Oscar Health Inc (OSCR, Financial) has recently experienced a significant uptick in its stock performance, with an impressive 8.66% gain over the past week and a meteoric 81.58% surge over the past three months. The company's market capitalization now stands at $2.31 billion, and the current stock price is $10.23. According to GuruFocus's valuation metrics, Oscar Health is currently fairly valued, with a GF Value of $11.03, indicating that the stock price is in line with the company's intrinsic value.
Introduction to Oscar Health Inc
Oscar Health Inc, operating within the healthcare plans industry, is a provider of health insurance plans and related services. The company's offerings include virtual care, doctor support, and appointment scheduling, catering to individuals, families, and employees. Additionally, Oscar Health provides Medicare Advantage program plans for adults over 65 or those eligible for traditional Medicare. The company's innovative approach to healthcare has positioned it as a notable player in the insurance sector.
Analyzing Oscar Health's Profitability
Despite the recent stock price gains, Oscar Health's Profitability Rank remains low at 2 out of 10. The company's Return on Equity (ROE) is at a negative 36.34%, which, while not ideal, is better than 21.05% of 19 companies in the same industry. The Return on Assets (ROA) stands at -8.17%, and the Return on Invested Capital (ROIC) is at -64.42%, both metrics also surpassing a small fraction of industry peers. These figures suggest that while Oscar Health is outperforming some competitors, there is significant room for improvement in profitability.
Growth Trajectory of Oscar Health
Oscar Health's growth metrics present a more optimistic picture. The company's 3-Year Revenue Growth Rate per Share is an impressive 92.40%, outpacing 88.89% of 18 companies in the industry. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 52.16%, which is better than 90.91% of 11 companies. However, the 3-Year EPS without NRI Growth Rate is at -30.40%, indicating that while revenue is growing, profitability is not keeping pace. This suggests that Oscar Health is expanding its market presence but still needs to translate this growth into bottom-line results.
Notable Shareholders in Oscar Health
Several prominent investors have taken notice of Oscar Health's potential. Mason Hawkins (Trades, Portfolio) is the leading shareholder with 5,718,273 shares, representing a 2.53% stake in the company. Following him is Jim Simons (Trades, Portfolio), holding 3,066,500 shares, which accounts for 1.36% of Oscar Health's shares. Steven Cohen (Trades, Portfolio) also has a significant investment, with 1,608,530 shares, equating to a 0.71% share percentage. The involvement of these notable investors may provide additional confidence in the company's future prospects.
Competitive Landscape
When compared to its competitors, Oscar Health stands out with a market cap of $2.31 billion. Alignment Healthcare Inc (ALHC, Financial) follows with a market cap of $1.59 billion, while Clover Health Investments Corp (CLOV, Financial) and Bright Health Group Inc (BHG, Financial) have market caps of $466.577 million and $98.738 million, respectively. Oscar Health's larger market capitalization suggests a stronger position within the industry, potentially offering greater stability and resources for future growth.
Conclusion
In summary, Oscar Health Inc's stock performance has been robust, with significant gains over the past three months. The company's valuation indicates that it is fairly priced, and its growth rates in revenue are commendable. However, profitability remains a challenge, as reflected in its low Profitability Rank and negative profitability ratios. The company's strong revenue growth and the backing of influential shareholders suggest potential, but it will be crucial for Oscar Health to improve its profitability to sustain long-term growth. As the healthcare plans industry continues to evolve, Oscar Health's innovative approach and market presence position it as a company to watch.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
