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Option Care Health (Option Care Health) Piotroski F-Score : 8 (As of May. 08, 2024)


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What is Option Care Health Piotroski F-Score?

Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Option Care Health has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Option Care Health's Piotroski F-Score or its related term are showing as below:

OPCH' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 9
Current: 8

During the past 13 years, the highest Piotroski F-Score of Option Care Health was 9. The lowest was 2. And the median was 5.


Option Care Health Piotroski F-Score Historical Data

The historical data trend for Option Care Health's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Option Care Health Piotroski F-Score Chart

Option Care Health Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 4.00 9.00 7.00 8.00

Option Care Health Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 9.00 8.00 8.00 8.00

Competitive Comparison of Option Care Health's Piotroski F-Score

For the Medical Care Facilities subindustry, Option Care Health's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Option Care Health's Piotroski F-Score Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Option Care Health's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Option Care Health's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was 114.403 + 56.302 + 57.177 + 44.791 = $273 Mil.
Cash Flow from Operations was 169.536 + 61.038 + 50.969 + -68.784 = $213 Mil.
Revenue was 1069.072 + 1093.014 + 1124.39 + 1146.052 = $4,433 Mil.
Gross Profit was 250.829 + 254.266 + 247.123 + 238.5 = $991 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was
(3130.402 + 3320.898 + 3243.616 + 3217.035 + 3249.562) / 5 = $3232.3026 Mil.
Total Assets at the begining of this year (Mar23) was $3,130 Mil.
Long-Term Debt & Capital Lease Obligation was $1,145 Mil.
Total Current Assets was $1,130 Mil.
Total Current Liabilities was $637 Mil.
Net Income was 33.929 + 38.823 + 47.529 + 39.208 = $159 Mil.

Revenue was 980.82 + 1020.918 + 1027.213 + 1015.848 = $4,045 Mil.
Gross Profit was 216.9 + 218.001 + 231.081 + 229.005 = $895 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was
(2878.276 + 2985.912 + 3073.263 + 3112.936 + 3130.402) / 5 = $3036.1578 Mil.
Total Assets at the begining of last year (Mar22) was $2,878 Mil.
Long-Term Debt & Capital Lease Obligation was $1,128 Mil.
Total Current Assets was $1,030 Mil.
Total Current Liabilities was $619 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Option Care Health's current Net Income (TTM) was 273. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Option Care Health's current Cash Flow from Operations (TTM) was 213. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar23)
=272.673/3130.402
=0.08710479

ROA (Last Year)=Net Income/Total Assets (Mar22)
=159.489/2878.276
=0.05541129

Option Care Health's return on assets of this year was 0.08710479. Option Care Health's return on assets of last year was 0.05541129. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Option Care Health's current Net Income (TTM) was 273. Option Care Health's current Cash Flow from Operations (TTM) was 213. ==> 213 <= 273 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=1145.489/3232.3026
=0.35438792

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=1127.748/3036.1578
=0.37143919

Option Care Health's gearing of this year was 0.35438792. Option Care Health's gearing of last year was 0.37143919. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar24)=Total Current Assets/Total Current Liabilities
=1129.714/636.952
=1.77362501

Current Ratio (Last Year: Mar23)=Total Current Assets/Total Current Liabilities
=1029.536/618.566
=1.66439151

Option Care Health's current ratio of this year was 1.77362501. Option Care Health's current ratio of last year was 1.66439151. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Option Care Health's number of shares in issue this year was 175.624. Option Care Health's number of shares in issue last year was 182.735. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=990.718/4432.528
=0.22351083

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=894.987/4044.799
=0.2212686

Option Care Health's gross margin of this year was 0.22351083. Option Care Health's gross margin of last year was 0.2212686. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar23)
=4432.528/3130.402
=1.41596127

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=4044.799/2878.276
=1.40528532

Option Care Health's asset turnover of this year was 1.41596127. Option Care Health's asset turnover of last year was 1.40528532. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+1+1+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Option Care Health has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Option Care Health  (NAS:OPCH) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Option Care Health Piotroski F-Score Related Terms

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Option Care Health (Option Care Health) Business Description

Traded in Other Exchanges
Address
3000 Lakeside Drive, Suite 300N, Bannockburn, IL, USA, 60015
Option Care Health Inc is the provider of home and alternate-site infusion services. It provides treatment for bleeding disorders, neurological disorders, heart failure, anti-infectives, and chronic inflammatory disorders among others.
Executives
Elizabeth D Bierbower director HUMANA INC., 500 W. MAIN ST., LOUISVILLE KY 40202
R Carter Pate director 5739 WORTHAM LANE, DALLAS TX 75252
Smyser Collin officer: Gen. Counsel & Corp. Secy. C/O OPTION CARE HEALTH, 3000 LAKESIDE DR. SUITE 300N, BANNOCKBURN IL 60015
Kraemer Harry M Jansen Jr director DENTSPLY SIRONA INC., 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Michael Bavaro officer: Chief Human Resources Officer 3000 LAKESIDE DRIVE, SUITE 300N, BANNOCKBURN IL 60015
Luke Whitworth officer: Chief Operating Officer 3000 LAKESIDE DRIVE, SUITE 300N, BANNOCKBURN IL 60015
Walgreens Boots Alliance, Inc. 10 percent owner 108 WILMOT ROAD, DEERFIELD IL 60015
Hc Group Holdings I, Llc 10 percent owner THREE FIRST NATIONAL PLAZA, SUITE 4600, CHICAGO IL 60602
Wba Investments, Inc. 10 percent owner 108 WILMOT ROAD, DEERFIELD IL 60015
Och Us Holding Llc 10 percent owner 200 WILMOT ROAD, DEERFIELD IL 60015
Wba Us 1 Co. 10 percent owner 180 WILMOT ROAD, DEERFIELD IL 60015
Harriet Booker officer: CHIEF OPERATING OFFICER C/O BIOSCRIP, INC., 1600 BROADWAY, SUITE 700, DENVER CO 80202
Natasha Deckmann director 7114 EAST STETSON DRIVE, SUITE 400, SCOTTSDALE AZ 85251
Anita M. Allemand director 3000 LAKESIDE DRIVE, SUITE 300N, BANNOCKBURN IL 60015
Aaron Friedman director 3000 LAKESIDE DRIVE, SUITE 300N, BANNOCKBURN IL 60015