OSCR Stock Overview
Oscar Health, Inc. provides health insurance products and services in the United States.
Oscar Health Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$4.94|
|52 Week High||US$18.89|
|52 Week Low||US$3.89|
|1 Month Change||-15.27%|
|3 Month Change||1.23%|
|1 Year Change||-70.61%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-85.80%|
Recent News & Updates
Oscar Health: Improving Risk/Reward Profile To Watch
Summary Oscar Health's stock price has seen a precipitous decline, yet the company's financial performance continues to be strong on key metrics. Oscar Health has demographic and technological tailwinds that can drive the growth in users and optimize efficiencies for the business. Rising yields and "risk-off" sentiment can continue to drive the Oscar Health stock price lower. We recommend a "HOLD" for Oscar Health investors given the market conditions, but once there is more clarity, we will update investors. Thesis Oscar Health, Inc. (NYSE:OSCR) continues to spearhead through its growth trajectory. The company's top line growth and the business potential are some things to note; however, given the current market conditions, it is possible that Oscar Health will continue to see its share price decline as investors flee to safety and avoid long duration stocks like Oscar Health. As a result, we are recommending a "HOLD" for Oscar Health right now, but will look to change our thesis as market conditions improve. Company Overview Oscar Health, Inc. is a technology-based health insurance company that sells insurance directly consumers. The company completed its Initial Public Offering in March 2021, and raised $1.4 billion at an IPO price of $39 per share. Since then, the company has seen a precipitous decline in shareholder value, as the company now trades at around $5 per share at a market capitalization of $1.06 billion. Year-to-date, Oscar Health's stock price has shown higher volatility than the overall index, and the stock price has declined more than the index as well. The company's stock returned -36.43% this year, compared to the S&P 500's decline of -24.80%. Data by YCharts Recent Financial Performance Good Growth in Key Areas Oscar Health showed substantial growth in Q2 2022 compared to the previous year in key areas of performance. First and foremost, the company's revenue increased from $539.2 million to $1.02 billion YoY, which represents a 92.2% growth. In that same time frame, the company's membership also increased by around that margin, as the number of users jumped from 563,114 to 1,036,720 within a year, marking an 84% YoY increase. On a simple back of the envelope calculation, it is good to see the growth in revenue outpace the growth in users, which may show generally the increase in revenue synergies of Oscar Health's recently developed new product lines and services. Q2 Earnings Release Widening Losses On the other hand, even as the top line grew substantially, the company's net loss widened on a YoY basis from -$73 million to -$112 million. Though it's not favorable to see the net loss widen on a year-over-year basis, we believe the increase in losses in the context of a near $500 million increase in revenue alleviates some concerns. Nevertheless, the efficiency ratios have been looking solid with a decline in key ratios such as Medical Loss Ratio and Adjusted Administrative Expense Ratio, which declined 20 bps and 140 bps YoY. As such, though the losses have widened, we believe that we are seeing the benefits of increasing operational leverage as the company's top line and user base grows. Furthermore, the company has $2.36 billion in cash on hand, and we believe that the company from a liquidity perspective has enough runway to continue to operate at a loss. So at the moment, we believe that top line and membership growth is the most important. Q2 2022 Earnings Release Strong Fundamentals Oscar Health operates in the healthcare market, specifically the segment of the healthcare market that focuses on digitized healthcare offerings and virtual medicine. The market growth trajectory is high for the next decade, and we believe Oscar Health's brand and position in the market sets the company up for the great chance to take advantage of the market growth. The "Smart" Healthcare Market is expected to grow at a solid CAGR of 13.4% until 2030 and so is "Big Data" in Healthcare, which is expected to grow at a CAGR of 13.85% in the same time frame. As more and more young people start to look for healthcare options, we believe that Oscar Health's technology first business model will provide the company with a significant competitive edge over the larger, older incumbents in the industry. As one can see below, Oscar Health members are more tech-savvy than the average in the industry. Therefore, in the long term, we do believe that company will be able to have strong margins and profitability based on its reliance on technology and data. Currently, at a 0.3x P/S multiple, we believe there could be potential valuation upside in the future.
Florida health insurer terminating agreement with Oscar Health
Oscar Health (NYSE:OSCR) said that Health First Shared Services, a Florida-based insurer, is ending a services agreement as early as Jan. 1, 2023. Under a January 2021 agreement, Oscar (OSCR) was providing administrative functions and services, as well as access to its technology platform. Oscar (OSCR) said that the administrative services revenue is estimated at $55M to $60M, and is expected to have an immaterial impact on the its adjusted EBITDA and net loss for 2022. Seeking Alpha's Quant Rating views Oscar (OSCR) as a hold with high grades for growth and momentum.
|OSCR||US Insurance||US Market|
Return vs Industry: OSCR underperformed the US Insurance industry which returned -3.8% over the past year.
Return vs Market: OSCR underperformed the US Market which returned -23.2% over the past year.
|OSCR Average Weekly Movement||9.6%|
|Insurance Industry Average Movement||4.5%|
|Market Average Movement||6.8%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: OSCR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.
Volatility Over Time: OSCR's weekly volatility (10%) has been stable over the past year.
About the Company
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
|OSCR fundamental statistics|
Is OSCR overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|OSCR income statement (TTM)|
|Cost of Revenue||US$2.48b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-2.82|
|Net Profit Margin||-20.04%|
How did OSCR perform over the long term?See historical performance and comparison
Is OSCR undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 2/6
Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
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.
|What is OSCR's n/a Ratio?|
Price to Book Ratio vs Peers
How does OSCR's PB Ratio compare to its peers?
|OSCR PB Ratio vs Peers|
|Company||PB||Estimated Growth||Market Cap|
BHG Bright Health Group
GNW Genworth Financial
NWLI National Western Life Group
CNO CNO Financial Group
OSCR Oscar Health
Price-To-Book vs Peers: OSCR is expensive based on its Price-To-Book Ratio (0.8x) compared to the peer average (0.6x).
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 good value based on its Price-To-Book Ratio (0.8x) compared to the US Insurance industry average (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.
|Current PB Ratio||0.8x|
|Fair PB Ratio||n/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 more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Oscar Health forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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 (7.7% 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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How has Oscar Health performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
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 (-22.8%).
Return on Equity
High ROE: OSCR has a negative Return on Equity (-47.95%), as it is currently unprofitable.
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How is Oscar Health's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
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.
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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What is Oscar Health current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
|Oscar Health Dividend Yield vs Market|
|Company (Oscar Health)||n/a|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.6%|
|Industry Average (Insurance)||2.4%|
|Analyst forecast in 3 Years (Oscar Health)||0%|
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.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mario Schlosser (43 yo)
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
|Mario Schlosser's Compensation vs Oscar Health Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$61m||US$430k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$564k||US$494k|
Compensation vs Market: Mario's total compensation ($USD60.81M) is above average for companies of similar size in the US market ($USD4.14M).
Compensation vs Earnings: Mario's compensation has increased whilst the company is unprofitable.
Experienced Management: OSCR's management team is considered experienced (3.4 years average tenure).
Experienced Board: OSCR's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.
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.
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Oscar Health, Inc.'s employee growth, exchange listings and data sources
- Name: Oscar Health, Inc.
- Ticker: OSCR
- Exchange: NYSE
- Founded: 2012
- Industry: Life and Health Insurance
- Sector: Insurance
- Implied Market Cap: US$1.048b
- Shares outstanding: 212.20m
- Website: https://www.hioscar.com
Number of Employees
- Oscar Health, Inc.
- 75 Varick Street
- 5th Floor
- New York
- New York
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|OSCR||NYSE (New York Stock Exchange)||Yes||Class A Common Stock||US||USD||Mar 2021|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/03 00:00|
|End of Day Share Price||2022/10/03 00:00|
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.