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OSCR

Oscar Health NYSE:OSCR Stock Report

Last Price

US$7.79

Market Cap

US$1.7b

7D

20.2%

1Y

-39.8%

Updated

17 Aug, 2022

Data

Company Financials +
OSCR fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance0/6
Financial Health5/6
Dividends0/6

OSCR Stock Overview

Oscar Health, Inc. provides health insurance products and services in the United States.

Oscar Health Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Oscar Health
Historical stock prices
Current Share PriceUS$7.79
52 Week HighUS$18.89
52 Week LowUS$3.89
Beta0
1 Month Change58.98%
3 Month Change36.19%
1 Year Change-39.75%
3 Year Changen/a
5 Year Changen/a
Change since IPO-77.62%

Recent News & Updates

Jul 08

Oscar Health Grows Revenue But Needs Progress To Profitability

Oscar Health went public in March 2021, raising around $1.44 billion in gross proceeds in an IPO. The firm provides health insurance to U.S. consumers and related technologies to businesses and health plan operators. OSCR has produced revenue growth but needs to make meaningful progress toward profitability. I'm on Hold for OSCR until we see further material progress to operating breakeven. A Quick Take On Oscar Health Oscar Health, Inc. (OSCR) went public in March 2021, raising approximately $1.44 billion in gross proceeds from an IPO that priced at $39.00 per share. The firm provides healthcare insurance services to consumers and related software and healthcare plan solutions. While I’m on Hold for OSCR for now, interested investors should look for a trend toward operating breakeven in future quarterly reports from the company as evidence that management is executing according to its intentions to achieve profitability. Oscar Health Overview New York, New York-based Oscar was founded to develop a modern healthcare insurance delivery system directly for individual consumers and through businesses in the U.S. Management is headed by co-founder and CEO Mario Schlosser, who was previously co-founder of Vostu, a social gaming company in Latin America and senior investment associate at Bridgewater Associates, "where he developed analytical trading models." In addition, the company also provides virtual care offerings, such as its Virtual Primary Care service, which has grown in usage since the onset of the COVID-19 pandemic. OSCR’s Market & Competition According to a 2020 market research report by Grand View Research, the global market for healthcare insurance was an estimated $2.4 trillion in 2019 and is expected to reach $4 trillion by 2027. This represents a forecast CAGR of 6.7% from 2020 to 2027. The main drivers for this expected growth are a continuing rise in the cost of healthcare, growing prevalence of chronic diseases owing to an aging global population and increased discretionary income. Also, below is a chart showing the historical and projected U.S. healthcare insurance market size: U.S. Healthcare Insurance Market (Grand View Research) Major competitive or other industry participants include: UnitedHealth Group (UNH) Aetna (owned by CVS) Anthem/Elevance (ELV) Centene (CNC) Cigna (CI) CVS Health (CVS) Humana (HUM) Kaiser Foundation Oscar Health’s Recent Financial Performance Total revenue by quarter has grown unevenly on a sequential basis: 5 Quarter Total Revenue (Seeking Alpha) Gross profit by quarter has also been variable over the past 5 quarters: 5 Quarter Gross Profit (Seeking Alpha) Selling, G&A expenses as a percentage of total revenue by quarter have varied without a particular trend, as the chart shows here: 5 Quarter Selling, G&A % Of Revenue (Seeking Alpha) Operating income by quarter has remained significantly negative: 5 Quarter Operating Income (Seeking Alpha) Earnings per share (Diluted) have been highly variable but negative in four of the past five quarters: 5 Quarter Earnings Per Share (Seeking Alpha) In the past 12 months, OSCR’s stock price has fallen 75.6 percent vs. the U.S. S&P 500 index’ drop of around 10 percent, as the chart below indicates: 52 Week Stock Price (Seeking Alpha) Valuation Metrics For Oscar Below is a table of relevant capitalization and valuation figures for the company: Measure Amount Enterprise Value -$629,670,000 Market Capitalization $1,060,000,000 Price / Sales [TTM] 0.42 Revenue Growth Rate [TTM] 265.37% Operating Cash Flow [TTM] $63,410,000 CapEx Ratio 2.49 Earnings Per Share (Fully Diluted) -$0.64 (Source - Seeking Alpha) As a reference, a relevant partial public comparable would be Clover Health (CLOV); shown below is a comparison of their primary valuation metrics: Metric Clover Health Oscar Health Variance Price / Sales [TTM] 0.55 0.42 -23.6% Operating Cash Flow [TTM] -$246,500,000 $63,410,000 Revenue Growth Rate 188.0% 265.4% 41.1% (Source - Seeking Alpha) A full comparison of the two companies’ performance metrics may be viewed here. Commentary On Oscar Health In its last earnings call (Source - Seeking Alpha), covering Q1 2022’s results, management highlighted the team’s focus on ‘greater variable cost efficiency using [its] technology to reduce manual processes, as well as leveraging [its] scale to obtain the unit cost.’ Also, the company seeks to optimize its utilization via automated decisioning to providers which reduces the need for manual intervention. The firm is also expanding its virtual primary care to new states and markets to help reduce costs. For its Plus Oscar offering to provider-sponsored and regional health plans, the program has grown to 100,000 client lives served.

Shareholder Returns

OSCRUS InsuranceUS Market
7D20.2%3.6%1.1%
1Y-39.8%6.3%-9.0%

Return vs Industry: OSCR underperformed the US Insurance industry which returned 5.4% over the past year.

Return vs Market: OSCR underperformed the US Market which returned -8.9% over the past year.

Price Volatility

Is OSCR's price volatile compared to industry and market?
OSCR volatility
OSCR Average Weekly Movement11.1%
Insurance Industry Average Movement4.8%
Market Average Movement7.6%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.1%

Stable Share Price: OSCR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: OSCR's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20122,621Mario Schlosserhttps://www.hioscar.com

Oscar Health, Inc. provides health insurance products and services in the United States. The company offers Individual & Family, Small Group, and Medicare Advantage plans, as well as +Oscar, a technology driven platform designed to help providers and payor clients to engage with members and patients. It also provides reinsurance products.

Oscar Health Fundamentals Summary

How do Oscar Health's earnings and revenue compare to its market cap?
OSCR fundamental statistics
Market CapUS$1.65b
Earnings (TTM)-US$597.72m
Revenue (TTM)US$2.98b

0.6x

P/S Ratio

-2.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OSCR income statement (TTM)
RevenueUS$2.98b
Cost of RevenueUS$2.48b
Gross ProfitUS$503.46m
Other ExpensesUS$1.10b
Earnings-US$597.72m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-2.82
Gross Margin16.88%
Net Profit Margin-20.04%
Debt/Equity Ratio23.8%

How did OSCR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is OSCR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OSCR?

Other financial metrics that can be useful for relative valuation.

OSCR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Book Ratio vs Peers

How does OSCR's PB Ratio compare to its peers?

OSCR PB Ratio vs Peers
The above table shows the PB ratio for OSCR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPBEstimated GrowthMarket Cap
Peer Average3x
BHG Bright Health Group
1.7x63.8%US$1.1b
GNW Genworth Financial
0.2x-15.1%US$2.2b
CNO CNO Financial Group
1x-11.1%US$2.3b
TRUP Trupanion
9.1x25.8%US$2.9b
OSCR Oscar Health
1.3x48.9%US$1.7b

Price-To-Book vs Peers: OSCR is good value based on its Price-To-Book Ratio (1.3x) compared to the peer average (3x).


Price to Earnings Ratio vs Industry

How does OSCR's PE Ratio compare vs other companies in the US Insurance Industry?

Price-To-Book vs Industry: OSCR is expensive based on its Price-To-Book Ratio (1.3x) compared to the US Insurance industry average (1.1x)


Price to Book Ratio vs Fair Ratio

What is OSCR's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OSCR PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio1.3x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate OSCR's Price-To-Book Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of OSCR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate OSCR's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate OSCR's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Oscar Health forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


48.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OSCR is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: OSCR is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: OSCR is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: OSCR's revenue (26.5% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: OSCR's revenue (26.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OSCR is forecast to be unprofitable in 3 years.


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Past Performance

How has Oscar Health performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-36.3%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: OSCR is currently unprofitable.

Growing Profit Margin: OSCR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if OSCR's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare OSCR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OSCR is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (-22.2%).


Return on Equity

High ROE: OSCR has a negative Return on Equity (-47.95%), as it is currently unprofitable.


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Financial Health

How is Oscar Health's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: OSCR's short term assets ($4.3B) exceed its short term liabilities ($3.1B).

Long Term Liabilities: OSCR's short term assets ($4.3B) exceed its long term liabilities ($372.5M).


Debt to Equity History and Analysis

Debt Level: OSCR has more cash than its total debt.

Reducing Debt: Insufficient data to determine if OSCR's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable OSCR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: OSCR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 16% per year.


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Dividend

What is Oscar Health current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate OSCR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate OSCR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OSCR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OSCR's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as OSCR has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Mario Schlosser (43 yo)

9.83yrs

Tenure

US$60,814,546

Compensation

Mr. Mario Tobias Schlosser is CEO, Co-Founder and Director of Oscar Health, Inc. Since co-founding Oscar in 2012, he has led the company. Previously, he co-founded the largest social gaming company in Lati...


CEO Compensation Analysis

Compensation vs Market: Mario's total compensation ($USD60.81M) is above average for companies of similar size in the US market ($USD5.43M).

Compensation vs Earnings: Mario's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: OSCR's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: OSCR's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

Oscar Health, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Oscar Health, Inc.
  • Ticker: OSCR
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Implied Market Cap: US$1.653b
  • Shares outstanding: 212.20m
  • Website: https://www.hioscar.com

Number of Employees


Location

  • Oscar Health, Inc.
  • 75 Varick Street
  • 5th Floor
  • New York
  • New York
  • 10013
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/17 00:00
End of Day Share Price2022/08/17 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.