Acadia Healthcare (ACHC) AI Stock Analysis

• Market Cap: $2.02B
• Dividend Yield: N/A
• Average Volume (3M): 2.68M
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.70
• Revenue Growth: 5.64%
• EPS Growth: N/A
• Country: US
• Employees: 25,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.83
• Shares Outstanding: 92,346,596
• 10 Day Avg. Volume: 2,693,679
• 30 Day Avg. Volume: 2,682,284
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.20
• Enterprise Value/Revenue: 1.38
• Enterprise Value/Gross Profit: 1.70
• Enterprise Value/Ebitda: 8.93
• 1Y Price Target: $27.50
• Price Target Upside: 24.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 64 Neutral
• Price Target: $22.50 ▲(1.95% Upside)

Acadia Healthcare's overall stock score is driven by strong financial performance in terms of revenue growth and gross margins, but tempered by challenges in profitability and cash flow conversion. Technical analysis indicates weak momentum, while the earnings call highlights both growth and operational challenges. The valuation is reasonable, but the lack of a dividend yield may deter some investors.

Positive Factors

Revenue Growth

The consistent revenue growth reflects strong demand for Acadia's services and effective expansion strategies, indicating a robust market position.

Expansion and Development

The addition of new beds and facilities enhances Acadia's capacity to serve more patients, supporting long-term revenue growth and market expansion.

Favorable Labor Trends

Improved labor conditions reduce operational costs and enhance service delivery, contributing to better margin sustainability and operational efficiency.

Negative Factors

Increased Debt Levels

Higher debt levels can strain cash flow and limit financial flexibility, potentially impacting long-term stability and growth investments.

Net Profit Margin Decline

A declining net profit margin suggests challenges in cost management and profitability, which could affect future financial health and investor confidence.

Increased Start-up Losses

Rising start-up losses from new facilities may pressure short-term profitability and cash flow, potentially delaying the realization of expected growth benefits.

Acadia Healthcare Business Overview & Revenue Model

Company Description

Acadia Healthcare Company, Inc. provides behavioral healthcare services in the United States and Puerto Rico. The company offers behavioral healthcare services to its patients in various settings, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers, and outpatient clinics. As of March 31, 2022, it operated a network of 238 behavioral healthcare facilities with approximately 10,600 beds. The company was founded in 2005 and is headquartered in Franklin, Tennessee.

How the Company Makes Money

Acadia Healthcare generates revenue primarily through the provision of healthcare services, which are reimbursed by a variety of payers including private insurance companies, government programs such as Medicare and Medicaid, and self-pay patients. The company operates on a fee-for-service model, where revenue is derived from the number of patients treated and the services rendered, including inpatient stays and outpatient visits. Additionally, Acadia benefits from contractual agreements with insurance providers that facilitate patient access to its services. The company also focuses on expanding its network through acquisitions and partnerships, enhancing its capability to serve a broader patient base and increase revenue streams.

Acadia Healthcare Financial Statement Overview

Summary

Acadia Healthcare shows robust revenue growth and strong gross profit margins, but faces challenges in maintaining net profitability and operational efficiency. The balance sheet indicates increased leverage, posing potential risks. Cash flow generation is mixed, with strong operating cash flow but weak free cash flow.

Income Statement

Acadia Healthcare shows a consistent revenue growth trend, with a TTM revenue growth rate of 2.32%. The gross profit margin has improved significantly to 81.24% in the TTM, indicating strong cost management. However, the net profit margin has decreased to 4.31% from 8.10% in the previous year, reflecting challenges in maintaining profitability. The EBIT and EBITDA margins have also declined, suggesting pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.78 in the TTM, indicating a higher reliance on debt financing. Return on equity has decreased to 4.56%, reflecting reduced profitability. The equity ratio remains stable, suggesting a balanced asset structure. Overall, the balance sheet shows moderate leverage with potential risks from increased debt levels.

Cash Flow

Operating cash flow has improved significantly in the TTM, but free cash flow remains low, with a negative growth rate of -136.34%. The operating cash flow to net income ratio is strong at 0.81, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio is weak at 0.07, highlighting challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.23B	3.15B	2.93B	2.61B	2.31B	2.09B
Gross Profit	2.62B	711.98M	682.61M	1.12B	979.89M	848.17M
EBITDA	498.63M	607.84M	189.11M	561.67M	459.47M	437.16M
Net Income	139.25M	255.61M	-21.67M	273.14M	190.63M	143.19M
Balance Sheet
Total Assets	6.31B	5.96B	5.36B	4.99B	4.77B	6.50B
Cash, Cash Equivalents and Short-Term Investments	131.42M	76.31M	100.07M	97.65M	133.81M	378.70M
Total Debt	2.39B	2.09B	1.51B	1.53B	1.64B	3.23B
Total Liabilities	3.08B	2.77B	2.47B	2.09B	2.19B	4.60B
Stockholders Equity	3.08B	3.07B	2.78B	2.81B	2.52B	1.90B
Cash Flow
Free Cash Flow	31.08M	-560.69M	38.21M	84.42M	129.67M	442.19M
Operating Cash Flow	424.81M	129.69M	462.34M	380.57M	374.48M	658.81M
Investing Cash Flow	-730.40M	-736.48M	-397.22M	-305.83M	1.02B	-281.84M
Financing Cash Flow	359.85M	583.02M	-62.70M	-110.90M	-1.64B	-51.50M

Acadia Healthcare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.07
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACHC, the sentiment is Negative. The current price of 22.07 is below the 20-day moving average (MA) of 22.38, above the 50-day MA of 21.93, and below the 200-day MA of 29.35, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 50.08 is Neutral, neither overbought nor oversold. The STOCH value of 29.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACHC.

Acadia Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	69 Neutral	1.79B	17.19	10.26%	2.07%	25.19%	13.44%
SEM	69 Neutral	1.52B	11.50	8.21%	2.02%	-16.10%	-48.97%
ACHC	64 Neutral	$2.02B	14.54	4.62%	―	5.64%	―
SGRY	60 Neutral	2.79B	-15.42	-10.32%	―	12.05%	-432.59%
LFST	59 Neutral	2.00B	-127.25	-1.10%	―	13.86%	89.49%
BKD	46 Neutral	1.79B	-7.60	-230.26%	―	3.99%	-14.74%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%