Addus Homecare (ADUS) AI Stock Analysis

• Market Cap: $2.16B
• Dividend Yield: N/A
• Average Volume (3M): 144.62K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.41
• Revenue Growth: 14.29%
• EPS Growth: 7.85%
• Country: US
• Employees: 6,165
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 1.49
• Shares Outstanding: 18,407,240
• 10 Day Avg. Volume: 177,778
• 30 Day Avg. Volume: 144,622
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 5.68
• Enterprise Value/Ebitda: 17.59
• 1Y Price Target: $139.57
• Price Target Upside: 18.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 76 Outperform
• Price Target: $126.00 ▲(7.38% Upside)

Addus Homecare's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. While the technical analysis suggests a neutral trend, the company's strategic focus and growth potential provide a positive outlook. Valuation is reasonable, supporting the overall positive assessment.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for services and effective market penetration, supporting long-term business expansion.

Strategic Acquisitions

Strategic acquisitions enhance market presence and service capabilities, driving future growth and competitive advantage.

Cash Flow Management

Strong cash flow management ensures financial stability and supports future investments, enhancing long-term operational resilience.

Negative Factors

Home Health Segment Challenges

Declining revenue in the Home Health segment suggests operational challenges that may hinder growth in this area.

CMS Proposed Payment Rule Concerns

Potential reduction in Medicare payments could impact revenue and service availability, posing a risk to financial performance.

Labor Challenges in Clinical Hiring

Labor shortages in clinical hiring may affect service delivery and operational efficiency, impacting long-term growth.

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 care services, which are reimbursed by various payers, including Medicare, Medicaid, and private insurance companies. The company's revenue model is predominantly fee-for-service, where they bill for the hours of care provided to clients. Key revenue streams include personal care services, skilled nursing services, and therapy services. Additionally, partnerships with healthcare providers and payers enhance their service offerings and patient access, contributing to the overall growth and stability of their earnings. As the demand for home care services continues to rise due to an aging population and a shift towards home-based care, Addus Homecare's revenue potential is bolstered by these market trends.

Addus Homecare Financial Statement Overview

Summary

Addus Homecare demonstrates strong financial performance with consistent revenue growth, stable profitability margins, and a solid balance sheet. The company effectively manages its cash flows, supporting future growth and debt repayment.

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	1.41B	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: Positive
• Last Price: 117.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 117.34 is above the 20-day moving average (MA) of 112.77, above the 50-day MA of 112.20, and above the 200-day MA of 111.74, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 60.22 is Neutral, neither overbought nor oversold. The STOCH value of 86.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADUS.

Addus Homecare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADUS	76 Outperform	$2.16B	25.88	8.54%	―	14.29%	7.85%
PNTG	74 Outperform	877.87M	32.48	8.56%	―	30.58%	24.86%
NHC	69 Neutral	1.96B	18.23	10.26%	1.95%	25.19%	13.44%
ASTH	68 Neutral	1.48B	57.50	3.90%	―	51.97%	-64.10%
AGL	40 Underperform	451.72M	-1.37	-77.19%	―	10.12%	-29.12%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%