Addus Homecare (ADUS) AI Stock Analysis

• Market Cap: $2.09B
• Dividend Yield: N/A
• Average Volume (3M): 171.72K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.46
• Revenue Growth: 18.77%
• EPS Growth: 6.88%
• Country: US
• Employees: 6,165
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 1.56
• Shares Outstanding: 18,483,270
• 10 Day Avg. Volume: 143,987
• 30 Day Avg. Volume: 171,721
• PEG Ratio: 2.70
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 1.85
• P/FCF Ratio: 19.31
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 2.04
• Enterprise Value/Ebitda: 6.35
• 1Y Price Target: $132.60
• Price Target Upside: 17.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 6.2
• Revenue Forecast (FY): $1.42B

• Rating: 74 Outperform
• Price Target: $124.00 ▲(9.91% Upside)

Addus Homecare's strong financial performance and positive earnings call sentiment are significant strengths, driving the overall score. However, technical indicators suggest potential bearish momentum, and the valuation is moderate, which tempers the overall outlook. The company's strategic acquisitions and growth in the personal care segment are promising, but challenges in the home health sector and valuation concerns limit the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective expansion strategies, supporting long-term business sustainability.

Acquisition Strategy

Strategic acquisitions enhance market presence and revenue base, providing a durable competitive advantage through increased scale.

Cash Flow Management

Robust cash flow management ensures liquidity and financial flexibility, supporting ongoing investments and growth initiatives.

Negative Factors

Home Health Revenue Decline

Declining revenue in the home health segment could signal challenges in maintaining growth, potentially impacting overall performance.

Medicare Payment Concerns

Expected cuts in Medicare payments create financial uncertainty, potentially affecting profitability and strategic planning.

Urban Clinical Hiring Challenges

Hiring challenges in urban areas may limit service delivery capacity, impacting growth and operational efficiency.

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

Addus Homecare exhibits strong financial health with consistent revenue growth, stable profitability, and a solid balance sheet. The company's low leverage and effective cash flow management position it well for future growth. However, maintaining operating efficiency and enhancing profitability will be key areas to focus on to sustain its competitive edge in the medical care facilities industry.

Income Statement

Addus Homecare has demonstrated consistent revenue growth with a TTM revenue growth rate of 5.69%, supported by a stable gross profit margin of approximately 32.66%. The net profit margin remains steady at 6.36%, indicating efficient cost management. However, the EBIT margin has slightly decreased over time, suggesting potential pressure on operating efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.05, reflecting prudent financial leverage. Return on equity is healthy at 8.49%, indicating effective use of equity capital. The equity ratio stands at a robust level, showcasing financial stability. However, the slight decrease in ROE from previous years suggests a need for improved profitability.

Cash Flow

Addus Homecare's cash flow position is solid, with a positive free cash flow growth rate of 2.87% in the TTM period. The operating cash flow to net income ratio of 0.66 indicates good cash generation relative to earnings. The free cash flow to net income ratio is strong at 0.98, highlighting effective cash conversion. Continued focus on cash flow management will be crucial for sustaining growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.42B	1.15B	1.06B	951.12M	864.50M	764.77M
Gross Profit	1.11B	375.02M	339.88M	299.74M	269.85M	226.24M
EBITDA	357.49M	120.61M	106.56M	83.14M	80.70M	57.18M
Net Income	217.00M	73.60M	62.52M	46.02M	45.13M	33.13M
Balance Sheet
Total Assets	1.42B	1.41B	1.02B	937.99M	947.59M	892.58M
Cash, Cash Equivalents and Short-Term Investments	101.92M	98.91M	64.79M	79.96M	168.90M	145.08M
Total Debt	202.49M	273.13M	175.18M	178.05M	263.55M	239.67M
Total Liabilities	372.96M	442.14M	317.73M	304.45M	373.24M	373.91M
Stockholders Equity	1.05B	970.49M	706.69M	633.54M	574.34M	518.68M
Cash Flow
Free Cash Flow	297.87M	110.38M	102.79M	96.81M	34.84M	102.58M
Operating Cash Flow	308.94M	116.43M	112.25M	105.11M	39.49M	109.41M
Investing Cash Flow	-799.38M	-354.61M	-119.24M	-106.59M	-42.02M	-214.24M
Financing Cash Flow	270.05M	272.30M	-8.18M	-87.45M	26.34M	138.19M

Addus Homecare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 112.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 112.82 is below the 20-day moving average (MA) of 115.51, below the 50-day MA of 115.63, and above the 200-day MA of 110.26, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 45.64 is Neutral, neither overbought nor oversold. The STOCH value of 37.27 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	74 Outperform	$2.09B	24.15	8.58%	―	18.77%	6.88%
NHC	74 Outperform	$2.20B	21.85	9.94%	1.77%	23.74%	-18.99%
PNTG	73 Outperform	$1.01B	38.78	10.87%	―	29.89%	10.33%
SEM	69 Neutral	$1.86B	17.23	5.57%	1.67%	-22.96%	-59.35%
USPH	63 Neutral	$1.18B	32.76	7.30%	2.31%	17.50%	154.28%
AVAH	58 Neutral	$1.90B	25.25	―	―	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 Q3 2025 Financial Results

On November 3, 2025, Addus HomeCare Corporation announced its financial results for the third quarter of 2025, showing a 25.0% increase in net service revenues to $362.3 million and a 31.6% rise in adjusted EBITDA to $45.1 million compared to the same period in 2024. The company completed the acquisition of Del Cielo Home Care Services on October 1, 2025, expanding its personal care operations in Texas, which is expected to positively impact its financial results and market coverage.