Ardent Health Partners, Inc. (ARDT) AI Stock Analysis

• Market Cap: $1.74B
• Dividend Yield: N/A
• Average Volume (3M): 608.14K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.32
• Revenue Growth: 10.29%
• EPS Growth: 290.04%
• Country: US
• Employees: 19,200
• Sector: Healthcare
• Sector Strength: 76
• Industry: Medical - Care Facilities
• EPS (TTM): 1.47
• Shares Outstanding: 142,750,020
• 10 Day Avg. Volume: 470,129
• 30 Day Avg. Volume: 608,136
• PEG Ratio: 0.03
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.65
• Price to Cash Flow (P/CF): 5.20
• P/FCF Ratio: 10.10
• 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: $20.63
• Price Target Upside: 69.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

Ardent Health Partners demonstrates a robust financial performance with improved profitability and strong cash flows. Strategic corporate changes and IPO preparations highlight growth potential. However, technical indicators suggest caution due to the stock trading below key moving averages. The valuation appears favorable, though reliance on capital gains is notable due to the absence of a dividend yield.

Positive Factors

Financial Performance

The full-year EBITDA forecast for 2025 remains unchanged, indicating confidence in the company's annual performance.

Operational Efficiency

EBITDAR margins improved nicely, with a 330bps year-over-year increase, reflecting better operational efficiency despite past challenges.

Strategic Growth

ARDT continues to make progress on ambulatory initiatives with the acquisition of 18 urgent care facilities in NM and OK expanding their footprint within these markets.

Negative Factors

Medicaid Subsidies

There are risks to future estimates if Medicaid supplemental and subsidies on exchanges are reduced.

Professional Fees

Nurse costs stable but professional fees growing above average.

Regulatory Risks

Approval of the New Mexico DPP for 2025 is still pending and may not be reviewed by the end of the first quarter, potentially impacting financial results.

Ardent Health Partners, Inc. Business Overview & Revenue Model

Company Description

Ardent Health Partners, Inc. (ARDT) is a healthcare services company based in the United States. The company operates a network of hospitals, clinics, and outpatient facilities, providing a wide range of healthcare services including acute care, emergency care, and specialized medical treatments. Ardent Health Partners is committed to delivering high-quality patient care through its community-focused healthcare facilities and partnerships with healthcare professionals.

How the Company Makes Money

Ardent Health Partners, Inc. generates revenue primarily through patient services offered at its hospitals and healthcare facilities. This includes income from inpatient and outpatient services, surgical procedures, diagnostic tests, and emergency care. The company also earns revenues through partnerships with insurance providers, government programs like Medicare and Medicaid, and direct payments from patients. Additionally, Ardent Health Partners may engage in strategic partnerships with other healthcare entities to expand its service offerings and improve operational efficiencies, thereby contributing to its overall earnings.

Ardent Health Partners, Inc. Financial Statement Overview

Summary

Ardent Health Partners, Inc. exhibits a strong financial position with improvements in profitability, cash flow, and financial stability. Key strengths include a 57.5% gross profit margin and improved net profit margin from 0.9% to 3.5% in 2024. Debt-to-equity ratio decreased significantly, enhancing financial stability. However, return on equity remains modest at 13.8%, indicating potential for improved returns.

Income Statement

Ardent Health Partners, Inc. shows a strong income statement with a consistent revenue growth at an annual rate of 10.3% from 2023 to 2024. The gross profit margin is high at 57.5%, indicating effective cost management. The company's net profit margin increased significantly from 0.9% in 2023 to 3.5% in 2024, demonstrating improved profitability. The EBIT and EBITDA margins also improved, reflecting enhanced operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity base, with stockholders' equity increasing from $670.9 million in 2023 to $1.52 billion in 2024. The debt-to-equity ratio has significantly decreased from 3.57 in 2023 to 0.76 in 2024, indicating reduced financial leverage and risk. The equity ratio improved to 30.7%, highlighting stronger financial stability. However, the return on equity is relatively modest at 13.8%, suggesting room for improved returns on shareholder investments.

Cash Flow

The cash flow statement is robust, with a notable free cash flow growth of 51.3% from 2023 to 2024, indicating better cash management. The operating cash flow to net income ratio is healthy at 1.50, showing strong cash generation against accounting profits. The free cash flow to net income ratio is at 0.61, reflecting efficient cash flow utilization. Overall, the company demonstrates strong cash flow generation, supporting its operations and investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2018	Dec 2017
Income Statement		Total Revenue
5.97B	5.41B	5.13B	4.16B	3.00B
	Gross Profit
3.43B	5.27B	4.99B	4.16B	3.00B
	EBIT
363.06M	229.50M	199.11M	138.65M	120.22M
	EBITDA
574.93M	350.00M	338.43M	281.84M	230.91M
	Net Income Common Stockholders
210.34M	50.29M	188.91M	-143.02M	-35.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
556.78M	437.58M	456.12M	59.66M	71.96M
	Total Assets
4.96B	4.73B	4.86B	2.75B	2.37B
	Total Debt
2.28B	2.40B	2.39B	1.26B	952.69M
	Net Debt
1.73B	1.96B	1.93B	1.20B	880.73M
	Total Liabilities
3.43B	3.65B	3.81B	2.03B	1.61B
	Stockholders Equity
1.52B	670.90M	639.05M	331.64M	377.72M
Cash Flow		Free Cash Flow
127.52M	84.29M	-189.47M	-1.07M	-2.06M
	Operating Cash Flow
315.03M	221.70M	-38.36M	159.59M	119.47M
	Investing Cash Flow
-220.46M	-137.98M	46.58M	-525.11M	-983.27M
	Financing Cash Flow
24.64M	-102.26M	-270.33M	353.22M	843.15M

Ardent Health Partners, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARDT	74 Outperform	$1.74B	8.28	23.34%	―	10.29%	290.04%
UHS	74 Outperform	$11.38B	10.38	17.82%	0.46%	10.82%	65.64%
HCA	73 Outperform	$81.65B	15.07	-230.22%	0.81%	8.67%	15.32%
THC	72 Outperform	$11.45B	3.73	110.75%	―	0.57%	440.71%
ACHC	61 Neutral	$2.64B	9.86	8.73%	―	7.69%	―
CYH	52 Neutral	$343.74M	―	39.18%	―	1.16%	-278.41%
Sector *	48 Neutral	$6.36B	1.09	-49.92%	2.63%	17.17%	0.95%

Ardent Health Partners, Inc. Corporate Events

Ardent Health Partners Expands Board with New Appointment

On April 3, 2025, Ardent Health Partners, Inc. announced the expansion of its Board of Directors to 11 members with the appointment of Robert A. DeMichiei, effective April 2, 2025. Mr. DeMichiei, with over 30 years of experience in financial strategy and healthcare operations, is expected to contribute significantly to Ardent’s growth and operational excellence. His extensive background in healthcare finance and board governance, particularly from his tenure at the University of Pittsburgh Medical Center, positions him as a valuable asset to Ardent Health’s strategic direction.

Ardent Health Partners Appoints New Chief Operating Officer

On March 31, 2025, Ardent Health Partners, Inc. announced the appointment of David Caspers as Chief Operating Officer, where he will oversee operations across the company’s 30 hospitals and 280 sites of care. Caspers, who has extensive experience in retail healthcare and health system operations, will drive strategic growth initiatives and operational excellence. Additionally, Ardent Health promoted three senior leaders: Anika Gardenhire to Chief Digital and Transformation Officer, Rebecca Kirkham to Senior Vice President and Chief Communications and Corporate Affairs Officer, and Reed Smith to Senior Vice President and Chief Consumer Officer, reflecting the company’s focus on digital transformation and consumer engagement.

Ardent Health Partners Amends Agreements and Eyes IPO

Ardent Health Partners, Inc. has amended and restated employment agreements for its President and CEO Martin Bonick, and EVP and CFO Alfred Lumsdaine, to align with practices of publicly traded companies as the company prepares for an initial public offering. These agreements detail compensations, severance benefits, and restrictions for the executives, reflecting the company’s strategic move towards public trading. Additionally, the company anticipates a significant financial benefit from the recently approved New Mexico state directed payment program, which will bolster its Q4 2024 financial results. Looking forward, Ardent expects mid-single digit revenue and adjusted EBITDA growth for 2025, bolstered by state payment programs, indicating a cautious yet optimistic financial outlook amidst a dynamic regulatory environment.