9.98 USD
-0.52 (-4.95%)
Taking everything into account, AHCO scores 4 out of 10 in our fundamental rating. AHCO was compared to 102 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 a decent growth rate and is not valued too expensively.
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.
- AHCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AHCO has a Return On Assets (1.69%) which is comparable to the rest of the industry.
- The Return On Equity of AHCO (4.83%) is better than 60.78% of its industry peers.
- AHCO has a Return On Invested Capital (4.53%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AHCO is below the industry average of 9.21%.
- The last Return On Invested Capital (4.53%) for AHCO is above the 3 year average (4.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 4.83% | ||
| ROIC | 4.53% |
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
- With a decent Profit Margin value of 2.33%, AHCO is doing good in the industry, outperforming 63.73% of the companies in the same industry.
- In the last couple of years the Profit Margin of AHCO has declined.
- Looking at the Operating Margin, with a value of 7.82%, AHCO is in the better half of the industry, outperforming 74.51% of the companies in the same industry.
- AHCO's Operating Margin has improved in the last couple of years.
- AHCO has a Gross Margin of 25.32%. This is comparable to the rest of the industry: AHCO outperforms 52.94% of its industry peers.
- AHCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.82% | ||
| PM (TTM) | 2.33% | ||
| GM | 25.32% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AHCO is destroying value.
- The number of shares outstanding for AHCO has been increased compared to 1 year ago.
- The number of shares outstanding for AHCO has been increased compared to 5 years ago.
- The debt/assets ratio for AHCO has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.08, we must say that AHCO is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.08, AHCO is doing worse than 71.57% of the companies in the same industry.
- The Debt to FCF ratio of AHCO is 9.48, which is on the high side as it means it would take AHCO, 9.48 years of fcf income to pay off all of its debts.
- AHCO has a Debt to FCF ratio (9.48) which is in line with its industry peers.
- AHCO has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
- AHCO has a Debt to Equity ratio of 1.27. This is in the lower half of the industry: AHCO underperforms 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 9.48 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.57
WACC7.96%
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.
- The Current ratio of AHCO (1.33) is comparable to the rest of the industry.
- AHCO has a Quick Ratio of 1.09. This is a normal value and indicates that AHCO is financially healthy and should not expect problems in meeting its short term obligations.
- AHCO has a Quick ratio (1.09) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
- AHCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 119.39%, which is quite impressive.
- AHCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.23% yearly.
- Looking at the last year, AHCO shows a very negative growth in Revenue. The Revenue has decreased by -19.72% in the last year.
- 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)119.39%
EPS 3Y10.23%
EPS 5YN/A
EPS Q2Q%6.67%
Revenue 1Y (TTM)-19.72%
Revenue growth 3Y9.93%
Revenue growth 5Y43.84%
Sales Q2Q%1.79%
3.2 Future
- The Earnings Per Share is expected to grow by 20.59% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 7.27% on average over the next years.
EPS Next Y19.85%
EPS Next 2Y31.12%
EPS Next 3Y26.83%
EPS Next 5Y20.59%
Revenue Next Year-0.06%
Revenue Next 2Y3.16%
Revenue Next 3Y4.99%
Revenue Next 5Y7.27%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- A Price/Earnings ratio of 31.19 indicates a quite expensive valuation of AHCO.
- AHCO's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.30. AHCO is around the same levels.
- With a Price/Forward Earnings ratio of 9.68, the valuation of AHCO can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, AHCO is valued cheaper than 88.24% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. AHCO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.19 | ||
| Fwd PE | 9.68 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AHCO is valued cheaply inside the industry as 93.14% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AHCO indicates a rather cheap valuation: AHCO is cheaper than 90.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.34 | ||
| EV/EBITDA | 5.29 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of AHCO 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)1.57
PEG (5Y)N/A
EPS Next 2Y31.12%
EPS Next 3Y26.83%
5. Dividend
5.1 Amount
- AHCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ADAPTHEALTH CORP / AHCO FAQ
What is the ChartMill fundamental rating of ADAPTHEALTH CORP (AHCO) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AHCO.
What is the valuation status of ADAPTHEALTH CORP (AHCO) stock?
ChartMill assigns a valuation rating of 6 / 10 to ADAPTHEALTH CORP (AHCO). This can be considered as Fairly Valued.
How profitable is ADAPTHEALTH CORP (AHCO) stock?
ADAPTHEALTH CORP (AHCO) has a profitability rating of 6 / 10.
What is the valuation of ADAPTHEALTH CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ADAPTHEALTH CORP (AHCO) is 31.19 and the Price/Book (PB) ratio is 0.86.