AdaptHealth (AHCO) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: N/A
• Average Volume (3M): 986.08K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.68
• Revenue Growth: -0.23%
• EPS Growth: N/A
• Country: US
• Employees: 10,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.24
• Shares Outstanding: 135,424,330
• 10 Day Avg. Volume: 1,399,615
• 30 Day Avg. Volume: 986,082
• PEG Ratio: -0.13
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 5.40
• Enterprise Value/Market Cap: 2.35
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 8.77
• Enterprise Value/Ebitda: 4.70
• 1Y Price Target: $13.67
• Price Target Upside: 43.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.92
• Revenue Forecast (FY): $3.23B

• Rating: 72 Outperform
• Price Target: $10.50 ▲(10.53% Upside)

AdaptHealth's overall stock score is driven by strong financial performance and positive earnings call outcomes, highlighting robust revenue growth and strategic debt reduction. Technical indicators support a bullish outlook, while valuation metrics suggest fair pricing. Challenges in specific segments slightly temper the score.

Positive Factors

Debt Reduction

Significant debt reduction enhances financial stability and reduces interest expenses, improving long-term financial flexibility.

Organic Revenue Growth

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

Strategic Capitated Agreements

New capitated agreements with payers provide stable revenue streams and strengthen market position, enhancing long-term growth prospects.

Negative Factors

Wellness at Home Revenue Decline

Declining revenue in the Wellness at Home segment may indicate challenges in product offerings or market demand, impacting future growth.

Free Cash Flow Decline

A decline in free cash flow growth can constrain liquidity and limit the company's ability to invest in growth opportunities.

Profitability Margins

Moderate profitability margins suggest potential challenges in cost management and pricing power, affecting long-term competitiveness.

AdaptHealth Business Overview & Revenue Model

Company Description

AdaptHealth Corp., together with its subsidiaries, provides home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, supplies, and related services, such as CPAP and bi-PAP services to individuals suffering from obstructive sleep apnea; medical devices and supplies, including continuous glucose monitors and insulin pumps to patients for the treatment of diabetes; HME to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home; and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy, and nutritional supply needs. It serves beneficiaries of Medicare, Medicaid, and commercial insurance payors. AdaptHealth Corp. is headquartered in Plymouth Meeting, Pennsylvania.

How the Company Makes Money

AdaptHealth generates revenue through multiple streams, primarily by renting and selling durable medical equipment (DME) to patients and healthcare providers. The company's revenue model is heavily reliant on reimbursement from Medicare, Medicaid, and private insurance payers, which compensates for the provision of medical equipment and related services. Key revenue streams include the sale of respiratory devices, sleep therapy products, and mobility aids, as well as ongoing rental income from equipment leases. Furthermore, AdaptHealth has established strategic partnerships with hospitals, healthcare systems, and physician groups to enhance patient referrals and streamline service delivery, contributing significantly to its earnings. The company also invests in technology to improve operational efficiency and patient engagement, which enhances its competitive positioning in the home healthcare market.

AdaptHealth Financial Statement Overview

Summary

AdaptHealth demonstrates a mixed financial performance. The company shows revenue growth and improved profitability, but faces challenges in maintaining margins and generating free cash flow. The balance sheet is strong with reduced leverage, enhancing financial stability. Continued focus on cost management and cash flow improvement will be crucial for sustaining growth.

Income Statement

AdaptHealth's income statement shows a moderate performance with a TTM revenue growth rate of 6.29%, indicating a positive trend. However, the gross profit margin has decreased from 20.89% in 2024 to 13.49% in TTM, suggesting increased cost pressures. The net profit margin is relatively low at 2.49%, but it has improved from negative margins in previous years, indicating a recovery in profitability. The EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.10 in TTM, significantly improved from 1.36 in 2024, indicating reduced leverage and financial risk. The return on equity is modest at 5.16%, showing a reasonable return on shareholders' investments. The equity ratio is healthy, suggesting a stable capital structure.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow growth rate of -15.8% in TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is strong at 0.89, suggesting good cash generation relative to net income. However, the free cash flow to net income ratio is moderate at 0.42, reflecting constraints in free cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.85B	3.26B	3.20B	2.97B	2.45B	1.06B
Gross Profit	348.83M	681.09M	681.77M	417.43M	445.61M	157.79M
EBITDA	651.04M	628.02M	-171.09M	630.76M	544.21M	-82.17M
Net Income	80.18M	90.42M	-678.89M	69.32M	156.18M	-161.63M
Balance Sheet
Total Assets	4.38B	4.49B	4.51B	5.22B	5.25B	1.81B
Cash, Cash Equivalents and Short-Term Investments	80.36M	109.75M	77.13M	46.27M	149.63M	99.96M
Total Debt	1.90B	2.13B	2.29B	2.33B	2.37B	807.00M
Total Liabilities	2.76B	2.91B	3.04B	3.06B	3.18B	1.53B
Stockholders Equity	1.62B	1.57B	1.46B	2.15B	2.06B	354.89M
Cash Flow
Free Cash Flow	213.17M	235.78M	143.20M	-17.56M	72.37M	155.88M
Operating Cash Flow	569.00M	541.84M	480.67M	373.87M	275.68M	195.63M
Investing Cash Flow	-265.59M	-310.27M	-357.28M	-411.17M	-1.82B	-815.70M
Financing Cash Flow	-323.23M	-198.95M	-92.53M	-66.05M	1.60B	643.15M

AdaptHealth Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AHCO, the sentiment is Positive. The current price of 9.5 is above the 20-day moving average (MA) of 9.38, above the 50-day MA of 9.20, and above the 200-day MA of 9.31, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 53.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AHCO.

AdaptHealth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPT	76 Outperform	$1.72B	26.20	18.31%	―	29.47%	23.24%
AHCO	72 Outperform	$1.30B	17.43	4.77%	―	-0.23%	―
BVS	66 Neutral	$624.23M	-1,020.27	4.97%	―	1.58%	―
ESTA	59 Neutral	$1.43B	-16.14	-338.19%	―	24.76%	-10.41%
LIVN	52 Neutral	$2.71B	―	-17.63%	―	8.97%	-1024.86%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SENS	45 Neutral	$274.14M	―	-129.29%	―	31.94%	36.59%

AdaptHealth Corporate Events

AdaptHealth’s Financial Stability Threatened by Political and Economic Turbulence

AdaptHealth faces significant risks due to political and economic conditions that are beyond its control, which could adversely impact its financial performance. Global and regional developments, such as international conflicts, natural disasters, and public health crises, pose potential threats to its revenue and operations. The recent U.S. government shutdown and ongoing investigations into imports of medical equipment could lead to delays in payments and potential tariffs, further straining AdaptHealth’s financial stability. These factors, coupled with economic uncertainties and market disruptions, underscore the vulnerability of AdaptHealth to external macroeconomic pressures.

AdaptHealth Reports Solid Q3 2025 Performance

AdaptHealth Corp., a prominent player in the healthcare-at-home sector, specializes in providing home medical equipment, supplies, and related services across the United States. The company operates through four segments: Sleep Health, Respiratory Health, Diabetes Health, and Wellness at Home, serving approximately 4.3 million patients annually.

AdaptHealth’s Earnings Call: Growth Amid Challenges

AdaptHealth’s latest earnings call conveyed a generally positive sentiment, highlighting strong organic growth, improved profitability, and significant debt reduction. However, challenges were noted in the Wellness at Home segment and softer than expected starts in Diabetes Health.