Amedisys (AMED) AI Stock Analysis

• Market Cap: $3.27B
• Dividend Yield: N/A
• Average Volume (3M): 489.00K
• Price to Earnings (P/E): 38.7
• Beta (1Y): 0.19
• Revenue Growth: 4.92%
• EPS Growth: -7.34%
• Country: US
• Employees: 19,000
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Care Facilities
• EPS (TTM): 1.54
• Shares Outstanding: 32,886,703
• 10 Day Avg. Volume: 658,478
• 30 Day Avg. Volume: 489,000
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 2.73
• Enterprise Value/Ebitda: 20.84
• 1Y Price Target: $101.00
• Price Target Upside: 2.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: $110.00 ▲(11.68% Upside)

Amedisys exhibits strong financial performance and positive corporate developments, such as the pending merger with UnitedHealth Group. However, the high P/E ratio suggests potential overvaluation, and the absence of dividend yield limits income attractiveness. Technical indicators show a bullish trend, supporting a positive outlook.

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 a strong second quarter, with revenue, adjusted EBITDA, and EPS all coming in ahead of both projections and Street estimates.

Negative Factors

Earnings Growth

There is a cautious stance on underwriting any sustainable long-term earnings growth for Amedisys Inc.

Rate Cuts

Home Health is facing a 6.4% rate cut with a temporary behavioral adjustment now being incorporated in the proposed rule.

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, supported by its ability to generate and manage cash effectively.

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	2.40B	2.35B	2.24B	2.22B	2.21B	2.07B
Gross Profit	1.26B	1.02B	990.87M	962.77M	980.76M	886.15M
EBITDA	164.66M	73.45M	216.91M	207.41M	320.66M	250.66M
Net Income	149.69M	43.23M	-9.75M	118.61M	209.07M	183.61M
Balance Sheet
Total Assets	2.22B	2.14B	2.06B	1.98B	1.86B	1.57B
Cash, Cash Equivalents and Short-Term Investments	337.30M	303.24M	126.45M	40.54M	42.69M	81.81M
Total Debt	451.35M	460.18M	487.21M	537.94M	545.61M	307.04M
Total Liabilities	940.48M	958.75M	940.39M	869.67M	880.64M	756.46M
Stockholders Equity	1.23B	1.13B	1.07B	1.05B	931.35M	809.22M
Cash Flow
Free Cash Flow	235.01M	215.12M	124.47M	126.07M	182.17M	283.62M
Operating Cash Flow	239.43M	221.66M	137.19M	133.28M	188.89M	288.95M
Investing Cash Flow	-6.02M	-8.36M	35.06M	-94.49M	-281.61M	-287.11M
Financing Cash Flow	-53.46M	-48.92M	-87.52M	-30.43M	55.13M	-14.98M

Amedisys Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 98.50
• 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 AMED, the sentiment is Positive. The current price of 98.5 is above the 20-day moving average (MA) of 97.89, above the 50-day MA of 96.82, and above the 200-day MA of 93.28, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 65.85 is Neutral, neither overbought nor oversold. The STOCH value of 79.78 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	77 Outperform	$2.14B	25.35	8.54%	―	14.29%	―
ASTH	73 Outperform	$1.11B	30.07	5.00%	―	54.81%	-45.07%
AMED	73 Outperform	$3.27B	38.66	7.26%	―	4.92%	-7.34%
PNTG	64 Neutral	$764.87M	28.95	11.28%	―	30.04%	43.47%
Sector *	51 Neutral	$7.38B	0.42	-62.86%	2.37%	15.61%	-1.95%
EHAB	48 Neutral	$338.76M	―	-22.81%	―	-1.08%	-65.84%
AVAH	45 Neutral	$737.45M	223.56	42.49%	―	9.05%	―

Amedisys Corporate Events

Amedisys Reports Q2 2025 Financial Results Amid Merger

On July 29, 2025, Amedisys reported its financial results for the second quarter of 2025, showing an increase in net service revenue to $621.9 million, up from $591.2 million in 2024. Despite merger-related expenses, the company’s adjusted EBITDA rose to $80.8 million, and adjusted net income per diluted share increased to $1.54. The company is in the process of merging with UnitedHealth Group and will not conduct a quarterly earnings call due to this pending merger. This financial performance highlights Amedisys’s resilience and growth amidst merger activities, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (AMED) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Amedisys stock, see the AMED Stock Forecast page.