Amedisys (AMED) AI Stock Analysis

• Market Cap: $3.21B
• Dividend Yield: N/A
• Average Volume (3M): 429.04K
• Price to Earnings (P/E): 36.1
• Beta (1Y): 0.19
• Revenue Growth: 5.34%
• EPS Growth: N/A
• Country: US
• Employees: 19,000
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Care Facilities
• EPS (TTM): 1.25
• Shares Outstanding: 32,819,637
• 10 Day Avg. Volume: 512,288
• 30 Day Avg. Volume: 429,040
• PEG Ratio: 0.41
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.63
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 3.76
• Enterprise Value/Ebitda: 4.38
• 1Y Price Target: $101.00
• Price Target Upside: 3.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: $104.00 ▲(6.66%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 Management

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

Rate Adjustments

The proposed 2026 rate update for Home Health is generally in line with the worst case views and includes both temporary and permanent behavioral adjustments, driving large potential headwinds.

Revenue Projections

The 4Q24 results came in below both consensus estimates and the analyst's model.

Amedisys Business Overview & Revenue Model

Company Description

Amedisys, Inc., together with its subsidiaries, provides healthcare services in the United States. It operates through three segments: Home Health, Hospice, Personal Care, and High Acuity Care. The Home Health segment offers a range of services in the homes of individuals for the recovery of patients from surgery, chronic disability, or terminal illness, as well as prevents avoidable hospital readmissions through its skilled nurses; rehabilitation therapists specialized in physical, speech, and occupational therapy; and social workers and aides for assisting its patients. The Hospice segment offers services that is designed to provide comfort and support for those who are dealing with a terminal illness, including cancer, heart disease, pulmonary disease, or Alzheimer's. The Personal Care segment provides assistance for patients with the activities of daily living. The High Acuity Care offers essential elements of inpatient hospital, skilled nursing facility care and palliative care to patients in their homes. As of December 31, 2021, the company owned and operated 331 home health care centers, 175 hospice care centers, and 14 personal-care, and 8 high acuity care centers in 38 states within the United States and the District of Columbia. Amedisys, Inc. was incorporated in 1982 and is headquartered in Baton Rouge, Louisiana.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.35B	2.24B	2.22B	2.21B	2.07B
Gross Profit	1.02B	990.87M	962.77M	980.76M	886.15M
EBITDA	73.45M	216.91M	207.41M	320.66M	250.66M
Net Income	43.23M	-9.75M	118.61M	209.07M	183.61M
Balance Sheet
Total Assets	2.14B	2.06B	1.98B	1.86B	1.57B
Cash, Cash Equivalents and Short-Term Investments	303.24M	126.45M	40.54M	42.69M	81.81M
Total Debt	460.18M	487.21M	537.94M	545.61M	307.04M
Total Liabilities	958.75M	940.39M	869.67M	880.64M	756.46M
Stockholders Equity	1.13B	1.07B	1.05B	931.35M	809.22M
Cash Flow
Free Cash Flow	215.12M	124.47M	126.07M	182.17M	283.62M
Operating Cash Flow	221.66M	137.19M	133.28M	188.89M	288.95M
Investing Cash Flow	-8.36M	35.06M	-94.49M	-281.61M	-287.11M
Financing Cash Flow	-48.92M	-87.52M	-30.43M	55.13M	-14.98M

Amedisys Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 97.51
• 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 AMED, the sentiment is Positive. The current price of 97.51 is above the 20-day moving average (MA) of 97.44, above the 50-day MA of 95.90, and above the 200-day MA of 93.17, indicating a bullish trend. The MACD of 0.47 indicates Positive momentum. The RSI at 55.77 is Neutral, neither overbought nor oversold. The STOCH value of 77.94 is Neutral, 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	79 Outperform	$2.06B	24.72	9.18%	―	11.38%	10.29%
AMED	71 Outperform	$3.21B	36.09	7.85%	―	5.34%	―
ASTH	70 Outperform	$1.25B	33.77	5.00%	―	54.81%	-45.07%
PNTG	68 Neutral	$873.79M	31.91	11.28%	―	30.04%	43.47%
AVAH	53 Neutral	$794.03M	232.18	42.49%	―	9.05%	―
Sector *	52 Neutral	$7.53B	0.20	-63.81%	2.31%	16.15%	0.40%
EHAB	51 Neutral	$358.51M	―	-22.81%	―	-1.08%	-65.84%

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.