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Option Care Health, Inc. ( Option Care Health , we , us , our , or the Company ) is the largest independent provider of home and alternate site infusion services through its national network of 196 locations in 43 states. Option Care Health draws on over 40 years of clinical care experience to offer patient-centered, cost-effective infusion therapy.
Operating margin is thin at 5.98%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 13.0%, still solid. Free cash flow declined 25% despite revenue growth, conversion is weakening.
Free cash flow declined 25% versus the prior year, cash generation momentum has weakened. Net debt of $1.04B represents 4.8x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$5.67B
▲ +13.0% YoY
Net Income (TTM)
$206M
▼ -2.0% YoY
Op. Margin
5.85%
▼ -0.5pp YoY
ROIC
9.85%
▲ +0.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$213M
▼ -24.5% YoY
Op. Cash Flow (TTM)
$254M
▼ -20.1% YoY
Net Debt
$1.09B
Cash & Equiv.
$177M
5Y CAGR: +13.3%
5Y CAGR: +16.7%
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