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Ardent Health Partners, Inc. (ARDT)
NYSE:ARDT
US Market
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Ardent Health Partners, Inc. (ARDT) AI Stock Analysis

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ARDT

Ardent Health Partners, Inc.

(NYSE:ARDT)

Rating:73Outperform
Price Target:
$13.50
▲(22.06%Upside)
Ardent Health Partners' strong financial performance and positive earnings call sentiments are key strengths. However, weak technical indicators and the absence of a dividend yield limit the overall attractiveness of the stock. Despite these challenges, the company's low P/E ratio suggests potential undervaluation.
Positive Factors
Demand and Market Position
Ardent Health Partners Inc is well positioned in urban mid-sized cities, where there's above-average population growth.
Sector Trends and Potential
The company's investment case remains strong with good sector trends and a belief that the company is materially under-earning its potential with its outpatient network strategy.
Valuation
The company's valuation is considered deeply discounted at 5.2x the 2025 EBITDAR-NCI.
Negative Factors
Financial Performance
The company is moving from a period of EBITDA growth tailwinds to headwinds, reflecting a meaningful shift in financial outlook.
Government Spending Cuts
The potential risk of meaningful government spending cuts has resurfaced and is weighing on the stock.
Medicaid and ACA Funding Cuts
Increasing headwinds from cuts to Medicaid and Accountable Care Act (ACA) exchanges are expected to lower volume growth and increase bad debt.

Ardent Health Partners, Inc. (ARDT) vs. SPDR S&P 500 ETF (SPY)

Ardent Health Partners, Inc. Business Overview & Revenue Model

Company Descriptionnull
How the Company Makes Moneynull

Ardent Health Partners, Inc. Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: -14.99%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong admissions growth, revenue increase, operational cost improvements, and a credit rating upgrade. However, there were challenges such as increased payer claim denials, a decline in outpatient surgeries, and the impact of oncology service transfers. Despite these challenges, the company remains optimistic about its strategic growth initiatives.
Q1-2025 Updates
Positive Updates
Strong Admissions Growth
Admissions grew 7.6% driven by strong underlying growth and heightened flu season, with inpatient surgery growth of 3.4%.
Revenue and EBITDA Increase
First-quarter revenue increased 4% to $1.5 billion. Adjusted EBITDA grew 2.5% to $98 million.
Operational Cost Improvements
Supply costs as a percent of revenue declined 60 basis points year-over-year, with expectations of further margin improvements by 100 to 200 basis points over the next three to four years.
Credit Rating Upgrade
S&P upgraded Ardent Health's credit rating to B+ from B, reflecting improved net leverage and cash flow profile.
Successful Integration of NextCare Clinics
Integration of 18 NextCare urgent care clinics is expected to generate additional downstream volumes in Tulsa and Albuquerque markets.
Negative Updates
Payer Claim Denials Increase
Notable increase in payer claim denials compared to the first quarter of 2024, which created a year-over-year headwind.
Outpatient Surgery Decline
Outpatient surgeries declined 2.3% despite strong inpatient surgical growth.
Impact of Oncology Service Transfer
Strategic transfer of certain oncology and infusion services tempered revenue growth by approximately 70 basis points.
Uncertain Tariff Impact
Potential future impacts from tariffs, with a current estimated 2025 EBITDA impact of no more than a mid-single-digit million-dollar amount.
Company Guidance
During the first quarter of 2025, Ardent Health Partners reported a strong financial and operational performance, with key metrics indicating positive growth trends. Admissions increased by 7.6%, while adjusted admissions grew by 2.7%, aligning with the company's full-year outlook of 2% to 3%. Inpatient surgeries saw a growth of 3.4%, and first-quarter revenue rose by 4% to $1.5 billion. Net patient service revenue per adjusted admission grew by 1.2%, despite a 70 basis point headwind from transferring certain oncology and infusion services. Adjusted EBITDA increased by 2.5% to $98 million, supported by improvements in supply chain efficiency, resulting in a 60 basis point reduction in supply costs as a percentage of revenue. Ardent ended the quarter with $495 million in cash and a lease-adjusted net leverage ratio of 3 times, reaffirming its full-year 2025 financial guidance.

Ardent Health Partners, Inc. Financial Statement Overview

Summary
Ardent Health Partners, Inc. demonstrates a strong financial position with consistent revenue growth, improved profitability, and robust cash flow. The company's strategic focus on cost management has enhanced margins. However, the return on equity remains modest, indicating room for improved returns.
Income Statement
85
Very Positive
Ardent Health Partners, Inc. shows a strong income statement with a consistent revenue growth at an annual rate of 10.3% from 2023 to 2024. The gross profit margin is high at 57.5%, indicating effective cost management. The company's net profit margin increased significantly from 0.9% in 2023 to 3.5% in 2024, demonstrating improved profitability. The EBIT and EBITDA margins also improved, reflecting enhanced operational efficiency.
Balance Sheet
75
Positive
The balance sheet reflects a solid equity base, with stockholders' equity increasing from $670.9 million in 2023 to $1.52 billion in 2024. The debt-to-equity ratio has significantly decreased from 3.57 in 2023 to 0.76 in 2024, indicating reduced financial leverage and risk. The equity ratio improved to 30.7%, highlighting stronger financial stability. However, the return on equity is relatively modest at 13.8%, suggesting room for improved returns on shareholder investments.
Cash Flow
78
Positive
The cash flow statement is robust, with a notable free cash flow growth of 51.3% from 2023 to 2024, indicating better cash management. The operating cash flow to net income ratio is healthy at 1.50, showing strong cash generation against accounting profits. The free cash flow to net income ratio is at 0.61, reflecting efficient cash flow utilization. Overall, the company demonstrates strong cash flow generation, supporting its operations and investments.
BreakdownDec 2024Dec 2023Dec 2022Dec 2018Dec 2017
Income Statement
Total Revenue5.97B5.41B5.13B4.16B3.00B
Gross Profit3.43B4.42B4.17B4.16B3.00B
EBITDA555.92M350.00M531.70M281.84M230.91M
Net Income210.34M50.29M188.91M-143.02M-35.65M
Balance Sheet
Total Assets4.96B4.73B4.86B2.75B2.37B
Cash, Cash Equivalents and Short-Term Investments556.78M437.58M456.12M59.66M71.96M
Total Debt2.28B2.40B2.39B1.26B952.69M
Total Liabilities3.43B3.65B3.81B2.03B1.61B
Stockholders Equity1.52B670.90M639.05M331.64M377.72M
Cash Flow
Free Cash Flow127.52M84.29M-189.47M-1.07M-2.06M
Operating Cash Flow315.03M221.70M-38.36M159.59M119.47M
Investing Cash Flow-220.46M-137.98M46.58M-525.11M-983.27M
Financing Cash Flow24.64M-102.26M-270.33M353.22M843.15M

Ardent Health Partners, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price11.06
Price Trends
50DMA
13.71
Negative
100DMA
13.48
Negative
200DMA
14.94
Negative
Market Momentum
MACD
-0.69
Positive
RSI
32.01
Neutral
STOCH
5.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARDT, the sentiment is Negative. The current price of 11.06 is below the 20-day moving average (MA) of 12.97, below the 50-day MA of 13.71, and below the 200-day MA of 14.94, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 32.01 is Neutral, neither overbought nor oversold. The STOCH value of 5.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARDT.

Ardent Health Partners, Inc. Risk Analysis

Ardent Health Partners, Inc. disclosed 53 risk factors in its most recent earnings report. Ardent Health Partners, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Ardent Health Partners, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$2.00B24.569.18%11.38%10.29%
76
Outperform
$1.15B31.665.00%54.81%-45.07%
73
Outperform
$1.50B6.6623.97%8.91%193.92%
64
Neutral
$1.85B10.7210.38%2.20%-8.86%-36.22%
60
Neutral
$2.03B10.826.35%5.48%
52
Neutral
$7.46B-0.04-63.82%2.49%16.43%<0.01%
47
Neutral
$902.41M-42.95%19.18%-6.14%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ARDT
Ardent Health Partners, Inc.
11.06
-6.04
-35.32%
ACHC
Acadia Healthcare
22.97
-42.09
-64.69%
ADUS
Addus Homecare
110.39
-10.73
-8.86%
SEM
Select Medical
14.74
-5.73
-27.99%
ASTH
Astrana Health
23.44
-29.04
-55.34%
AGL
Agilon Health
2.29
-4.46
-66.07%

Ardent Health Partners, Inc. Corporate Events

Executive/Board Changes
Ardent Health Announces Departure of Hospital Operations President
Neutral
Jun 20, 2025

On June 16, 2025, Ardent Health, Inc. announced the immediate departure of David Schultz from his role as President of Hospital Operations. His exit is classified as a ‘Qualifying Termination’ under the company’s Executive Severance Plan, entitling him to severance benefits as outlined in the company’s proxy statement and previous filings.

The most recent analyst rating on (ARDT) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Ardent Health Partners, Inc. stock, see the ARDT Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Ardent Health Partners Announces Name Change to Ardent Health
Neutral
May 23, 2025

On May 22, 2025, Ardent Health Partners, Inc. announced a name change to Ardent Health, Inc., effective June 3, 2025, with the amendment approved by the Board of Directors and not requiring stockholder approval. The company’s stock will continue trading under the symbol ‘ARDT’ on the New York Stock Exchange. At the Annual Meeting of Stockholders on May 21, 2025, 11 directors were elected, executive compensation was approved on a non-binding basis, and Ernst & Young LLP was ratified as the independent accounting firm for 2025.

The most recent analyst rating on (ARDT) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Ardent Health Partners, Inc. stock, see the ARDT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2025