Education
About Us
Working with TipRanks
Follow Us
Oscar Health (OSCR)
NYSE:OSCR
Top Page
Oscar Health
(NYSE:OSCR)69Neutral
Positive Factors
Membership Growth
Oscar Health outpaced the market growing 37% to 1.8 million members as of February 1, 2025.
Negative Factors
Regulatory Challenges
Regulatory and funding pressures, such as restricted navigator funds and income verification measures, are expected to drive HIX membership unwind.
Revenue and Margin Pressures
Enhanced advanced premium tax credits (eAPTCs) expire and could lead to a market enrollment decline and margin pressure.
Oscar Health (OSCR) vs. S&P 500 (SPY)
Market Cap
$3.86B
Dividend YieldN/A
Average Volume (3M)5.12M
Price to Earnings (P/E)―
Beta (1Y)2.27
Revenue Growth56.54%
EPS GrowthN/A
CountryUS
Employees2,400
SectorHealthcare
Sector Strength74
IndustryMedical Service Plans
Share Statistics
EPS (TTM)-0.01
Shares Outstanding215,053,600
10 Day Avg. Volume5,475,542
30 Day Avg. Volume5,124,050
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.41
Price to Cash Flow (P/CF)2.70
P/FCF Ratio2.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.70Price Target Upside14.86% Upside
Rating ConsensusHold
Number of Analyst Covering5
Oscar Health Business Overview & Revenue Model
Company DescriptionOscar Health Inc is a health insurance company. The company provides various insurance plans for individuals, family, and employees. Also, the company provides virtual care, doctor support, scheduling appointments, and other related services.
How the Company Makes MoneyOscar Health makes money primarily through the premiums collected from policyholders who purchase its health insurance plans. The company also earns revenue from partnerships with healthcare providers and the government, particularly through its Medicare Advantage offerings. Oscar leverages data analytics and technology to optimize its pricing models, manage risk, and enhance member engagement, which can contribute to lower healthcare costs and improved member retention, ultimately impacting its revenue positively. Additionally, Oscar may earn income from investments and other financial activities typical of insurance companies.
Oscar Health Financial Statement Overview
Summary
Oscar Health has shown significant revenue growth and improved profitability metrics. The balance sheet is strong with low leverage, although ROE could be improved. Cash flow is robust, with notable improvements in free cash flow generation, positioning the company well for future growth.Income Statement
Oscar Health has demonstrated significant revenue growth, with a compound annual growth rate driven by expanding operations. The gross and net profit margins have improved over time, moving from negative to positive territory, reflecting better cost management and operational efficiency. However, the EBIT and EBITDA margins are still relatively low, indicating room for improvement in operational profitability.75
Positive
Balance Sheet
The balance sheet shows a healthy equity ratio, indicating a strong capital structure. The debt-to-equity ratio is low, suggesting conservative leverage practices. However, the return on equity remains modest, reflecting challenges in translating equity into robust profitability. The company has managed to increase its stockholders' equity over recent years, which is a positive indicator of stability.65
Positive
Cash Flow
Oscar Health has shown a remarkable improvement in free cash flow, with a substantial growth rate indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is favorable, suggesting effective cash conversion. Despite historical fluctuations, recent trends show strong cash flow management and significant free cash flow relative to net income, supporting future investments and debt repayments.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 9.18B | 5.86B | 4.13B | 1.92B | 589.64M | Gross Profit |
| 9.18B | 5.86B | 4.13B | 1.92B | 589.64M | EBIT |
| 57.27M | -235.62M | -584.17M | -577.06M | -406.86M | EBITDA |
| 88.62M | -212.00M | -572.17M | -551.25M | -390.97M | Net Income Common Stockholders |
| 25.43M | -270.73M | -609.55M | -571.43M | -406.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.15B | 2.56B | 2.96B | 1.69B | 1.19B | Total Assets |
| 4.84B | 3.60B | 4.53B | 3.32B | 2.27B | Total Debt |
| 299.56M | 298.78M | 298.00M | 0.00 | 142.49M | Net Debt |
| -1.23B | -1.57B | -1.26B | -1.10B | -683.84M | Total Liabilities |
| 3.82B | 2.80B | 3.63B | 440.02M | 3.57B | Stockholders Equity |
| 1.01B | 803.97M | 890.38M | 1.39B | -1.30B |
| Cash Flow | Free Cash Flow | |||
| 950.30M | -297.74M | 351.34M | -207.63M | 208.71M | Operating Cash Flow |
| 978.19M | -272.16M | 380.35M | -181.75M | 222.73M | Investing Cash Flow |
| -1.39B | 577.19M | -226.52M | -774.51M | -344.71M | Financing Cash Flow |
| 68.39M | 6.45M | 301.11M | 1.24B | 611.71M |
Oscar Health Technical Analysis
Positive
15.41
Price Trends
15.03
Positive
15.55
Positive
17.07
Negative
Market Momentum
0.06
Negative
57.11
Neutral
57.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OSCR, the sentiment is Positive. The current price of 15.41 is above the 20-day moving average (MA) of 14.99, above the 50-day MA of 15.03, and below the 200-day MA of 17.07, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 57.11 is Neutral, neither overbought nor oversold. The STOCH value of 57.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OSCR.
Oscar Health Risk Analysis
Oscar Health disclosed 45 risk factors in its most recent earnings report. Oscar Health reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Oscar Health Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $28.71B | 9.26 | 12.51% | ― | 5.89% | 27.09% | |
69 Neutral | $3.86B | ― | 2.51% | ― | 56.54% | ― | |
69 Neutral | $85.25B | 25.69 | 0.84% | 1.81% | 25.19% | ― | |
67 Neutral | $31.70B | 26.31 | 7.37% | 1.35% | 10.70% | -49.85% | |
65 Neutral | $434.13B | 30.61 | 14.66% | 1.75% | 8.35% | -35.14% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
46 Neutral | $1.89B | ― | -12.61% | ― | -32.45% | 80.24% |
* Healthcare Sector Average
Performance Comparison
OSCR
Oscar Health
16.25
1.30
8.70%
CNC
Centene
59.00
-18.59
-23.96%
CI
Cigna
309.83
-24.25
-7.26%
HUM
Humana
262.12
-73.17
-21.82%
UNH
UnitedHealth
475.98
10.67
2.29%
CLOV
Clover Health Investments
3.83
3.03
378.75%
Oscar Health Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: 0.85% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong overall performance for Oscar Health in 2024, marked by record revenue, profitability, and membership growth. While there were minor challenges related to the medical loss ratio and fourth-quarter losses, the company's strategic advancements in technology and operational efficiencies, along with significant growth metrics, demonstrate a positive trajectory going into 2025.Highlights
Record Financial Performance
Oscar Health reported the strongest financial performance in its history with total company adjusted EBITDA growing to $199 million, a $245 million year-over-year improvement, and achieving net income profitability with a $25 million net income, a $296 million increase over the prior year.
Significant Revenue Growth
Total revenue increased by 57% year-over-year to $9.2 billion, driven by record high membership and strong retention.
Improved SG&A Ratio
The SG&A ratio improved by more than 500 basis points year-over-year to 19.1% through operating leverage and disciplined expense management.
Membership Growth
Oscar's membership grew by 37%, outpacing the market growth of 13%, with 1.8 million members as of February 1, 2025.
Technology and AI Advancements
Oscar's technology platform and AI integration improved operational efficiency, member engagement, and affordability, with applications reducing provider tasks and implementation time.
Lowlights
Increased Medical Loss Ratio (MLR)
The medical loss ratio increased by 10 basis points year-over-year to 81.7%, with the fourth quarter MLR increasing by 170 basis points.
Fourth Quarter Adjusted EBITDA Loss
The fourth quarter adjusted EBITDA loss was approximately $113 million, flat year-over-year, indicating challenges in achieving profitability within the quarter.
Company Guidance
During Oscar Health's fourth quarter and full year 2024 earnings call, the company reported significant financial milestones, achieving total company adjusted EBITDA profitability of $199 million and net income profitability of $25 million. Revenue surged by 57% year-over-year to $9.2 billion, driven by a 37% growth in membership, outpacing the individual market's 13% growth. The medical loss ratio was stable, increasing slightly by 10 basis points to 81.7%, while the SG&A ratio improved by over 500 basis points to 19.1%. Looking ahead, Oscar projects total revenues for 2025 to be between $11.2 billion and $11.3 billion, with a medical loss ratio improvement of 50 basis points at the midpoint and an SG&A ratio improvement by approximately 125 basis points. The company aims for earnings from operations to range between $225 million and $275 million, with an anticipated positive net income for 2025. Oscar is committed to delivering a 20% revenue CAGR and a 5% operating margin by 2027.Oscar Health Corporate Events
Business Operations and StrategyFinancial Disclosures
Oscar Health to Reaffirm 2025 Financial Guidance
Neutral
Mar 3, 2025
Oscar Health, Inc. announced its participation in the 2025 Raymond James Institutional Investors Conference on March 3, 2025, where it will reaffirm its full-year 2025 financial guidance. This reaffirmation is expected to have implications for the company’s operations and industry positioning, potentially impacting stakeholders’ perceptions and investment decisions.
Executive/Board ChangesFinancial Disclosures
Oscar Health Names Janet Liang as EVP and President
Positive
Feb 4, 2025
Oscar Health appointed Janet Liang as EVP and President of Oscar Insurance, effective February 24, 2025, centralizing leadership under her expertise. The company reported significant financial milestones for 2024, achieving adjusted EBITDA and net income profitability for the first time, with a total revenue of $9.2 billion, marking a 56.5% increase from the previous year.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.