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Ardent Health Partners, Inc. (ARDT)
NYSE:ARDT
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Ardent Health Partners, Inc.
(NYSE:ARDT)
Rating:76Outperform
Price Target:
$17.00
▲( 14.86% Upside)
Positive Factors
Earnings
1Q results look good underpinned by strong volumes, cost controls, and margin expansion.
Geographic Positioning
Ardent Health Partners Inc is well positioned in urban mid-sized cities, where there's above-average population growth.
Mergers and Acquisitions
ARDT struck a more constructive tone on the potential actionable acute-care M&A and JV activity.
Negative Factors
EBITDA Forecast
The EBITDA forecast for the first quarter is lowered due to the timing of state funds in New Mexico.
Professional Fees
Nurse costs stable but professional fees growing above average.
Tariffs
Tariffs are at worst case a $5 million headwind in 2025.
Ardent Health Partners, Inc. (ARDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.12B
Dividend YieldN/A
Average Volume (3M)317.31K
Price to Earnings (P/E)9.4
Beta (1Y)0.29
Revenue Growth8.91%
EPS Growth193.92%
CountryUS
Employees19,200
SectorHealthcare
Sector Strength43
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.29
Shares Outstanding143,043,660
10 Day Avg. Volume328,554
30 Day Avg. Volume317,306
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio16.57
Enterprise Value/Market Cap1.79
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit0.87
Enterprise Value/Ebitda2.69
Forecast
1Y Price Target
$20.17Price Target Upside36.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Ardent Health Partners, Inc. Business Overview & Revenue Model
Company Descriptionnull
How the Company Makes Moneynull
Ardent Health Partners, Inc. Financial Statement Overview
Summary
Ardent Health Partners, Inc. demonstrates a strong financial position with significant improvements in profitability, cash flow, and financial stability. The income statement shows consistent revenue growth and improved profit margins, while the balance sheet reflects a reduced debt-to-equity ratio and increased equity. The cash flow statement indicates robust free cash flow growth and efficient cash flow utilization. However, the return on equity is relatively modest, suggesting room for improved returns.Income Statement
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.85
Very Positive
Balance Sheet
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.75
Positive
Cash Flow
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.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2018 | Dec 2017 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.97B | 5.41B | 5.13B | 4.16B | 3.00B | Gross Profit |
| 3.43B | 4.42B | 4.99B | 4.16B | 3.00B | EBIT |
| 405.76M | 229.50M | 199.11M | 138.65M | 120.22M | EBITDA |
| 555.92M | 350.00M | 338.43M | 281.84M | 230.91M | Net Income Common Stockholders |
| 210.34M | 50.29M | 188.91M | -143.02M | -35.65M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 556.78M | 437.58M | 456.12M | 59.66M | 71.96M | Total Assets |
| 4.96B | 4.73B | 4.86B | 2.75B | 2.37B | Total Debt |
| 2.28B | 2.40B | 2.39B | 1.26B | 952.69M | Net Debt |
| 1.73B | 1.96B | 1.93B | 1.20B | 880.73M | Total Liabilities |
| 3.43B | 3.65B | 3.81B | 2.03B | 1.61B | Stockholders Equity |
| 1.52B | 670.90M | 639.05M | 331.64M | 377.72M |
| Cash Flow | Free Cash Flow | |||
| 127.52M | 84.29M | -189.47M | -1.07M | -2.06M | Operating Cash Flow |
| 315.03M | 221.70M | -38.36M | 159.59M | 119.47M | Investing Cash Flow |
| -220.46M | -137.98M | 46.58M | -525.11M | -983.27M | Financing Cash Flow |
| 24.64M | -102.26M | -270.33M | 353.22M | 843.15M |
Ardent Health Partners, Inc. Technical Analysis
Neutral
14.80
Price Trends
13.34
Positive
14.13
Positive
15.85
Negative
Market Momentum
0.55
Negative
58.27
Neutral
46.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARDT, the sentiment is Neutral. The current price of 14.8 is above the 20-day moving average (MA) of 14.12, above the 50-day MA of 13.34, and below the 200-day MA of 15.85, indicating a neutral trend. The MACD of 0.55 indicates Negative momentum. The RSI at 58.27 is Neutral, neither overbought nor oversold. The STOCH value of 46.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.05B | 25.19 | 9.18% | ― | 11.38% | 10.29% | |
76 Outperform | $2.12B | 9.38 | 23.97% | ― | 8.91% | 193.92% | |
76 Outperform | $1.22B | 33.74 | 5.00% | ― | 54.81% | -45.07% | |
64 Neutral | $1.94B | 11.25 | 10.38% | 2.97% | -8.86% | -36.22% | |
60 Neutral | $2.12B | 11.27 | 6.35% | ― | 5.48% | ― | |
53 Neutral | $5.14B | 3.06 | -43.57% | 2.81% | 16.81% | -0.12% | |
45 Neutral | $1.03B | ― | -42.95% | ― | 19.18% | -6.14% |
* Healthcare Sector Average
Performance Comparison
ARDT
Ardent Health Partners, Inc.
14.80
-2.50
-14.45%
ACHC
Acadia Healthcare
22.96
-40.62
-63.89%
ADUS
Addus Homecare
111.53
-0.08
-0.07%
SEM
Select Medical
14.49
-2.99
-17.11%
ASTH
Astrana Health
24.47
-15.50
-38.78%
AGL
Agilon Health
2.20
-3.89
-63.88%
Ardent Health Partners, Inc. Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 13.76%|
Next Earnings Date:Aug 13, 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. Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Ardent Health Partners Expands Board with New Appointment
Positive
Apr 3, 2025
On April 3, 2025, Ardent Health Partners, Inc. announced the expansion of its Board of Directors to 11 members with the appointment of Robert A. DeMichiei, effective April 2, 2025. Mr. DeMichiei, with over 30 years of experience in financial strategy and healthcare operations, is expected to contribute significantly to Ardent’s growth and operational excellence. His extensive background in healthcare finance and board governance, particularly from his tenure at the University of Pittsburgh Medical Center, positions him as a valuable asset to Ardent Health’s strategic direction.
Executive/Board ChangesBusiness Operations and Strategy
Ardent Health Partners Appoints New Chief Operating Officer
Positive
Mar 31, 2025
On March 31, 2025, Ardent Health Partners, Inc. announced the appointment of David Caspers as Chief Operating Officer, where he will oversee operations across the company’s 30 hospitals and 280 sites of care. Caspers, who has extensive experience in retail healthcare and health system operations, will drive strategic growth initiatives and operational excellence. Additionally, Ardent Health promoted three senior leaders: Anika Gardenhire to Chief Digital and Transformation Officer, Rebecca Kirkham to Senior Vice President and Chief Communications and Corporate Affairs Officer, and Reed Smith to Senior Vice President and Chief Consumer Officer, reflecting the company’s focus on digital transformation and consumer engagement.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.