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Acadia Healthcare (ACHC)
NASDAQ:ACHC
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Acadia Healthcare
(NASDAQ:ACHC)
61Neutral
Positive Factors
Expansion and Cash Flow
The addition of approximately 1,200 beds over 2024 is expected to help improve trends and cash flows starting in 2025.
Future Growth Potential
In 2026 and beyond, ACHC sees an inflection point in EBITDA growth, with 2026 EBITDA growth towards the high end of the long-term range of 8-10% and revenue growth of 7-9%.
Potential for Takeover
A take private scenario for ACHC is becoming increasingly likely, which could be beneficial for private equity investors.
Negative Factors
Financial Performance Misses
The company reported adjusted EBITDA that missed consensus estimates by -9.5%, reflecting challenges in meeting financial expectations.
Legal and Financial Challenges
Potential DOJ fines and deal costs add extra financial burdens that need to be considered.
Operational and Market Pressures
Lower referral patterns due to a federal investigation and negative media reports are expected to continue impacting volume through 2025.
Acadia Healthcare (ACHC) vs. S&P 500 (SPY)
Market Cap
$2.64B
Dividend YieldN/A
Average Volume (3M)2.44M
Price to Earnings (P/E)9.9
Beta (1Y)0.79
Revenue Growth7.69%
EPS GrowthN/A
CountryUS
Employees19,192
SectorHealthcare
Sector Strength76
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)2.78
Shares Outstanding92,913,040
10 Day Avg. Volume2,144,183
30 Day Avg. Volume2,435,458
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.85
Price to Cash Flow (P/CF)5.70
P/FCF Ratio4.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$46.70Price Target Upside70.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Acadia Healthcare Business Overview & Revenue Model
Company DescriptionAcadia Healthcare Company, Inc. provides behavioral healthcare services in the United States and Puerto Rico. The company offers behavioral healthcare services to its patients in various settings, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers, and outpatient clinics. As of March 31, 2022, it operated a network of 238 behavioral healthcare facilities with approximately 10,600 beds. The company was founded in 2005 and is headquartered in Franklin, Tennessee.
How the Company Makes MoneyAcadia Healthcare generates revenue primarily through the provision of behavioral healthcare services. The company's key revenue streams include payments for patient services rendered at its various facilities, including inpatient psychiatric hospitals, residential treatment centers, and outpatient clinics. These payments are typically received from a combination of private payers, government programs like Medicaid and Medicare, and commercial insurance providers. Additionally, Acadia Healthcare may form partnerships with other healthcare providers or governmental bodies to enhance service delivery and expand its market presence, which can also contribute to its revenue. The company's financial performance is influenced by factors such as occupancy rates in its facilities, reimbursement rates from payers, and the overall demand for behavioral healthcare services.
Acadia Healthcare Financial Statement Overview
Summary
Acadia Healthcare demonstrates strong revenue growth and improved profitability metrics in 2024, indicating a positive financial trajectory. The balance sheet reflects a healthy capital structure, though rising debt levels warrant caution. Cash flow management shows potential volatility, with significant capital expenditures impacting free cash flow.Income Statement
Acadia Healthcare has shown a strong revenue growth trend, with a significant increase in Total Revenue from 2023 to 2024, indicating robust top-line growth. However, the net profit margin has fluctuated, with a notable improvement in 2024 following a loss in 2023. The gross profit margin remains consistent, reflecting stable core profitability. The EBIT and EBITDA margins have significantly improved in 2024, suggesting enhanced operational efficiency.65
Positive
Balance Sheet
The company's balance sheet shows a manageable debt-to-equity ratio, with an increasing trend in stockholders' equity. The equity ratio indicates a solid capital structure. However, the total debt has increased over the years, which could pose potential leverage risks if not managed. The return on equity has improved significantly in 2024, showcasing effective utilization of equity capital.70
Positive
Cash Flow
Cash flow analysis reveals a stable operating cash flow, although there was a decline from 2023 to 2024. The free cash flow has seen improvement, but the significant capital expenditures and the fluctuation in free cash flow growth rate highlight potential volatility in cash management. The operating cash flow to net income ratio is strong in 2024, indicating efficient cash generation relative to net income.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.15B | 2.93B | 2.61B | 2.31B | 2.09B | Gross Profit |
| 3.15B | 682.61M | 1.12B | 979.89M | 848.17M | EBIT |
| 2.96B | 506.60M | 443.90M | 414.47M | 365.61M | EBITDA |
| 607.84M | 189.11M | 561.67M | 459.47M | 437.16M | Net Income Common Stockholders |
| 255.61M | -21.67M | 273.14M | 190.63M | 143.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 76.31M | 100.07M | 97.65M | 133.81M | 378.70M | Total Assets |
| 5.96B | 5.36B | 4.99B | 4.77B | 6.50B | Total Debt |
| 2.09B | 1.51B | 1.53B | 1.64B | 3.23B | Net Debt |
| 2.01B | 1.41B | 1.43B | 1.50B | 2.85B | Total Liabilities |
| 2.77B | 2.47B | 2.09B | 2.19B | 4.60B | Stockholders Equity |
| 3.07B | 2.78B | 2.81B | 2.52B | 1.90B |
| Cash Flow | Free Cash Flow | |||
| 129.69M | 38.21M | 84.42M | 129.67M | 442.19M | Operating Cash Flow |
| 129.69M | 462.34M | 380.57M | 374.48M | 658.81M | Investing Cash Flow |
| -736.48M | -397.22M | -305.83M | 1.02B | -281.84M | Financing Cash Flow |
| 583.02M | -62.70M | -110.90M | -1.64B | -51.50M |
Acadia Healthcare Technical Analysis
Negative
27.37
Price Trends
35.68
Negative
38.30
Negative
52.26
Negative
Market Momentum
-1.90
Negative
40.26
Neutral
84.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACHC, the sentiment is Negative. The current price of 27.37 is below the 20-day moving average (MA) of 29.15, below the 50-day MA of 35.68, and below the 200-day MA of 52.26, indicating a bearish trend. The MACD of -1.90 indicates Negative momentum. The RSI at 40.26 is Neutral, neither overbought nor oversold. The STOCH value of 84.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACHC.
Acadia Healthcare Risk Analysis
Acadia Healthcare disclosed 54 risk factors in its most recent earnings report. Acadia Healthcare 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
Acadia Healthcare Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $11.38B | 10.38 | 17.82% | 0.46% | 10.82% | 65.64% | |
73 Outperform | $81.65B | 15.07 | -230.22% | 0.81% | 8.67% | 15.32% | |
72 Outperform | $11.45B | 3.73 | 110.75% | ― | 0.57% | 440.71% | |
66 Neutral | $2.04B | 9.54 | 13.35% | 2.77% | -0.63% | -13.10% | |
61 Neutral | $2.64B | 9.86 | 8.73% | ― | 7.69% | ― | |
52 Neutral | $343.74M | ― | 39.18% | ― | 1.16% | -278.41% | |
48 Neutral | $6.36B | 1.09 | -49.92% | 2.63% | 17.17% | 0.95% |
* Healthcare Sector Average
Performance Comparison
ACHC
Acadia Healthcare
27.37
-48.06
-63.71%
CYH
Community Health
2.45
-0.63
-20.45%
HCA
HCA Healthcare
331.65
6.24
1.92%
SEM
Select Medical
15.81
0.02
0.13%
THC
Tenet Healthcare
120.35
18.51
18.18%
UHS
Universal Health
174.53
3.59
2.10%
Acadia Healthcare Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -32.02% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced sentiment with steady revenue growth and strategic expansions being counterbalanced by decreased margins, increased liabilities, and underperforming facilities.Highlights
Revenue Growth
For the full year, Acadia delivered over $3.1 billion in revenue, a 7.7% increase over 2023, with fourth quarter revenue increasing by 4.2% to $774 million.
Expansion and Bed Growth
Acadia completed construction on approximately 1,300 beds in 2024, including 1,100 in the fourth quarter, and added an additional 313 licensed beds in the first two months of 2025.
Joint Venture Partnerships
Opened a 144-bed joint venture hospital with Intermountain Health in Denver and a 192-bed joint venture hospital with Henry Ford Health in Detroit.
Strategic Investments and Technology
Invested in electronic medical records, patient monitoring devices, and wearable safety devices, enhancing patient safety and operational effectiveness.
Lowlights
Decreased EBITDA Margin
Adjusted EBITDA margin for the fourth quarter of 2024 was 19.8%, a decrease from 22.8% in the same quarter last year.
Increased Costs and Liabilities
Recorded a $4 million increase to reserves for self-insured professional and general liability claims and startup losses related to new facilities.
Facility Closures and Underperformance
Fourth quarter results included a $7 million revenue impact and a $5 million EBITDA impact due to facility closures. A small group of underperforming facilities contributed to a $20 million EBITDA headwind projected for 2025.
Company Guidance
In the Acadia Healthcare fourth quarter 2024 earnings call, the company provided guidance for 2025, projecting full-year revenue between $3.3 billion and $3.4 billion, with adjusted EBITDA expected to range from $675 million to $725 million. The adjusted earnings per share are anticipated to be between $2.50 and $2.80. The company also expects operating cash flows to be within the range of $460 million to $510 million, alongside capital spending estimated between $630 million and $690 million. This includes approximately $525 million to $575 million earmarked for expansion related to new bed construction. Acadia forecasts same-facility patient day growth in the low to mid-single digits and has highlighted a $20 million EBITDA headwind due to underperforming facilities. Additionally, the company plans to open 800 to 1,000 beds in 2025 and has outlined a strategic approach to moderate capital expenditures while unlocking EBITDA potential from newly added beds to drive growth in 2026 and beyond.Acadia Healthcare Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Acadia Healthcare Secures New $1 Billion Credit Facility
Neutral
Feb 28, 2025
On February 28, 2025, Acadia Healthcare Company, Inc. entered into a new Credit Agreement with JPMorgan Chase Bank, N.A., establishing a $1 billion senior secured revolving credit facility and a $650 million senior secured term loan facility, both maturing on February 28, 2030. This agreement replaces the previous credit arrangement from March 2021 and is designed to refinance existing obligations, with options for incremental facilities upon meeting certain conditions. The agreement includes financial covenants and security provisions, impacting the company’s financial strategy and operational flexibility.
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.