Opko Health, Inc. (NASDAQ: OPK)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0000944809
Market Cap 1.02 Bn
P/B 0.78
P/E -5.67
P/S 1.59
ROIC (Qtr) -3.47
Div Yield % 0.00
Rev 1y % (Qtr) -12.65
Total Debt (Qtr) 388.09 Mn
Debt/Equity (Qtr) 0.30

About

OPKO Health, Inc., commonly recognized by its stock symbol OPK, is a company that operates within the pharmaceutical and diagnostics industries. Headquartered in Miami, Florida, OPKO Health is dedicated to establishing leading positions in large and rapidly growing medical markets. The company's business activities span across pharmaceuticals and diagnostics. In the pharmaceutical sector, OPKO Health focuses on the development and commercialization of various products. One of its key offerings is Rayaldee, a treatment for secondary hyperparathyroidism...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 415.20M provide 18.14x coverage of short-term debt 22.89M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 976.10M provides 2.52x coverage of total debt 388.09M, indicating robust asset backing and low credit risk.
  • Operating cash flow of (197.03M) provides strong 8.80x coverage of operating expenses (22.40M), showing operational efficiency.
  • Tangible assets of 976.10M provide robust 10.21x coverage of other current liabilities 95.60M, indicating strong asset backing.
  • Cash reserves of 415.20M provide robust 2.45x coverage of current liabilities 169.32M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (197.03M) barely covers its investment activities of 348.33M, with a coverage ratio of -0.57, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of (197.03M) shows concerning coverage of stock compensation expenses of 10.86M, with a -18.14 ratio indicating potential earnings quality issues.
  • Free cash flow of (211.79M) provides weak coverage of capital expenditures of 14.76M, with a -14.35 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (197.03M) provides minimal -9.43x coverage of tax expenses of 20.89M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (48.11M) show weak coverage of depreciation charges of 93.29M, with a -0.52 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Diagnostics & Research
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMO Thermo Fisher Scientific Inc. 234.48 Bn 35.69 5.36 35.68 Bn
2 DHR Danaher Corp /De/ 171.11 Bn 48.85 7.05 16.86 Bn
3 IDXX Idexx Laboratories Inc /De 57.62 Bn 56.08 13.83 1.09 Bn
4 IQV Iqvia Holdings Inc. 42.37 Bn 33.03 2.66 15.19 Bn
5 A Agilent Technologies, Inc. 42.16 Bn 32.36 6.07 3.35 Bn
6 NTRA Natera, Inc. 31.64 Bn -102.32 14.95 0.18 Bn
7 MTD Mettler Toledo International Inc/ 30.89 Bn 36.96 7.84 2.21 Bn
8 WAT Waters Corp /De/ 23.59 Bn 36.37 7.60 1.49 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.57 2.82
EV to Cash from Ops. EV/CFO -5.78 19.55
EV to Debt EV to Debt 2.93 54.87
EV to EBIT EV/EBIT -23.66 18.82
EV to EBITDA EV/EBITDA -60.10 4.36
EV to Free Cash Flow [EV/FCF] EV/FCF -5.37 17.63
EV to Market Cap EV to Market Cap 1.11 1.58
EV to Revenue EV/Rev 1.77 5.06
Price to Book Value [P/B] P/B 0.78 1.35
Price to Earnings [P/E] P/E -5.67 18.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -2.00
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.86
Dividend per Basic Share Div per Share (Qtr) 0.00 0.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.94
Interest Coverage Int. cover (Qtr) -0.43 -128.90
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 29.20 -35.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 2.16 23.84
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.25
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 40.93 9.72
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 78.44 -444.66
EBIT Growth (1y) % EBIT 1y % (Qtr) 40.73 8.29
EBT Growth (1y) % EBT 1y % (Qtr) -35.34 -6.03
EPS Growth (1y) % EPS 1y % (Qtr) -33.33 15.59
FCF Growth (1y) % FCF 1y % (Qtr) -6.84 56.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 26.89 185.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.32 0.57
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 2.45 1.23
Current Ratio Curr Ratio (Qtr) 3.70 2.70
Debt to Equity Ratio Debt/Equity (Qtr) 0.30 -0.84
Interest Cover Ratio Int Coverage (Qtr) -0.43 -128.90
Times Interest Earned Times Interest Earned (Qtr) -0.43 -128.90
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.00 -97.22
EBIT Margin % EBIT Margin % (Qtr) -7.49 -115.64
EBT Margin % EBT Margin % (Qtr) -24.84 -114.24
Gross Margin % Gross Margin % (Qtr) 35.30 44.76
Net Profit Margin % Net Margin % (Qtr) -28.10 -113.12