Investment Thesis
OPKO Health is operationally distressed with a -41% operating margin, declining revenue (-14.9% YoY), and negative free cash flow of -$21.1M despite maintaining a solid balance sheet. The company is consuming cash reserves to fund operations and lacks profitability visibility, presenting significant fundamental risks.
Strengths
- Strong balance sheet with $1.2B stockholders' equity
- Excellent liquidity ratios (3.61x current, 3.17x quick) providing operational cushion
- Moderate leverage with 0.29x debt-to-equity ratio
- Reasonable gross margin of 36.8% suggests product viability
Risks
- Severe operating losses of -$51.0M on declining $124.2M revenue base
- Negative operating cash flow (-$19.3M) and free cash flow (-$21.1M) indicate unsustainable cash burn
- Declining revenue trajectory (-14.9% YoY) with no apparent stabilization
- Net losses of -$54.8M consuming balance sheet reserves; long-term sustainability questionable
Key Metrics to Watch
- Operating cash flow trend - must return to positive
- Revenue stabilization and growth trajectory
- Operating margin recovery path and timeline to profitability
Financial Metrics
Revenue
124.2M
Net Income
-54.8M
EPS (Diluted)
$-0.07
Free Cash Flow
-21.1M
Total Assets
1.9B
Cash
331.9M
Profitability Ratios
Gross Margin
36.8%
Operating Margin
-41.1%
Net Margin
-44.2%
ROE
-4.6%
ROA
-3.0%
FCF Margin
-17.0%
Balance Sheet & Liquidity
Current Ratio
3.61x
Quick Ratio
3.17x
Debt/Equity
0.29x
Debt/Assets
35.1%
Interest Coverage
N/A
Long-term Debt
345.7M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T13:35:55.993219 |
Data as of: 2026-03-31 |
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