AdaptHealth (AHCO) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: N/A
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.89
• 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: 970,506
• 30 Day Avg. Volume: 1,416,614
• PEG Ratio: -2.89
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.43
• Enterprise Value/Market Cap: 2.50
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 6.84
• Enterprise Value/Ebitda: 2.29
• 1Y Price Target: $12.50
• Price Target Upside: 29.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: $10.00 ▲(3.73%Upside)

The overall stock score of 68 reflects a stable but cautious outlook for AdaptHealth. Financial stability and technical indicators provide some optimism, but revenue and EBITDA declines, along with valuation concerns, temper the overall assessment. Continued focus on revenue growth and debt management will be crucial.

Positive Factors

Financial Performance

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

Share Price Reaction

The stock experienced a significant short squeeze, pushing its price 25% higher following its earnings and guidance release.

Strategic Focus

AdaptHealth completed the sale of certain non-core home infusion assets, indicating a strategic focus on core operations.

Negative Factors

Diabetes Business Challenges

AHCO's diabetes business remains pressured, with management expecting declines in revenues through 2025, impacting EBITDA growth.

Revenue and EBITDA Guidance

AdaptHealth reduced its FY'25 guidance ranges, reflecting a decrease in expected revenue and adjusted EBITDA due to the divestiture.

Segment Performance

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. (AHCO) is a leading provider of home healthcare equipment, supplies, and services in the United States. The company operates in the healthcare sector, focusing on enhancing the quality of life for patients with chronic diseases and aging populations. AdaptHealth offers a comprehensive range of products, including respiratory therapy, mobility aids, diabetes management supplies, and other durable medical equipment. With a robust distribution network, the company ensures timely delivery and support for patients and healthcare providers, facilitating improved patient care and outcomes.

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 is characterized by improved profitability margins and cash flow, though offset by a decline in revenue. The company is recovering from past losses, reflecting operational efficiency improvements. However, leverage remains a consideration, and continued focus on 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.26B	3.20B	2.97B	2.45B	1.06B
Gross Profit	681.09M	479.56M	417.43M	445.61M	161.23M
EBITDA	303.37M	-171.09M	630.76M	483.66M	-82.17M
Net Income	90.42M	-678.89M	69.32M	156.18M	-58.72M
Balance Sheet
Total Assets	4.49B	4.51B	5.22B	5.25B	1.83B
Cash, Cash Equivalents and Short-Term Investments	109.75M	77.13M	46.27M	149.63M	99.96M
Total Debt	2.13B	2.29B	2.33B	2.37B	807.00M
Total Liabilities	2.91B	3.04B	3.06B	3.18B	1.43B
Stockholders Equity	1.57B	1.46B	2.16B	2.07B	394.75M
Cash Flow
Free Cash Flow	235.78M	143.20M	-17.56M	72.37M	155.88M
Operating Cash Flow	541.84M	480.67M	373.87M	275.68M	195.63M
Investing Cash Flow	-310.27M	-357.28M	-411.17M	-1.82B	-815.70M
Financing Cash Flow	-198.95M	-92.53M	-66.05M	1.60B	643.15M

AdaptHealth Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.64
• 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 9.64 is above the 20-day moving average (MA) of 9.31, above the 50-day MA of 9.04, and above the 200-day MA of 9.63, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 61.43 is Neutral, neither overbought nor oversold. The STOCH value of 75.12 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	81 Outperform	$1.78B	28.31	19.36%	―	34.43%	31.90%
AHCO	68 Neutral	$1.30B	16.99	5.12%	―	-0.05%	―
ESTA	62 Neutral	$1.25B	―	-186.68%	―	9.27%	1.51%
LIVN	61 Neutral	$2.41B	30.62	-19.69%	―	7.97%	-592.40%
SENS	51 Neutral	$440.51M	―	-161.19%	―	1.64%	16.02%
Sector *	50 Neutral	AU$2.60B	2.95	-57.47%	2.44%	36.73%	13.67%
BVS	47 Neutral	$531.47M	―	-19.79%	―	8.60%	-42.76%

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.