Opko Health, Inc. (OPK) Stock Analysis and Metrics

Sector: Healthcare Industry: Diagnostics & Research CIK: 0000944809

P/B 0.79

P/E -5.75

P/S 1.62

Market Cap 1.04 Bn

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...

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 in adults with stage 3 or 4 chronic kidney disease and vitamin D insufficiency. Rayaldee is a patented extended-release product containing 30 mcg of a prohormone, called calcifediol (25-hydroxyvitamin D3), for oral administration. OPKO Health has a specialized sales, marketing, and market access team dedicated to the commercialization of Rayaldee.

In the diagnostics sector, OPKO Health includes BioReference Health, LLC, one of the nation's largest full-service laboratories. BioReference provides a comprehensive test menu of clinical diagnostics for blood, urine, and tissue analysis. The company's marketing staff has sales and marketing groups dedicated to urology, oncology, women's health, genetic testing, correctional health, and large institutions.

OPKO Health's revenue is generated primarily through its pharmaceutical and diagnostics businesses. In the pharmaceutical business, revenue comes from the sales of Rayaldee and other products. In the diagnostics business, revenue is derived from the provision of laboratory testing services.

Within the pharmaceutical industry, OPKO Health competes with giants such as Pfizer, Inc. and Novartis AG. In the diagnostics industry, the company's key competitors include Quest Diagnostics Incorporated and Laboratory Corporation of America Holdings. OPKO Health's competitive advantages include its specialized sales, marketing, and market access team, its comprehensive test menu at BioReference, and its focus on large and rapidly growing medical markets.

OPKO Health's customers include healthcare providers, hospitals, clinics, and patients. The company's pharmaceutical products are marketed and sold to healthcare providers, and its diagnostic tests are used by healthcare providers to diagnose and treat diseases.

The brand names and trade names of OPKO Health's products and services include Rayaldee and BioReference Health, LLC. These brands represent the company's commitment to providing innovative and high-quality solutions in the pharmaceutical and diagnostics industries.

Stock Price Chart

Analysis

Pros

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.

Cons

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.

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.	216.83 Bn	33.00	4.96	35.68 Bn
2	DHR	Danaher Corp /De/	162.47 Bn	46.38	6.69	16.86 Bn
3	IDXX	Idexx Laboratories Inc /De	56.88 Bn	55.36	13.65	1.09 Bn
4	A	Agilent Technologies, Inc.	39.82 Bn	32.64	5.87	3.41 Bn
5	IQV	Iqvia Holdings Inc.	38.85 Bn	30.28	2.44	15.19 Bn
6	NTRA	Natera, Inc.	31.32 Bn	-101.29	14.80	0.18 Bn
7	MTD	Mettler Toledo International Inc/	28.99 Bn	34.68	7.35	2.21 Bn
8	WAT	Waters Corp /De/	22.92 Bn	35.32	7.38	1.49 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	0.58	2.69
EV to Cash from Ops.	-5.85	18.14
EV to Debt	2.97	52.51
EV to EBIT	-23.97	19.22
EV to EBITDA	-60.89	4.35
EV to Free Cash Flow [EV/FCF]	-5.45	2.84
EV to Market Cap	1.11	1.52
EV to Revenue	1.80	4.79
Price to Book Value [P/B]	0.79	1.34
Price to Earnings [P/E]	-5.75	22.02

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-1.96
Dividend Payout Ratio %	0.00	2.83
Dividend per Basic Share	0.00	0.19
FCF Dividend Payout Ratio %	0.00	1.92
Interest Coverage	-0.43	-126.58

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	29.20	-31.50
Cash and Equivalents Growth (1y) %	2.16	21.37
Dividend Growth (1y) %	0.00	0.24
EBIAT Growth (1y) %	40.93	-55.24
EBITDA Growth (1y) %	78.44	-447.96
EBIT Growth (1y) %	40.73	-40.50
EBT Growth (1y) %	-35.34	-70.94
EPS Growth (1y) %	-33.33	-70.02
FCF Growth (1y) %	-6.84	56.33
Gross Profit Growth (1y) %	26.89	185.11

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.32	0.56
Cash Payout Ratio	0.00	0.01
Cash Ratio	2.45	1.21
Current Ratio	3.70	2.64
Debt to Equity Ratio	0.30	-0.80
Interest Cover Ratio	-0.43	-126.58
Times Interest Earned	-0.43	-126.58

Profitability

Metric	Value	Industry
EBITDA Margin %	7.00	-129.91
EBIT Margin %	-7.49	-156.71
EBT Margin %	-24.84	-162.23
Gross Margin %	35.30	47.70
Net Profit Margin %	-28.10	-189.30

Opko Health, Inc. (NASDAQ: OPK)