Addus Homecare (ADUS) AI Stock Analysis

• Market Cap: $2.22B
• Dividend Yield: N/A
• Average Volume (3M): 161.35K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.44
• 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: 223,881
• 30 Day Avg. Volume: 161,354
• 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: 1.02
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 5.47
• Enterprise Value/Ebitda: 16.77
• 1Y Price Target: $138.20
• Price Target Upside: 21.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 6.19
• Revenue Forecast (FY): $1.42B

• Rating: 79 Outperform
• Price Target: $136.00 ▲(19.10% Upside)

Addus Homecare's strong financial performance and positive earnings call are the most significant factors contributing to its score. The company's strategic acquisitions and revenue growth in the personal care segment highlight its growth potential. However, valuation concerns and challenges in the home health segment slightly temper the overall outlook.

Positive Factors

Revenue Growth

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

Strategic Acquisitions

Strategic acquisitions enhance market presence and service capabilities, providing a competitive edge and supporting sustained growth.

Cash Flow Management

Strong cash flow management ensures financial stability and flexibility, enabling investments in growth opportunities and debt reduction.

Negative Factors

Home Health Segment Challenges

Declining revenue in the home health segment highlights operational challenges and potential risks to overall business performance.

Medicare Payment Concerns

Potential Medicare cuts could impact revenue streams and profitability, posing a risk to financial stability and strategic planning.

Urban Hiring Challenges

Hiring challenges in urban areas may affect service delivery and growth potential, limiting the company's ability to meet demand.

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 exhibits a strong financial profile with consistent revenue growth, solid profitability margins, and effective cash flow management. The company's low leverage and robust equity position provide a stable foundation for future growth. While the growth rate has slightly decelerated, strategic initiatives could help sustain long-term performance.

Income Statement

Addus Homecare has demonstrated strong revenue growth with a 5.16% increase in the TTM period, building on consistent annual growth. The company maintains healthy margins, with a gross profit margin of 32.59% and a net profit margin of 6.51% in the TTM. EBIT and EBITDA margins are also robust, indicating efficient operations. However, the slight decline in revenue growth rate compared to previous years suggests a need for strategic initiatives to sustain momentum.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.22, indicating prudent leverage management. Return on equity is stable at 8.43%, showcasing effective use of shareholder funds. The equity ratio stands at 72.54%, highlighting a strong equity base relative to assets. While the company has reduced debt levels, maintaining this trajectory will be crucial to mitigate potential risks.

Cash Flow

Cash flow analysis reveals a positive trend, with a 7.40% growth in free cash flow in the TTM period. The operating cash flow to net income ratio of 0.66 and free cash flow to net income ratio of 0.96 indicate strong cash generation relative to earnings. Continued focus on cash flow management will support future investments and debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.27B	1.15B	1.06B	951.12M	864.50M	764.77M
Gross Profit	415.24M	375.02M	339.88M	299.74M	269.85M	226.24M
EBITDA	135.36M	120.61M	106.56M	83.14M	80.70M	57.18M
Net Income	82.97M	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	91.18M	98.91M	64.79M	79.96M	168.90M	145.08M
Total Debt	222.25M	273.13M	175.18M	178.05M	263.55M	239.67M
Total Liabilities	387.08M	442.14M	317.73M	304.45M	373.24M	373.91M
Stockholders Equity	1.02B	970.49M	706.69M	633.54M	574.34M	518.68M
Cash Flow
Free Cash Flow	96.79M	110.38M	102.79M	96.81M	34.84M	102.58M
Operating Cash Flow	100.42M	116.43M	112.25M	105.11M	39.49M	109.41M
Investing Cash Flow	-356.09M	-354.61M	-119.24M	-106.59M	-42.02M	-214.24M
Financing Cash Flow	173.54M	272.30M	-8.18M	-87.45M	26.34M	138.19M

Addus Homecare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 114.19
• 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 114.19 is below the 20-day moving average (MA) of 118.16, below the 50-day MA of 115.31, and above the 200-day MA of 110.13, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 43.93 is Neutral, neither overbought nor oversold. The STOCH value of 30.28 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	79 Outperform	$2.22B	24.44	8.58%	―	18.77%	6.88%
NHC	73 Outperform	$1.94B	18.63	10.65%	1.97%	25.19%	13.44%
PNTG	69 Neutral	$873.73M	32.33	10.87%	―	29.89%	10.33%
ASTH	61 Neutral	$1.67B	132.65	1.29%	―	68.17%	-85.23%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AGL	43 Neutral	$312.39M	―	-73.31%	―	5.21%	5.21%

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.

The most recent analyst rating on (ADUS) stock is a Buy with a $132.00 price target. To see the full list of analyst forecasts on Addus Homecare stock, see the ADUS Stock Forecast page.

Addus Homecare Appoints New President and COO

On August 4, 2025, Addus HealthCare, a subsidiary of Addus HomeCare Corporation, announced the appointment of Heather Dixon as President and Chief Operating Officer, effective September 15, 2025. Dixon, who brings extensive experience in healthcare leadership, succeeds W. Bradley Bickham, who will transition to an advisory role until his retirement in March 2026. Dixon’s appointment is expected to bolster Addus’s operational excellence and support its growth strategy. Her previous roles include CFO positions at Acadia Healthcare and Everside Health, and she has served as an independent director for Addus since March 2023.

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 Q2 2025 Growth

Addus HomeCare Corporation is a provider of home care services, primarily offering personal care, hospice, and home health services across 23 states in the United States. The company focuses on assisting individuals who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill, and disabled.

Addus HomeCare Earnings Call Highlights Growth Amid Challenges

The recent earnings call for Addus HomeCare Corporation painted a generally positive picture, with strong revenue growth and strategic acquisitions taking center stage. Despite some challenges, such as clinical hiring difficulties and concerns over CMS’s proposed payment changes, the overall sentiment leaned towards optimism, with the positive developments slightly outweighing the negatives.