ADAPTHEALTH CORP (AHCO) Stock Fundamental Analysis
USA - NASDAQ:AHCO - US00653Q1022 - Common Stock
8.89 USD
+0.16 (+1.83%)
8.99 USD
+0.1 (+1.12%)
Overall AHCO gets a fundamental rating of 5 out of 10. We evaluated AHCO against 101 industry peers in the Health Care Providers & Services industry. AHCO has a medium profitability rating, but doesn't score so well on its financial health evaluation. AHCO may be a bit undervalued, certainly considering the very reasonable score on growth
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
Looking at the Return On Assets, with a value of 1.66%, AHCO is in line with its industry, outperforming 54.46% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.73%, AHCO is in the better half of the industry, outperforming 61.39% 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 56.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AHCO is below the industry average of 9.19%.
The 3 year average ROIC (4.25%) for AHCO is below the current ROIC(4.66%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 2.29%. This is in the better half of the industry: AHCO outperforms 63.37% of its industry peers.
In the last couple of years the Profit Margin of AHCO has declined.
AHCO's Operating Margin of 8.10% is fine compared to the rest of the industry. AHCO outperforms 75.25% of its industry peers.
In the last couple of years the Operating Margin of AHCO has grown nicely.
With a Gross Margin value of 24.25%, AHCO perfoms like the industry average, outperforming 50.49% of the companies in the same industry.
AHCO's Gross Margin has improved in the last couple of years.
| 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.
AHCO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AHCO has more shares outstanding
The debt/assets ratio for AHCO has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that AHCO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AHCO (1.04) is worse than 69.31% of its industry peers.
AHCO has a debt to FCF ratio of 8.74. This is a slightly negative value and a sign of low solvency as AHCO would need 8.74 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.74, AHCO perfoms like the industry average, outperforming 53.47% of the companies in the same industry.
AHCO has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.27, AHCO is doing worse than 65.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 8.74 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.6
WACC7.79%
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.
With a Current ratio value of 1.33, AHCO perfoms like the industry average, outperforming 42.57% of the companies in the same 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 worse Quick ratio (1.09) than 62.38% of its industry peers.
| 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 122.46% over the past year.
The Earnings Per Share has been growing by 10.23% on average over the past years. This is quite good.
Looking at the last year, AHCO shows a very negative growth in Revenue. The Revenue has decreased by -20.04% in the last year.
AHCO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 43.84% yearly.
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
The Earnings Per Share is expected to grow by 26.56% 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 Y35.15%
EPS Next 2Y38.6%
EPS Next 3Y31.58%
EPS Next 5Y26.56%
Revenue Next Year-0.24%
Revenue Next 2Y3.24%
Revenue Next 3Y5.58%
Revenue Next 5Y7.27%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.68, the valuation of AHCO can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as AHCO.
When comparing the Price/Earnings ratio of AHCO to the average of the S&P500 Index (27.54), we can say AHCO is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 7.71, the valuation of AHCO can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AHCO indicates a rather cheap valuation: AHCO is cheaper than 97.03% of the companies listed in the same industry.
AHCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 7.71 |
4.2 Price Multiples
AHCO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AHCO is cheaper than 93.07% of the companies in the same industry.
AHCO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AHCO is cheaper than 97.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.2 | ||
| EV/EBITDA | 4.94 |
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 31.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)N/A
EPS Next 2Y38.6%
EPS Next 3Y31.58%
5. Dividend
5.1 Amount
AHCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.89
+0.16 (+1.83%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.9%
Inst Owner Change2.61%
Ins Owners1.82%
Ins Owner Change1.38%
Market Cap1.20B
Analysts81.43
Price Target13.39 (50.62%)
Short Float %9.57%
Short Ratio9.86
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)0%
PT rev (3m)1.94%
EPS NQ rev (1m)-3.24%
EPS NQ rev (3m)-9.13%
EPS NY rev (1m)-15.72%
EPS NY rev (3m)-2.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.2%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 7.71 | ||
| P/S | 0.37 | ||
| P/FCF | 5.2 | ||
| P/OCF | 2.18 | ||
| P/B | 0.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.94 |
EPS(TTM)0.31
EY3.49%
EPS(NY)1.15
Fwd EY12.97%
FCF(TTM)1.71
FCFY19.22%
OCF(TTM)4.08
OCFY45.92%
SpS23.95
BVpS11.61
TBVpS-8.94
PEG (NY)0.82
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 | 1.04 |
F-Score7
WACC7.79%
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 Y35.15%
EPS Next 2Y38.6%
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-0.24%
Revenue Next 2Y3.24%
Revenue Next 3Y5.58%
Revenue Next 5Y7.27%
EBIT growth 1Y-23.13%
EBIT growth 3Y12.08%
EBIT growth 5Y59.71%
EBIT Next Year170.35%
EBIT Next 3Y49.37%
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%