Amedisys (AMED) AI Stock Analysis

• Market Cap: $3.00B
• Dividend Yield: N/A
• Average Volume (3M): 326.01K
• Price to Earnings (P/E): 70.3
• Beta (1Y): 0.23
• Revenue Growth: 5.01%
• EPS Growth: N/A
• Country: US
• Employees: 19,000
• Sector: Healthcare
• Sector Strength: 70
• Industry: Medical - Care Facilities
• EPS (TTM): 1.30
• Shares Outstanding: 32,810,290
• 10 Day Avg. Volume: 320,168
• 30 Day Avg. Volume: 326,011
• PEG Ratio: 0.01
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.51
• Price to Cash Flow (P/CF): 12.60
• P/FCF Ratio: 10.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $101.00
• Price Target Upside: 10.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

Amedisys' stock is supported by solid financial performance and stable technical indicators, though slightly hindered by a high valuation. The company's robust cash flow and improved profitability bolster its financial standing, while the technical analysis indicates a stable upward trend. However, the high P/E ratio reflects potential overvaluation, which dampens the overall outlook. The absence of earnings call and corporate events data limits the assessment to purely financial and technical factors.

Positive Factors

Financial Stability

Net leverage was reduced to 1.0x TTM EBITDA, showing improved financial stability.

Growth in Admissions

Amedisys Inc reported a 13% increase in same-store admissions in its core home nursing segment.

Revenue Performance

Home health revenue of $377.0 million beat our $373.3 million estimate as average revenue per episode of $3,030 exceeded our $2,997 estimate and same-store non-Medicare revenue increased 19%.

Negative Factors

Cost Pressures

Rate increases and home health volume growth were offset by raises, wage inflation, a shift in home health mix, investments in hospice clinical staffing and higher compensation and benefit costs.

Earnings Miss

The 4Q24 results came in below both consensus estimates and the analyst's model.

Medicare Volume Growth

The expectation for continued pressure on Medicare fee-for-service volume growth slightly lowers the 2025 estimates for Amedisys.

Amedisys Business Overview & Revenue Model

Company Description

Amedisys, Inc. (AMED) is a leading provider of healthcare services in the United States, specializing in post-acute care. The company operates primarily in the home health and hospice sectors, offering a range of services that include skilled nursing, physical therapy, occupational therapy, speech therapy, and hospice care. Amedisys is committed to delivering personalized and high-quality care in the comfort of patients' homes, aiming to improve health outcomes and patient satisfaction.

How the Company Makes Money

Amedisys generates revenue predominantly through its home health and hospice segments. In the home health segment, the company earns money by providing skilled nursing and therapy services to patients in their residences, often reimbursed by Medicare, Medicaid, and private insurers. The hospice segment contributes to revenue by offering end-of-life care services, also primarily reimbursed through Medicare. Key revenue streams include patient service revenue from these segments, and a significant portion of income is derived from government programs due to the nature of the services provided. Amedisys' financial performance is influenced by regulatory changes affecting reimbursement rates, as well as demographic trends such as the aging population, which drives demand for home-based healthcare services.

Amedisys Financial Statement Overview

Summary

Amedisys shows a solid financial performance with steady revenue growth, improved profitability, and strong cash flow generation. The company's balance sheet reflects a healthy financial structure with manageable leverage. While operational efficiency could be enhanced, the overall financial health remains robust, driven by strong cash flow metrics and improved returns on equity.

Income Statement

Amedisys shows a healthy revenue trajectory with a TTM (Trailing-Twelve-Months) revenue growth of 5.0% from the previous year. The net profit margin improved to 3.2% TTM, recovering from a negative margin last year, indicating better profitability management. However, the EBIT and EBITDA margins have decreased compared to previous years, suggesting potential efficiency issues.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.41, indicating manageable leverage. The return on equity (ROE) improved to 6.6% TTM, demonstrating better returns for shareholders. However, the equity ratio remains moderate at 53.0%, reflecting a balanced approach to asset financing between debt and equity.

Cash Flow

Amedisys has demonstrated strong cash flow management with a free cash flow growth rate of 72.5% TTM. The operating cash flow to net income ratio is 2.9, indicating robust cash generation relative to earnings. Additionally, free cash flow to net income ratio is exceptionally strong at 2.9, signifying effective cash conversion.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.35B	2.24B	2.22B	2.21B	2.07B
	Gross Profit
1.02B	990.87M	962.77M	980.76M	886.15M
	EBIT
94.54M	156.39M	180.77M	251.91M	219.27M
	EBITDA
73.45M	216.91M	207.41M	320.66M	250.66M
	Net Income Common Stockholders
43.23M	-9.75M	118.61M	209.07M	183.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
303.24M	126.45M	40.54M	42.69M	81.81M
	Total Assets
2.14B	2.06B	1.98B	1.86B	1.57B
	Total Debt
460.18M	487.21M	537.94M	545.61M	307.04M
	Net Debt
156.94M	360.76M	497.40M	502.92M	225.23M
	Total Liabilities
958.75M	940.39M	869.67M	880.64M	756.46M
	Stockholders Equity
1.13B	1.07B	1.05B	931.35M	809.22M
Cash Flow		Free Cash Flow
215.12M	124.47M	126.07M	182.17M	283.62M
	Operating Cash Flow
221.66M	137.19M	133.28M	188.89M	288.95M
	Investing Cash Flow
-8.36M	35.06M	-94.49M	-281.61M	-287.11M
	Financing Cash Flow
-48.92M	-87.52M	-30.43M	55.13M	-14.98M

Amedisys Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 91.51
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMED, the sentiment is Negative. The current price of 91.51 is below the 20-day moving average (MA) of 92.38, below the 50-day MA of 92.23, and below the 200-day MA of 93.80, indicating a bearish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 57.22 is Neutral, neither overbought nor oversold. The STOCH value of 74.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMED.

Amedisys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENSG	78 Outperform	$7.43B	25.27	17.90%	0.19%	15.52%	40.29%
EHC	72 Outperform	$10.42B	23.14	24.52%	0.62%	11.91%	28.47%
CHE	70 Outperform	$8.63B	29.69	27.12%	0.32%	7.37%	11.17%
AMED	65 Neutral	$3.00B	70.28	3.93%	―	5.01%	―
HCSG	64 Neutral	$738.55M	18.33	8.25%	―	2.65%	3.34%
AMN	52 Neutral	$734.98M	18.62	-19.11%	―	-21.26%	-172.28%
Sector *	48 Neutral	$6.25B	1.14	-46.26%	2.69%	19.24%	1.75%

Amedisys Corporate Events

Amedisys Reports Q4 2024 Financial Results Amid Merger Plans

Amedisys, Inc. reported its financial results for the fourth quarter and year ending December 31, 2024, revealing a net service revenue increase to $598.1 million for the quarter and $2,348.3 million for the year. Despite a net loss of $20.4 million for the quarter due to merger-related expenses and impairment charges, the company achieved a net income of $43.2 million for the year. Adjusted EBITDA slightly decreased, while adjusted net income per diluted share saw a marginal increase. The company announced it would not hold a quarterly earnings call due to its pending merger with UnitedHealth Group, which may impact its operations and industry positioning.