Pacific Health Care Organization (PFHO) AI Stock Analysis

• Market Cap: $14.72M
• Dividend Yield: N/A
• Average Volume (3M): 7.05K
• Price to Earnings (P/E): 10.5
• Beta (1Y): -0.32
• Revenue Growth: 8.72%
• EPS Growth: 66.72%
• Country: US
• Employees: 29
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 0.02
• Shares Outstanding: 12,800,000
• 10 Day Avg. Volume: 14,170
• 30 Day Avg. Volume: 7,053
• PEG Ratio: 0.69
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 1.52
• P/FCF Ratio: 13.83
• Enterprise Value/Market Cap: -0.11
• Enterprise Value/Revenue: -0.24
• Enterprise Value/Gross Profit: -0.48
• Enterprise Value/Ebitda: -0.87
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $1.50 ▲(11.11% Upside)

Pacific Health Care Organization's overall stock score is driven by strong financial performance and attractive valuation. The company's solid financial health, characterized by robust profit margins and low leverage, is a significant strength. The technical analysis presents mixed signals, with positive price trends but potential bearish momentum. The absence of earnings call data and corporate events does not impact the score.

Pacific Health Care Organization Business Overview & Revenue Model

Company Description

Pacific Health Care Organization, Inc., together with its subsidiaries, provides specialty workers' compensation managed care services for self-administered employers, insurers, third-party administrators, municipalities, and other industries in the United States. The company is involved in managing health care organizations (HCOs) and medical provider networks (MPNs); and negotiates legal agreements for the implementation of workers' compensation carve-outs for California customers. It also offers HCO, MPN, and medical case management programs; and claims-related services, including utilization and medical bill review, medical case management, lien representation, legal support, and Medicare set aside. The company was formerly known as Clear Air, Inc. and changed its name to Pacific Health Care Organization, Inc. in January 2001. Pacific Health Care Organization, Inc. was incorporated in 1970 and is based in Newport Beach, California.

How the Company Makes Money

PFHO generates revenue through a multi-faceted revenue model primarily based on service fees, insurance reimbursements, and government contracts. Key revenue streams include payments received for telehealth consultations, monthly subscriptions for wellness programs, and reimbursements from private and public health insurance plans for services rendered. Additionally, PFHO has established significant partnerships with healthcare providers and insurance companies, which facilitate collaborative care models and enhance service offerings, thereby driving further revenue growth. The organization also explores grants and funding opportunities aimed at health improvement initiatives, contributing to its financial stability.

Pacific Health Care Organization Financial Statement Overview

Summary

Pacific Health Care Organization exhibits strong financial health with robust profit margins, low leverage, and a solid equity position. The company shows stable profitability with a strong gross profit margin and improved net profit margin. However, cash flow management presents an area for potential enhancement.

Income Statement

Pacific Health Care Organization's income statement indicates stable profitability. The company maintained a strong gross profit margin, achieving 100% for the latest year, which is uncommon and suggests no direct cost of goods sold, likely due to its business model in the medical service sector. The net profit margin improved to 14.57% in 2024 from 13.64% in 2023, showcasing efficiency in expense management. Revenue growth was 7.73% from 2023 to 2024, indicating a positive upward trend. EBIT and EBITDA margins also reflect operational efficiency, with increases in both metrics year-over-year.

Balance Sheet

The balance sheet of PFHO is solid with a very low debt-to-equity ratio, as the company has no debt reported for 2024. This indicates financial stability and low leverage risk. Return on equity (ROE) improved to 7.56% in 2024 from 7.11% in 2023, showing better utilization of equity to generate profits. An equity ratio of 93.98% highlights a strong equity base compared to total assets, reducing risk exposure.

Cash Flow

The cash flow statement shows mixed results with a decline in operating cash flow from 2023 to 2024, yet free cash flow remains positive. The operating cash flow to net income ratio indicates a decrease in cash-generating efficiency at 0.76 for the latest year. The free cash flow to net income ratio is strong at 0.75, suggesting good cash conversion of earnings. Free cash flow growth was negative compared to the previous year, indicating potential areas for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.67M	6.07M	5.63M	5.74M	5.40M	6.04M
Gross Profit	3.38M	2.58M	2.16M	2.18M	2.01M	2.37M
EBITDA	1.88M	1.30M	716.06K	727.32K	-119.42K	875.70K
Net Income	1.45M	883.58K	767.93K	492.89K	995.02K	549.57K
Balance Sheet
Total Assets	67.72K	12.43M	11.82M	12.05M	11.33M	11.11M
Cash, Cash Equivalents and Short-Term Investments	2.18M	11.10M	10.44M	10.78M	10.09M	9.50M
Total Debt	0.00	35.30K	56.49K	50.14K	70.37K	769.98K
Total Liabilities	453.41K	745.60K	1.02M	735.07K	508.46K	1.28M
Stockholders Equity	12.84M	11.69M	10.80M	11.32M	10.82M	9.83M
Cash Flow
Free Cash Flow	1.29M	665.95K	914.84K	672.37K	368.01K	933.59K
Operating Cash Flow	1.31M	675.08K	932.36K	711.24K	386.39K	987.44K
Investing Cash Flow	-1.62M	-1.13M	806.79K	-8.76M	-18.38K	-53.85K
Financing Cash Flow	13.40K	35.30K	-1.21M	0.00	218.90K	460.70K

Pacific Health Care Organization Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFHO, the sentiment is Positive. The current price of 1.35 is above the 20-day moving average (MA) of 1.19, above the 50-day MA of 1.18, and above the 200-day MA of 0.90, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.17 is Neutral, neither overbought nor oversold. The STOCH value of 70.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PFHO.

Pacific Health Care Organization Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFHO	74 Outperform	$14.72M	10.52	11.75%	―	8.72%	66.72%
CNC	61 Neutral	$18.46B	―	-21.93%	―	14.92%	-286.72%
MOH	61 Neutral	$7.82B	9.42	19.71%	―	13.71%	-18.02%
ALHC	57 Neutral	$3.27B	―	-15.06%	―	47.39%	85.35%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CLOV	50 Neutral	$1.37B	-23.06	-17.08%	―	14.09%	38.79%
OSCR	44 Neutral	$4.58B	-15.76	-22.32%	―	37.38%	-912.18%

Pacific Health Care Organization Corporate Events

Pacific Health Care Sues Former Executives for Breaches

On September 16, 2025, Pacific Health Care Organization, Inc.’s subsidiaries, Medex Healthcare, Inc. and Medex Medical Management, Inc., filed lawsuits in California’s Superior Court against former executives David Kim and Darshan Patel, respectively. The lawsuits allege multiple breaches, including contract violations and misappropriation of trade secrets, seeking damages exceeding $1 million, along with other legal remedies, which could significantly impact the company’s operations and stakeholder interests.

Pacific Health Care Organization Board Restructuring

On August 11, 2025, Lauren Kubota and Kristina Kubota resigned from the board of directors of Pacific Health Care Organization, Inc., with Lauren also stepping down as the Company’s Secretary. Their resignations were not due to any disagreements with the company. The board elected Bruce Everakes and Scott Allen to fill the vacancies, with Allen also appointed as Secretary and Treasurer. Everakes brings over thirty years of business management experience, while Allen has been with the company since 2013 and has extensive accounting experience. These changes are expected to maintain the company’s operational continuity and strategic direction.