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OSCR

Oscar Health NYSE:OSCR Stock Report

Last Price

US$4.94

Market Cap

US$1.0b

7D

3.3%

1Y

-70.6%

Updated

03 Oct, 2022

Data

Company Financials +
OSCR fundamental analysis
Snowflake Score
Valuation2/6
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$4.94
52 Week HighUS$18.89
52 Week LowUS$3.89
Beta0
1 Month Change-15.27%
3 Month Change1.23%
1 Year Change-70.61%
3 Year Changen/a
5 Year Changen/a
Change since IPO-85.80%

Recent News & Updates

Oct 03

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.

Aug 30

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.

Shareholder Returns

OSCRUS InsuranceUS Market
7D3.3%3.6%1.0%
1Y-70.6%-0.2%-20.0%

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.

Price Volatility

Is OSCR's price volatile compared to industry and market?
OSCR volatility
OSCR Average Weekly Movement9.6%
Insurance Industry Average Movement4.5%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

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

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$1.05b
Earnings (TTM)-US$597.72m
Revenue (TTM)US$2.98b

0.4x

P/S Ratio

-1.8x

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

2/6

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

  • 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 Average0.6x
BHG Bright Health Group
1x48.4%US$702.4m
GNW Genworth Financial
0.2xn/aUS$1.9b
NWLI National Western Life Group
0.3xn/aUS$643.2m
CNO CNO Financial Group
0.9x-11.0%US$2.1b
OSCR Oscar Health
0.8x46.0%US$1.0b

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.

OSCR PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio0.8x
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 more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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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


46.0%

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.


Discover growth companies

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 (-22.8%).


Return on Equity

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


Discover strong past performing companies

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

Oscar Health Dividend Yield vs Market
How does Oscar Health dividend yield compare to the market?
SegmentDividend Yield
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.


Discover strong dividend paying companies

Management

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

3.4yrs

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

Mario Schlosser's Compensation vs Oscar Health Earnings
How has Mario Schlosser's remuneration changed compared to Oscar Health's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

-US$598m

Mar 31 2022n/an/a

-US$559m

Dec 31 2021US$61mUS$430k

-US$573m

Sep 30 2021n/an/a

-US$572m

Jun 30 2021n/an/a

-US$439m

Mar 31 2021n/an/a

-US$406m

Dec 31 2020US$564kUS$494k

-US$414m

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.


Leadership Team

Experienced Management: OSCR's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: OSCR's board of directors are not considered experienced ( 1.7 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.


Ownership Breakdown

What is the ownership structure of OSCR?
Owner TypeNumber of SharesOwnership Percentage
Private Companies43,8060.02%
Individual Insiders3,536,8931.7%
Public Companies21,599,84010.2%
General Public24,715,53411.6%
VC/PE Firms63,784,27830.1%
Institutions98,517,50946.4%

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


Top Shareholders

Top 25 shareholders own 79.87% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
17.73%
Thrive Capital Management, LLC
37,614,286$185.8m0%33.69%
10.18%
Alphabet Inc.
21,599,840$106.7m0%no data
9.8%
Baillie Gifford & Co.
20,785,630$102.7m-2.79%0.05%
6.82%
General Catalyst Partners
14,464,995$71.5m0%4.08%
5.52%
Khosla Ventures, LLC
11,704,997$57.8m0%3.17%
5.25%
Southeastern Asset Management, Inc.
11,146,872$55.1m0%1.01%
4.66%
The Vanguard Group, Inc.
9,886,219$48.8m9.99%no data
3.47%
Formation8 Partners, LLC
7,355,629$36.3m0%35.46%
3.36%
BlackRock, Inc.
7,132,455$35.2m945.11%no data
1.48%
Lakestar Advisors GmbH
3,131,511$15.5m0%47.2%
1.3%
Capital Research and Management Company
2,751,000$13.6m0%no data
1.09%
Mario Schlosser
2,314,060$11.4m0%no data
1.04%
Millennium Management LLC
2,203,629$10.9m1.78%0.01%
0.99%
Industry Ventures, L.L.C.
2,107,112$10.4m0%12.05%
0.98%
State Street Global Advisors, Inc.
2,069,734$10.2m512.58%no data
0.92%
CapitalG Management Company, LLC
1,961,036$9.7m0%1.09%
0.9%
Glynn Capital Management
1,915,719$9.5m0%2.04%
0.69%
Ancient Art, L.P.
1,455,154$7.2m0%1.04%
0.63%
Dragoneer Investment Group, LLC
1,346,154$6.7m0%0.15%
0.63%
Geode Capital Management, LLC
1,345,170$6.6m334.26%no data
0.54%
Mitsubishi UFJ Trust and Banking Corporation, Asset Management Arm
1,144,620$5.7m-1.59%0.01%
0.53%
Renaissance Technologies LLC
1,133,193$5.6m304.28%0.01%
0.49%
AlPha Square Group S, LLC
1,043,173$5.2m0%2.5%
0.47%
Duquesne Family Office LLC
994,289$4.9m0%0.35%
0.42%
Northern Trust Global Investments
881,067$4.4m849.72%no data

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$1.048b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OSCRNYSE (New York Stock Exchange)YesClass A Common StockUSUSDMar 2021

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/10/03 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.