Option Care Health, Inc.

OPCH

Services-Home Health Care Services

Mkt Cap

$5.171B

PE

18.96

Debt

$1.093B

Cash

$219.5M

EV

$6.044B

FCF

$170.8M

Market Cap

$5.171B

P/E Ratio

18.96

Debt

$1.093B

Cash

$219.5M

EV

$6.044B

FCF

$170.8M

Charts data: {"Earnings":[{"time":"2014-12-30","value":-147468000},{"time":"2015-12-30","value":-309517000},{"time":"2016-12-30","value":-50590000},{"time":"2017-12-30","value":-74273000},{"time":"2018-12-30","value":-62903000},{"time":"2019-12-30","value":-75920000},{"time":"2020-12-30","value":-8076000},{"time":"2021-12-30","value":139898000},{"time":"2022-12-30","value":150556000},{"time":"2023-12-30","value":267090000}],"Sales":[{"time":"2014-12-30","value":984055000},{"time":"2015-12-30","value":982223000},{"time":"2016-12-30","value":935589000},{"time":"2017-12-30","value":817190000},{"time":"2018-12-30","value":708903000},{"time":"2019-12-30","value":2310417000},{"time":"2020-12-30","value":3032610000},{"time":"2021-12-30","value":3438640000},{"time":"2022-12-30","value":3944735000},{"time":"2023-12-30","value":4302324000}],"Net Margins":[{"time":"2014-12-30","value":-0.14985747747839298},{"time":"2015-12-30","value":-0.31511886811854334},{"time":"2016-12-30","value":-0.054072888843284816},{"time":"2017-12-30","value":-0.09088828791345954},{"time":"2018-12-30","value":-0.0887328731857532},{"time":"2019-12-30","value":-0.03285986901931556},{"time":"2020-12-30","value":-0.0026630526180418846},{"time":"2021-12-30","value":0.040684107670474375},{"time":"2022-12-30","value":0.038166315354516846},{"time":"2023-12-30","value":0.06208040119712044}],"Assets":[{"time":"2014-12-30","value":824713000},{"time":"2015-12-30","value":546505000},{"time":"2016-12-30","value":607740000},{"time":"2017-12-30","value":603092000},{"time":"2018-12-30","value":583938000},{"time":"2019-12-30","value":2589547000},{"time":"2020-12-30","value":2647439000},{"time":"2021-12-30","value":2790918000},{"time":"2022-12-30","value":3112936000},{"time":"2023-12-30","value":3217035000}],"Stockholders Equity":[{"time":"2014-12-30","value":216805000},{"time":"2015-12-30","value":-80878000},{"time":"2016-12-30","value":-31563000},{"time":"2017-12-30","value":-84752000},{"time":"2018-12-30","value":-144004000},{"time":"2019-12-30","value":906827000},{"time":"2020-12-30","value":1015724000},{"time":"2021-12-30","value":1175886000},{"time":"2022-12-30","value":1386103000},{"time":"2023-12-30","value":1421672000}],"ROE":[{"time":"2014-12-30","value":-0.6801872650538502},{"time":"2015-12-30","value":3.8269615964786468},{"time":"2016-12-30","value":1.602826093844058},{"time":"2017-12-30","value":0.8763569001321503},{"time":"2018-12-30","value":0.4368142551595789},{"time":"2019-12-30","value":-0.08372048913409062},{"time":"2020-12-30","value":-0.007950978809204074},{"time":"2021-12-30","value":0.11897241739420318},{"time":"2022-12-30","value":0.10861819071165707},{"time":"2023-12-30","value":0.18787033858724095}],"ROA":[{"time":"2014-12-30","value":-0.11042993138218993},{"time":"2015-12-30","value":-0.5263391917731768},{"time":"2016-12-30","value":-0.01808174548326587},{"time":"2017-12-30","value":0.003747355295709444},{"time":"2018-12-30","value":0.08333932712034497},{"time":"2019-12-30","value":-0.00012318756909992365},{"time":"2020-12-30","value":0.041834769375233956},{"time":"2021-12-30","value":0.06837929312147473},{"time":"2022-12-30","value":0.07717184034621978},{"time":"2023-12-30","value":0.11151324122989026}]}

Option Care Health, Inc. offers home and alternate site infusion services in the United States. The company provides anti-infective therapies; home infusion services to treat heart failures; home parenteral nutrition and enteral nutrition support services for numerous acute and chronic conditions, such as stroke, cancer, and gastrointestinal diseases; immunoglobulin infusion therapies for the treatment of immune deficiencies; and treatments for chronic inflammatory disorders, including Crohn's disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, ulcerative colitis, and other chronic inflammatory disorders. It also offers treatments to manage the progression of neurological disorders, such as multiple sclerosis, duchenne muscular dystrophy, and others; infusion therapies for bleeding disorders; therapies that women need to survive and thrive through high-risk pregnancies; and other infusion therapies to treat various conditions, including pain management, chemotherapy, and respiratory medications, as well as nursing services. Option Care Health, Inc. is headquartered in Bannockburn, Illinois.

Sector

10-Q
9/30/23
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10-K
12/31/22
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10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Option Care Health, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$170.8M	$222.1M	$282.5M	$351.6M	$427.8M	$508.6M	$590.5M	$669.3M	$739.9M	$797.5M	$837.3M	$8.373B
DCF		$193.1M	$213.6M	$231.2M	$244.6M	$252.9M	$255.3M	$251.6M	$241.9M	$226.7M	$207M	$2.07B
Value	$4.388B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 120%

Earnings Stability -21%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-32%	-5.4%	-9.1%	-8.9%	-3.3%	-0.27%	4.1%	3.8%	6.2%	6.2%
ROA	-53%	-1.8%	0.37%	8.3%	-0.012%	4.2%	6.8%	7.7%	11%	11%
ROE	380%	160%	88%	44%	-8.4%	-0.8%	12%	11%	19%	19%

What is the average Net Margin?

The average Net Margin over the past 5 years is +0.28%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +2.89%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +6.37%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.14%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +12.68%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.55%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-	-	-	-11.74	120.49	11.65	6.05	4.74	3.32	6.40
Debt Equity	-5.71	-15.41	-5.95	-3.77	1.48	1.15	0.94	0.79	0.77	0.76
MIN
Graham Stability	-	-	-	-	-	-	-	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 6.40.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -7.93.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	24%	43%	12%	9.1%	3.2%
Net Income	-	-	-	77%	70%
Stockholders Equity	-	-	12%	2.6%	-2.6%
FCF	-	-	49%	42%	-230%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +43.42%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +3.2%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +69.78%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -2.62%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -232.79%.