ADAPTHEALTH CORP (AHCO) Stock Fundamental Analysis
NASDAQ:AHCO - Nasdaq - US00653Q1022 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to AHCO. AHCO was compared to 103 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of AHCO while its profitability can be described as average. AHCO has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
AHCO had positive earnings in the past year.
In the past year AHCO had a positive cash flow from operations.
In multiple years AHCO reported negative net income over the last 5 years.
In the past 5 years AHCO always reported a positive cash flow from operatings.
1.2 Ratios
AHCO has a Return On Assets (1.80%) which is in line with its industry peers.
AHCO has a Return On Equity of 5.14%. This is in the better half of the industry: AHCO outperforms 61.16% of its industry peers.
AHCO's Return On Invested Capital of 6.50% is fine compared to the rest of the industry. AHCO outperforms 66.99% of its industry peers.
AHCO had an Average Return On Invested Capital over the past 3 years of 4.25%. This is significantly below the industry average of 9.71%.
The last Return On Invested Capital (6.50%) for AHCO is above the 3 year average (4.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 5.14% | ||
| ROIC | 6.5% |
ROA(3y)-4%
ROA(5y)-3.64%
ROE(3y)-12.78%
ROE(5y)-15.4%
ROIC(3y)4.25%
ROIC(5y)3.76%
1.3 Margins
AHCO's Profit Margin of 1.99% is fine compared to the rest of the industry. AHCO outperforms 61.16% of its industry peers.
AHCO's Profit Margin has declined in the last couple of years.
AHCO's Operating Margin of 9.03% is fine compared to the rest of the industry. AHCO outperforms 77.67% of its industry peers.
AHCO's Operating Margin has improved in the last couple of years.
AHCO has a Gross Margin of 21.92%. This is comparable to the rest of the industry: AHCO outperforms 44.66% of its industry peers.
AHCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.03% | ||
| PM (TTM) | 1.99% | ||
| GM | 21.92% |
OM growth 3Y1.95%
OM growth 5Y11.03%
PM growth 3Y-23.99%
PM growth 5YN/A
GM growth 3Y4.28%
GM growth 5Y4.45%
2. Health
2.1 Basic Checks
AHCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AHCO has more shares outstanding
Compared to 5 years ago, AHCO has more shares outstanding
Compared to 1 year ago, AHCO has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that AHCO is in the distress zone and has some risk of bankruptcy.
AHCO has a Altman-Z score of 1.30. This is in the lower half of the industry: AHCO underperforms 67.96% of its industry peers.
The Debt to FCF ratio of AHCO is 8.57, which is on the high side as it means it would take AHCO, 8.57 years of fcf income to pay off all of its debts.
AHCO has a Debt to FCF ratio of 8.57. This is comparable to the rest of the industry: AHCO outperforms 53.40% of its industry peers.
A Debt/Equity ratio of 1.27 is on the high side and indicates that AHCO has dependencies on debt financing.
AHCO has a worse Debt to Equity ratio (1.27) than 66.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 8.57 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.87
WACC7.46%
2.3 Liquidity
AHCO has a Current Ratio of 1.33. This is a normal value and indicates that AHCO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.33, AHCO is in line with its industry, outperforming 41.75% of the companies in the same industry.
A Quick Ratio of 1.09 indicates that AHCO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.09, AHCO is doing worse than 63.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 140.14% over the past year.
The Earnings Per Share has been growing by 10.23% on average over the past years. This is quite good.
AHCO shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.35%.
Measured over the past years, AHCO shows a very strong growth in Revenue. The Revenue has been growing by 43.84% on average per year.
EPS 1Y (TTM)140.14%
EPS 3Y10.23%
EPS 5YN/A
EPS Q2Q%-150%
Revenue 1Y (TTM)24.35%
Revenue growth 3Y9.93%
Revenue growth 5Y43.84%
Sales Q2Q%-1.84%
3.2 Future
AHCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.69% yearly.
The Revenue is expected to grow by 5.92% on average over the next years.
EPS Next Y29.77%
EPS Next 2Y35.34%
EPS Next 3Y26.83%
EPS Next 5Y26.69%
Revenue Next Year0.49%
Revenue Next 2Y2.44%
Revenue Next 3Y4.05%
Revenue Next 5Y5.92%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AHCO is valuated correctly with a Price/Earnings ratio of 16.18.
Compared to the rest of the industry, the Price/Earnings ratio of AHCO indicates a somewhat cheap valuation: AHCO is cheaper than 75.73% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AHCO to the average of the S&P500 Index (27.41), we can say AHCO is valued slightly cheaper.
The Price/Forward Earnings ratio is 8.39, which indicates a very decent valuation of AHCO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AHCO indicates a rather cheap valuation: AHCO is cheaper than 91.26% of the companies listed in the same industry.
AHCO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.18 | ||
| Fwd PE | 8.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AHCO indicates a rather cheap valuation: AHCO is cheaper than 94.17% of the companies listed in the same industry.
AHCO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AHCO is cheaper than 94.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.28 | ||
| EV/EBITDA | 4.31 |
4.3 Compensation for Growth
AHCO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AHCO has a very decent profitability rating, which may justify a higher PE ratio.
AHCO's earnings are expected to grow with 26.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y35.34%
EPS Next 3Y26.83%
5. Dividend
5.1 Amount
AHCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.22
-0.23 (-2.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.92%
Inst Owner Change0%
Ins Owners1.65%
Ins Owner Change6.9%
Market Cap1.24B
Analysts81.43
Price Target13.13 (42.41%)
Short Float %7.95%
Short Ratio5.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.05%
Min EPS beat(2)-11.41%
Max EPS beat(2)35.5%
EPS beat(4)1
Avg EPS beat(4)-33.9%
Min EPS beat(4)-140.37%
Max EPS beat(4)35.5%
EPS beat(8)3
Avg EPS beat(8)-143.05%
EPS beat(12)3
Avg EPS beat(12)-119.9%
EPS beat(16)3
Avg EPS beat(16)-105.14%
Revenue beat(2)1
Avg Revenue beat(2)-0.55%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)1.28%
Revenue beat(8)4
Avg Revenue beat(8)-0.34%
Revenue beat(12)6
Avg Revenue beat(12)-0.03%
Revenue beat(16)8
Avg Revenue beat(16)0.14%
PT rev (1m)0%
PT rev (3m)-0.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-9.13%
EPS NY rev (3m)-12.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.18 | ||
| Fwd PE | 8.39 | ||
| P/S | 0.31 | ||
| P/FCF | 5.28 | ||
| P/OCF | 2.3 | ||
| P/B | 0.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.31 |
EPS(TTM)0.57
EY6.18%
EPS(NY)1.1
Fwd EY11.92%
FCF(TTM)1.75
FCFY18.95%
OCF(TTM)4.02
OCFY43.55%
SpS30.04
BVpS11.64
TBVpS-8.96
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 5.14% | ||
| ROCE | 9.33% | ||
| ROIC | 6.5% | ||
| ROICexc | 6.69% | ||
| ROICexgc | 24.76% | ||
| OM | 9.03% | ||
| PM (TTM) | 1.99% | ||
| GM | 21.92% | ||
| FCFM | 5.82% |
ROA(3y)-4%
ROA(5y)-3.64%
ROE(3y)-12.78%
ROE(5y)-15.4%
ROIC(3y)4.25%
ROIC(5y)3.76%
ROICexc(3y)4.34%
ROICexc(5y)3.9%
ROICexgc(3y)17.05%
ROICexgc(5y)18.83%
ROCE(3y)6.1%
ROCE(5y)5.39%
ROICexcg growth 3Y0.25%
ROICexcg growth 5Y-13.24%
ROICexc growth 3Y18.04%
ROICexc growth 5Y-2.96%
OM growth 3Y1.95%
OM growth 5Y11.03%
PM growth 3Y-23.99%
PM growth 5YN/A
GM growth 3Y4.28%
GM growth 5Y4.45%
F-Score8
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 8.57 | ||
| Debt/EBITDA | 2.72 | ||
| Cap/Depr | 83.77% | ||
| Cap/Sales | 7.55% | ||
| Interest Coverage | 3 | ||
| Cash Conversion | 74.1% | ||
| Profit Quality | 291.83% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.3 |
F-Score8
WACC7.46%
ROIC/WACC0.87
Cap/Depr(3y)94.46%
Cap/Depr(5y)82.09%
Cap/Sales(3y)11.04%
Cap/Sales(5y)9.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)140.14%
EPS 3Y10.23%
EPS 5YN/A
EPS Q2Q%-150%
EPS Next Y29.77%
EPS Next 2Y35.34%
EPS Next 3Y26.83%
EPS Next 5Y26.69%
Revenue 1Y (TTM)24.35%
Revenue growth 3Y9.93%
Revenue growth 5Y43.84%
Sales Q2Q%-1.84%
Revenue Next Year0.49%
Revenue Next 2Y2.44%
Revenue Next 3Y4.05%
Revenue Next 5Y5.92%
EBIT growth 1Y56.69%
EBIT growth 3Y12.08%
EBIT growth 5Y59.71%
EBIT Next Year180.2%
EBIT Next 3Y47.81%
EBIT Next 5YN/A
FCF growth 1Y64.65%
FCF growth 3Y48.23%
FCF growth 5Y43.24%
OCF growth 1Y12.73%
OCF growth 3Y25.26%
OCF growth 5Y55.08%