ADAPTHEALTH CORP (AHCO) Stock Fundamental Analysis
NASDAQ:AHCO - US00653Q1022 - Common Stock
9.51 USD
+0.3 (+3.26%)
9.6 USD
+0.09 (+0.95%)
We assign a fundamental rating of 5 out of 10 to AHCO. 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
AHCO had positive earnings in the past year.
AHCO had a positive operating cash flow in the past year.
In multiple years AHCO reported negative net income over the last 5 years.
Each year in the past 5 years AHCO had a positive operating cash flow.
1.2 Ratios
AHCO has a Return On Assets (1.66%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 4.73%, AHCO is doing good in the industry, outperforming 61.76% of the companies in the same industry.
AHCO's Return On Invested Capital of 4.66% is in line compared to the rest of the industry. AHCO outperforms 56.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AHCO is below the industry average of 9.04%.
The last Return On Invested Capital (4.66%) for AHCO is above the 3 year average (4.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 4.73% | ||
| ROIC | 4.66% |
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 2.29% is fine compared to the rest of the industry. AHCO outperforms 63.73% of its industry peers.
AHCO's Profit Margin has declined in the last couple of years.
AHCO has a Operating Margin of 8.10%. This is in the better half of the industry: AHCO outperforms 75.49% of its industry peers.
In the last couple of years the Operating Margin of AHCO has grown nicely.
The Gross Margin of AHCO (24.25%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of AHCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.1% | ||
| PM (TTM) | 2.29% | ||
| GM | 24.25% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AHCO is destroying value.
Compared to 1 year ago, AHCO has more shares outstanding
AHCO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AHCO has been reduced compared to a year ago.
2.2 Solvency
AHCO has an Altman-Z score of 1.05. This is a bad value and indicates that AHCO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AHCO (1.05) is worse than 69.61% of its industry peers.
The Debt to FCF ratio of AHCO is 8.74, which is on the high side as it means it would take AHCO, 8.74 years of fcf income to pay off all of its debts.
AHCO has a Debt to FCF ratio (8.74) 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's Debt to Equity ratio of 1.27 is on the low side compared to the rest of the industry. AHCO is outperformed by 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 8.74 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.6
WACC7.77%
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.
AHCO's Current ratio of 1.33 is in line compared to the rest of the industry. AHCO outperforms 43.14% of its industry peers.
A Quick Ratio of 1.09 indicates that AHCO should not have too much problems paying its short term obligations.
AHCO's Quick ratio of 1.09 is on the low side compared to the rest of the industry. AHCO is outperformed by 61.76% of its industry peers.
| 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 122.46%, 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.
The Revenue for AHCO has decreased by -20.04% in the past year. This is quite bad
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)122.46%
EPS 3Y10.23%
EPS 5YN/A
EPS Q2Q%-200%
Revenue 1Y (TTM)-20.04%
Revenue growth 3Y9.93%
Revenue growth 5Y43.84%
Sales Q2Q%-0.7%
3.2 Future
AHCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.56% yearly.
Based on estimates for the next years, AHCO will show a small growth in Revenue. The Revenue will grow by 7.27% on average per year.
EPS Next Y60.37%
EPS Next 2Y38.06%
EPS Next 3Y31.58%
EPS Next 5Y26.56%
Revenue Next Year-0.15%
Revenue Next 2Y3.13%
Revenue Next 3Y5.58%
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
AHCO is valuated quite expensively with a Price/Earnings ratio of 30.68.
Compared to the rest of the industry, the Price/Earnings ratio of AHCO is on the same level as its industry peers.
AHCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.32, the valuation of AHCO can be described as reasonable.
Based on the Price/Forward Earnings ratio, AHCO is valued cheaply inside the industry as 95.10% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.69. AHCO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.68 | ||
| Fwd PE | 8.32 |
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 93.14% 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 97.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.57 | ||
| EV/EBITDA | 5.01 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of AHCO may justify a higher PE ratio.
A more expensive valuation may be justified as AHCO's earnings are expected to grow with 31.58% in the coming years.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y38.06%
EPS Next 3Y31.58%
5. Dividend
5.1 Amount
AHCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.51
+0.3 (+3.26%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.21%
Inst Owner Change2.67%
Ins Owners1.83%
Ins Owner Change1.38%
Market Cap1.29B
Analysts81.43
Price Target13.39 (40.8%)
Short Float %9.15%
Short Ratio7.55
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)0
Avg EPS beat(2)-768.16%
Min EPS beat(2)-1325.49%
Max EPS beat(2)-210.83%
EPS beat(4)1
Avg EPS beat(4)-378.06%
Min EPS beat(4)-1325.49%
Max EPS beat(4)35.5%
EPS beat(8)2
Avg EPS beat(8)-338.41%
EPS beat(12)3
Avg EPS beat(12)-237.75%
EPS beat(16)3
Avg EPS beat(16)-191.06%
Revenue beat(2)0
Avg Revenue beat(2)-1.33%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)-0.28%
Revenue beat(4)1
Avg Revenue beat(4)-0.94%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)1.28%
Revenue beat(8)3
Avg Revenue beat(8)-0.44%
Revenue beat(12)5
Avg Revenue beat(12)-0.65%
Revenue beat(16)7
Avg Revenue beat(16)-0.18%
PT rev (1m)1.94%
PT rev (3m)0.96%
EPS NQ rev (1m)-16.92%
EPS NQ rev (3m)6.3%
EPS NY rev (1m)23.58%
EPS NY rev (3m)12.3%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-3.29%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.68 | ||
| Fwd PE | 8.32 | ||
| P/S | 0.4 | ||
| P/FCF | 5.57 | ||
| P/OCF | 2.33 | ||
| P/B | 0.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.01 |
EPS(TTM)0.31
EY3.26%
EPS(NY)1.14
Fwd EY12.03%
FCF(TTM)1.71
FCFY17.97%
OCF(TTM)4.08
OCFY42.93%
SpS23.95
BVpS11.61
TBVpS-8.94
PEG (NY)0.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 4.73% | ||
| ROCE | 6.69% | ||
| ROIC | 4.66% | ||
| ROICexc | 4.8% | ||
| ROICexgc | 17.76% | ||
| OM | 8.1% | ||
| PM (TTM) | 2.29% | ||
| GM | 24.25% | ||
| FCFM | 7.13% |
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-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 8.74 | ||
| Debt/EBITDA | 3.16 | ||
| Cap/Depr | 87.27% | ||
| Cap/Sales | 9.91% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 87.62% | ||
| Profit Quality | 311.22% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.05 |
F-Score7
WACC7.77%
ROIC/WACC0.6
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)122.46%
EPS 3Y10.23%
EPS 5YN/A
EPS Q2Q%-200%
EPS Next Y60.37%
EPS Next 2Y38.06%
EPS Next 3Y31.58%
EPS Next 5Y26.56%
Revenue 1Y (TTM)-20.04%
Revenue growth 3Y9.93%
Revenue growth 5Y43.84%
Sales Q2Q%-0.7%
Revenue Next Year-0.15%
Revenue Next 2Y3.13%
Revenue Next 3Y5.58%
Revenue Next 5Y7.27%
EBIT growth 1Y-23.13%
EBIT growth 3Y12.08%
EBIT growth 5Y59.71%
EBIT Next Year179.42%
EBIT Next 3Y47.59%
EBIT Next 5YN/A
FCF growth 1Y960.55%
FCF growth 3Y48.23%
FCF growth 5Y43.24%
OCF growth 1Y28.27%
OCF growth 3Y25.26%
OCF growth 5Y55.08%