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Option Care Health, Inc. (OPCH) stock analysis

OPCHNasdaqServices-Home Health Care ServicesFiscal year ends December 31
Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Nov 4, 2026Score 15/303% below fair value
$31.70+0.05 (+0.16%)

Close on Nov 11, 2026Market cap $4.75BP/E 23.8Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value4Growth3Performance3Health5Dividend0

Solid15 of 30 checks passed

Option Care Health passes 15 of the 30 checks behind our score; 7 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
4/6
Growth
3/6
Past performance
3/6
Financial health
5/6
Dividend
0/6

What stands out

  • Trading below fair value

    The share price of $31.70 is below our fair value estimate of $32.79.

  • Return on capital over 10%

    Return on invested capital was 10.9%, above the 10% that usually covers the cost of capital.

  • Revenue growing 10%+ a year

    Revenue grew 12.7% a year over the last three fiscal years.

  • EPS growing 10%+ a year

    Diluted EPS grew 15.2% a year over the last three fiscal years.

What to watch

  • Margin of safety under 20%

    The price is 3.3% below fair value, less than the 20% cushion we look for.

  • Return on equity under 15%

    Return on equity was 16.0% over the last twelve months and averaged 14.7% over five years; we look for 15% on both.

  • High debt

    Debt is 92.0% of shareholders' equity, above the 40% we consider low.

  • P/B above the industry

    Option Care Health's price-to-book of 3.77 is above the Health Services median of 3.52.

Valuation4/6

  • P/E below its 5-year median

    Option Care Health's P/E of 23.8 is below its own 5-year median of 25.7.

  • P/E below the industry

    Option Care Health's P/E of 23.8 is below the Health Services median of 23.9.

  • EV/EBITDA below its 5-year median

    Option Care Health's EV/EBITDA of 14.2 is below its 5-year median of 16.6.

  • P/B above the industry

    Option Care Health's price-to-book of 3.77 is above the Health Services median of 3.52.

  • Trading below fair value

    The share price of $31.70 is below our fair value estimate of $32.79.

  • Margin of safety under 20%

    The price is 3.3% below fair value, less than the 20% cushion we look for.

Growth3/6

  • Revenue growing 10%+ a year

    Revenue grew 12.7% a year over the last three fiscal years.

  • EPS growing 10%+ a year

    Diluted EPS grew 15.2% a year over the last three fiscal years.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing slower than the industry

    Revenue grew 5.9% over the last twelve months; the Health Services median is 9.1%.

  • Guidance raised

    Option Care Health raised its full year 2026 Adjusted diluted earnings per share outlook on Jul 29, 2026.

  • Gross margin slipping

    Gross margin was 19.1% over the last twelve months, against 19.7% a year earlier.

Past performance3/6

  • Return on equity under 15%

    Return on equity was 16.0% over the last twelve months and averaged 14.7% over five years; we look for 15% on both.

  • Return on capital over 10%

    Return on invested capital was 10.9%, above the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    Option Care Health's return on equity of 16.0% is above the Health Services median of 4.6%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin below its 5-year average

    Net margin was 3.7% over the last twelve months, against a 5-year average of 4.4%.

  • Net margin above the industry

    Option Care Health's net margin of 3.7% is above the Health Services median of -2.6%.

Financial health5/6

  • High debt

    Debt is 92.0% of shareholders' equity, above the 40% we consider low.

  • Debt falling against equity

    Debt to equity fell from 111% five years ago to 92.0%.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 29.9% of total debt.

  • Interest well covered

    Operating income covers interest expense 6.2 times.

  • Short-term assets cover short-term debts

    Current assets are 1.47 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 3.90; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Option Care Health has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$32.79

The share price is 3% below this estimate.

20%+ below
Near fair value
20%+ above
$31.70Price
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E24.8×25.7×23.9×$33.0140%
EV/EBITDA16.4×16.6×16.2×$37.4835%
P/B3.7×3.9×3.5×$31.0110%
Earnings power8.3% cost of equity––$22.4815%
Fair value$32.79100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 25.7
  • Health Services median 23.9

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$197.17M
Value traded per 1% price move
$66.05M

Downside

High risk

Typical loss in a bad month
29.7%
Volatility (annualized)
52%
Sharpe ratio, 1 year
0.16
Beta to the S&P 500 (5Y)
0.68

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

19.3%−3.2 pts over 5 years

Operating margin

6.0%+2.3 pts over 5 years

Net margin

3.7%+3.9 pts over 5 years

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