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Addus HomeCare Corporation (ADUS)
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Addus Homecare (ADUS) AI Stock Analysis

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ADUS

Addus Homecare

(NASDAQ:ADUS)

Rating:77Outperform
Price Target:
$132.00
▲(23.41% Upside)
Addus Homecare's strong financial performance and positive earnings call are the most significant factors driving the score. The stock's technical indicators suggest a positive trend, but valuation concerns and potential regulatory impacts present risks.
Positive Factors
Financial Performance
ADUS achieved a higher adjusted EBITDA than expected, indicating better profitability.
Regulatory Changes
The Department of Labor's proposed rule could provide a tailwind for home care agencies by reinstating exemptions from federal minimum wage and overtime requirements.
Revenue Growth
Hiring momentum and favorable rate support contributed to a 7.4% organic revenue growth in the PCS segment.
Negative Factors
Market Concerns
The stock's pullback is viewed as unwarranted, with intact fundamentals and likely continued upside surprises expected.
Regulatory Risks
Investors are concerned about the GOP's plans to alter and cut Medicaid, which could adversely impact ADUS.

Addus Homecare (ADUS) vs. SPDR S&P 500 ETF (SPY)

Addus Homecare Business Overview & Revenue Model

Company DescriptionAddus HomeCare Corporation, together with its subsidiaries, provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States. It operates through three segments: Personal Care, Hospice, and Home Health. The Personal Care segment provides non-medical assistance with activities of daily living. This segment offers services that include assistance with bathing, grooming, oral care, feeding and dressing, medication reminders, meal planning and preparation, housekeeping, and transportation services. The Hospice segment provides palliative nursing care, social work, spiritual counseling, homemaker, and bereavement counseling services for people who are terminally ill, as well as related services for their families. The Home Health segment offers skilled nursing and physical, occupational, and speech therapy for the individuals who requires assistance during an illness or after hospitalization. The company's payor clients include federal, state, and local governmental agencies; managed care organizations; commercial insurers; and private individuals. As of December 31, 2021, the company served consumers through 206 offices located in 22 states. Addus HomeCare Corporation was founded in 1979 and is based in Frisco, Texas.
How the Company Makes MoneyAddus HomeCare Corporation generates revenue through a combination of personal care, home health, and hospice services. The company's primary revenue stream comes from personal care services, which involve non-medical support such as bathing, grooming, and meal preparation for individuals who require assistance with daily living activities. In addition, Addus earns income from home health services, which include skilled nursing and therapy services, and hospice care, which provides specialized care for terminally ill patients. A significant portion of Addus HomeCare's revenue is derived from government programs such as Medicaid and Medicare, which reimburse the company for services rendered to eligible patients. Additional revenue streams include contracts with managed care organizations and private pay clients. Strategic partnerships and acquisitions also play a crucial role in expanding the company's service offerings and market reach, contributing to its financial growth.

Addus Homecare Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: 0.00%|
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and strategic acquisitions, but also noted challenges in clinical hiring and potential negative impacts from CMS's proposed payment changes. Overall, the positive aspects slightly outweigh the negative concerns.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Total revenue for Q2 2025 was $349.4 million, an increase of 21.8% compared to Q2 2024.
Improved Financial Metrics
Adjusted earnings per share increased by 10.4% to $1.49, and adjusted EBITDA increased by 24.5% to $43.9 million compared to Q2 2024.
Debt Reduction
Reduced bank debt by $30 million, leaving a balance of $173 million, contributing to a conservative net leverage position.
Personal Care Segment Growth
Personal Care services drove business with a 7.4% organic revenue growth rate, supported by strong hiring trends and favorable rate support.
Successful Acquisition
Closed on the acquisition of Helping Hands Home Care, expanding personal care density and adding home health and hospice operations in Western Pennsylvania.
Negative Updates
Challenges in Clinical Hiring
Despite improvements, clinical hiring remains challenging and geographically variable.
Home Health Revenue Decline
Home health segment's same-store revenue decreased by 6% compared to Q2 2024.
CMS Proposed Payment Rule Concerns
CMS proposed a 6.4% aggregate reduction in Medicare payments to home health agencies for 2026, which could negatively impact availability and cost of care.
Limited Impact from Hospice Rate Increase
While CMS finalized a 2.6% increase for hospice providers, it does not fully reflect the increasing cost of care.
Company Guidance
During the Addus HomeCare Second Quarter 2025 Earnings Call, the company reported significant growth across several metrics, highlighting a 21.8% increase in total revenue, reaching $349.4 million compared to $286.9 million in the same quarter of 2024. Adjusted earnings per share rose by 10.4% to $1.49, while adjusted EBITDA climbed by 24.5% to $43.9 million. The company reduced its bank debt by $30 million, maintaining a net leverage position under 1x adjusted EBITDA. Addus also outlined expected revenue boosts from reimbursement rate increases in Illinois and Texas, projected to add approximately $17.5 million and $17.7 million in annualized revenues, respectively. The Personal Care segment saw strong hiring performance, with hires per business day averaging 105. The hospice segment reported a 10% increase in same-store revenue, though home health revenue decreased by 6%. The company announced the acquisition of Helping Hands Home Care, expanding its personal care, home health, and hospice services in Pennsylvania.

Addus Homecare Financial Statement Overview

Summary
Addus Homecare demonstrates strong revenue growth and robust profitability margins. The balance sheet is solid with manageable debt levels, and cash flow is consistently strong, supporting future growth potential. Overall, the company's financial health is commendable.
Income Statement
85
Very Positive
Addus Homecare demonstrates strong revenue growth with a consistent increase over the past years. The Gross Profit Margin and Net Profit Margin are stable, reflecting efficient operations and profitability. EBIT and EBITDA margins also show a healthy margin, indicating effective cost management. Overall, the income statement reflects robust financial health.
Balance Sheet
78
Positive
The company's balance sheet is solid with a moderate Debt-to-Equity Ratio, indicating a balanced approach to leveraging. Return on Equity is commendable, showing the company's ability to generate profits from shareholders' equity. The Equity Ratio is strong, suggesting a stable financial structure with low risk of over-leverage.
Cash Flow
82
Very Positive
Operating cash flows are strong and consistently cover net income, demonstrating efficient cash management. Free Cash Flow has shown a positive trend, indicating the company's ability to generate cash after accounting for capital expenditures. This positions the company well for future investments or debt repayment.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.21B1.15B1.06B951.12M864.50M764.77M
Gross Profit394.52M375.02M339.88M299.74M269.85M226.24M
EBITDA127.53M120.61M106.56M83.14M80.70M57.18M
Net Income79.00M73.60M62.52M46.02M45.13M33.13M
Balance Sheet
Total Assets1.41B1.41B1.02B937.99M947.59M892.58M
Cash, Cash Equivalents and Short-Term Investments96.95M98.91M64.79M79.96M168.90M145.08M
Total Debt250.80M273.13M175.18M178.05M263.55M239.67M
Total Liabilities412.20M442.14M317.73M304.45M373.24M373.91M
Stockholders Equity995.38M970.49M706.69M633.54M574.34M518.68M
Cash Flow
Free Cash Flow90.12M110.38M102.79M96.81M34.84M102.58M
Operating Cash Flow96.70M116.43M112.25M105.11M39.49M109.41M
Investing Cash Flow-354.24M-354.61M-119.24M-106.59M-42.02M-214.24M
Financing Cash Flow277.77M272.30M-8.18M-87.45M26.34M138.19M

Addus Homecare Technical Analysis

Technical Analysis Sentiment
Positive
Last Price106.96
Price Trends
50DMA
111.80
Positive
100DMA
106.59
Positive
200DMA
113.97
Positive
Market Momentum
MACD
-0.59
Negative
RSI
62.98
Neutral
STOCH
46.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADUS, the sentiment is Positive. The current price of 106.96 is below the 20-day moving average (MA) of 109.41, below the 50-day MA of 111.80, and below the 200-day MA of 113.97, indicating a bullish trend. The MACD of -0.59 indicates Negative momentum. The RSI at 62.98 is Neutral, neither overbought nor oversold. The STOCH value of 46.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADUS.

Addus Homecare Risk Analysis

Addus Homecare disclosed 31 risk factors in its most recent earnings report. Addus Homecare reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Addus Homecare Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$2.14B25.358.54%14.29%
75
Outperform
$1.49B13.9511.19%2.61%19.16%31.92%
73
Outperform
$1.11B30.075.00%54.81%-45.07%
73
Outperform
$3.27B38.667.26%4.92%-7.34%
65
Neutral
¥342.45B8.70-3.93%2.47%11.16%-19.70%
64
Neutral
$764.87M29.0411.28%30.04%43.47%
42
Neutral
$364.73M-60.64%10.12%-29.12%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ADUS
Addus Homecare
116.57
-7.90
-6.35%
AMED
Amedisys
99.31
1.33
1.36%
NHC
National Healthcare
94.77
-23.71
-20.01%
ASTH
Astrana Health
22.32
-24.53
-52.36%
PNTG
Pennant Group
22.19
-6.58
-22.87%
AGL
Agilon Health
0.88
-4.72
-84.29%

Addus Homecare Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Addus HomeCare Reports Strong Q2 2025 Financial Results
Positive
Aug 4, 2025

On August 4, 2025, Addus HomeCare Corporation announced its financial results for the second quarter of 2025, reporting a 21.8% increase in net service revenues to $349.4 million and a net income of $22.1 million. The company completed the acquisition of Helping Hands Home Care, expanding its operations in Pennsylvania. This acquisition aligns with Addus’s strategy to offer comprehensive home-based care services and is expected to enhance its market presence and capabilities. The company’s financial performance reflects strong organic growth, supported by increased demand for home-based care services and strategic acquisitions.

The most recent analyst rating on (ADUS) stock is a Buy with a $147.00 price target. To see the full list of analyst forecasts on Addus Homecare stock, see the ADUS Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Addus Homecare Stockholders Approve Key Proposals at Meeting
Neutral
Jun 23, 2025

At the 2025 annual meeting held on June 18, Addus HomeCare Corporation’s stockholders voted on several key issues. They elected three directors for terms expiring in 2028, ratified PricewaterhouseCoopers LLP as the independent auditor for 2025, and approved executive compensation policies. The board also decided to hold an annual advisory vote on executive compensation, reflecting stockholder preferences.

The most recent analyst rating on (ADUS) stock is a Buy with a $147.00 price target. To see the full list of analyst forecasts on Addus Homecare stock, see the ADUS Stock Forecast page.

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.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2025