Addus Homecare (ADUS) AI Stock Analysis

• Market Cap: $2.01B
• Dividend Yield: N/A
• Average Volume (3M): 147.05K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.35
• Revenue Growth: 11.38%
• EPS Growth: 10.29%
• Country: US
• Employees: 6,165
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Care Facilities
• EPS (TTM): 1.42
• Shares Outstanding: 18,399,140
• 10 Day Avg. Volume: 115,377
• 30 Day Avg. Volume: 147,051
• PEG Ratio: 32.80
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.30
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 4.25
• Enterprise Value/Ebitda: 3.42
• 1Y Price Target: $134.86
• Price Target Upside: 22.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 79 Outperform
• Price Target: $127.00 ▲(15.78%Upside)

Addus Homecare's strong financial performance, as evidenced by consistent revenue growth and effective cost management, is the most significant factor driving the score. The positive sentiment from the earnings call further boosts confidence in the company's strategic direction, despite some operational challenges. Technical analysis presents a stable but not strongly bullish outlook, while valuation appears fair.

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

Regulatory Risks

Investors are concerned about the GOP's plans to alter and cut Medicaid, which could adversely impact ADUS.

Stock Performance

The stock's pullback is viewed as unwarranted, with intact fundamentals and likely continued upside surprises expected.

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 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 Financial Statement Overview

Summary

Addus HomeCare demonstrates strong revenue growth and maintains solid profitability across its financial statements. The balance sheet is stable with manageable debt levels, and cash flows are robust, indicating efficient cash management and potential for future investments.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.21B	1.15B	1.06B	951.12M	864.50M	764.77M
Gross Profit	394.52M	375.02M	339.88M	299.74M	269.85M	226.24M
EBITDA	127.53M	120.61M	106.56M	83.14M	80.70M	57.18M
Net Income	79.00M	73.60M	62.52M	46.02M	45.13M	33.13M
Balance Sheet
Total Assets	1.41B	1.46B	1.02B	937.99M	947.59M	892.58M
Cash, Cash Equivalents and Short-Term Investments	96.95M	98.91M	64.79M	79.96M	168.90M	145.08M
Total Debt	250.80M	273.13M	175.18M	178.05M	263.55M	239.67M
Total Liabilities	412.20M	442.14M	317.73M	304.45M	373.24M	373.91M
Stockholders Equity	995.38M	970.49M	706.69M	633.54M	574.34M	518.68M
Cash Flow
Free Cash Flow	90.12M	110.38M	102.79M	96.81M	34.84M	102.58M
Operating Cash Flow	96.70M	116.43M	112.25M	105.11M	39.49M	109.41M
Investing Cash Flow	-354.24M	-354.61M	-119.24M	-106.59M	-42.02M	-214.24M
Financing Cash Flow	277.77M	272.30M	-8.18M	-87.45M	26.34M	138.19M

Addus Homecare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 109.69
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 109.69 is below the 20-day moving average (MA) of 112.50, below the 50-day MA of 112.34, and below the 200-day MA of 115.30, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 44.50 is Neutral, neither overbought nor oversold. The STOCH value of 12.82 is Positive, 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	79 Outperform	$2.01B	24.50	9.18%	―	11.38%	10.29%
NHC	75 Outperform	$1.51B	14.09	11.19%	2.63%	19.16%	31.92%
ASTH	74 Outperform	$1.22B	34.85	5.00%	―	54.81%	-45.07%
AMED	71 Outperform	$3.20B	36.07	7.85%	―	5.34%	―
PNTG	68 Neutral	$843.11M	31.00	11.28%	―	30.04%	43.47%
Sector *	66 Neutral	€1.82B	34.72	10.52%	2.44%	7.10%	103.68%
AGL	47 Neutral	$910.69M	―	-42.95%	―	19.18%	-6.14%

Addus Homecare Corporate Events

Addus Homecare Stockholders Approve Key Proposals at Meeting

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.

Addus HomeCare Reports Strong Q1 2025 Financial Results

On May 5, 2025, Addus HomeCare Corporation announced its financial results for the first quarter ended March 31, 2025, highlighting a 20.3% increase in net service revenues to $337.7 million and a 25.1% rise in adjusted EBITDA to $40.6 million. The company’s growth was driven by its personal care segment, which saw a 7.4% organic revenue increase, and the integration of Gentiva’s personal care operations. Addus also reported improvements in its hospice care segment and maintained a strong cash position, allowing for continued investment and potential acquisitions. The results reflect solid demand for home-based care services and strategic expansion efforts.