Accendra Health (ACH)
NYSE:ACH
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Accendra Health
(NYSE:ACH)
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Rating:47Neutral
Price Target:
$2.50
▼(-2.72% Downside)
Action:ReiteratedDate:04/04/26
The score is held down primarily by weak financial performance (large recent profitability deterioration, negative operating/free cash flow, and negative equity with high leverage). Technicals provide some offset via improving short-term momentum, while valuation remains unattractive due to losses and no dividend support. Earnings call guidance is balanced: clearer deleveraging and cash-flow targets, but a sizable near-term revenue/EBITDA headwind from a major payer contract loss.
Positive Factors
Divestiture-driven deleveraging
The strategic divestiture converted non-core assets into $342M of proceeds used immediately to reduce leverage and settle receivable securitization. This materially improves balance-sheet flexibility, narrows focus to core home-based care, and supports sustainable margin improvement and targeted investments.
Negative Factors
Large payer contract loss
A $300M structural revenue reduction materially erodes scale and predictable cash flows, increasing per-unit cost pressure and weakening margin economics. Replacement is uncertain and slow, meaning sustained top-line shortfall will pressure adjusted EBITDA, leverage targets and require durable cost or pricing responses.
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Positive Factors
Negative Factors
Divestiture-driven deleveraging
The strategic divestiture converted non-core assets into $342M of proceeds used immediately to reduce leverage and settle receivable securitization. This materially improves balance-sheet flexibility, narrows focus to core home-based care, and supports sustainable margin improvement and targeted investments.
Read all positive factors
Accendra Health (ACH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$214.79M
Dividend YieldN/A
Average Volume (3M)1.12M
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees23,200
SectorHealthcare
Sector Strength45
IndustryMedical - Distribution
Share Statistics
EPS (TTM)0.21
Shares Outstanding76,436,810
10 Day Avg. Volume949,424
30 Day Avg. Volume1,122,390
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.47
Price to Sales (P/S)0.08
P/FCF Ratio-0.74
Enterprise Value/Market Cap10.18
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit1.49
Enterprise Value/Ebitda9.30
Forecast
1Y Price Target
$2.83Price Target Upside10.25% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)0.6
Revenue Forecast (FY)$2.59B
Accendra Health Business Overview & Revenue Model
Company Description
Accendra Health, Inc., together with its subsidiaries, operates as a healthcare solutions company worldwide. The company operates in two segments, Products & Healthcare Services and Patient Direct. The Products & Healthcare Services segment offers...
Accendra Health Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: structurally positive strategic actions and improving cash generation following the divestiture (completed sale proceeds, strong continuing-operations cash flow, debt reduction, a clear deleveraging target and targeted technology investments). However, material near-term challenges remain — most notably the large commercial payer contract loss (~$300M headwind in 2026), margin pressure from inflationary product costs and one-time separation and stranded costs — which depress near-term revenue and adjusted EBITDA guidance. Management outlined clear remediation actions (cost reduction, technology, preferred agreements and capital structure optimization) and expects improvements over 2026 and into 2027, resulting in a neutral overall outlook in the near term while leaving upside potential if replacement volume and cost initiatives succeed.Positive Updates
Completed Strategic Divestiture
Sold Products & Healthcare Services (Owens & Minor) to Platinum Equity on December 31, 2025; received $342 million of net proceeds at closing with an expected additional $12–15 million of purchase price adjustments, enabling a leaner, higher-margin pure-play home-based care company and enabling immediate use of proceeds to reduce debt (including $66 million to settle PNHS-related AR securitization).
Negative Updates
Significant Large Commercial Payer Contract Loss
A previously disclosed loss and price impact from a large commercial payer reduced Q4 revenue by ~1% relative to what would have been >3% growth. Management expects the aggregate impact to be approximately $300 million of incremental revenue reduction in 2026 vs 2025 and an additional ~$40 million in 2027, with the company not fully replacing that volume and expecting to fully lap the impact by end of Q1 2027.
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Q4-2025 Updates
Positive
Negative
Completed Strategic Divestiture
Sold Products & Healthcare Services (Owens & Minor) to Platinum Equity on December 31, 2025; received $342 million of net proceeds at closing with an expected additional $12–15 million of purchase price adjustments, enabling a leaner, higher-margin pure-play home-based care company and enabling immediate use of proceeds to reduce debt (including $66 million to settle PNHS-related AR securitization).
Read all positive updates
Company Guidance
The company guided 2026 net revenue of $2.55–$2.65 billion and adjusted EBITDA of $335–$355 million, with levered free cash flow at the midpoint of the plan of at least $100 million; management said the loss of a large commercial payer will reduce 2026 revenue by roughly $300 million versus 2025 (about $40 million more in 2027) with ~15% of that reduction in Q1 and 25–30% in each of Q2–Q4, and noted they expect to fully lap the impact by the end of Q1 2027. For context, 2025 revenue was ~$2.8 billion (up ~3%), adjusted EBITDA was $375 million (Q4 adj. EBITDA $90 million), Q4 free cash flow was $18 million and FY free cash flow $98 million; patient CapEx was $45 million in Q4 and $189 million for 2025 (expected to be ~95% of total CapEx going forward). Balance sheet metrics: net debt $1.8 billion (down $315 million from Sept. 30), cash $282 million at 12/31 plus ~$220 million revolver capacity and $16 million AR securitization availability, $342 million divestiture proceeds received (with an additional ~$12–$15 million expected), and a long‑range leverage target of ~3x adjusted EBITDA.Accendra Health Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
14
Very Negative
Cash Flow
22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.76B | 10.70B | 10.33B | 9.96B | 9.79B |
| Gross Profit | 1.20B | 2.22B | 2.13B | 1.83B | 1.51B |
| EBITDA | 241.77M | 51.22M | 390.57M | 368.45M | 415.46M |
| Net Income | -1.10B | -362.69M | -41.30M | 22.39M | 221.59M |
Balance Sheet | |||||
| Total Assets | 2.45B | 4.66B | 5.09B | 5.39B | 3.54B |
| Cash, Cash Equivalents and Short-Term Investments | 281.99M | 49.38M | 243.04M | 69.47M | 55.71M |
| Total Debt | 2.23B | 2.14B | 2.41B | 2.79B | 1.15B |
| Total Liabilities | 2.91B | 4.09B | 4.17B | 4.44B | 2.60B |
| Stockholders Equity | -460.98M | 565.23M | 924.17M | 945.60M | 938.50M |
Cash Flow | |||||
| Free Cash Flow | -292.75M | -66.67M | 532.82M | 158.42M | 74.49M |
| Operating Cash Flow | -101.79M | 161.50M | 740.71M | 325.01M | 124.18M |
| Investing Cash Flow | 144.42M | -116.53M | -137.25M | -1.80B | -53.63M |
| Financing Cash Flow | 188.08M | -267.60M | -417.33M | 1.50B | -129.48M |
Accendra Health Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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