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Option Care Health
(NASDAQ:OPCH)
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Rating:69Neutral
Price Target:
$26.00
▲(8.79% Upside)
Action:Reiterated
Date:10/07/26
The score is driven primarily by solid financial performance (strong growth and cash conversion, despite margin compression and moderate leverage) and supportive earnings-call fundamentals (reaffirmed guidance, sequential improvement, strong cash flow, and buybacks). Offsetting factors include neutral-to-weak technical momentum and only moderate valuation support, while the announced take-private deal materially boosts the risk/reward profile if it closes as expected.
Positive Factors
Infusion platform and clinic expansion
The national alternate-site platform is gaining capacity and utilization through clinic expansion, while higher in-clinic activity can deepen clinical integration and improve operating leverage. This supports durable access to chronic and acute infusion demand beyond a single therapy or location.
Negative Factors
Chronic inflammatory portfolio headwinds
Pressure in the chronic inflammatory portfolio is significant enough to affect both revenue and gross profit, creating a durable near-term drag on the business mix. Recovery depends on replacing lost contribution with growth in other therapies, which may take multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Infusion platform and clinic expansion
The national alternate-site platform is gaining capacity and utilization through clinic expansion, while higher in-clinic activity can deepen clinical integration and improve operating leverage. This supports durable access to chronic and acute infusion demand beyond a single therapy or location.
Read all positive factors
Option Care Health (OPCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.65B
Dividend YieldN/A
Average Volume (3M)4.88M
Price to Earnings (P/E)23.4
Beta (1Y)0.55
Revenue Growth5.95%
EPS Growth5.33%
CountryUS
Employees7,397
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.33
Shares Outstanding149,785,250
10 Day Avg. Volume10,607,663
30 Day Avg. Volume4,883,797
Financial Highlights & Ratios
PEG Ratio6.12
Price to Book (P/B)3.89
Price to Sales (P/S)0.91
P/FCF Ratio23.78
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue0.75
Enterprise Value/Gross Profit4.15
Enterprise Value/Ebitda10.34
Forecast
1Y Price Target
$28.14Price Target Upside17.76% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)1.88
Revenue Forecast (FY)$5.76B
Option Care Health Business Overview & Revenue Model
Company Description
Option Care Health, Inc. delivers infusion services to patients in their homes and other non-hospital settings throughout the United States. The company offers a broad spectrum of specialized infusion treatments, including therapies for various in...
How the Company Makes Money
Option Care Health primarily generates revenue by providing infusion therapy services and related pharmaceuticals to patients outside the hospital setting (e.g., in the home or at infusion suites), with payment generally coming from third-party pa...
Option Care Health Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call presented a balance of meaningful operational and financial positives — including sequential revenue and EBITDA growth, strong cash generation ($184M in Q2), active share repurchases ($150M), clinic expansion, and progress in key portfolios (acute, IG neuro, rare/orphan) — while acknowledging persistent headwinds tied to the CID portfolio that are expected to depress 2026 revenue (~600 bps) and gross profit (~$55M). Management emphasized execution of commercial, technology and cost initiatives to drive sequential improvement through the back half of the year, but several initiatives and new therapy launches carry timing and execution risk.Positive Updates
Revenue Growth (Q2 2026)
Reported revenue of $1.4 billion, up 2% year-over-year and up 7% sequentially from Q1 2026.
Negative Updates
CID Portfolio Headwinds and Revenue/Gross Profit Impact
Management expects year-over-year revenue headwinds of approximately 600 basis points for 2026 and gross profit headwinds of about $55 million driven by weakness earlier in the chronic inflammatory (CID) portfolio and related product mix shifts.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth (Q2 2026)
Reported revenue of $1.4 billion, up 2% year-over-year and up 7% sequentially from Q1 2026.
Read all positive updates
Company Guidance
Management reaffirmed full-year 2026 guidance of $5.675–$5.775 billion in revenue, adjusted EBITDA of $480–$495 million, and adjusted EPS of $1.85–$1.92, with net interest expense of $50–$55 million, a tax rate of 26–28%, and an operating cash flow target of at least $320 million; Q3 is expected to show sequential revenue growth in the low- to mid-single digits and sequential EBITDA growth in the mid-single-digit range (seasonality consistent with prior years, with H2 stronger). In Q2 the company posted $1.4 billion revenue (+2% YoY, +7% QoQ), $117.5 million adjusted EBITDA (+3% YoY, +12% QoQ), adjusted EPS $0.45 (+$0.04 YoY), operating cash flow $184 million, net debt leverage 2.1x, repurchased $150 million (~5% of shares) leaving $525 million buyback authorization, SG&A ~11% of revenue (-3% YoY), and gross profit dollars up 2% sequentially; they continue to expect ~600 bps of 2026 revenue headwinds from CID and ~$55 million gross profit headwinds, Stelara/biosimilars to be <1% of 2026 net revenue/gross profit, added five infusion clinics (visits +20% YoY), operate >190 facilities, and recorded >35% of nursing visits in suites/clinics.Option Care Health Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.69B | 5.65B | 5.00B | 4.30B | 3.94B | 3.44B |
| Gross Profit | 1.03B | 1.02B | 1.01B | 981.22M | 866.92M | 779.61M |
| EBITDA | 415.31M | 416.79M | 396.13M | 472.19M | 325.01M | 252.30M |
| Net Income | 209.58M | 207.59M | 211.82M | 267.09M | 150.56M | 139.90M |
Balance Sheet | ||||||
| Total Assets | 3.38B | 3.46B | 3.42B | 3.33B | 3.23B | 2.93B |
| Cash, Cash Equivalents and Short-Term Investments | 193.77M | 232.62M | 412.56M | 343.85M | 294.19M | 119.42M |
| Total Debt | 1.27B | 1.27B | 1.22B | 1.17B | 1.16B | 1.16B |
| Total Liabilities | 2.12B | 2.13B | 2.02B | 1.91B | 1.85B | 1.75B |
| Stockholders Equity | 1.26B | 1.33B | 1.40B | 1.42B | 1.39B | 1.18B |
Cash Flow | ||||||
| Free Cash Flow | 346.81M | 217.14M | 287.79M | 329.43M | 232.19M | 182.94M |
| Operating Cash Flow | 346.81M | 258.45M | 323.39M | 371.30M | 267.55M | 208.57M |
| Investing Cash Flow | -46.37M | -161.08M | -36.47M | -56.51M | -108.05M | -111.54M |
| Financing Cash Flow | -305.49M | -277.31M | -218.21M | -265.13M | 15.27M | -76.87M |
Option Care Health Technical Analysis
Positive
23.90
Price Trends
24.23
Positive
22.84
Positive
26.42
Positive
Market Momentum
1.60
Negative
83.80
Negative
99.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPCH, the sentiment is Positive. The current price of 23.9 is below the 20-day moving average (MA) of 24.94, below the 50-day MA of 24.23, and below the 200-day MA of 26.42, indicating a bullish trend. The MACD of 1.60 indicates Negative momentum. The RSI at 83.80 is Negative, neither overbought nor oversold. The STOCH value of 99.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPCH.
Option Care Health Risk Analysis
Option Care Health disclosed 33 risk factors in its most recent earnings report. Option Care Health reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Option Care Health Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.14B | 20.13 | 9.57% | ― | 15.88% | 25.01% | |
77 Outperform | $6.53B | 25.09 | 29.45% | 0.50% | 3.31% | 1.56% | |
74 Outperform | $2.61B | 39.31 | 30.80% | ― | 10.31% | ― | |
70 Outperform | $2.67B | 9.23 | 150.20% | ― | 19.52% | 1337.90% | |
69 Neutral | $4.65B | 23.36 | 15.83% | ― | 5.95% | 5.33% | |
67 Neutral | $362.60M | 25.24 | 10.30% | ― | 25.21% | 6.14% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
OPCH
Option Care Health
31.07
4.40
16.50%
ADUS
Addus Homecare
114.33
1.75
1.55%
CHE
Chemed
499.82
72.44
16.95%
VMD
Viemed Healthcare
9.52
2.64
38.37%
AVAH
Aveanna Healthcare Holdings
12.25
3.43
38.89%
GRDN
Guardian Pharmacy Services, Inc. Class A
41.28
17.28
72.00%
Option Care Health Corporate Events
Business Operations and StrategyDelistings and Listing ChangesM&A Transactions
Option Care Health to Be Taken Private in Buyout
Positive
Oct 6, 2026
On October 5, 2026, Option Care Health agreed to be acquired by an investor group led by Clayton, Dubilier Rice and McKesson through a cash merger valuing the company at about $5.8 billion, or $32.05 per share, a roughly 37% premium to its prior ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.