AdaptHealth (AHCO) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: N/A
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.93
• Revenue Growth: -0.05%
• EPS Growth: N/A
• Country: US
• Employees: 10,500
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Devices
• EPS (TTM): 0.03
• Shares Outstanding: 134,947,900
• 10 Day Avg. Volume: 2,304,383
• 30 Day Avg. Volume: 1,364,297
• PEG Ratio: -0.69
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -146.89
• Enterprise Value/Market Cap: 3.84
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 10.21
• Enterprise Value/Ebitda: 3.43
• 1Y Price Target: $13.50
• Price Target Upside: 44.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 65 Neutral
• Price Target: $9.50 ▲(1.39%Upside)

AdaptHealth's overall score reflects a balanced but cautious outlook. The company's financial performance shows resilience with improvements in profitability and cash flow, yet declining revenue and leverage remain concerns. Technical analysis presents mixed signals, and the valuation is fair. Earnings call insights highlight progress in some areas but also emphasize ongoing challenges. The absence of corporate events does not impact the overall assessment.

Positive Factors

Diabetes Segment Performance

Diabetes continues to show signs of early progress, exceeding internal targets for the quarter.

Free Cash Flow

AHCO reported a strong free cash flow of $73 million in Q4, representing a 10% year-over-year growth.

Strategic Divestitures

AHCO continues to deliver on initiatives to strategically divest ~$100m of annual revenues with non-core asset sales.

Negative Factors

Revenue and EBITDA Forecast

AHCO lowered its 2025 revenue outlook and EBITDA forecast, partially due to the new asset sale announcement.

Sales Force Changes

Management rolled out quotas for its sales force, and there is caution as such moves could be disruptive or cause employee turnover and revenue volatility.

Sleep Segment Challenges

New challenges in sleep entered the picture this quarter, with competitors gaining share in a few states.

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 primarily through the sale and rental of home healthcare equipment and supplies. The company earns money by partnering with healthcare providers, insurance companies, and direct-to-consumer channels to supply necessary medical equipment and services. Key revenue streams include rental income from equipment like CPAP machines and oxygen concentrators, sales of diabetes supplies and mobility aids, and service fees for managing patient care programs. AdaptHealth also benefits from strategic acquisitions that expand its product offerings and geographic reach, further boosting its revenue potential. The company's ability to leverage insurance reimbursements and maintain strong relationships with healthcare providers is critical to its financial success.

AdaptHealth Financial Statement Overview

Summary

AdaptHealth's financial performance shows stability with improvements in profitability and cash flow. Despite recent revenue declines, the company has made strides in returning to profitability and operational efficiency. However, leverage remains a concern, and future revenue growth is crucial for sustained financial health.

Income Statement

AdaptHealth's income statement shows a mixed performance. The company achieved a Gross Profit Margin of 15.6% TTM, reflecting efficient management of production costs. The Net Profit Margin improved to 2.8% TTM, up from -21.2% in 2023, indicating a return to profitability. However, revenue declined by 6.5% compared to the previous year, raising concerns about growth sustainability. EBIT margin stands at 8.0% TTM, showing an improvement from negative figures previously, while EBITDA margin is strong at 20.5% TTM, underscoring operational efficiency.

Balance Sheet

The balance sheet reveals a stable financial position. The Debt-to-Equity Ratio is 1.34 TTM, showing considerable leverage but within manageable limits. Return on Equity (ROE) improved to 5.4% TTM, a positive sign of profitability relative to equity. The Equity Ratio stands at 35.3% TTM, suggesting a solid equity base compared to total assets. However, the high level of total debt might pose risks if not managed prudently.

Cash Flow

Cash flow analysis is favorable, with a strong Operating Cash Flow to Net Income Ratio of 6.9 TTM, indicating robust cash generation capability relative to net income. The Free Cash Flow grew significantly, with a growth rate of 91.2% compared to 2023, showing improved cash management. Free Cash Flow to Net Income Ratio is 3.2 TTM, highlighting the ability to generate cash from operations. However, high capital expenditures may impact future cash flow if not aligned with revenue growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.05B	3.26B	3.20B	2.97B	2.45B	1.06B
Gross Profit	475.92M	681.09M	479.56M	417.43M	445.61M	161.23M
EBITDA	624.26M	303.37M	-171.09M	630.76M	483.66M	-82.17M
Net Income	85.35M	90.42M	-678.89M	69.32M	156.18M	-58.72M
Balance Sheet
Total Assets	4.44B	4.49B	4.51B	5.22B	5.25B	1.83B
Cash, Cash Equivalents and Short-Term Investments	53.65M	109.75M	77.13M	46.27M	149.63M	99.96M
Total Debt	2.10B	2.13B	2.29B	2.33B	2.37B	807.00M
Total Liabilities	2.86B	2.91B	3.04B	3.06B	3.18B	1.43B
Stockholders Equity	1.57B	1.57B	1.46B	2.16B	2.07B	394.75M
Cash Flow
Free Cash Flow	274.58M	235.78M	143.20M	-17.56M	72.37M	155.88M
Operating Cash Flow	588.33M	541.84M	480.67M	373.87M	275.68M	195.63M
Investing Cash Flow	-317.97M	-310.27M	-357.28M	-411.17M	-1.82B	-815.70M
Financing Cash Flow	-296.28M	-198.95M	-92.53M	-66.05M	1.60B	643.15M

AdaptHealth Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 9.37 is above the 20-day moving average (MA) of 8.89, above the 50-day MA of 8.77, and below the 200-day MA of 9.75, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 60.55 is Neutral, neither overbought nor oversold. The STOCH value of 85.35 is Negative, 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	81 Outperform	$1.89B	30.12	19.36%	―	34.43%	31.90%
AHCO	65 Neutral	$1.26B	16.51	5.12%	―	-0.05%	―
LIVN	62 Neutral	$2.51B	30.62	-19.69%	―	7.97%	-592.40%
ESTA	58 Neutral	$1.28B	―	-186.68%	―	9.27%	1.51%
Sector *	51 Neutral	$7.50B	0.32	-61.87%	2.27%	17.10%	1.59%
BVS	50 Neutral	$562.69M	―	-19.79%	―	8.60%	-42.76%
SENS	48 Neutral	$369.60M	―	-161.19%	―	1.64%	16.02%

AdaptHealth Corporate Events

AdaptHealth Completes Sale of Infusion Assets

On June 30, 2025, AdaptHealth Corp. announced the completion of the sale of certain infusion assets from its Wellness at Home segment, which is part of a strategic focus to exit ancillary product lines. This transaction, completed earlier in June, allowed the company to make a $65 million prepayment on its term loan, following a previous $70 million prepayment in May. The disposed assets accounted for approximately $52 million in annual revenue and $5 million in annual Adjusted EBITDA. As a result of these changes, AdaptHealth revised its financial guidance for fiscal year 2025, adjusting its revenue, Adjusted EBITDA, and Free Cash Flow projections.

The most recent analyst rating on (AHCO) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on AdaptHealth stock, see the AHCO Stock Forecast page.

AdaptHealth Approves Key Proposals at Annual Meeting

On June 18, 2025, AdaptHealth Corp. held its annual stockholders meeting via live audio webcast, where stockholders voted on three key proposals. The proposals included the election of six directors, the ratification of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and a non-binding advisory vote on executive compensation. All proposals were approved, with each director nominee elected, KPMG LLP’s appointment ratified, and the executive compensation endorsed.

The most recent analyst rating on (AHCO) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on AdaptHealth stock, see the AHCO Stock Forecast page.