Aveanna Healthcare Holdings (AVAH) AI Stock Analysis

• Market Cap: $768.67M
• Dividend Yield: N/A
• Average Volume (3M): 443.67K
• Price to Earnings (P/E): 226.4
• Beta (1Y): 1.26
• Revenue Growth: 9.05%
• EPS Growth: N/A
• Country: US
• Employees: 33,500
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Care Facilities
• EPS (TTM): 0.10
• Shares Outstanding: 195,093,870
• 10 Day Avg. Volume: 379,024
• 30 Day Avg. Volume: 443,672
• PEG Ratio: 0.33
• Price to Book (P/B): -8.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.64
• Enterprise Value/Market Cap: 2.65
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 3.04
• Enterprise Value/Ebitda: 4.39
• 1Y Price Target: $5.70
• Price Target Upside: 44.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 45 Neutral
• Price Target: $4.00 ▲(1.52%Upside)

Aveanna Healthcare's overall stock score reflects significant financial instability due to high leverage and negative equity. While earnings call insights and corporate events suggest positive strategic developments, technical analysis and valuation metrics indicate substantial risks and overvaluation concerns.

Positive Factors

Financial Performance

AVAH reported $45.6m of EBITDA on $505m of revenue, which beat consensus estimates by 22.8% and 2.3%, respectively.

Growth Outlook

Aveanna Healthcare is experiencing above-average volume growth in its core PDS segment, enhancing its long-term growth outlook.

Operational Momentum

Improved state reimbursement and Preferred Payer strategy are driving operational momentum for Aveanna Healthcare Holdings.

Negative Factors

Debt Management

Net leverage is ~1.5x lower than it was just one year ago.

Profitability Challenges

2Q24 marks the first quarter since 2Q22 that EBITDA exceeded interest expense.

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 Holdings generates revenue through a diversified model that includes several key streams. The primary source of income comes from providing home health services, which involve skilled nursing and therapy services delivered in a patient's home. Additionally, the company earns from its private duty services, which include non-medical personal care and support for daily living activities, as well as medically intensive care for patients with chronic conditions. Hospice care also contributes to their revenue, offering end-of-life care and support. Aveanna collaborates with various healthcare payers including Medicare, Medicaid, and private insurers, which reimburse the company for services rendered based on specific agreements and care plans. These partnerships and reimbursements are crucial to the company's financial performance.

Aveanna Healthcare Holdings Financial Statement Overview

Summary

Aveanna Healthcare Holdings shows moderate revenue growth and improving cash flow metrics, but the financial health is undermined by negative equity and high leverage. While operational improvements are visible, the company's stability is at risk due to significant debt and negative equity.

Income Statement

The income statement shows moderate revenue growth over recent years, with a notable increase from $1.89 billion in 2023 to $2.09 billion TTM (Trailing-Twelve-Months). Gross profit margins are stable, rising slightly from 31.4% in 2024 to 32% in TTM. However, the net profit margin is low at 0.73% TTM due to significant interest and operating expenses, though it has improved from negative in previous years. EBIT and EBITDA margins are relatively weak at 8.16% and 5.68% TTM, respectively, indicating room for operational efficiency improvements.

Balance Sheet

The balance sheet is concerning, showing negative stockholders' equity of -$98.7 million TTM, indicating financial instability. The debt-to-equity ratio is not calculable due to negative equity, but the high total debt of $1.32 billion suggests leverage risks. Return on Equity (ROE) is also unmeasurable due to negative equity, but the consistent negative equity ratio highlights the potential risk of insolvency.

Cash Flow

Cash flow analysis reveals improvements in free cash flow, which increased from $16.56 million in 2023 to $28.62 million TTM, reflecting a positive trend. The operating cash flow to net income ratio is robust at 2.35 TTM, indicating good cash conversion despite low net income. The free cash flow to net income ratio is high at 1.87, suggesting efficient cash generation relative to profit levels. However, fluctuations in operating cash flows in previous years indicate potential volatility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Dec 2020
Income Statement
Total Revenue	2.02B	1.90B	1.79B	1.68B	1.50B
Gross Profit	635.54M	595.43M	553.23M	542.40M	454.51M
EBITDA	192.84M	44.35M	-517.28M	-9.26M	22.13M
Net Income	-10.93M	-134.52M	-662.03M	-117.04M	-57.05M
Balance Sheet
Total Assets	1.66B	1.61B	1.71B	2.33B	1.84B
Cash, Cash Equivalents and Short-Term Investments	84.29M	43.94M	19.22M	30.49M	137.34M
Total Debt	1.33B	1.50B	1.36B	1.30B	1.23B
Total Liabilities	1.79B	1.74B	1.72B	1.70B	1.58B
Stockholders Equity	-122.09M	-127.44M	-4.17M	637.95M	267.17M
Cash Flow
Free Cash Flow	26.32M	16.56M	-60.41M	-27.30M	101.38M
Operating Cash Flow	32.64M	22.67M	-48.40M	-11.35M	116.62M
Investing Cash Flow	-6.32M	-8.79M	-25.29M	-681.83M	-193.54M
Financing Cash Flow	14.03M	10.85M	62.42M	586.33M	210.94M

Aveanna Healthcare Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVAH, the sentiment is Negative. The current price of 3.94 is below the 20-day moving average (MA) of 4.32, below the 50-day MA of 4.93, and below the 200-day MA of 4.92, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 32.35 is Neutral, neither overbought nor oversold. The STOCH value of 26.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVAH.

Aveanna Healthcare Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USPH	70 Outperform	$1.13B	34.75	6.72%	2.39%	14.30%	76.89%
HCSG	67 Neutral	$1.07B	103.39	2.28%	―	5.17%	-65.33%
PNTG	64 Neutral	$796.23M	30.14	11.28%	―	30.04%	43.47%
Sector *	52 Neutral	$7.61B	0.10	-63.03%	2.08%	16.34%	0.32%
BKD	51 Neutral	$1.74B	―	-91.17%	―	3.88%	-34.30%
AVAH	45 Neutral	$768.67M	226.44	42.49%	―	9.05%	―
AMN	42 Neutral	$785.60M	18.62	-21.08%	―	-18.13%	-215.78%

Aveanna Healthcare Holdings Corporate Events

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.

The most recent analyst rating on (AVAH) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Aveanna Healthcare Holdings stock, see the AVAH Stock Forecast page.

Aveanna Healthcare Holds 2025 Annual Stockholders Meeting

On May 9, 2025, Aveanna Healthcare Holdings Inc. conducted its 2025 Annual Meeting of Stockholders. During the meeting, three Class I directors were elected to the Board for three-year terms, Ernst & Young LLP was ratified as the independent public accounting firm for the fiscal year ending January 3, 2026, and a non-binding advisory resolution on executive compensation was approved. No other matters were addressed at the meeting.

Aveanna Healthcare Highlights Financial Performance in Presentation

On May 9, 2025, Aveanna Healthcare Holdings Inc. released a financial presentation to investors, emphasizing the company’s use of its website as a primary channel for distributing important information. The presentation highlighted Aveanna’s financial performance and operational statistics, including over $2.15 billion in revenue and a significant presence across 34 states with 26,500 caregivers. The company continues to focus on growth strategies and maintaining a diverse payor mix, which is crucial for its financial stability and market positioning.

Aveanna Healthcare Reports Strong Q1 2025 Financial Performance

Aveanna Healthcare Holdings reported a strong financial performance for the first quarter of 2025, with a 14.0% increase in revenue to $559.2 million and a significant rise in adjusted EBITDA by 93.1% compared to the previous year. The company also revised its full-year 2025 revenue guidance to exceed $2.15 billion and adjusted EBITDA to surpass $207 million, reflecting positive momentum and strategic transformations, including successful cost reductions and improved reimbursement rates.