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Addus Homecare
(NASDAQ:ADUS)
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Rating:83Outperform
Price Target:
$136.00
▲(17.60% Upside)
Action:Reiterated
Date:08/04/26
ADUS scores well primarily due to strong financial performance (improving profitability, strong cash generation, and sharply reduced leverage). Technicals add support with clear strength above key moving averages and positive momentum signals. Valuation is reasonable but not especially cheap (P/E ~21), and the latest earnings call was constructive with >12% adjusted EBITDA margin guidance, tempered by DSOs and segment-level pressures.
Positive Factors
Improving leverage and conservative balance sheet
Material deleveraging over several years meaningfully increases financial flexibility. Lower debt levels and rising equity provide capacity for M&A, absorb reimbursement timing variability, reduce interest costs and support capital allocation without relying on short-term market financing.
Negative Factors
Sharp revenue growth slowdown in 2025
A pronounced deceleration in top-line expansion signals potential demand normalization or reimbursement headwinds. Slower organic growth reduces future operating-leverage tailwinds and increases reliance on acquisitions to meet investor growth expectations over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage and conservative balance sheet
Material deleveraging over several years meaningfully increases financial flexibility. Lower debt levels and rising equity provide capacity for M&A, absorb reimbursement timing variability, reduce interest costs and support capital allocation without relying on short-term market financing.
Read all positive factors
Addus Homecare (ADUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.16B
Dividend YieldN/A
Average Volume (3M)259.75K
Price to Earnings (P/E)21.3
Beta (1Y)0.36
Revenue Growth19.55%
EPS Growth21.54%
CountryUS
Employees50,659
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)5.68
Shares Outstanding18,664,776
10 Day Avg. Volume237,150
30 Day Avg. Volume259,747
Financial Highlights & Ratios
PEG Ratio1.04
Price to Book (P/B)1.83
Price to Sales (P/S)1.39
P/FCF Ratio19.09
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$131.13Price Target Upside13.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)7
Revenue Forecast (FY)$1.52B
Addus Homecare Business Overview & Revenue Model
Company Description
Addus HomeCare Corporation, through its various subsidiaries, offers essential personal support services across the United States. The company primarily assists seniors, individuals with chronic illnesses or disabilities, and those at risk of hosp...
How the Company Makes Money
Addus makes money by providing in-home care services and receiving reimbursement primarily from government payors, with revenue largely tied to the volume of authorized service hours/visits and the applicable reimbursement rates. Its largest reven...
Addus Homecare Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture: solid top-line growth (+7.7% revenue), meaningful EPS and adjusted EBITDA improvements, strong operating cash flow ($52.4M) and a strengthened balance sheet with reduced bank debt and sizable revolver availability. Personal Care and Hospice were key growth drivers (Personal Care same-store +6.5%; Hospice ADC +8.2%). Management also highlighted progress on productivity (caregiver app), hiring, and targeted M&A (entry into Indiana). Challenges noted include a weather-driven $1.5M revenue hit, elevated DSOs (timing-driven), a YoY decline in home health revenue, and a reversion in hospice revenue-per-day dynamics. Overall, positives (multiple strong metrics, cash flow and M&A runway, operating improvements) outweigh the contained challenges and one-time items.Positive Updates
Revenue Growth
Total revenue of $363.6M for Q1 2026, up 7.7% vs. $337.7M in Q1 2025.
Negative Updates
Weather-Related Revenue Impact
Widespread late-January weather event caused missed personal care visits and approximately $1.5M of lost revenue in Q1 2026; some missed visits could not be made up.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total revenue of $363.6M for Q1 2026, up 7.7% vs. $337.7M in Q1 2025.
Read all positive updates
Company Guidance
Management guided that full‑year 2026 adjusted EBITDA margin should remain above 12% and the company expects an effective tax rate in the mid‑20% range (Q1 rate was 22.7%); gross margin was 31.9% in Q1 and is expected to remain relatively stable while adjusted G&A ran 19.6% of revenue (G&A 21.4%). Q1 results that frame the outlook included revenue of $363.6M (+7.7% YoY), adjusted EBITDA $44.5M (+9.7%), adjusted EPS $1.62 (+14.1%), operating cash flow $52.4M, cash on hand $103.1M, revolver capacity $650M (availability $547.8M), and total bank debt $94.3M (down $30M QoQ, with $10M revolver paydown in Q2 to date). Segment metrics noted: Personal Care $281.1M (77.3% of rev, +8.8% overall, same‑store +6.5%, same‑store hours +2.2% with a 2.0–2.5% hours target), Hospice $65.8M (18.1%, same‑store +7.7%, ADC 3,804, median LOS 23 days), Home Health $16.7M (4.6%).Addus Homecare Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.48B | 1.42B | 1.15B | 1.06B | 951.12M | 864.50M |
| Gross Profit | 477.75M | 461.87M | 375.02M | 339.88M | 299.74M | 269.85M |
| EBITDA | 166.81M | 153.44M | 120.61M | 106.56M | 83.14M | 80.70M |
| Net Income | 105.31M | 95.91M | 73.60M | 62.52M | 46.02M | 45.13M |
Balance Sheet | ||||||
| Total Assets | 1.46B | 1.44B | 1.41B | 1.02B | 937.99M | 947.59M |
| Cash, Cash Equivalents and Short-Term Investments | 99.57M | 81.62M | 98.91M | 64.79M | 79.96M | 168.90M |
| Total Debt | 47.22M | 208.62M | 273.13M | 175.18M | 178.05M | 263.55M |
| Total Liabilities | 140.18M | 352.00M | 442.14M | 317.73M | 304.45M | 373.24M |
| Stockholders Equity | 1.15B | 1.09B | 970.49M | 706.69M | 633.54M | 574.34M |
Cash Flow | ||||||
| Free Cash Flow | 157.82M | 103.79M | 110.38M | 102.79M | 96.81M | 34.84M |
| Operating Cash Flow | 162.41M | 111.51M | 116.43M | 112.25M | 105.11M | 39.49M |
| Investing Cash Flow | -48.01M | -32.50M | -354.61M | -119.24M | -106.59M | -42.02M |
| Financing Cash Flow | -106.00M | -96.30M | 272.30M | -8.18M | -87.45M | 26.34M |
Addus Homecare Technical Analysis
Positive
115.65
Price Trends
101.89
Positive
99.06
Positive
105.48
Positive
Market Momentum
4.34
Positive
66.66
Neutral
61.57
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 115.65 is above the 20-day moving average (MA) of 112.59, above the 50-day MA of 101.89, and above the 200-day MA of 105.48, indicating a bullish trend. The MACD of 4.34 indicates Positive momentum. The RSI at 66.66 is Neutral, neither overbought nor oversold. The STOCH value of 61.57 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 32 risk factors in its most recent earnings report. Addus Homecare reported the most risks in the "Ability to Sell" 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $2.16B | 21.35 | 9.34% | ― | 19.55% | 21.54% | |
79 Outperform | $3.53B | 28.32 | 11.68% | 1.15% | 11.40% | 13.96% | |
71 Outperform | $1.40B | 45.30 | 9.23% | ― | 36.76% | 11.22% | |
69 Neutral | $2.04B | 7.41 | 241.47% | ― | 20.49% | 4335.46% | |
57 Neutral | $1.20B | 158.12 | 0.24% | 2.44% | 13.73% | -77.14% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ADUS
Addus Homecare
116.79
9.83
9.19%
NHC
National Healthcare
222.76
129.59
139.10%
USPH
US Physical Therapy
77.81
9.18
13.38%
PNTG
Pennant Group
40.18
18.02
81.32%
AVAH
Aveanna Healthcare Holdings
9.61
5.79
151.57%
Addus Homecare Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Addus HomeCare Reports Strong Q2 2026 Financial Growth
Positive
Aug 3, 2026
Addus HomeCare reported on August 3, 2026, that second-quarter 2026 net service revenues rose 8.0% year over year to $377.4 million, with net income up 25.2% to $27.6 million, or $1.49 per diluted share, and adjusted EBITDA increasing 11.9% to $49...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Addus HomeCare Posts Strong Q1 Results, Expands into Indiana
Positive
May 4, 2026
On May 4, 2026, Addus HomeCare reported results for the quarter ended March 31, 2026, posting a 7.7% year-over-year increase in net service revenues to $363.6 million and net income of $25.1 million, or $1.36 per diluted share. Adjusted EBITDA ros...
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.