Addus HomeCare Corporation (ADUS)
NASDAQ:ADUS
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Addus Homecare
(NASDAQ:ADUS)
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Rating:77Outperform
Price Target:
$100.00
▲(6.02% Upside)
Action:Reiterated
Date:05/09/26
ADUS scores well on financial performance and the latest earnings call momentum, driven by expanding margins, strong cash generation, low leverage, and positive profitability guidance. The score is tempered by mixed technical positioning (below 100/200-day averages), the 2025 revenue-growth slowdown noted in the financial statements, and limited valuation support beyond a reasonable P/E.
Positive Factors
Cash Generation
Material free cash flow (rising from ~$35M in 2021 to ~$137M TTM) and strong Q1 operating cash flow provide durable internal funding. This underpins capex, targeted M&A and working capital needs, reducing reliance on external financing and supporting long‑term financial flexibility.
Negative Factors
2025 Revenue Slowdown
A pronounced growth slowdown in 2025 indicates demand normalization or tougher comps. If sustained, it limits the company’s ability to leverage fixed costs for margin expansion and raises the bar for M&A to fill organic shortfalls, challenging multi-year topline momentum assumptions.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Material free cash flow (rising from ~$35M in 2021 to ~$137M TTM) and strong Q1 operating cash flow provide durable internal funding. This underpins capex, targeted M&A and working capital needs, reducing reliance on external financing and supporting long‑term financial flexibility.
Read all positive factors
Addus Homecare (ADUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.74B
Dividend YieldN/A
Average Volume (3M)257.02K
Price to Earnings (P/E)17.3
Beta (1Y)0.38
Revenue Growth19.55%
EPS Growth21.54%
CountryUS
Employees6,165
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)5.41
Shares Outstanding18,664,776
10 Day Avg. Volume196,063
30 Day Avg. Volume257,018
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 Cap1.01
Enterprise Value/Revenue1.21
Enterprise Value/Gross Profit3.72
Enterprise Value/Ebitda10.97
Forecast
1Y Price Target
$129.38Price Target Upside37.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)6.99
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:Aug 03, 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
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.45B | 1.42B | 1.15B | 1.06B | 951.12M | 864.50M |
| Gross Profit | 470.07M | 461.87M | 375.02M | 339.88M | 299.74M | 269.85M |
| EBITDA | 159.25M | 153.44M | 120.61M | 106.56M | 83.14M | 80.70M |
| Net Income | 99.75M | 95.91M | 73.60M | 62.52M | 46.02M | 45.13M |
Balance Sheet | ||||||
| Total Assets | 1.44B | 1.44B | 1.41B | 1.02B | 937.99M | 947.59M |
| Cash, Cash Equivalents and Short-Term Investments | 103.06M | 81.62M | 98.91M | 64.79M | 79.96M | 168.90M |
| Total Debt | 138.74M | 208.62M | 273.13M | 175.18M | 178.05M | 263.55M |
| Total Liabilities | 319.54M | 352.00M | 442.14M | 317.73M | 304.45M | 373.24M |
| Stockholders Equity | 1.12B | 1.09B | 970.49M | 706.69M | 633.54M | 574.34M |
Cash Flow | ||||||
| Free Cash Flow | 137.38M | 103.79M | 110.38M | 102.79M | 96.81M | 34.84M |
| Operating Cash Flow | 144.92M | 111.51M | 116.43M | 112.25M | 105.11M | 39.49M |
| Investing Cash Flow | -32.81M | -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
Neutral
94.32
Price Trends
94.04
Negative
99.41
Negative
106.66
Negative
Market Momentum
-0.74
Negative
50.61
Neutral
82.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADUS, the sentiment is Neutral. The current price of 94.32 is above the 20-day moving average (MA) of 92.07, above the 50-day MA of 94.04, and below the 200-day MA of 106.66, indicating a neutral trend. The MACD of -0.74 indicates Negative momentum. The RSI at 50.61 is Neutral, neither overbought nor oversold. The STOCH value of 82.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.06B | 24.85 | 11.68% | 1.80% | 11.40% | 13.96% | |
77 Outperform | $1.74B | 17.29 | 9.34% | ― | 19.55% | 21.54% | |
71 Outperform | $1.14B | 37.62 | 9.23% | ― | 36.76% | 11.22% | |
63 Neutral | $1.52B | 5.82 | 241.47% | ― | 20.49% | 4335.46% | |
62 Neutral | $2.06B | 15.41 | 7.83% | 1.69% | -10.76% | -20.86% | |
57 Neutral | $1.00B | 842.67 | 0.24% | 2.25% | 13.73% | -77.14% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ADUS
Addus Homecare
93.28
-19.52
-17.30%
NHC
National Healthcare
197.72
96.64
95.60%
SEM
Select Medical
16.66
1.87
12.61%
USPH
US Physical Therapy
65.56
-9.55
-12.71%
PNTG
Pennant Group
32.85
5.18
18.72%
AVAH
Aveanna Healthcare Holdings
7.09
2.18
44.40%
Addus Homecare Corporate Events
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.