Rankings Health insurance & services Option Care Health
Option Care Health
60
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- Guidance cut−6
- Margin−5
- Acquisitions and delisting−5
Strengths
- Cash flow+1
How the score is built
From 100 to 60, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 31.69 USD
- Median analyst target
- 32.05 USD
- Upside to median
- +1.1%
- Analysts
- 11
- Target range
- 23.00 – 33.00 USD
- 52-week change
- +22%
- P/E (trailing)
- 24.0
- Forward P/E
- 19.5
- PEG
- 2.08
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−10 of −30
- −5MarginGross margin has fallen from 22.7-22.8% in 2021 and 2023 to 19.1% TTM and 18.5% in Q2 (19.0%), and operating margin from 7.3% (2023) to 5.9%. The business is a low-margin intermediary for expensive infusion drugs.
- −1ROICROIC is stable at 10.3-10.9% in 2023-TTM over a WACC of 6.5%, but has not risen despite scale.
- −4Quality of growthGrowth has slowed from 13-16% in 2024-25 to 1.9% in Q2; the transition from Stelara to biosimilars costs, according to the company, about 400bp of growth and $25-35m in gross profit in 2026, and the latest revenue guidance was $5.675-5.775bn vs $5.8-6.0bn in February.
Price
Today's multiples against the company's own history and its peers. · 1 finding−3 of −35
- −3Multiples vs own history and peersForward P/E 19.2 vs 19.2-33.5 at the year-ends 2021-25, EV/EBITDA 14.2 vs 12.1-23.6 and P/FCF 15.4 (FCF yield 6.5%), i.e. at the bottom of own history. The price is, however, locked by the takeover price of $32.05, only 2.7% above the price of $31.20.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−15 of −35
- −6Guidance cutThe stock fell over 30% on 30 Apr 2026, when the Q1 report came with lowered revenue guidance after a larger-than-expected reset of patient numbers in the chronic inflammatory disease portfolio (including Stelara biosimilars); law firms are investigating the matter on behalf of shareholders.
- −5Acquisitions and delistingCD&R (about 51%) and McKesson (about 49%, investing $1.4bn) are buying the company for $32.05 per share; guidance has been withdrawn, and the stock will be delisted on completion in H1 2027. The upside is thus closed while the downside remains if the deal fails with authorities or shareholders.
- −2Customer concentrationCommercial payers (insurers and PBMs) account for 86% of revenue ($4.9 of $5.7bn TTM), so rates are negotiated with a few large counterparties.
- −2DebtNet debt $1.07bn ($0.80bn in 2024) with net debt/EBITDA 2.65; buybacks of $345m TTM exceeded FCF of $304m and were partly debt-funded.
Plus
Only documented strengths. · 1 finding+1 of +15
- +1Cash flowOperating cash flow in H1 was $171.5m vs $83.1m a year earlier, and adjusted EPS in Q2 rose 9.8% to $0.45 despite the biosimilar headwind.
Caveats
What the score does not capture, or where the data is weak.
CD&R and McKesson agreed on 6 Oct 2026 to buy the company for $32.05 in cash per share (about $5.8bn including debt, 37% premium). The stock trades at $31.20, so the price is effectively locked to the takeover price; completion is expected in H1 2027 and requires shareholder and regulatory approval, after which the stock will be delisted. Guidance has been withdrawn, and no conference call will be held for Q3 (4 Nov). The score applies to the business; the practical investment is a merger arbitrage spread of about 2.7%. Revised guidance from April (amounts) was only found via secondary sources.
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