D/E 0.94 — more levered than most Healthcare peers (≈90th pctile)
P/E16.9xA-
P/E 16.9 — cheaper than most Healthcare peers (≈25th pctile)
PEG1.20B+
PEG 1.20 — near fair value, classic Lynch benchmark (1.0)
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 77.1
Quality0.62
Growth0.92
Value0.80
Why this score
Buying back stock
Entry · Margin of safety
52-week rangeNear 52-week low
41% off the 12-month high
vs DCF fair value34% belowest. fair value ~$33
Quality signals · context only
Gross profitability12% · C+gross profit ÷ total assets (Novy-Marx)
ROIC10.4% · Breturn on invested capital — not score-weighted
Why now
Option Care’s home infusion platform for chronic inflammatory disorders is primed to compound as payers push more therapy out of hospitals, and the business is already delivering 16.2% YoY revenue growth, $213m of free cash flow, and a modest PE 16.8 that leaves ample upside. The growth engine is the expanding anti‑infective and immunoglobulin infusion lines, which are protected by long‑term payer contracts and patient‑level nursing relationships. The whole thesis hinges on the continued secular shift to outpatient infusion, which fuels compounding earnings.
Moat
Home‑based infusion creates high switching costs because patients, physicians, and insurers rely on OPCH’s integrated pump, nursing and pharmacy network, making it hard for a generic competitor to win back contracts. The 15.3% ROE reflects pricing power in niche infusion therapies where OPCH leverages its specialist expertise and scale to command premium reimbursement. These structural advantages lock in recurring revenue and protect margins.
Risk
The growth story could sputter if payer pressure squeezes the already thin 4.1% profit margin or if the debt load climbs; the current debt‑to‑equity of 0.94 limits flexibility for cap‑ex and acquisitions. A slowdown in revenue growth below 10% YoY would force earnings to flatten while the PE of 16.8 looks stretched for a low‑margin business. The bear case is confirmed if margin dips under 3% or debt‑to‑equity rises above 1.2, eroding cash flow and forcing a valuation downgrade.
Horizon
1-3 yr $28.58 (12-analyst consensus) — fundamentals + valuation re-rating. 5 yr $41.85 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $62.08 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · OPCH
$
%
%
Shares to buy
92
Position size
$1,994
4.0% of portfolio
Stop price
$16.25
25% below $21.67
$ at risk if stopped
$498.41
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Option Care Health, Inc. (OPCH): score, valuation & FAQ
Option Care Health, Inc. (OPCH) is a Medical Care Facilities company that scores 77.1 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are P/E (A-), Rev (B+) and PEG (B+). On valuation, OPCH sits about 34% below our discounted-cash-flow fair value (a margin of safety).
Is OPCH a good stock to buy?
Bull Rankings scores OPCH 77.1 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by P/E (A-), Rev (B+) and PEG (B+). A score is a quantitative screen of Option Care Health, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does OPCH score 77.1 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). OPCH earns its highest marks on P/E (A-), Rev (B+) and PEG (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is OPCH overvalued or undervalued?
Based on $21.67, OPCH sits about 34% below our discounted-cash-flow fair value (a margin of safety). It trades at a 16.9x× P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in OPCH?
The growth story could sputter if payer pressure squeezes the already thin 4.1% profit margin or if the debt load climbs; the current debt‑to‑equity of 0.94 limits flexibility for cap‑ex and acquisitions. A slowdown in revenue growth below 10% YoY would force earnings to flatten while the PE of 16.8 looks stretched for a low‑margin business. The bear case is confirmed if margin dips under 3% or debt‑to‑equity rises above 1.2, eroding cash flow and forcing a valuation downgrade.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.