Accendra Health (ACH)
NYSE:ACH
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Accendra Health
(NYSE:ACH)
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Rating:48Neutral
Price Target:
$2.50
▼(-2.72% Downside)
Action:Reiterated
Date:05/14/26
The score is held down primarily by weak financial performance (sharp revenue contraction, large losses, negative equity, and negative recent free cash flow). The earnings call provides some offset via affirmed 2026 outlook, liquidity, and a pending balance-sheet optimization that extends maturities and could reduce leverage, but higher expected interest expense and recent cash-flow pressure remain key constraints. Technicals are mixed and do not provide a strong momentum tailwind, while valuation is challenged by ongoing losses and no dividend support.
Positive Factors
Balance‑sheet optimization and extended maturities
Extending maturities, adding a $300M committed revolver and lender support to de‑lever up to ~$115M materially reduces near‑term refinancing risk. A longer debt life (~5.5 years) gives management runway to execute operations and structural margin programs without immediate cash‑flow pressure.
Negative Factors
Sharp revenue contraction and large net losses
A ~42% TTM revenue decline and outsized net losses reflect structural demand or contract disruptions and drive sustained earnings volatility. Negative margins undermine retained earnings, weaken credit metrics, and constrain reinvestment capacity, raising long‑term viability risks if recovery stalls.
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Positive Factors
Negative Factors
Balance‑sheet optimization and extended maturities
Extending maturities, adding a $300M committed revolver and lender support to de‑lever up to ~$115M materially reduces near‑term refinancing risk. A longer debt life (~5.5 years) gives management runway to execute operations and structural margin programs without immediate cash‑flow pressure.
Read all positive factors
Accendra Health (ACH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$217.50M
Dividend YieldN/A
Average Volume (3M)1.12M
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth-74.67%
EPS Growth-196.48%
CountryUS
Employees23,200
SectorHealthcare
Sector Strength45
IndustryMedical - Distribution
Share Statistics
EPS (TTM)-14.05
Shares Outstanding76,583,700
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 Cap9.43
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit1.83
Enterprise Value/Ebitda5.96
Forecast
1Y Price Target
$4.44Price Target Upside72.67% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.7
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:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The call presented a mix of strong strategic and financial progress — notably the successful separation, margin transformation, balance sheet optimization commitments, $82M equipment sale and $52M one‑time gain, and operational wins in sleep therapy — while also acknowledging meaningful near‑term pressures: a 6.8% revenue decline, collection and cost headwinds, slightly negative free cash flow in Q1, and an expected ~ $40M annualized increase in cash interest post‑refinancing. Management emphasized that underlying revenue (ex‑large payor) was roughly +1% and that debt reduction and cost‑savings remain priorities, framing the near‑term drawbacks as manageable steps in service of a stronger long‑term standalone profile.Positive Updates
Successful Separation and Stand‑Alone Positioning
Transition services and separation from Owens & Minor are on track; Accendra is now operating as a pure‑play home‑based care company focused on growth and higher margins.
Negative Updates
Quarterly Revenue Decline
Reported revenue decline of 6.8% in Q1; while exclusion of the large payor yields ~+1% growth, headline revenue contraction is a near‑term concern.
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Q1-2026 Updates
Positive
Negative
Successful Separation and Stand‑Alone Positioning
Transition services and separation from Owens & Minor are on track; Accendra is now operating as a pure‑play home‑based care company focused on growth and higher margins.
Read all positive updates
Company Guidance
The company affirmed its 2026 outlook for revenue and adjusted EBITDA and said it expects revenue to ramp through the year with at least 65% of adjusted EBITDA earned in Q3–Q4; Q1 results included a 6.8% revenue decline (which would be ~+1% ex the exited large commercial payor) and $58 million of adjusted EBITDA, with free cash flow slightly negative. Management closed an $82 million cash sale of patient equipment (producing a $52 million book gain excluded from adjusted EBITDA), reported $337 million of cash, $195 million of available revolver capacity, and net debt essentially flat at $1.77 billion after $19 million of IRS and $22 million of P&HS divestiture payments in the quarter. The announced balance‑sheet optimization will pay off 2027 maturities, offer exchanges that could de‑leverage by up to ~$115 million, issue new first‑ and second‑lien notes maturing in 2032/2033, provide a new $300 million committed revolver due 2030, and double the weighted‑average life of the debt to ~5.5 years. The financing is expected to launch in the coming week with closing targeted for mid–late June; the company cautioned annualized cash interest will be ~ $40 million higher (with about half of that hitting in H2 2026) even as it pursues continued cost savings, better collections and rapid de‑leveraging.Accendra Health Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
22
Negative
Cash Flow
20
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.72B | 2.76B | 10.70B | 10.33B | 9.96B | 9.79B |
| Gross Profit | 1.12B | 1.20B | 2.22B | 2.13B | 1.83B | 1.51B |
| EBITDA | 344.06M | 364.68M | 51.22M | 390.57M | 368.45M | 415.46M |
| Net Income | -1.08B | -1.10B | -362.69M | -41.30M | 22.39M | 221.59M |
Balance Sheet | ||||||
| Total Assets | 2.42B | 2.45B | 4.66B | 5.09B | 5.39B | 3.54B |
| Cash, Cash Equivalents and Short-Term Investments | 336.88M | 281.99M | 49.38M | 243.04M | 69.47M | 55.71M |
| Total Debt | 2.17B | 2.23B | 2.14B | 2.41B | 2.79B | 1.15B |
| Total Liabilities | 2.88B | 2.91B | 4.09B | 4.17B | 4.44B | 2.60B |
| Stockholders Equity | -464.76M | -460.98M | 565.23M | 924.17M | 945.60M | 938.50M |
Cash Flow | ||||||
| Free Cash Flow | -179.80M | -292.75M | -66.67M | 532.82M | 158.42M | 74.49M |
| Operating Cash Flow | -116.80M | -101.79M | 161.50M | 740.71M | 325.01M | 124.18M |
| Investing Cash Flow | 246.55M | 144.42M | -116.53M | -137.25M | -1.80B | -53.63M |
| Financing Cash Flow | 146.38M | 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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