Oscar Health is sitting on a pile of cash and trading like it’s invisible. Over the last twelve months, the company generated $1.19 billion in free cash flow. That’s not projected. That’s booked. The stock is trading at $14.38, which puts it at just 4 times trailing free cash flow. That’s a valuation usually reserved for distressed assets or melting ice cubes. Oscar isn’t either.
The company’s routing engine is the real story. It’s not just a claims filter. It’s a directional system that steers members away from high-cost ER visits and toward lower-cost urgent care or outpatient providers. That’s not theory. It’s already happening. If Oscar scales this across its network, it doesn’t just reduce claims. It rewires the cost structure. That’s deflation built into the infrastructure.
Oscar’s platform isn’t just a front-end insurance portal. It’s a backend engine that handles claims, routing, provider matching, and real-time cost optimization. If this scales, it’s not just a better insurer. It’s the Stripe of insurance infrastructure. That’s the bull case. And it’s not priced in.
The company holds $2.26 billion in cash. It posted $9.17 billion in revenue last year. Its market cap is $3.66 billion. That’s a 0.4 price-to-sales ratio. The S&P average is 2.8. Oscar’s leverage ratio is 4.4, but its liquidity position offsets the risk. The company is not burning cash. It’s printing it.
The stock hit a 52-week high of $23.79 and a low of $11.20. It’s now trading near the bottom of that range. Volume today hit 56.7 million shares, more than double the average. That’s not noise. That’s accumulation.
Oscar’s valuation is disconnected from its cash flow. The market is treating it like a speculative tech play. It’s not. It’s a cash-rich infrastructure company with a working model and a scalable engine. The price will follow. It’s just a matter of patience.
Sources:
https://www.macrotrends.net/stocks/charts/OSCR/oscar-health/free-cash-flow
https://finance.yahoo.com/quote/OSCR/cash-flow/
https://stockanalysis.com/stocks/oscr/financials/cash-flow-statement/
https://www.timothysykes.com/news/oscar-health-inc-oscr-news-2025_07_07/