

PEG Ratio

3.42

Dividend Yield

ROCE (Latest)

14.92%

ROE (Latest)

15.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

2What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 11.3 times

NET SALES(Q)

Highest at USD 1,435.02 MM

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 258.68 MM

RAW MATERIAL COST(Y)

Grown by 5.86% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 12.45 times

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

Net Sales

Highest at USD 1,435.02 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Debtors Turnover Ratio

Highest at 11.3 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Operating Cash Flow

Lowest at USD 258.68 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Inventory Turnover Ratio

Lowest at 12.45 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 5.86% (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