# Option Care Health (OPCH.US)

Canonical: https://gigainvestors.com/s/OPCH

Analysis as of: 2026-10-16T07:30:55.886Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $31.22 per share; close as of 2026-10-15.

Estimated value: low $19.67 per share, central $22.32 per share, high $25.83 per share. Buy at or below the central value $22.32 per share. Valuation as of 2026-10-16T07:30:55.886Z; scenarios are not confidence intervals.

Expected annual return: 7.9% at the stated quote. About 7.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 4

- Operating margin variation: 1.23×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.08×

- FY2018: 0.02×

- FY2019: -0.00×

- FY2020: 0.04×

- FY2021: 0.06×

- FY2022: 0.06×

- FY2023: 0.07×

- FY2024: 0.06×

- FY2025: 0.06×

- LTM to Jun 2026: 0.06×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 4.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 19.2%

- ROIC, second-lowest year: -12.5%

- Typical minus recent gross margin: 4.3 pp

- Typical gross margin (annual median): 22.4%

- Recent gross margin (lower of latest and 3-year median): 18.1%

- Years with nonpositive capital: 2

- Capital spending / revenue: 0.9%

- ROIC including acquisitions, ten-year median: 6.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -63.7%

- FY2017: -12.5%

- FY2018: 8.4%

- FY2019: -0.0%

- FY2020: 13.9%

- FY2021: 28.7%

- FY2022: 24.6%

- FY2023: 33.3%

- FY2024: 35.9%

- FY2025: 32.6%

### economics: pass

- Owner earnings / net income, 5-yr: 1.15×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.1B

- Net income, five-year total: $977M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -2.0 pp

- Working capital / revenue, final three-year average: 5.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.31×

- FY2022: 1.20×

- FY2023: 1.08×

- FY2024: 1.13×

- FY2025: 1.14×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -12.5% vs 33.3%

- Per-share earnings: -0.45 to 1.27 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 6.6%

- Ordinary dilution, 5-year annual growth: -2.0%

- Market cap gain: $4.4B

- Cumulative retained earnings: $1.5B

- Diluted shares, 10-year annual growth: 6.6%

- Diluted shares, 5-year annual growth: -2.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $1.72

- Per-share value, starting three-year median: -$0.45

- Per-share value, ending three-year median: $1.27

- Buybacks concentrated in cheaper years (correlation): 0.64

- Average buyback yield: 2.5%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.1B

- Cumulative net income, 10 years: $780M

- ROIC, first three-year median: -12.5%

- ROIC, last three-year median: 33.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.29

- FY2017: -$0.45

- FY2018: -$0.04

- FY2019: -$0.49

- FY2020: -$0.04

- FY2021: $0.77

- FY2022: $0.83

- FY2023: $1.48

- FY2024: $1.23

- FY2025: $1.27

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -1.5%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 15.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.25×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.23×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.2%

- FY2017: -10.4%

- FY2018: 2.4%

- FY2019: -4.5%

- FY2020: -5.1%

- FY2021: -2.5%

- FY2022: -3.6%

- FY2023: -3.1%

- FY2024: -3.3%

- FY2025: -1.5%

## Holders

- [Henry Ellenbogen](https://gigainvestors.com/DCP): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 5.2% a year for ten years · sales +0.8%

Story as of 2026-10-16T09:59:20.164Z; price observation 2026-10-15.

Price needs cash profits to grow 5.2% a year for ten years

- 2025-05-13: OPCH Q1 Earnings Call: Revenue Growth Surpasses Expectations as Acute and Chronic Therapies Expand ([finance.yahoo.com](https://finance.yahoo.com/news/opch-q1-earnings-call-revenue-103405006.html))

- 2026-04-30: Option Care Health (NASDAQ:OPCH) Misses Q1 CY2026 Revenue Estimates, Stock Drops 14.4% ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/option-care-health-nasdaq-opch-120520582.html))

- 2026-05-03: OPCH Q1 Deep Dive: Revenue Miss Spurs Guidance Cut and Strategic Reset ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/opch-q1-deep-dive-revenue-004455254.html))

- 2026-07-29: Option Care Health (NASDAQ:OPCH) Posts Better-Than-Expected Sales In Q2 CY2026, Stock Soars ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/option-care-health-nasdaq-opch-121536593.html))

### Sales · FY2025–2026

sales +0.8%; source https://www.sec.gov/Archives/edgar/data/1014739/000101473926000008/bios-20251231.htm; observed 2026-02-24.

- FY2017: $817M 

- FY2018: $1.9B 

- FY2019: $2.3B 

- FY2020: $3.0B 

- FY2021: $3.4B 

- FY2022: $3.9B 

- FY2023: $4.3B 

- FY2024: $5.0B 

- FY2025: $5.6B 

- FY2026: $5.7B 

### Gross margin · FY2025

gross margin 18.1%; source https://www.sec.gov/Archives/edgar/data/1014739/000101473926000008/bios-20251231.htm; observed 2026-02-24.

- FY2016: 28.0% 

- FY2017: 32.9% 

- FY2018: 21.8% 

- FY2019: 22.2% 

- FY2020: 22.5% 

- FY2021: 22.7% 

- FY2022: 22.0% 

- FY2023: 22.8% 

- FY2024: 20.3% 

- FY2025: 18.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical care facilities; annual sales are USD 5.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1014739/000101473926000008/bios-20251231.htm (filed 2026-02-24); FY2025: revenue 5649519000; grossProfit 1020357000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); OPCH.US: Option Care Health, Inc. offers home and alternate site infusion services in the United States. The company provides anti-infective therapy and services; home infusion services to treat heart failure; 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 Duchenne muscular dystrophy, multiple sclerosis, Alzheimer's disease, and other neurological disorder; infusion therapies for bleeding disorders, such as hemophilia and von Willebrand diseases; therapies for women with high-risk pregnancies; and other infusion therapies to treat various conditions, including pain management, chemotherapy, and respiratory medications, as well as nursing services. The company markets its services through patient referrals, including physicians, hospital discharge planners, hospital personnel, health maintenance organizations, and preferred provider organizations. The company is headquartered in Bannockburn, Illinois.

### Why customers stay

Margins ranged from 18.1% to 22.8% during 2023–25; it earns 19.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 22.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 20.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1014739/000101473926000008/bios-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 18.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2016,-0.6370723442202653],[2017,-0.12518460017272237],[2018,0.08382319017384313],[2019,-0.00034947220696808837],[2020,0.13864381829475445],[2021,0.28745963174511363],[2022,0.2463453375105315],[2023,0.33270654603736305],[2024,0.3590982469373796],[2025,0.32608606283744995]]; median 0.19249457790264296. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 22% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1014739/000101473926000008/bios-20251231.htm (filed 2026-02-24); Gross margin observations: [[2021,0.2267192843682386],[2022,0.2197658397839145],[2023,0.22806813247909735]]; range within 2 percentage points.

### Where the cash goes

Reinvests 49.5% of cash earnings; paid dividends in 2 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 0; upkeep 13875000; cash acquisitions 10727000; owner earnings 21065000. Growth capex plus acquisitions / owner earnings = 0.5092333254213149.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2020: growth capex 0; upkeep 26875000; cash acquisitions 0; owner earnings 42945000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 0; upkeep 25632000; cash acquisitions 85909000; owner earnings 183070000. Growth capex plus acquisitions / owner earnings = 0.4692685857868575.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2022: growth capex 0; upkeep 35358000; cash acquisitions 87364000; owner earnings 180632000. Growth capex plus acquisitions / owner earnings = 0.48365738075202624.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: growth capex 0; upkeep 41866000; cash acquisitions 12494000; owner earnings 287424000. Growth capex plus acquisitions / owner earnings = 0.04346888220886217.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 0; upkeep 35606000; cash acquisitions 0; owner earnings 239715000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1014739/000101473926000008/bios-20251231.htm (filed 2026-02-24); FY2025: growth capex 0; upkeep 41307000; cash acquisitions 117247000; owner earnings 236968000. Growth capex plus acquisitions / owner earnings = 0.49477988589176597.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,2000000],[2020,904000],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1014739/000101473926000008/bios-20251231.htm (filed 2026-02-24); FY2025: cash repurchases 309951000 USD.

### Are managers owners

Insiders own 1.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); OPCH.US SharesStats.PercentInsiders = 1.28 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 5.2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate 0.061335022800356964. Price 31.22; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -3.3601861547411285 → FY2025 1.4505432620206287. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $10.76 per share

- 2016-11: $4.56 per share

- 2016-12: $4.16 per share

- 2017-01: $5.48 per share

- 2017-02: $6.04 per share

- 2017-03: $6.80 per share

- 2017-04: $6.08 per share

- 2017-05: $7.24 per share

- 2017-06: $10.86 per share

- 2017-07: $11.56 per share

- 2017-08: $12.12 per share

- 2017-09: $11.00 per share

- 2017-10: $10.12 per share

- 2017-11: $10.48 per share

- 2017-12: $11.64 per share

- 2018-01: $11.16 per share

- 2018-02: $12.64 per share

- 2018-03: $9.84 per share

- 2018-04: $10.52 per share

- 2018-05: $10.60 per share

- 2018-06: $11.72 per share

- 2018-07: $10.60 per share

- 2018-08: $11.60 per share

- 2018-09: $12.40 per share

- 2018-10: $10.72 per share

- 2018-11: $15.80 per share

- 2018-12: $14.28 per share

- 2019-01: $14.52 per share

- 2019-02: $13.00 per share

- 2019-03: $8.00 per share

- 2019-04: $7.68 per share

- 2019-05: $8.28 per share

- 2019-06: $10.40 per share

- 2019-07: $11.32 per share

- 2019-08: $14.00 per share

- 2019-09: $12.80 per share

- 2019-10: $14.16 per share

- 2019-11: $12.44 per share

- 2019-12: $14.92 per share

- 2020-01: $16.72 per share

- 2020-02: $14.75 per share

- 2020-03: $9.47 per share

- 2020-04: $14.30 per share

- 2020-05: $15.20 per share

- 2020-06: $13.88 per share

- 2020-07: $11.78 per share

- 2020-08: $11.62 per share

- 2020-09: $13.37 per share

- 2020-10: $13.33 per share

- 2020-11: $15.75 per share

- 2020-12: $15.64 per share

- 2021-01: $18.48 per share

- 2021-02: $19.19 per share

- 2021-03: $17.74 per share

- 2021-04: $19.08 per share

- 2021-05: $18.34 per share

- 2021-06: $21.87 per share

- 2021-07: $20.72 per share

- 2021-08: $26.75 per share

- 2021-09: $24.26 per share

- 2021-10: $27.33 per share

- 2021-11: $25.31 per share

- 2021-12: $28.44 per share

- 2022-01: $23.37 per share

- 2022-02: $25.70 per share

- 2022-03: $28.56 per share

- 2022-04: $29.88 per share

- 2022-05: $30.36 per share

- 2022-06: $27.79 per share

- 2022-07: $33.60 per share

- 2022-08: $30.96 per share

- 2022-09: $31.47 per share

- 2022-10: $30.26 per share

- 2022-11: $30.11 per share

- 2022-12: $30.09 per share

- 2023-01: $28.87 per share

- 2023-02: $30.67 per share

- 2023-03: $31.77 per share

- 2023-04: $32.15 per share

- 2023-05: $27.55 per share

- 2023-06: $32.49 per share

- 2023-07: $33.78 per share

- 2023-08: $34.83 per share

- 2023-09: $32.35 per share

- 2023-10: $27.73 per share

- 2023-11: $29.75 per share

- 2023-12: $33.69 per share

- 2024-01: $31.24 per share

- 2024-02: $32.27 per share

- 2024-03: $33.54 per share

- 2024-04: $29.89 per share

- 2024-05: $29.82 per share

- 2024-06: $27.70 per share

- 2024-07: $29.69 per share

- 2024-08: $32.02 per share

- 2024-09: $31.30 per share

- 2024-10: $23.04 per share

- 2024-11: $23.80 per share

- 2024-12: $23.20 per share

- 2025-01: $30.92 per share

- 2025-02: $33.50 per share

- 2025-03: $34.95 per share

- 2025-04: $32.31 per share

- 2025-05: $32.68 per share

- 2025-06: $32.48 per share

- 2025-07: $29.35 per share

- 2025-08: $28.68 per share

- 2025-09: $27.76 per share

- 2025-10: $26.03 per share

- 2025-11: $31.10 per share

- 2025-12: $31.86 per share

- 2026-01: $34.00 per share

- 2026-02: $32.46 per share

- 2026-03: $26.92 per share

- 2026-04: $20.33 per share

- 2026-05: $20.87 per share

- 2026-06: $20.97 per share

- 2026-07: $23.03 per share

- 2026-08: $23.45 per share

- 2026-09: $22.49 per share

- 2026-10: $31.22 per share

## Annual estimated value (USD per share)

- FY2021: low $2.53 per share, central $2.84 per share, high $3.26 per share

- FY2022: low $4.54 per share, central $5.00 per share, high $5.61 per share

- FY2023: low $13.37 per share, central $15.01 per share, high $17.20 per share

- FY2024: low $16.97 per share, central $19.06 per share, high $21.84 per share

- FY2025: low $18.86 per share, central $21.36 per share, high $24.69 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1014739/000101473926000008/bios-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.