Oscar Health Inc (OSCR, Financial), a company in the healthcare plans industry, has recently seen a notable uptick in its stock performance. With a market capitalization of $1.87 billion, the stock price has surged by 21.76% over the past week, settling at $8.28. This significant gain is part of a broader trend, as the stock has also experienced a 15.64% increase over the past three months. According to GuruFocus's valuation metrics, the stock is currently modestly undervalued, with a GF Value of $10.87, suggesting potential room for growth. This is a notable shift from three months ago when the GF Value was not applicable.
Introduction to Oscar Health Inc
Oscar Health Inc is more than just an insurance provider; it's a health insurance innovator. The company's offerings include a range of insurance plans for individuals, families, and businesses, as well as virtual care and Medicare Advantage plans for seniors. With a focus on technology and customer service, Oscar Health aims to simplify the healthcare experience for its members. The company's approach to healthcare, which includes virtual consultations and proactive patient support, positions it at the forefront of a rapidly evolving industry.
Analyzing Oscar Health's Profitability
Despite the recent positive stock performance, Oscar Health's profitability metrics suggest challenges. The company's Profitability Rank stands at a low 1/10, indicating that it is less profitable than many of its peers in the healthcare plans industry. The ROE (Return on Equity) is currently at -36.34%, which, while not ideal, is better than 21.05% of the companies in the industry. Similarly, the ROA (Return on Assets) of -8.17% and the ROIC (Return on Invested Capital) of -64.42% also indicate that the company is performing better than a small fraction of its industry counterparts. These figures highlight the company's current struggle to generate profit relative to its equity, assets, and invested capital.
Growth Prospects for Oscar Health
Oscar Health's growth metrics paint a more optimistic picture. The company's 3-Year Revenue Growth Rate per Share is an impressive 92.40%, outperforming 88.89% of 18 companies in the industry. This suggests that Oscar Health has been expanding its revenue streams effectively over the past three years. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 52.16%, which is higher than 90.91% of the companies in the industry. However, the company's 3-Year EPS without NRI Growth Rate stands at -30.40%, which, while not favorable, is still better than 17.65% of its peers. These figures indicate that while Oscar Health is growing its revenue robustly, it is still facing challenges in translating that growth into net earnings.
Notable Shareholders in Oscar Health
Among the significant shareholders in Oscar Health, Mason Hawkins (Trades, Portfolio) leads the pack with 7,407,281 shares, representing a 3.28% share percentage. Following him is Jim Simons (Trades, Portfolio), holding 3,066,500 shares, which accounts for 1.36% of the company's shares. Steven Cohen (Trades, Portfolio) also has a stake in the company with 1,608,530 shares, equating to 0.71% share percentage. The involvement of these prominent investors may provide a vote of confidence in the company's future prospects.
Competitive Landscape
When compared to its competitors, Oscar Health stands out with its $1.87 billion market cap. Alignment Healthcare Inc (ALHC, Financial) follows with a market cap of $1.27 billion, while Clover Health Investments Corp (CLOV, Financial) and Bright Health Group Inc (BHG, Financial) have market caps of $484.767 million and $62.979 million, respectively. This comparison underscores Oscar Health's relatively stronger position in the market, at least in terms of market capitalization.
Conclusion
In summary, Oscar Health Inc's recent stock performance has been impressive, with a 21.76% gain over the past week and a 15.64% increase over the past three months. The company's valuation suggests it is modestly undervalued, with a GF Value of $10.87. While profitability remains a concern, with low rankings across ROE, ROA, and ROIC, the company's revenue growth rates are robust, indicating strong potential for future expansion. The presence of notable shareholders and a competitive market cap relative to its peers further contribute to the intriguing narrative surrounding Oscar Health's stock. Investors will be watching closely to see if the company can leverage its growth to improve profitability and justify the recent surge in its stock price.
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.
