Recent News
On March 30, 2026 Option Care Health filed a Form 8‑K reporting a Fifth Amendment to its First Lien Credit Agreement that added $450,000,000 of revolving credit commitments, increasing total revolving capacity to $850,000,000.
Technical Analysis
ADX / DI+ / DI-: ADX at 36.03 indicates a strong directional structure is in place; DI+ shows an increasing trend while DI- shows a decreasing trend, which together point to a bullish directional tilt that supports a near‑term upside attempt against valuation headwinds.
MACD: MACD at -0.77 and rising, with the MACD line above the signal line (-1.07), signals a bullish momentum cross; momentum has moved from contraction toward expansion, implying upward pressure for price in the coming weeks.
MRO: MRO reads -34.38 with a dip & reversal pattern, indicating the current market price sits materially below the internal target and therefore implies meaningful upside potential as momentum normalizes.
RSI: RSI at 42.32 and increasing signals improving buying pressure from a neutral zone; momentum breadth appears constructive but not yet overbought, supporting a measured bounce rather than an immediate surge.
Price vs. Moving Averages & Ichimoku: The $29.00 close trades below the 200‑day average ($30.19) and below the Ichimoku cloud (Senkou A $34.09 / Senkou B $33.77), which keeps the medium‑term bias cautious. However, price sits above the 20‑day average ($27.95) and the 12‑day EMA shows a dip & reversal, implying the short‑term moving averages support a modest recovery toward the 50‑day average ($31.17) as the first meaningful resistance band.
Bands & Volatility: Price slightly exceeds the 1x Bollinger upper band ($28.96) but remains below the 2x upper band ($29.96), consistent with a short‑term extension that could consolidate near current levels; 42‑day and 52‑week volatility both read 0.02, indicating historically low realized volatility as momentum shifts.
Fundamental Analysis
Profitability: EBIT of $94,250,000 produces an EBIT margin of 6.43%; QoQ margin improved by 11.03% while YoY margin declined by 5.81%. The EBIT margin sits slightly below the industry peer mean of 6.61% and above the industry peer median of 2.03%, placing operating profitability near the peer center.
Top‑line & Earnings: Reported total revenue equals $1,465,446,000. Revenue growth QoQ registers +58.64% while revenue growth YoY shows -60.05%; those figures indicate large period‑to‑period swings in reported revenue. Reported EPS came in at $0.46 versus an estimate of $0.47, an EPS surprise of -2.13%.
Cash Flow & Liquidity: Operating cash flow stands at $35,891,000 with free cash flow of $22,245,000 and a free cash flow yield of 0.43%; free cash flow contracted sharply QoQ (free cash growth -82.92%). Current ratio reads 1.53 and quick ratio 0.96, near the industry peer mean current ratio of 1.28 and slightly below the peer mean quick ratio of 0.99, reflecting modest working‑capital headroom.
Leverage & Coverage: Total debt equals $1,273,347,000 with net debt $928,208,000 and debt-to‑EBITDA at 11.11, indicating elevated leverage relative to typical coverage norms. Interest coverage of 7.40 compares favorably to the industry peer mean of 2.98, signaling adequate near‑term interest service capacity despite leverage levels.
Valuation & Multiples: Trailing P/E stands at 89.78 and forward P/E at 56.76; P/E sits above the industry peer mean of 66.24 and the industry peer median of 71.49. Price‑to‑book at 3.93 sits above the industry peer mean of 3.03. WMDST values the stock as over‑valued, consistent with elevated multiples relative to peer central tendencies and compressed free cash flow yield.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-24 |
| NEXT REPORT DATE: | 2026-05-26 |
| CASH FLOW | Begin Period Cash Flow | $ 309.8 M |
| Operating Cash Flow | $ 35.9 M | |
| Capital Expenditures | $ -13.65 M | |
| Change In Working Capital | $ -65.45 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -77.20 M | |
| End Period Cash Flow | $ 232.6 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.5 B | |
| Forward Revenue | $ 522.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.2 B | |
| Depreciation | $ 20.3 M | |
| Depreciation and Amortization | $ 20.3 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 1.4 B | |
| PROFITABILITY | ||
| Gross Profit | $ 282.9 M | |
| EBITDA | $ 114.6 M | |
| EBIT | $ 94.2 M | |
| Operating Income | $ 91.5 M | |
| Interest Income | — | |
| Interest Expense | $ 12.7 M | |
| Net Interest Income | $ -12.73 M | |
| Income Before Tax | $ 81.5 M | |
| Tax Provision | $ 23.0 M | |
| Tax Rate | 28.23 % | |
| Net Income | $ 58.5 M | |
| Net Income From Continuing Operations | $ 58.5 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.47 | |
| EPS Actual | $ 0.46 | |
| EPS Difference | $ -0.01 | |
| EPS Surprise | -2.128 % | |
| Forward EPS | $ 0.53 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.5 B | |
| Intangible Assets | $ 1.9 B | |
| Net Tangible Assets | $ -589.53 M | |
| Total Current Assets | $ 1.3 B | |
| Cash and Short-Term Investments | $ 232.6 M | |
| Cash | $ 232.6 M | |
| Net Receivables | $ 473.6 M | |
| Inventory | $ 471.1 M | |
| Long-Term Investments | $ 44.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 639.8 M | |
| Short-Term Debt | $ 6.8 M | |
| Total Current Liabilities | $ 829.3 M | |
| Net Debt | $ 928.2 M | |
| Total Debt | $ 1.3 B | |
| Total Liabilities | $ 2.1 B | |
| EQUITY | ||
| Total Equity | $ 1.3 B | |
| Retained Earnings | $ 876.9 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 8.46 | |
| Shares Outstanding | 156.858 M | |
| Revenue Per-Share | $ 9.34 | |
| VALUATION | Market Capitalization | $ 5.2 B |
| Enterprise Value | $ 6.3 B | |
| Enterprise Multiple | 54.565 | |
| Enterprise Multiple QoQ | -0.65 % | |
| Enterprise Multiple YoY | 36.954 % | |
| Enterprise Multiple IPRWA | high: 269.619 mean: 63.086 OPCH: 54.565 median: 51.214 low: -93.578 |
|
| EV/R | 4.266 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.605 | |
| Asset To Liability | 1.623 | |
| Debt To Capital | 0.49 | |
| Debt To Assets | 0.368 | |
| Debt To Assets QoQ | 0.472 % | |
| Debt To Assets YoY | 19293.158 % | |
| Debt To Assets IPRWA | high: 1.021 OPCH: 0.368 mean: 0.329 median: 0.315 low: 0.001 |
|
| Debt To Equity | 0.96 | |
| Debt To Equity QoQ | 2.204 % | |
| Debt To Equity YoY | 20589.871 % | |
| Debt To Equity IPRWA | high: 2.453 mean: 1.081 median: 1.063 OPCH: 0.96 low: -1.878 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.928 | |
| Price To Book QoQ | 17.7 % | |
| Price To Book YoY | 15.778 % | |
| Price To Book IPRWA | high: 12.592 OPCH: 3.928 mean: 3.032 median: 1.745 low: -1.198 |
|
| Price To Earnings (P/E) | 89.78 | |
| Price To Earnings QoQ | 42.645 % | |
| Price To Earnings YoY | 9.649 % | |
| Price To Earnings IPRWA | high: 374.681 OPCH: 89.78 median: 71.489 mean: 66.236 low: -183.818 |
|
| PE/G Ratio | 5.746 | |
| Price To Sales (P/S) | 3.556 | |
| Price To Sales QoQ | 12.519 % | |
| Price To Sales YoY | 0.477 % | |
| Price To Sales IPRWA | high: 27.104 mean: 6.071 median: 3.664 OPCH: 3.556 low: 0.027 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 56.763 | |
| Forward PE/G | 3.633 | |
| Forward P/S | 9.957 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 6.319 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.423 | |
| Asset Turnover Ratio QoQ | 1.047 % | |
| Asset Turnover Ratio YoY | 7.488 % | |
| Asset Turnover Ratio IPRWA | high: 0.934 OPCH: 0.423 median: 0.38 mean: 0.343 low: 0.001 |
|
| Receivables Turnover | 3.091 | |
| Receivables Turnover Ratio QoQ | 2.948 % | |
| Receivables Turnover Ratio YoY | -3.717 % | |
| Receivables Turnover Ratio IPRWA | high: 6.521 mean: 3.976 OPCH: 3.091 median: 2.824 low: 0.053 |
|
| Inventory Turnover | 2.667 | |
| Inventory Turnover Ratio QoQ | -5.999 % | |
| Inventory Turnover Ratio YoY | -13.576 % | |
| Inventory Turnover Ratio IPRWA | high: 10.112 mean: 5.234 median: 4.822 OPCH: 2.667 low: 0.836 |
|
| Days Sales Outstanding (DSO) | 29.517 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 14.566 | |
| Cash Conversion Cycle Days QoQ | 0.29 % | |
| Cash Conversion Cycle Days YoY | 146.272 % | |
| Cash Conversion Cycle Days IPRWA | high: 105.119 mean: 19.104 median: 15.429 OPCH: 14.566 low: -49.824 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 3.364 | |
| CapEx To Revenue | -0.009 | |
| CapEx To Depreciation | -0.672 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.5 B | |
| Net Invested Capital | $ 2.5 B | |
| Invested Capital | $ 2.5 B | |
| Net Tangible Assets | $ -589.53 M | |
| Net Working Capital | $ 435.6 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.28 | |
| Current Ratio | 1.525 | |
| Current Ratio QoQ | -2.034 % | |
| Current Ratio YoY | -10.033 % | |
| Current Ratio IPRWA | high: 9.13 OPCH: 1.525 mean: 1.282 median: 0.842 low: 0.244 |
|
| Quick Ratio | 0.957 | |
| Quick Ratio QoQ | -9.046 % | |
| Quick Ratio YoY | -20.094 % | |
| Quick Ratio IPRWA | high: 6.629 mean: 0.99 OPCH: 0.957 median: 0.625 low: 0.331 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 11.115 | |
| Cost Of Debt | 0.717 % | |
| Interest Coverage Ratio | 7.401 | |
| Interest Coverage Ratio QoQ | 25.974 % | |
| Interest Coverage Ratio YoY | -12.409 % | |
| Interest Coverage Ratio IPRWA | high: 77.342 OPCH: 7.401 mean: 2.985 median: 2.72 low: -124.431 |
|
| Operating Cash Flow Ratio | 0.044 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 49.77 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -0.692 % | |
| Revenue Growth | 2.121 % | |
| Revenue Growth QoQ | 58.639 % | |
| Revenue Growth YoY | -60.049 % | |
| Revenue Growth IPRWA | high: 19.662 % median: 2.743 % mean: 2.44 % OPCH: 2.121 % low: -6.762 % |
|
| Earnings Growth | 15.625 % | |
| Earnings Growth QoQ | 60.158 % | |
| Earnings Growth YoY | 21.096 % | |
| Earnings Growth IPRWA | high: 220.0 % OPCH: 15.625 % median: -31.875 % mean: -35.039 % low: -224.49 % |
|
| MARGINS | ||
| Gross Margin | 19.305 % | |
| Gross Margin QoQ | 1.514 % | |
| Gross Margin YoY | -3.151 % | |
| Gross Margin IPRWA | high: 81.41 % median: 28.25 % mean: 26.526 % OPCH: 19.305 % low: -5.777 % |
|
| EBIT Margin | 6.431 % | |
| EBIT Margin QoQ | 11.032 % | |
| EBIT Margin YoY | -5.814 % | |
| EBIT Margin IPRWA | high: 33.321 % mean: 6.61 % OPCH: 6.431 % median: 2.026 % low: -87.897 % |
|
| Return On Sales (ROS) | 6.244 % | |
| Return On Sales QoQ | 6.028 % | |
| Return On Sales YoY | -8.553 % | |
| Return On Sales IPRWA | high: 30.502 % mean: 7.674 % OPCH: 6.244 % median: 4.732 % low: -100.812 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 22.2 M | |
| Free Cash Flow Yield | 0.427 % | |
| Free Cash Flow Yield QoQ | -85.132 % | |
| Free Cash Flow Yield YoY | -21.072 % | |
| Free Cash Flow Yield IPRWA | high: 11.812 % median: 1.531 % mean: 0.976 % OPCH: 0.427 % low: -29.019 % |
|
| Free Cash Growth | -82.92 % | |
| Free Cash Growth QoQ | -237.462 % | |
| Free Cash Growth YoY | 0.03 % | |
| Free Cash Growth IPRWA | high: 358.233 % median: -27.332 % mean: -73.842 % OPCH: -82.92 % low: -534.944 % |
|
| Free Cash To Net Income | 0.38 | |
| Cash Flow Margin | 2.476 % | |
| Cash Flow To Earnings | 0.62 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.687 % | |
| Return On Assets QoQ | 11.722 % | |
| Return On Assets YoY | -3.929 % | |
| Return On Assets IPRWA | high: 9.352 % OPCH: 1.687 % median: 1.157 % mean: 1.115 % low: -16.801 % |
|
| Return On Capital Employed (ROCE) | 3.589 % | |
| Return On Equity (ROE) | 0.044 | |
| Return On Equity QoQ | 15.653 % | |
| Return On Equity YoY | 3.013 % | |
| Return On Equity IPRWA | high: 0.294 OPCH: 0.044 mean: 0.04 median: 0.039 low: -0.444 |
|
| DuPont ROE | 4.358 % | |
| Return On Invested Capital (ROIC) | 2.72 % | |
| Return On Invested Capital QoQ | 9.855 % | |
| Return On Invested Capital YoY | -116.193 % | |
| Return On Invested Capital IPRWA | high: 13.153 % OPCH: 2.72 % median: 1.21 % mean: 1.155 % low: -17.767 % |
|