AdaptHealth (AHCO) AI Stock Analysis

• Market Cap: $1.36B
• Dividend Yield: N/A
• Average Volume (3M): 875.70K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.67
• 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: 756,964
• 30 Day Avg. Volume: 875,695
• 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: 2.34
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 9.13
• Enterprise Value/Ebitda: 4.89
• 1Y Price Target: $13.67
• Price Target Upside: 39.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $11.50 ▲(17.47% Upside)

AdaptHealth's overall stock score reflects strong financial performance and positive technical indicators, supported by a favorable earnings call. The company's strategic initiatives and debt reduction efforts are significant positives, although there are areas for improvement in profitability and cash flow management.

Positive Factors

Organic Revenue Growth

The 5.1% organic revenue growth indicates strong sales momentum and effective business strategies, enhancing long-term market position and competitiveness.

Debt Reduction

Significant debt reduction improves financial stability and reduces risk, allowing for greater investment in growth opportunities and operational flexibility.

Strategic Capitated Agreements

The new capitated agreement enhances revenue predictability and strengthens partnerships, supporting long-term growth and market expansion.

Negative Factors

Cash Flow Management

Declining free cash flow growth may constrain liquidity and limit the company's ability to invest in growth initiatives, impacting long-term financial health.

Wellness at Home Revenue Decline

A significant decline in the Wellness at Home segment could indicate challenges in maintaining market share and adapting to market changes, affecting future growth.

Profitability Margins

Moderate profitability margins suggest limited pricing power and cost control, which could hinder the company's ability to improve financial performance over time.

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 channels, primarily by leasing and selling durable medical equipment (DME) and respiratory devices. Key revenue streams include reimbursement from Medicare, Medicaid, and private insurance for the equipment and services provided to patients. The company also benefits from partnerships with healthcare providers and hospitals, facilitating patient transitions from inpatient to home care. Additionally, AdaptHealth engages in direct-to-consumer sales and offers ongoing support and supplies, which contribute to recurring revenue. The strategic expansion through acquisitions of other healthcare companies further enhances its market presence and revenue potential.

AdaptHealth Financial Statement Overview

Summary

AdaptHealth demonstrates solid financial performance with strong revenue growth and operational efficiency. The company maintains a low leverage position, reducing financial risk. However, there are areas for improvement in profitability margins and cash flow management to enhance financial stability and shareholder value.

Income Statement

AdaptHealth's income statement shows a positive trajectory with a revenue growth rate of 8.48% in the TTM, indicating strong sales momentum. The gross profit margin of 13.84% and net profit margin of 2.69% reflect moderate profitability. However, the EBIT margin of 6.63% and EBITDA margin of 18.39% suggest operational efficiency, although there is room for improvement in profitability compared to industry peers.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.10 in the TTM, indicating low leverage and reduced financial risk. The return on equity of 5.18% shows moderate effectiveness in generating returns from equity. However, the equity ratio of 36.86% suggests a balanced capital structure, but there is potential for enhancing equity utilization.

Cash Flow

Cash flow analysis indicates a slight decline in free cash flow growth by -7.80% in the TTM, which could be a concern for liquidity. The operating cash flow to net income ratio of 0.85 and free cash flow to net income ratio of 0.37 highlight adequate cash generation relative to earnings, but there is room for improvement in cash flow management.

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: Neutral
• Last Price: 9.79
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AHCO, the sentiment is Neutral. The current price of 9.79 is below the 20-day moving average (MA) of 10.27, below the 50-day MA of 10.00, and above the 200-day MA of 9.29, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.80 is Neutral, neither overbought nor oversold. The STOCH value of 15.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AHCO.

AdaptHealth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPT	75 Outperform	$1.94B	29.11	18.31%	―	29.47%	23.24%
AHCO	74 Outperform	$1.36B	18.44	4.77%	―	-0.23%	―
CNMD	65 Neutral	$1.19B	24.71	6.60%	2.02%	4.69%	-51.57%
AXGN	62 Neutral	$1.75B	-711.22	-1.90%	―	18.72%	85.77%
TNDM	61 Neutral	$1.35B	-6.52	-109.73%	―	17.87%	-57.03%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IART	45 Neutral	$867.72M	-1.72	-38.71%	―	4.99%	-7151.40%