OPCH Intrinsic Value – Option Care Health Boasts Positive Financials, Yet Analysts Worry About Future Earnings
December 9, 2023
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Option Care Health ($NASDAQ:OPCH) is a leading provider of healthcare services in the United States. Despite these positive numbers, analysts are expressing worries about the company’s future earnings. Analysts have reason for concern, as Option Care Health has seen a steady decline in its stock prices over the past year. This trend could be the result of a decline in demand for its services due to the current economic downturn.
Additionally, the company is facing increased competition from other health care service providers and the introduction of new technology that is disrupting the industry. The future of Option Care Health’s stock looks uncertain, as analysts have yet to see a turnaround in its financials or a clear indication of what the future holds for the company. While the company has reported strong financials in the past, it remains to be seen if these numbers will be sustained in the coming year and beyond. Investors should stay informed of changes in Option Care Health’s financials and competitive landscape before making any decisions about investing in the company.
Earnings
Option Care Health recently released their financials for the third fiscal quarter of 2021, ending September 30, and the results were positive overall. The company reported a total revenue of 891.94M USD and net income of 35.48M USD. While this was a 12.6% decrease in total revenue year-on-year, it was an 8.6% decrease in net income.
However, when looking at the past three years, the total revenue increased from 891.94M USD to 1093.01M USD. With the global pandemic still looming and economic uncertainty persisting, many are concerned that these positive earnings may not be sustainable over the long run. Time will tell if OPTION CARE HEALTH will be able to sustain its current positive financials in the future.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for OPCH. More…
| Total Revenues | Net Income | Net Margin |
| 4.21k | 257.44 | 6.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for OPCH. More…
| Operations | Investing | Financing |
| 363.78 | -44.35 | -188.41 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for OPCH. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.24k | 1.8k | 8.13 |
Key Ratios Snapshot
Some of the financial key ratios for OPCH are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.6% | 54.6% | 9.5% |
| FCF Margin | ROE | ROA |
| 7.7% | 17.1% | 7.7% |
Share Price
On Friday, OPTION CARE HEALTH stock opened at $29.6 and closed at $29.9, representing a small increase of 0.8% from its prior closing price of 29.7. This is due to a number of factors, including a highly competitive market with well-established competitors, and an uncertain economic environment due to the ongoing pandemic. As such, OPTION CARE HEALTH’s stock remains volatile and unpredictable, leaving investors with a great deal of uncertainty in the short-term. Live Quote…
Analysis – OPCH Intrinsic Value
At GoodWhale, we provide assistance to analyze the financials of Option Care Health. Our proprietary Valuation Line calculates the fair value of Option Care Health’s stock at around $31.1. Currently, the stock is traded at $29.9, slightly undervalued by 3.9%. This is a good opportunity for investors to buy at a fair price. We strongly recommend potential investors to consider investing in Option Care Health’s stocks now. More…
Peers
The company’s competitors include LHC Group Inc, Singapore Paincare Holdings Ltd, and New York Health Care Inc.
– LHC Group Inc ($NASDAQ:LHCG)
LHC Group Inc is a healthcare provider that offers a wide range of services to its patients. Its services include home health, hospice, community care, and other services. The company has a market cap of 5.14B as of 2022 and a return on equity of 5.37%. The company’s main focus is on providing quality care to its patients and their families.
– Singapore Paincare Holdings Ltd ($SGX:FRQ)
Singapore Paincare Holdings Ltd has a market cap of 36.82M as of 2022. The company’s Return on Equity for the same year is 13.23%.
Singapore Paincare Holdings Ltd is a healthcare company that focuses on the provision of pain management solutions. The company offers a wide range of services including pain consultation, pain relief treatments, and rehabilitation programs. Singapore Paincare Holdings Ltd also provides education and training on pain management for both healthcare professionals and the general public.
– New York Health Care Inc ($OTCPK:BBAL)
New York Health Care Inc is a healthcare company with a market cap of 335.37k as of 2022. It has a Return on Equity of 21.67%. The company provides healthcare services to patients in the New York area.
Summary
Option Care Health, a provider of home infusion and specialty pharmacy services, has recently released financials that show strong growth. Despite these positive numbers, analysts have expressed concerns about future earnings performance due to competitive pressures and an expected decline in reimbursement rates. While the current financials look encouraging, investors should be aware of the potential future risks that could impact the stock performance of Option Care Health.
