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Addus HomeCare Corporation (ADUS)
:ADUS
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Addus Homecare
(NASDAQ:ADUS)
61Neutral
Positive Factors
Financial Health
ADUS finished with a net debt to annualized EBITDA ratio of less than 1x, indicating strong financial health.
Revenue Growth
The company remains committed to long-term revenue growth of over 10%, even on a larger base, and is focused on smaller transactions that fit its strategy.
Negative Factors
Gross Margin
Gross margin is expected to decline approximately 200 basis points quarter over quarter in 1Q.
Addus Homecare (ADUS) vs. S&P 500 (SPY)
Market Cap
$1.72B
Dividend YieldN/A
Average Volume (3M)238.30K
Price to Earnings (P/E)22.4
Beta (1Y)0.74
Revenue Growth9.06%
EPS Growth10.68%
CountryUS
Employees34,846
SectorHealthcare
Sector Strength78
IndustryHealthcare Providers & Services
Share Statistics
EPS (TTM)4.23
Shares Outstanding18,172,865
10 Day Avg. Volume265,526
30 Day Avg. Volume238,304
Financial Highlights & Ratios
PEG Ratio2.09
Price to Book (P/B)N/A
Price to Sales (P/S)1.49
Price to Cash Flow (P/CF)41.30
P/FCF Ratio35.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$134.71Price Target Upside42.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Addus Homecare Business Overview & Revenue Model
Company DescriptionAddus HomeCare Corporation (ADUS) is a leading provider of comprehensive home and community-based health services. Operating primarily in the United States, the company offers a range of services including personal care, home health, and hospice care. Addus HomeCare focuses on improving the quality of life for vulnerable populations, such as the elderly, chronically ill, and disabled, by providing assistance with daily living activities and medical care in the comfort of their homes.
How the Company Makes MoneyAddus HomeCare makes money primarily through reimbursed healthcare services, which are funded by a combination of government programs and private pay sources. Key revenue streams include personal care services, which involve non-medical assistance with activities such as bathing, dressing, and meal preparation. This segment is largely reimbursed through Medicaid and other similar state-managed programs. In addition, the company earns revenue from its home health services, offering skilled nursing and therapy services, which are reimbursed by Medicare, Medicaid, and private insurance. Hospice care, another significant revenue stream, provides end-of-life care and is reimbursed through Medicare, Medicaid, and private insurance as well. Addus HomeCare's earnings are influenced by its ability to maintain contracts with state and federal programs, manage regulatory compliance, and expand its service network through strategic acquisitions and partnerships.
Addus Homecare Financial Statement Overview
Summary
Addus Homecare showcases strong revenue growth, improving profit margins, and healthy cash flow generation. However, the balance sheet presents a risk with high leverage and negative equity in 2024, which threatens financial stability. The company's operational efficiency and cash conversion abilities are commendable, but cautious monitoring of debt levels and equity restoration is recommended.Income Statement
Addus Homecare demonstrated strong revenue growth, with a Revenue Growth Rate of 9.06% from 2023 to 2024. The Gross Profit Margin and Net Profit Margin have shown consistent improvement, reaching 32.48% and 6.37% in 2024, respectively. The EBIT Margin increased to 8.89%, indicating efficient cost management and operational profitability. These metrics reflect robust financial health and growth potential.85
Very Positive
Balance Sheet
The company exhibits a high Debt-to-Equity Ratio due to negative equity in 2024, which is a concerning financial risk. The Return on Equity (ROE) is not meaningful due to negative equity. However, the company has managed its debt levels well historically, but the 2024 balance sheet indicates potential stability issues. The Equity Ratio fell to negative, highlighting significant financial leverage and risk.40
Negative
Cash Flow
Addus Homecare shows a solid Free Cash Flow Growth Rate of 7.38% from 2023 to 2024, underscoring strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio is robust, reflecting efficient cash operations. The Free Cash Flow to Net Income Ratio indicates that the company efficiently converts its earnings into cash. However, high investing outflows in 2024 could suggest aggressive growth strategies or capital expenditures.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 904.88M | 1.15B | 1.06B | 951.12M | 864.50M | 764.77M | Gross Profit |
| 285.63M | 375.02M | 339.88M | 299.74M | 269.85M | 226.24M | EBIT |
| 67.13M | 102.69M | 90.96M | 68.74M | 65.94M | 44.51M | EBITDA |
| 81.94M | 120.61M | 106.56M | 83.14M | 80.70M | 57.18M | Net Income Common Stockholders |
| 44.35M | 73.60M | 62.52M | 46.02M | 45.13M | 33.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 98.91M | 0.00 | 64.79M | 79.96M | 168.90M | 145.08M | Total Assets |
| 1.41B | 1.41B | 1.02B | 937.99M | 947.59M | 892.58M | Total Debt |
| 54.68M | 3.22M | 175.18M | 178.05M | 253.77M | 230.39M | Net Debt |
| -44.23M | 3.22M | 110.39M | 98.09M | 84.88M | 85.31M | Total Liabilities |
| 442.14M | 442.14M | 317.73M | 304.45M | 373.24M | 373.91M | Stockholders Equity |
| 970.49M | -2.58M | 706.69M | 633.54M | 574.34M | 518.68M |
| Cash Flow | Free Cash Flow | ||||
| 100.97M | 110.38M | 102.79M | 96.81M | 34.84M | 102.58M | Operating Cash Flow |
| 105.31M | 116.43M | 112.25M | 105.11M | 39.49M | 109.41M | Investing Cash Flow |
| -126.11M | -354.61M | -119.24M | -106.59M | -42.02M | -214.24M | Financing Cash Flow |
| 2.32M | 272.30M | -8.18M | -87.45M | 26.34M | 138.19M |
Addus Homecare Technical Analysis
Negative
94.71
Price Trends
117.52
Negative
121.73
Negative
122.68
Negative
Market Momentum
-7.10
Positive
25.21
Positive
33.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADUS, the sentiment is Negative. The current price of 94.71 is below the 20-day moving average (MA) of 103.37, below the 50-day MA of 117.52, and below the 200-day MA of 122.68, indicating a bearish trend. The MACD of -7.10 indicates Positive momentum. The RSI at 25.21 is Positive, neither overbought nor oversold. The STOCH value of 33.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADUS.
Addus Homecare Risk Analysis
Addus Homecare disclosed 34 risk factors in its most recent earnings report. Addus Homecare 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
Addus Homecare Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $9.98B | 22.26 | 24.52% | 0.64% | 11.91% | 28.47% | |
70 Outperform | $8.76B | 30.01 | 27.12% | 0.32% | 7.37% | 11.17% | |
67 Neutral | $30.20B | 25.16 | 7.40% | 1.41% | 10.70% | -49.85% | |
66 Neutral | $3.02B | 70.68 | 3.93% | ― | 5.01% | ― | |
61 Neutral | $1.72B | 22.37 | 8.78% | ― | 9.06% | 10.68% | |
51 Neutral | $1.13B | ― | -65.55% | ― | 3.95% | -5.53% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
ADUS
Addus Homecare
94.71
-3.87
-3.93%
AMED
Amedisys
92.09
-1.05
-1.13%
BKD
Brookdale Senior Living
5.63
-0.54
-8.75%
CHE
Chemed
598.50
-43.14
-6.72%
EHC
Encompass Health
96.99
20.60
26.97%
HUM
Humana
250.20
-91.09
-26.69%
Addus Homecare Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -12.98% | Next Earnings Date: May 5, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial growth and successful strategic acquisitions, notably the Gentiva acquisition, which expanded market reach. However, there are concerns regarding potential Medicaid funding changes and operational challenges related to weather and seasonal factors. Despite some challenges, the company's strategic positioning and financial health appear robust.Highlights
Revenue Growth
Total revenue for Q4 2024 was $297.1 million, an increase of 7.5% compared to Q4 2023. For the full year 2024, total revenue was $1.2 billion, an increase of 9.1% compared to 2023.
Adjusted Earnings and EBITDA Increase
Adjusted earnings per share for Q4 2024 was $1.38, a 4.6% increase from Q4 2023. Adjusted EBITDA for Q4 was $37.8 million, a 10.3% increase from Q4 2023.
Successful Acquisition of Gentiva
Addus completed its largest acquisition to date with Gentiva, adding approximately $280 million in annualized revenues and significantly expanding market coverage.
Strong Cash Flow
Consistent cash flow with $100 million on hand at the end of 2024 and a conservative leverage position under one times Adjusted EBITDA.
Lowlights
Potential Medicaid Funding Changes
Concerns about proposed changes to Medicaid funding, which could impact states, although Addus believes their services are less likely to be affected.
Corporate Office Lease Write-off
A one-time write-off of approximately $4.9 million related to excess space at the corporate office.
Weather and Seasonal Challenges
Weather-related disruptions and seasonal impacts in Q1 2025 could affect personal care services, though specifics were not quantified.
Company Guidance
During Addus HomeCare's fourth quarter 2024 earnings call, the company provided several financial metrics and guidance. Total revenue for the quarter increased by 7.5% to $297.1 million compared to the same quarter in 2023. Adjusted earnings per share rose by 4.6% to $1.38, while adjusted EBITDA increased by 10.3% to $37.8 million. For the full year 2024, Addus reported a 9.1% revenue increase to $1.2 billion, with adjusted earnings per share up by 14.9% to $5.26, and adjusted EBITDA up by 15.9% to $140.3 million. The company ended the year with approximately $100 million in cash on hand and a conservative leverage position of just under one times adjusted EBITDA. Addus also highlighted the successful integration of its largest acquisition to date, Gentiva Personal Care, which contributed to the revenue growth. The company expects the Illinois rate increase effective January 1, 2025, to contribute approximately $23 million in annualized revenue with a margin in the low 20% range. Looking ahead, Addus anticipates maintaining its targeted minimum annual revenue growth of 10%, supported by strategic acquisitions and favorable reimbursement support for personal care services.Addus Homecare Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Addus HomeCare Announces President’s Planned Retirement
Neutral
Mar 11, 2025
On March 10, 2025, Addus HomeCare announced the planned retirement of W. Bradley Bickham, its President and COO, effective March 10, 2026. His retirement is amicable, and he will remain in his role for another year to ensure a smooth leadership transition. Additionally, Addus extended CEO R. Dirk Allison’s employment agreement for three more years, emphasizing the company’s commitment to stable leadership as it continues its growth strategy. The company also granted restricted shares to executives, aligning with its compensation plans.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Addus HomeCare Reports Strong Q4 2024 Financial Results
Positive
Feb 24, 2025
On February 24, 2025, Addus HomeCare Corporation announced its financial results for the fourth quarter and year ended December 31, 2024. The company reported a 7.5% increase in net service revenues for the quarter, reaching $297.1 million, and a 9.1% increase for the year, totaling $1.15 billion. The acquisition of Gentiva’s personal care operations significantly expanded Addus’s market coverage, contributing to its strategic growth. The company emphasized its strong financial performance, driven by robust demand for home-based care services and strategic acquisitions, positioning it well for continued growth in 2025.
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.