Aveanna Healthcare Holdings (AVAH) AI Stock Analysis

• Market Cap: $2.09B
• Dividend Yield: N/A
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 131.1
• Beta (1Y): 1.45
• Revenue Growth: 11.53%
• EPS Growth: N/A
• Country: US
• Employees: 33,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.18
• Shares Outstanding: 208,896,380
• 10 Day Avg. Volume: 1,368,230
• 30 Day Avg. Volume: 1,317,275
• PEG Ratio: 0.89
• Price to Book (P/B): -7.36
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 34.15
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: 10.55
• 1Y Price Target: $9.00
• Price Target Upside: -8.72% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 59 Neutral
• Price Target: $7.50 ▼(-23.94% Downside)

Aveanna Healthcare Holdings' overall score is driven by strong earnings call performance and positive technical indicators. However, financial instability due to high leverage and negative equity, along with a high P/E ratio, weigh down the score.

Positive Factors

Revenue Growth

The strong revenue growth reflects successful strategic initiatives and market expansion, indicating a robust demand for Aveanna's services.

Preferred Payer Strategy

The preferred payer strategy enhances revenue stability and allows for better wage management, supporting long-term operational efficiency.

Cash Flow and Liquidity

Strong cash flow and liquidity position provide financial flexibility, enabling Aveanna to invest in growth opportunities and manage debt obligations.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting Aveanna's ability to invest in growth and increasing vulnerability to economic downturns.

Regulatory Environment

Regulatory changes could negatively impact reimbursement rates, affecting revenue and profitability in the long term.

Medicaid Funding Concerns

Potential reductions in Medicaid funding could strain financial resources, impacting Aveanna's ability to maintain service levels and profitability.

Aveanna Healthcare Holdings Business Overview & Revenue Model

Company Description

Aveanna Healthcare Holdings Inc., a diversified home care platform company, provides private duty nursing (PDN), adult home health and hospice, home-based pediatric therapy, and enteral nutrition services in the United States. Its patient- centered care delivery platform allows patients to remain in their homes and minimizes the overutilization of high-cost care settings, such as hospitals. The company operates through three segments: Private Duty Services (PDS), Home Health & Hospice (HHH), and Medical Solutions (MS). The PDS segment offers PDN services, which include in-home skilled nursing services to medically fragile children; nursing services in school settings in which its caregivers accompany patients to school; services to patients in its pediatric day healthcare centers; and employer of record support and personal care services, as well as in-clinic and home-based pediatric therapy services, such as physical, occupational, and speech services. The HHH segment provides home health services, including in-home skilled nursing services; physical, occupational, and speech therapy services; and medical social and aide services, as well as hospice services for patients and their families when a life-limiting illness no longer responds to cure-oriented treatments. The MS segment offers enteral nutrition supplies and other products to adults and children delivered on a periodic or as-needed basis. The company was incorporated in 2016 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Aveanna Healthcare generates revenue primarily through the provision of home healthcare services billed to various payers, including private insurance, Medicaid, and Medicare. The company's revenue model is based on service contracts and reimbursement rates determined by these payers, which cover skilled nursing, therapy, and personal care services. Key revenue streams include hourly billing for nursing and therapy services, episodic payments for specific care episodes, and capitated payments for certain patient populations. Additionally, Aveanna's partnerships with healthcare providers and managed care organizations enhance their service offerings and can lead to increased patient referrals, further driving revenue growth. The company's focus on expanding its footprint in underserved markets and enhancing its service capabilities are also significant factors contributing to its earnings.

Aveanna Healthcare Holdings Financial Statement Overview

Summary

Aveanna Healthcare Holdings shows moderate revenue growth and improved cash flow generation. However, high leverage, negative equity, and low profitability margins significantly impact financial stability.

Income Statement

Aveanna Healthcare Holdings shows moderate revenue growth with a TTM growth rate of 4.04%. Gross profit margin is stable at 33.2%, indicating efficient cost management. However, the net profit margin is low at 0.85%, suggesting challenges in translating revenue into profit. EBIT and EBITDA margins have improved but remain modest, reflecting operational inefficiencies.

Balance Sheet

The company has a concerning debt-to-equity ratio of -124.35, indicating high leverage and negative equity. This poses a significant financial risk. Return on equity is negative, reflecting poor profitability relative to shareholder investment. The equity ratio is also negative, highlighting financial instability.

Cash Flow

Free cash flow has grown significantly by 174.37% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.21, suggesting moderate cash conversion efficiency. However, the high leverage and negative equity remain concerns for long-term cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2020	Dec 2019
Income Statement
Total Revenue	2.18B	2.02B	1.90B	1.79B	1.50B	1.38B
Gross Profit	723.16M	635.54M	595.43M	553.23M	454.51M	419.25M
EBITDA	232.03M	187.38M	44.35M	-517.28M	22.13M	44.28M
Net Income	18.55M	-10.93M	-134.52M	-662.03M	-57.05M	-76.52M
Balance Sheet
Total Assets	1.77B	1.66B	1.61B	1.71B	1.84B	1.58B
Cash, Cash Equivalents and Short-Term Investments	100.74M	84.29M	43.94M	19.22M	137.34M	3.33M
Total Debt	1.49B	1.50B	1.50B	1.50B	1.23B	1.08B
Total Liabilities	1.78B	1.79B	1.74B	1.72B	1.58B	1.31B
Stockholders Equity	-11.99M	-122.09M	-127.44M	-4.17M	267.17M	270.94M
Cash Flow
Free Cash Flow	78.52M	26.32M	16.56M	-60.41M	101.38M	-25.35M
Operating Cash Flow	85.74M	32.64M	22.67M	-48.40M	116.62M	-8.71M
Investing Cash Flow	-22.07M	-6.32M	-8.79M	-25.29M	-193.54M	-17.82M
Financing Cash Flow	-10.59M	14.03M	10.85M	62.42M	210.94M	21.86M

Aveanna Healthcare Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.86
• 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 AVAH, the sentiment is Positive. The current price of 9.86 is above the 20-day moving average (MA) of 8.88, above the 50-day MA of 8.20, and above the 200-day MA of 5.63, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 72.05 is Negative, neither overbought nor oversold. The STOCH value of 91.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVAH.

Aveanna Healthcare Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADUS	81 Outperform	$2.16B	26.09	8.54%	―	14.29%	7.85%
SEM	74 Outperform	$1.66B	12.52	8.15%	1.91%	-16.10%	-48.97%
PNTG	71 Outperform	$826.38M	30.23	11.44%	―	30.58%	24.86%
NHC	69 Neutral	$1.89B	18.17	10.65%	2.05%	25.19%	13.44%
AVAH	59 Neutral	$2.09B	131.12	42.49%	―	11.53%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BKD	46 Neutral	$2.06B	―	-108.91%	―	3.99%	-14.74%

Aveanna Healthcare Holdings Corporate Events

Aveanna Healthcare Highlights Strong Financial Performance

On August 8, 2025, Aveanna Healthcare Holdings Inc. released a financial presentation to investors, highlighting key operating statistics and financial metrics. The presentation reported over $2.3 billion in revenue, a gross margin of 34.3%, and an adjusted EBITDA exceeding $270 million. The company operates 366 locations with 29,000 caregivers, delivering 43.9 million homecare hours annually. This announcement underscores Aveanna’s robust operational scale and financial performance, reinforcing its position as a major player in the home healthcare sector.

Aveanna Healthcare Reports Strong Q2 2025 Financial Growth

Aveanna Healthcare Holdings announced its second-quarter financial results for 2025, showing significant growth in revenue and adjusted EBITDA compared to the previous year. The company reported a 16.8% increase in revenue to $589.6 million and a 93.6% increase in adjusted EBITDA to $88.4 million. The acquisition of Thrive Skilled Pediatric Care has expanded Aveanna’s pediatric services, contributing to its strategic transformation and market expansion. The company has raised its full-year 2025 revenue guidance to over $2.3 billion and adjusted EBITDA to over $270 million, reflecting strong operational performance and growth momentum.

Aveanna Healthcare Expands Receivables Financing Agreement

On June 25, 2025, Aveanna Healthcare Holdings Inc.’s subsidiaries, Aveanna Healthcare LLC and Aveanna SPV I, LLC, entered into a seventh amendment to their Receivables Financing Agreement with a bank. This amendment increased the facility limit to $275 million and extended the termination date by three years, impacting the company’s financial flexibility and operational strategy.