Why ADDUS HOMECARE CORP (NASDAQ:ADUS) qualifies as a quality stock.

In this article we will dive into ADDUS HOMECARE CORP (NASDAQ:ADUS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ADDUS HOMECARE CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of ADUS highlighted

• Over the past 5 years, ADUS has experienced impressive revenue growth, with 12.22% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a robust ROIC excluding cash and goodwill at 99.81%, ADUS showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• The Debt/Free Cash Flow Ratio of ADUS stands at 1.98, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• The Profit Quality (5-year) of ADUS stands at 182.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• ADUS has consistently achieved strong EBIT growth over the past 5 years, with a 25.34% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, ADUS showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

How does the complete fundamental picture look for ADUS?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, ADUS scores 6 out of 10 in our fundamental rating. ADUS was compared to 102 industry peers in the Health Care Providers & Services industry. ADUS has an excellent profitability rating, but there are some minor concerns on its financial health. ADUS has a correct valuation and a medium growth rate.

Check the latest full fundamental report of ADUS for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.