Aveanna Healthcare Holdings (AVAH) AI Stock Analysis

• Market Cap: $1.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.15
• Revenue Growth: 15.48%
• EPS Growth: N/A
• Country: US
• Employees: 33,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.15
• Shares Outstanding: 208,911,380
• 10 Day Avg. Volume: 1,004,901
• 30 Day Avg. Volume: 1,111,749
• 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: 1.79
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 4.32
• Enterprise Value/Ebitda: 12.48
• 1Y Price Target: $10.29
• Price Target Upside: 16.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.56
• Revenue Forecast (FY): $2.38B

• Rating: 58 Neutral
• Price Target: $9.50 ▲(7.47% Upside)

Aveanna Healthcare Holdings shows strong earnings growth and strategic initiatives, which are significant positives. However, high leverage and low profitability weigh down the financial performance. The technical indicators suggest a positive trend, but valuation metrics indicate moderate attractiveness. Overall, the stock presents a mixed outlook with potential for improvement if financial stability is enhanced.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for services and effective market expansion strategies, supporting long-term business sustainability.

Strategic Initiatives

Expansion of preferred payer agreements enhances revenue stability and strengthens competitive positioning in the healthcare market.

Cash Flow Improvement

Improved cash flow and liquidity provide financial flexibility for growth investments and debt management, enhancing long-term stability.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Low Profitability

Low profitability limits reinvestment capacity and shareholder returns, posing challenges to achieving sustainable financial health.

Regulatory Uncertainty

Regulatory uncertainties, particularly in Medicaid funding, pose risks to revenue stability and require strategic adaptation to mitigate impacts.

Aveanna Healthcare Holdings Business Overview & Revenue Model

Company Description

Aveanna Healthcare Holdings (AVAH) is a leading provider of pediatric and adult home healthcare services in the United States. The company specializes in delivering skilled nursing, therapy, and personal care services to patients with complex medical needs. Aveanna operates in various sectors, including home health care, hospice, and therapy services, catering to individuals with chronic illnesses, disabilities, and recovery needs. Their core offerings encompass a wide range of services designed to enhance the quality of life for patients while providing support to families.

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 faces challenges with high leverage and low profitability, impacting its financial stability. While there is some revenue and cash flow growth, the company needs to improve its operational efficiency and reduce debt levels to enhance financial health and shareholder value.

Income Statement

Aveanna Healthcare Holdings shows a moderate revenue growth rate of 5.19% TTM, indicating some positive momentum. However, the net profit margin is low at 3.29% TTM, and historical net income has been negative, reflecting challenges in profitability. The gross profit margin is stable at 33.45% TTM, but the EBIT and EBITDA margins are relatively low, suggesting limited operational efficiency.

Balance Sheet

The company has a very high debt-to-equity ratio of 135.67 TTM, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting poor returns for shareholders. The equity ratio is low, suggesting limited financial stability and a reliance on debt financing.

Cash Flow

Cash flow metrics show some improvement, with a free cash flow growth rate of 5.09% TTM. The operating cash flow to net income ratio is low at 0.22, indicating limited cash generation relative to net income. However, the free cash flow to net income ratio is strong at 0.92, suggesting better cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.29B	2.02B	1.90B	1.79B	1.68B	1.50B
Gross Profit	766.30M	635.54M	595.43M	553.23M	542.40M	454.51M
EBITDA	265.13M	187.38M	39.17M	-525.06M	-17.95M	61.47M
Net Income	75.46M	-10.93M	-134.52M	-662.03M	-117.04M	-57.05M
Balance Sheet
Total Assets	1.81B	1.66B	1.61B	1.71B	2.33B	1.84B
Cash, Cash Equivalents and Short-Term Investments	145.87M	84.29M	43.94M	19.22M	30.49M	137.34M
Total Debt	1.35B	1.50B	1.50B	1.36B	1.30B	1.23B
Total Liabilities	1.80B	1.79B	1.74B	1.72B	1.70B	1.58B
Stockholders Equity	9.91M	-122.09M	-127.44M	-4.17M	637.95M	267.17M
Cash Flow
Free Cash Flow	82.52M	26.32M	16.56M	-60.41M	-27.30M	101.38M
Operating Cash Flow	89.54M	32.64M	22.67M	-48.40M	-11.35M	116.62M
Investing Cash Flow	-21.88M	-6.32M	-8.79M	-25.29M	-681.83M	-193.54M
Financing Cash Flow	-261.00K	14.03M	10.85M	62.42M	586.33M	210.94M

Aveanna Healthcare Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.84
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 8.84 is below the 20-day moving average (MA) of 8.99, below the 50-day MA of 9.13, and above the 200-day MA of 6.54, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.55 is Neutral, neither overbought nor oversold. The STOCH value of 25.49 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
ADUS	74 Outperform	$2.10B	24.18	8.58%	―	18.77%	6.88%
NHC	74 Outperform	$2.16B	21.43	9.94%	1.78%	23.74%	-18.99%
PNTG	73 Outperform	$1.03B	38.85	10.87%	―	29.89%	10.33%
SEM	70 Outperform	$1.89B	17.53	5.57%	1.64%	-22.96%	-59.35%
BKD	61 Neutral	$2.49B	-8.03	-214.33%	―	3.93%	-42.22%
AVAH	58 Neutral	$1.85B	24.83	―	―	15.48%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Aveanna Healthcare Holdings Corporate Events

Aveanna Healthcare Updates Stockholders Agreement and Board

On November 13, 2025, Aveanna Healthcare Holdings Inc. amended its Stockholders Agreement, restricting certain executives from transferring common stock without pre-approval, while allowing other stockholders to transfer shares freely. Additionally, Christopher Gordon resigned as a Class II director, and Sam Weil, a Principal at Bain Capital, was appointed to fill the vacancy, bringing his expertise in healthcare investments to the board.

Aveanna Healthcare Highlights Strong Financial Performance

On November 7, 2025, Aveanna Healthcare Holdings released a financial presentation to investors, highlighting its revenue of over $2.375 billion and an adjusted EBITDA exceeding $300 million. The presentation underscores Aveanna’s strategic use of its website for disseminating critical company information and emphasizes its strong market positioning with a diverse payor mix and no single payor contributing more than a specified percentage of revenue.

Aveanna Healthcare Reports Strong Q3 2025 Financial Results

Aveanna Healthcare Holdings announced its third-quarter financial results for 2025, showing a significant improvement with a 22.2% increase in revenue to $621.9 million and a net income of $14.1 million compared to a net loss in the previous year. The company also revised its full-year 2025 revenue and Adjusted EBITDA guidance upwards, reflecting sustained business momentum and successful strategic transformations, including the integration of Thrive Skilled Pediatric Care.

Aveanna Healthcare Completes Secondary Stock Offering

On October 21, 2025, Aveanna Healthcare Holdings Inc. entered into an underwriting agreement for a secondary offering of 10,000,000 shares of common stock by certain selling stockholders affiliated with J.H. Whitney Equity Partners VII, LLC. The offering, which closed on October 23, 2025, was priced at $9.00 per share, with an option for underwriters to purchase an additional 1,500,000 shares. The company did not issue or sell any shares itself and did not receive any proceeds from this transaction.

Aveanna Healthcare Highlights Transparency in Investor Presentation

On September 29, 2025, Aveanna Healthcare Holdings Inc. released a financial presentation to investors, highlighting the company’s use of its website to disseminate important information. The presentation, which is available on their website, underscores Aveanna’s commitment to transparency and timely communication with stakeholders, potentially impacting investor relations and market perception.

Aveanna Healthcare Refinances Credit Facility for Growth

On September 17, 2025, Aveanna Healthcare Holdings successfully refinanced its first lien credit facility, increasing its revolving credit facility to $250 million and extending the maturity dates of its loans. This refinancing allowed Aveanna to repay its existing second lien term loans, thereby terminating the second lien term loan facility. The move strengthens Aveanna’s balance sheet, enhances liquidity, and reflects strong operational performance and confidence from financial partners, supporting the company’s strategic growth and expansion.