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Aveanna Healthcare Holdings
(NASDAQ:AVAH)
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Rating:69Neutral
Price Target:
$10.50
▲(11.11% Upside)
Action:Reiterated
Date:06/25/26
AVAH scores above average primarily due to improving operations and upbeat forward outlook (raised 2026 guidance and strong recent growth), supported by a low P/E valuation. The biggest offset is financial risk from high leverage and limited debt coverage, while technicals show strong trend strength but overbought conditions that can increase near-term volatility.
Positive Factors
Preferred-payer traction
Growing preferred-payer agreements create durable, higher-margin volumes and more predictable reimbursement. Over time this strengthens contracting leverage, supports targeted wage investments to improve staffing, and reduces revenue volatility tied to spot payer rates and referrals.
Negative Factors
High leverage
Elevated indebtedness materially constrains financial flexibility and increases vulnerability to interest-rate moves or weaker cash flow. Even with hedges and recent repricing, high leverage slows deleveraging ability and raises the likelihood that earnings volatility could impair credit metrics.
Read all positive and negative factors
Positive Factors
Negative Factors
Preferred-payer traction
Growing preferred-payer agreements create durable, higher-margin volumes and more predictable reimbursement. Over time this strengthens contracting leverage, supports targeted wage investments to improve staffing, and reduces revenue volatility tied to spot payer rates and referrals.
Read all positive factors
Aveanna Healthcare Holdings (AVAH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.97B
Dividend YieldN/A
Average Volume (3M)2.27M
Price to Earnings (P/E)8.5
Beta (1Y)1.27
Revenue Growth19.52%
EPS Growth1337.90%
CountryUS
Employees35,500
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.27
Shares Outstanding217,755,200
10 Day Avg. Volume2,065,901
30 Day Avg. Volume2,266,750
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)8.46
Price to Sales (P/S)0.68
P/FCF Ratio14.33
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$11.13Price Target Upside17.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.71
Revenue Forecast (FY)$2.63B
Aveanna Healthcare Holdings Business Overview & Revenue Model
Company Description
Aveanna Healthcare Holdings, Inc. (AVAH) is a pediatric-focused healthcare services company in the post-acute and home-based care sector. The company provides in-home skilled nursing and other clinical care for medically complex children, home hea...
How the Company Makes Money
Aveanna makes money by delivering home-based healthcare services and home-delivered medical products and being reimbursed primarily by government-sponsored programs and managed care plans. Key revenue streams include: (1) Private Duty Services (in...
Aveanna Healthcare Holdings Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveys a clear recovery and momentum: strong revenue and adjusted EBITDA growth, raised full‑year guidance, improved payer and government engagements (including a major California PDN budget win), positive cash generation, and preferred‑payer traction across segments. Primary risks are operational — caregiver labor constraints, short‑term wage pass‑throughs that can pressure margins, integration and timing risks (notably final California rate details) and a sizable but largely hedged debt position. Overall, the positives (accelerating organic growth, guidance raise, liquidity, payer wins and structural rate improvements) materially outweigh the manageable execution and timing headwinds.Positive Updates
Strong Top-Line Growth
Q2 revenue of $670.5M, up 13.7% year-over-year; full-year revenue guidance raised to greater than $2.68B.
Negative Updates
Ongoing Labor Market Constraints
Management identified the caregiver labor environment as the primary gating factor for capacity and growth; company continues to need wage pass-throughs and investments to reopen capacity.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q2 revenue of $670.5M, up 13.7% year-over-year; full-year revenue guidance raised to greater than $2.68B.
Read all positive updates
Company Guidance
Aveanna raised 2026 guidance to revenue greater than $2.68 billion and adjusted EBITDA greater than $365 million, driven by a strong Q2 (revenue $670.5M, +13.7% YoY; adj. EBITDA $95.4M, +8%; consolidated gross margin $218.5M or 32.6%), healthy liquidity (cash on hand ~$97M, total liquidity ~$433M), YTD operating cash flow $85.3M and free cash flow $75.4M, and a $10M annual interest savings from a 75 bps term‑loan repricing; segment metrics include PDS revenue/hour $44.62 (+1.7%), PDS gross margin $160M or 28.9% with a $12.88 spread/hour and 37 preferred‑payer agreements covering 64% of PDS MCO volume, home health revenue ~$69M with 10.5k admissions, 14.7k episodes (81% episodic, episodes +18.5%) and Medicare revenue/episode ~$3.2k (gross margin 53.9%), and Medical Solutions revenue $47.5M (≈95k unique patients, +4.4%; rev/UPS ≈$500; GM 45.1%); management upgraded long‑term organic growth targets to PDS 5–6%, home health & hospice 8–10% (from 5–7%), Medical Solutions 8–10%, reiterated goal of double‑digit annual revenue growth and a sub‑3x net leverage target.Aveanna Healthcare Holdings Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
38
Negative
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.52B | 2.43B | 2.02B | 1.90B | 1.79B | 1.68B |
| Gross Profit | 823.98M | 805.15M | 635.54M | 595.43M | 553.23M | 542.40M |
| EBITDA | 299.16M | 274.56M | 187.38M | 39.17M | -525.06M | -17.95M |
| Net Income | 261.49M | 225.03M | -10.93M | -134.52M | -662.03M | -117.04M |
Balance Sheet | ||||||
| Total Assets | 2.02B | 2.03B | 1.66B | 1.61B | 1.71B | 2.33B |
| Cash, Cash Equivalents and Short-Term Investments | 189.27M | 193.26M | 84.29M | 43.94M | 19.22M | 30.49M |
| Total Debt | 1.50B | 1.51B | 1.50B | 1.50B | 1.36B | 1.30B |
| Total Liabilities | 1.78B | 1.83B | 1.79B | 1.74B | 1.72B | 1.70B |
| Stockholders Equity | 240.05M | 194.46M | -122.09M | -127.44M | -4.17M | 637.95M |
Cash Flow | ||||||
| Free Cash Flow | 136.63M | 114.79M | 26.32M | 16.56M | -60.41M | -27.30M |
| Operating Cash Flow | 138.84M | 122.24M | 32.64M | 22.67M | -48.40M | -11.35M |
| Investing Cash Flow | -24.51M | -22.30M | -6.32M | -8.79M | -25.29M | -681.83M |
| Financing Cash Flow | 3.45M | 9.03M | 14.03M | 10.85M | 62.42M | 586.33M |
Aveanna Healthcare Holdings Risk Analysis
Aveanna Healthcare Holdings disclosed 55 risk factors in its most recent earnings report. Aveanna Healthcare Holdings 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
Aveanna Healthcare Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $2.20B | 20.70 | 9.57% | ― | 15.88% | 25.01% | |
72 Outperform | $3.47B | 24.35 | 12.94% | 1.15% | 7.19% | 32.91% | |
69 Neutral | $1.97B | 8.51 | 241.47% | ― | 19.52% | 1337.90% | |
62 Neutral | $1.34B | 41.11 | 9.51% | ― | 37.90% | 15.84% | |
52 Neutral | $3.10B | -21.68 | 405.63% | ― | -4.42% | 44.67% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
AVAH
Aveanna Healthcare Holdings
11.29
4.09
56.81%
ADUS
Addus Homecare
117.59
3.73
3.28%
BKD
Brookdale Senior Living
12.55
5.22
71.21%
NHC
National Healthcare
219.84
115.29
110.27%
PNTG
Pennant Group
38.64
13.94
56.44%
Aveanna Healthcare Holdings Corporate Events
Business Operations and StrategyExecutive/Board Changes
Aveanna Healthcare Director Resigns Following CDC Appointment
Neutral
Aug 7, 2026
On August 5, 2026, Aveanna Healthcare Holdings Inc. announced that Dr. Erica Schwartz, a Class III independent director and Chair of the Clinical Quality Committee, resigned from its Board of Directors effective immediately following her nominatio...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Aveanna Healthcare Raises 2026 Guidance After Family First Acquisition
Positive
Jun 2, 2026
On June 1, 2026, Aveanna subsidiary Pediatric Services of America completed the $175.5 million cash acquisition of Family First Homecare, a multi-state pediatric home care provider with 27 locations in seven states. The deal, funded with cash on h...
Executive/Board ChangesShareholder Meetings
Aveanna Shareholders Back Directors, Auditor and Executive Pay
Positive
May 29, 2026
Aveanna Healthcare Holdings Inc. held its 2026 Annual Meeting of Stockholders on May 29, 2026, at which stockholders elected three Class II directors, Rodney D. Windley, Sam Weil, and Steven E. Rodgers, to three-year terms expiring at the 2029 Ann...
Business Operations and StrategyPrivate Placements and Financing
Aveanna Healthcare Reprices Credit Facilities to Cut Borrowing Costs
Positive
May 28, 2026
On May 26, 2026, Aveanna Healthcare LLC, a wholly owned subsidiary of Aveanna Healthcare Holdings Inc., executed a thirteenth amendment to its first lien credit agreement, repricing its senior secured term loan and revolving credit facilities. The...
Business Operations and StrategyFinancial Disclosures
Aveanna Healthcare Issues 2026 Outlook, Highlights Growth
Positive
May 15, 2026
On May 15, 2026, Aveanna Healthcare Holdings Inc. released an investor presentation outlining its 2026 financial guidance and operating scale, projecting revenue of $2.56 billion to $2.58 billion, a year-to-date gross margin of 31.7%, and adjusted...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Aveanna Healthcare Lifts 2026 Outlook After Strong Quarter
Positive
May 14, 2026
Aveanna Healthcare Holdings reported strong first-quarter results for the period ended April 4, 2026, with revenue rising 15.9% year over year to $647.9 million and net income jumping to $41.7 million from $5.2 million a year earlier. Adjusted EBI...
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.