AdaptHealth (AHCO) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.88
• Revenue Growth: -0.61%
• EPS Growth: N/A
• Country: US
• Employees: 10,500
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Devices
• EPS (TTM): 0.22
• Shares Outstanding: 135,297,760
• 10 Day Avg. Volume: 898,382
• 30 Day Avg. Volume: 1,100,212
• 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: 2.55
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 6.70
• Enterprise Value/Ebitda: 4.92
• 1Y Price Target: $12.71
• Price Target Upside: 33.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 67 Neutral
• Price Target: $10.50 ▲(10.41% Upside)

AdaptHealth's overall stock score reflects a moderate financial performance with strong strategic initiatives and a reasonable valuation. The company's efforts in debt reduction and technological advancements are positive, but challenges in revenue growth and regulatory pressures weigh on the score.

Positive Factors

New Contracts

A new national health system contract announced is expected to bring significant revenue and align margins with enterprise levels.

Technology Improvement

The company has made significant improvements in its technology over the last 12 months, which management believes puts Adapt above any competitor in the DME space.

Negative Factors

Earnings Performance

EPS of $0.11 came in below both the estimate and consensus.

Financial Outlook

Lowering estimates for 2025-26 EBITDA forecasts affects the financial outlook despite maintaining the price target.

AdaptHealth Business Overview & Revenue Model

Company Description

AdaptHealth (AHCO) is a leading provider of integrated home healthcare solutions in the United States. The company specializes in delivering a range of products and services that enhance the quality of life for patients with chronic and complex medical conditions. AdaptHealth operates primarily in the Durable Medical Equipment (DME) sector, offering products such as respiratory therapy equipment, mobility aids, and home health monitoring solutions. Additionally, the company provides clinical services and support to ensure patients receive comprehensive care in the comfort of their homes.

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 shows moderate financial performance with revenue growth and improved profitability. However, challenges exist in maintaining margins and generating free cash flow. The balance sheet is strong with reduced leverage, enhancing financial stability.

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	3.04B	3.26B	3.20B	2.97B	2.45B	1.06B
Gross Profit	474.62M	681.09M	681.77M	417.43M	445.61M	161.23M
EBITDA	645.85M	670.84M	-171.09M	630.76M	544.21M	-82.17M
Net Income	81.74M	90.42M	-678.89M	69.32M	156.18M	-161.63M
Balance Sheet
Total Assets	4.35B	4.49B	4.51B	5.22B	5.25B	1.81B
Cash, Cash Equivalents and Short-Term Investments	68.63M	109.75M	77.13M	46.27M	149.63M	99.96M
Total Debt	1.95B	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	1.59B	1.57B	1.46B	2.16B	2.07B	354.89M
Cash Flow
Free Cash Flow	231.20M	235.78M	143.20M	-17.56M	72.37M	155.88M
Operating Cash Flow	552.34M	541.84M	480.67M	373.87M	275.68M	195.63M
Investing Cash Flow	-227.09M	-310.27M	-357.28M	-411.17M	-1.82B	-815.70M
Financing Cash Flow	-326.45M	-198.95M	-92.53M	-66.05M	1.60B	643.15M

AdaptHealth Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 9.51 is above the 20-day moving average (MA) of 9.36, above the 50-day MA of 9.34, and above the 200-day MA of 9.46, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 40.24 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	73 Outperform	$1.61B	24.03	19.29%	―	40.98%	34.80%
AHCO	67 Neutral	$1.25B	17.78	4.76%	―	-0.61%	―
LIVN	61 Neutral	$3.18B	30.62	-17.87%	―	8.57%	-1154.64%
BVS	56 Neutral	$587.02M	―	-0.10%	―	5.08%	99.38%
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%
SENS	46 Neutral	$364.98M	―	-102.61%	―	5.94%	25.16%
ESTA	46 Neutral	$1.12B	―	-261.18%	―	17.22%	1.65%

AdaptHealth Corporate Events

AdaptHealth Announces Major Partnership with Healthcare System

On August 5, 2025, AdaptHealth Corp. announced a new five-year capitated partnership with a major national healthcare system, making it the exclusive provider of home medical equipment and supplies for over 10 million members. This agreement, covering Medicare Advantage, Medicaid Managed Care, and privately insured patients, positions AdaptHealth to drive non-acquired growth and transform healthcare services at home by delivering consistent experiences and predictable costs.

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.

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.