Addus Homecare (ADUS) AI Stock Analysis

• Market Cap: $1.94B
• Dividend Yield: N/A
• Average Volume (3M): 172.76K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.41
• Revenue Growth: 18.77%
• EPS Growth: 6.88%
• Country: US
• Employees: 6,165
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 1.77
• Shares Outstanding: 18,518,270
• 10 Day Avg. Volume: 149,463
• 30 Day Avg. Volume: 172,765
• PEG Ratio: 1.04
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 4.58
• Enterprise Value/Ebitda: 13.55
• 1Y Price Target: $135.43
• Price Target Upside: 25.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 6.87
• Revenue Forecast (FY): $1.53B

• Rating: 75 Outperform
• Price Target: $118.00 ▲(9.67% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by strong fundamentals (consistent revenue growth, improving margins, and very low leverage). Earnings-call commentary reinforces a positive outlook with supportive rate increases and balance-sheet flexibility, though near-term margin pressure and working-capital variability are notable risks. Technicals are the main offset, with the stock trading below major moving averages and only mixed momentum signals; valuation appears moderate based on the provided P/E.

Positive Factors

Sustained Revenue Growth

Addus has delivered multi-year top-line expansion with FY2025 revenue ~ $1.4B and strong quarterly growth driven by core services and M&A. Durable demand for home-based care plus acquisition-driven scale supports revenue resilience over the next 2–6 months.

Conservative Balance Sheet & Liquidity

Very low leverage, sizeable revolver capacity and meaningful cash on hand give Addus financial flexibility to fund selective acquisitions, absorb working-capital swings, and invest in operations without heavy refinancing risk, supporting durable capital allocation.

Reimbursement Tailwinds from State Rate Actions

Material state rate increases in key markets provide lasting revenue and margin support as Medicaid-funded personal care forms the bulk of Addus’ mix; predictable state rate actions improve revenue visibility and help offset wage inflation over the medium term.

Negative Factors

Gross Margin Pressure

Near-term margin compression from merit increases, payroll tax resets and acquisition mix suggests recurring cost pressures. Persistent wage inflation and lagged reimbursement adjustments could constrain margin expansion and limit cash conversion over several quarters.

Working-Capital / DSO Volatility

Variability in receivable collections—especially large-state timing swings—creates uneven operating cash flow and makes FCF less predictable. Reliance on state Medicaid payment timing increases short-term liquidity risk and complicates capital deployment planning.

Service Mix Concentration & Home Health Weakness

High concentration in personal care (majority of revenue) leaves Addus exposed to policy, reimbursement and competitive shifts in that segment. Declines in home health show limited diversification, meaning setbacks in one area can materially affect growth and margins.

Addus Homecare Business Overview & Revenue Model

Company Description

Addus 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 Money

Addus Homecare generates revenue primarily through the provision of home health care services, which are often reimbursed by government programs such as Medicare and Medicaid, as well as private insurance plans. The company charges for its services based on the hours of care provided and the specific needs of each client. Key revenue streams include personal care services, skilled nursing services, and therapy services. Additionally, Addus Homecare benefits from partnerships with healthcare providers and organizations, allowing them to expand their service offerings and reach a broader client base. Their growth strategy also involves acquiring smaller home care agencies, which not only increases their market presence but also contributes to their overall earnings through the integration of these new clients into their existing service framework.

Addus Homecare Financial Statement Overview

Summary

Strong multi-year revenue growth (2020–2025) with improving profitability (net margin up to ~6.7% in 2025; EBITDA margin ~10.8%). Balance sheet is conservatively financed with very low leverage in 2025 (debt-to-equity ~0.05), while cash flow is solid but shows some variability and sub-1x operating cash flow coverage of earnings in recent years.

Income Statement

Revenue has grown consistently from 2020–2025 (from ~$765M to ~$1.42B), supporting a solid growth profile. Profitability has also improved over time, with net margin rising from ~4.3% (2020) to ~6.7% (2025) and EBITDA margin moving up to ~10.8% (2025). A key watch item is that operating profitability is not perfectly smooth year-to-year (and 2025 shows an EBIT margin data gap), but overall the trajectory is favorable with expanding margins and higher earnings.

Balance Sheet

The balance sheet looks conservatively financed, highlighted by very low leverage in 2025 (debt-to-equity ~0.05 versus ~0.25–0.46 in prior years) alongside a much larger equity base. Total assets have expanded meaningfully over the period, indicating scale-up without relying heavily on debt. The main limitation is that only a few risk indicators are provided (e.g., no liquidity details), but based on available leverage and equity trends, financial flexibility appears strong.

Cash Flow

Cash generation is generally strong and consistent: operating cash flow has been healthy in most years (~$105–$116M in 2022–2025) and free cash flow is solid, with 2025 free cash flow matching net income (conversion at 1.0). However, cash flow coverage of earnings is less than 1x across the period (roughly ~0.75–0.80 in recent years) and 2021 shows a notable dip in operating cash flow, pointing to some working-capital or timing volatility despite good longer-run improvement.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.42B	1.15B	1.06B	951.12M	864.50M
Gross Profit	461.87M	375.02M	339.88M	299.74M	269.85M
EBITDA	153.44M	120.61M	106.56M	83.14M	80.70M
Net Income	95.91M	73.60M	62.52M	46.02M	45.13M
Balance Sheet
Total Assets	1.44B	1.41B	1.02B	937.99M	947.59M
Cash, Cash Equivalents and Short-Term Investments	81.62M	98.91M	64.79M	79.96M	168.90M
Total Debt	208.62M	273.13M	175.18M	178.05M	263.55M
Total Liabilities	352.00M	442.14M	317.73M	304.45M	373.24M
Stockholders Equity	1.09B	970.49M	706.69M	633.54M	574.34M
Cash Flow
Free Cash Flow	0.00	110.38M	102.79M	96.81M	34.84M
Operating Cash Flow	111.51M	116.43M	112.25M	105.11M	39.49M
Investing Cash Flow	-32.50M	-354.61M	-119.24M	-106.59M	-42.02M
Financing Cash Flow	-96.30M	272.30M	-8.18M	-87.45M	26.34M

Addus Homecare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 107.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADUS, the sentiment is Negative. The current price of 107.6 is below the 20-day moving average (MA) of 108.81, below the 50-day MA of 109.89, and below the 200-day MA of 112.62, indicating a bearish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 45.74 is Neutral, neither overbought nor oversold. The STOCH value of 52.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADUS.

Addus Homecare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADUS	75 Outperform	$1.94B	20.64	8.58%	―	18.77%	6.88%
NHC	74 Outperform	$2.44B	24.29	9.94%	1.80%	23.74%	-18.99%
PNTG	73 Outperform	$1.11B	43.74	10.87%	―	29.89%	10.33%
SEM	65 Neutral	$1.84B	12.72	5.57%	1.69%	-22.96%	-59.35%
USPH	63 Neutral	$1.26B	34.87	7.30%	2.25%	17.50%	154.28%
AVAH	52 Neutral	$1.47B	20.03	―	―	15.48%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Addus Homecare Corporate Events

Addus HomeCare Reports Strong Q4 and Full-Year Results

Addus HomeCare reported strong financial results on February 23, 2026, for the fourth quarter and full year ended December 31, 2025, driven mainly by its personal care segment and supported by hospice and home health. Fourth-quarter net service revenue rose 25.6% year over year to $373.1 million, net income increased to $29.8 million or $1.61 per diluted share, and adjusted EBITDA grew 33.3% to $50.3 million, while full-year revenue climbed 23.2% to $1.42 billion, with higher adjusted earnings and cash generation.

Management highlighted that personal care accounted for 76.6% of fourth-quarter revenue, with 6.3% organic growth aided by state rate increases and contributions from recent acquisitions, including Del Cielo Home Care Services and Gentiva’s personal care operations. With $81.6 million in cash, reduced bank debt of $124.3 million, substantial revolver capacity, and supportive state funding in large markets like Texas and Illinois, Addus signaled continued acquisition-driven and organic expansion in 2026, reinforcing its position in the growing home-based care sector and supporting long-term stakeholder value.

The most recent analyst rating on (ADUS) stock is a Buy with a $135.00 price target. To see the full list of analyst forecasts on Addus Homecare stock, see the ADUS Stock Forecast page.