Amedisys (AMED) AI Stock Analysis

• Market Cap: $3.20B
• Dividend Yield: N/A
• Average Volume (3M): 332.97K
• Price to Earnings (P/E): 36.2
• Beta (1Y): 0.19
• Revenue Growth: 5.34%
• EPS Growth: N/A
• Country: US
• Employees: 19,000
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Care Facilities
• EPS (TTM): 1.25
• Shares Outstanding: 32,819,637
• 10 Day Avg. Volume: 415,417
• 30 Day Avg. Volume: 332,974
• PEG Ratio: -0.53
• Price to Book (P/B): 2.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.55
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 3.59
• Enterprise Value/Ebitda: 4.18
• 1Y Price Target: $100.80
• Price Target Upside: 2.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: $104.00 ▲(6.24%Upside)

Amedisys demonstrates strong financial performance and effective strategic management, including a recent credit facility extension amid merger talks. However, the high P/E ratio indicates potential overvaluation, and technical indicators signal limited momentum. These factors combine to produce a reasonably strong overall stock score.

Positive Factors

Divestiture

The announced divestiture of Amedisys/UnitedHealth assets to two acquirers with significant operating history is expected to have a favorable reaction on shares.

Earnings

Amedisys reported first-quarter results that were largely in line on the top line and beat expectations handily on adjusted EBITDA and EPS.

Financial Performance

AMED reported adjusted EBITDA of $68.8m above consensus $59.3m-$61.7m and up 14.5% year-to-year.

Negative Factors

Cost Challenges

Higher-than-expected wage inflation has led to a more conservative stance toward AMED's cost-per-visit KPI.

Deal Uncertainty

The stock movement depends on the approval of the pending deal to sell itself to UNH.

Earnings Miss

The EBITDA miss was driven by an elevated cost of service revenue ratio.

Amedisys Business Overview & Revenue Model

Company Description

Amedisys, Inc. (AMED) is a leading healthcare services company based in the United States, specializing in providing home health care, hospice care, and personal care. Operating across numerous states, Amedisys is dedicated to delivering high-quality and compassionate medical care to patients in the comfort of their own homes. The company's core services include skilled nursing, physical therapy, speech therapy, and occupational therapy, as well as end-of-life care and support for terminally ill patients and their families.

How the Company Makes Money

Amedisys generates revenue primarily through the provision of home health and hospice services, billing Medicare, Medicaid, and private insurers for the care provided. The company's key revenue streams include reimbursements for home health visits, which involve skilled nursing and therapy services, and hospice care services, which include medical, emotional, and spiritual support for terminally ill patients. Additionally, Amedisys offers personal care services, although this constitutes a smaller portion of its overall revenue. Partnerships with healthcare providers and institutions can enhance patient referrals and expand service reach, contributing to the company's earnings.

Amedisys Financial Statement Overview

Summary

Amedisys exhibits a strong financial position with impressive revenue growth and improved profitability margins. The balance sheet is well-balanced, with manageable debt levels and a solid equity base. Cash flow metrics are robust, indicating efficient cash management and strong liquidity. While there are some operational challenges affecting EBIT margins, the company's financial health remains strong.

Income Statement

Amedisys shows a solid revenue growth trend with a consistent increase over the years. The TTM gross profit margin is robust at approximately 46.2%, and the net profit margin has notably improved to around 7.3% in TTM from negative figures in prior periods, showcasing a strong turnaround. However, the EBIT margin is not as strong as historical performance, indicating some operational challenges.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of approximately 0.38, suggesting moderate leverage. The equity ratio stands at around 54.9%, indicating a solid equity base. However, the return on equity is moderate at approximately 14.5%, suggesting potential room for improving profitability relative to equity.

Cash Flow

Amedisys demonstrates strong cash flow management with a significant free cash flow growth rate, and a healthy operating cash flow to net income ratio of around 1.29 in TTM, reflecting efficient cash generation relative to earnings. The free cash flow to net income ratio is also strong, highlighting effective cash conversion.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.37B	2.35B	2.24B	2.22B	2.21B	2.07B
	Gross Profit
894.82M	1.02B	990.87M	962.77M	980.76M	886.15M
	EBIT
118.18M	94.54M	156.39M	180.77M	251.91M	219.27M
	EBITDA
188.85M	73.45M	216.91M	207.41M	320.66M	250.66M
	Net Income Common Stockholders
114.39M	43.23M	-9.75M	118.61M	209.07M	183.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
284.88M	303.24M	126.45M	40.54M	42.69M	81.81M
	Total Assets
2.18B	2.14B	2.06B	1.98B	1.86B	1.57B
	Total Debt
452.86M	460.18M	487.21M	537.94M	545.61M	307.04M
	Net Debt
167.98M	156.94M	360.76M	497.40M	502.92M	225.23M
	Total Liabilities
939.50M	958.75M	940.39M	869.67M	880.64M	756.46M
	Stockholders Equity
1.20B	1.13B	1.07B	1.05B	931.35M	809.22M
Cash Flow		Free Cash Flow
219.24M	215.12M	124.47M	126.07M	182.17M	283.62M
	Operating Cash Flow
224.52M	221.66M	137.19M	133.28M	188.89M	288.95M
	Investing Cash Flow
-6.52M	-8.36M	35.06M	-94.49M	-281.61M	-287.11M
	Financing Cash Flow
-53.82M	-48.92M	-87.52M	-30.43M	55.13M	-14.98M

Amedisys Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 97.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMED, the sentiment is Positive. The current price of 97.89 is above the 20-day moving average (MA) of 95.13, above the 50-day MA of 94.37, and above the 200-day MA of 93.15, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 73.75 is Negative, neither overbought nor oversold. The STOCH value of 87.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMED.

Amedisys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADUS	77 Outperform	$2.10B	26.01	9.18%	―	11.38%	10.29%
AMED	71 Outperform	$3.20B	36.23	7.85%	―	5.34%	―
ASTH	70 Outperform	$1.21B	33.45	5.00%	―	54.81%	-45.07%
PNTG	69 Neutral	$967.20M	36.61	11.28%	―	30.04%	43.47%
EHAB	58 Neutral	$485.11M	―	-22.81%	―	-1.08%	-65.84%
Sector *	54 Neutral	$5.24B	3.26	-44.35%	6.48%	16.78%	-0.10%
AVAH	44 Neutral	$942.30M	275.29	42.49%	―	9.05%	―

Amedisys Corporate Events

Amedisys Extends Credit Facility Amid Merger Talks

On April 17, 2025, Amedisys, Inc. announced a Fourth Amendment to its Amended and Restated Credit Agreement, extending the maturity date of its $1.0 billion senior secured credit facility to July 30, 2027, and incorporating new provisions related to U.S. Treasury regulations. This amendment reflects Amedisys’s strategic financial management amidst its pending merger with UnitedHealth Group. Additionally, Amedisys reported its first-quarter 2025 financial results, highlighting a net service revenue increase to $594.8 million and a significant rise in net income attributable to the company compared to the previous year. The company achieved an adjusted EBITDA of $68.8 million, demonstrating robust financial performance despite merger-related expenses.