Opko Health (OPK) AI Stock Analysis

• Market Cap: $930.10M
• Dividend Yield: N/A
• Average Volume (3M): 3.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -13.79%
• EPS Growth: 82.82%
• Country: US
• Employees: 2,997
• Sector: Healthcare
• Sector Strength: 56
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.10
• Shares Outstanding: 671,550,300
• 10 Day Avg. Volume: 2,790,327
• 30 Day Avg. Volume: 3,456,817
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.76
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.56
• Price Target Upside: 85.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Opko Health's overall stock score reflects significant financial challenges, with declining revenue and negative earnings impacting performance. While strategic moves and asset sales may offer future opportunities, current technical indicators and valuation suggest caution. The company must address its profitability issues to improve investor confidence.

Positive Factors

Cost-saving measures

OPKO has identified additional cost-saving measures, targeting $10 million in annualized cost reductions.

Partnerships and collaborations

OPKO entered an agreement with Labcorp for Labcorp to acquire laboratory testing businesses focused on oncology and oncology-related clinical testing services across the U.S. from BioReference Health, a wholly owned subsidiary of OPKO.

Stock repurchase program

OPKO Health announced that its board of directors had authorized an increase of $100M in the company’s existing common stock repurchase program, bringing the aggregate capacity of the program to $200M.

Negative Factors

Financial guidance

Management slightly reduced certain elements of its financial guidance for the fiscal year, including total revenue and NGENLA gross profit share.

Financial performance

OPKO Health delivered a somewhat weaker-than-expected Q1 result, with revenue and EPS falling short of estimates.

Revenue decline

Total revenue was $149.9M, representing a 13.7% YoY decline and missing our projection of $162.5M.

Opko Health Business Overview & Revenue Model

Company Description

OPKO Health, Inc., a healthcare company, engages in the diagnostics and pharmaceuticals businesses in the United States, Ireland, Chile, Spain, Israel, Mexico, and internationally. The company's Diagnostics segment operates BioReference Laboratories that offers laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases, including esoteric testing, molecular diagnostics, anatomical pathology, genetics, women's health, and correctional healthcare to physician offices, clinics, hospitals, employers and governmental units; and a novel diagnostic instrument system to provide blood test results in the point-of-care setting, as well as 4Kscore prostate cancer testing services. Its Pharmaceutical segment offers Rayaldee to treat secondary hyperparathyroidism in adults with stage 3 or 4 chronic kidney disease, and vitamin D insufficiency; OPK88004, an orally administered selective androgen receptor modulator; OPK88003, a once-weekly administered peptide for the treatment of type 2 diabetes and associated obesity that is in Phase IIb trials; and hGH-CTP, a once-weekly human growth hormone injection that completed Phase III clinical trial in partnership with Pfizer, Inc. This segment develops and commercializes longer-acting proprietary versions of already approved therapeutic proteins. The company also offers specialty APIs; develops, manufactures, markets, and sells pharmaceutical, nutraceutical, veterinary, and ophthalmic products; commercializes food supplements and over the counter products; manufactures and sells products primarily in the generics market; and imports, markets, distributes, and sells pharmaceutical products in a range of indications, including cardiovascular products, vaccines, antibiotics, gastro-intestinal products, hormones, and others. In addition, it operates pharmaceutical platforms in Ireland, Chile, Spain, and Mexico. The company was founded in 1991 and is headquartered in Miami, Florida.

How the Company Makes Money

OPKO Health generates revenue through several channels, primarily from its diagnostics and pharmaceutical segments. The diagnostics division earns income by providing laboratory testing services, with a significant portion derived from BioReference Laboratories, one of the largest full-service clinical laboratories in the United States. In the pharmaceutical segment, OPKO earns revenue through the sale and licensing of pharmaceuticals, including proprietary drugs and formulations developed in-house or acquired through strategic partnerships. Additionally, the company's biologics segment contributes to the revenue stream through the development and commercialization of biologic products. OPKO's revenue model is supported by collaborations and partnerships with other pharmaceutical and biotechnology companies, which provide opportunities for co-development and distribution of products, thereby expanding its market reach and potential earnings.

Opko Health Financial Statement Overview

Summary

Opko Health faces significant profitability and cash flow challenges, as reflected in the negative net income and free cash flow. Despite these issues, the company's balance sheet shows a reasonable equity position with moderate leverage, offering some financial stability. The company needs to address declining revenue and improve operational efficiency to enhance its financial health.

Income Statement

Opko Health's TTM (Trailing-Twelve-Months) results show a decline in revenue along with negative EBIT and net income, indicating profitability challenges. The gross profit margin is 32.12%, and the net profit margin is -5.66%, reflecting difficulties in maintaining profitability. Revenue has decreased by 23.34% from 2022 to 2023, highlighting a concerning trend. However, the EBITDA margin of 17.07% shows some operational efficiency improvement.

Balance Sheet

The company's debt-to-equity ratio stands at 0.37, indicating moderate leverage. The return on equity is negative, given the negative net income, suggesting inefficiencies in using equity capital. The equity ratio of 61.64% shows a solid equity base relative to total assets, which can be seen as a financial stability buffer.

Cash Flow

Opko Health's cash flow performance reflects operational challenges, with a negative free cash flow of -$206.24 million in the TTM. The operating cash flow to net income ratio is negative, which indicates that cash flow from operations is not supporting net income. The free cash flow to net income ratio is also negative, suggesting strained cash generation relative to earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
713.14M	863.50M	1.00B	1.77B	1.44B
	Gross Profit
311.03M	318.13M	288.20M	581.50M	541.00M
	EBIT
-152.06M	-157.02M	-246.20M	-47.70M	57.70M
	EBITDA
135.28M	-65.52M	-270.81M	83.57M	139.09M
	Net Income Common Stockholders
-53.22M	-188.86M	-328.00M	-29.50M	30.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
431.94M	95.88M	153.20M	134.70M	72.20M
	Total Assets
2.20B	2.01B	2.17B	2.40B	2.47B
	Total Debt
504.44M	326.56M	213.50M	187.90M	222.00M
	Net Debt
72.51M	230.68M	60.30M	53.20M	149.79M
	Total Liabilities
834.76M	622.48M	605.70M	714.60M	801.50M
	Stockholders Equity
1.37B	1.39B	1.56B	1.69B	1.67B
Cash Flow		Free Cash Flow
-208.50M	-44.47M	-119.77M	6.18M	5.79M
	Operating Cash Flow
-183.49M	-28.20M	-95.19M	38.34M	39.48M
	Investing Cash Flow
352.21M	-18.20M	91.04M	35.95M	-18.33M
	Financing Cash Flow
184.17M	-11.30M	22.97M	-10.35M	-35.08M

Opko Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPK, the sentiment is Negative. The current price of 1.38 is below the 20-day moving average (MA) of 1.43, below the 50-day MA of 1.63, and below the 200-day MA of 1.55, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 37.11 is Neutral, neither overbought nor oversold. The STOCH value of 31.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPK.

Opko Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDNA	71 Outperform	$835.21M	13.02	21.57%	―	25.92%	―
CSTL	70 Outperform	$558.15M	31.57	4.31%	―	51.09%	―
NEO	52 Neutral	$990.95M	―	-8.57%	―	10.10%	8.79%
Sector *	52 Neutral	$5.35B	3.81	-42.57%	2.86%	17.10%	1.33%
MYGN	51 Neutral	$696.82M	―	-17.15%	―	12.15%	61.33%
OPK	50 Neutral	$930.10M	―	-3.04%	―	-13.79%	82.82%
NEOG	45 Neutral	$1.25B	―	-16.71%	―	-2.50%	-30760.27%

Opko Health Corporate Events

Opko Health Sells BioReference Assets to Labcorp

On March 10, 2025, OPKO Health and its subsidiary BioReference Health entered into an agreement to sell certain assets of BioReference’s oncology and oncology-related clinical testing services to Laboratory Corporation of America Holdings (Labcorp) for up to $225 million. This transaction, expected to close in the second half of 2025, is anticipated to enhance Labcorp’s leadership in oncology and expand its laboratory services, while OPKO Health aims to streamline operations and focus on its core clinical testing services in New York and New Jersey.