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. AHCO has a medium profitability rating, but doesn't score so well on its financial health evaluation. An interesting combination arises when we look at growth and value: AHCO is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
In the past year AHCO was profitable.
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.
Each year in the past 5 years AHCO had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.80%, AHCO perfoms like the industry average, outperforming 54.37% of the companies in the same industry.
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.
With a decent Return On Invested Capital value of 6.50%, AHCO is doing good in the industry, outperforming 66.99% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AHCO is significantly below the industry average of 9.38%.
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 has a better Profit Margin (1.99%) than 62.14% of its industry peers.
AHCO's Profit Margin has declined in the last couple of years.
AHCO has a better Operating Margin (9.03%) than 76.70% of its industry peers.
In the last couple of years the Operating Margin of AHCO has grown nicely.
With a Gross Margin value of 21.92%, AHCO perfoms like the industry average, outperforming 46.60% of the companies in the same industry.
In the last couple of years the Gross Margin of AHCO has grown nicely.
| 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
AHCO has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that AHCO is in the distress zone and has some risk of bankruptcy.
AHCO's Altman-Z score of 1.31 is on the low side compared to the rest of the industry. AHCO is outperformed by 66.02% of its industry peers.
AHCO has a debt to FCF ratio of 8.57. This is a slightly negative value and a sign of low solvency as AHCO would need 8.57 years to pay back of all of its debts.
AHCO's Debt to FCF ratio of 8.57 is in line compared to the rest of the industry. AHCO outperforms 52.43% 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 Debt to Equity ratio of 1.27. This is in the lower half of the industry: AHCO underperforms 66.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 8.57 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.81
WACC8.06%
2.3 Liquidity
A Current Ratio of 1.33 indicates that AHCO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.33, AHCO perfoms like the industry average, outperforming 41.75% 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's Quick ratio of 1.09 is on the low side compared to the rest of the industry. AHCO is outperformed by 62.14% 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 132.61% over the past year.
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 small growth in Revenue. The Revenue has grown by 1.90% 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)132.61%
EPS 3Y10.23%
EPS 5YN/A
EPS Q2Q%-92.31%
Revenue 1Y (TTM)1.9%
Revenue growth 3Y9.93%
Revenue growth 5Y43.84%
Sales Q2Q%-0.7%
3.2 Future
Based on estimates for the next years, AHCO will show a very strong growth in Earnings Per Share. The EPS will grow by 26.69% on average per year.
Based on estimates for the next years, AHCO will show a small growth in Revenue. The Revenue will grow by 5.92% on average per year.
EPS Next Y29.77%
EPS Next 2Y35.34%
EPS Next 3Y26.83%
EPS Next 5Y26.69%
Revenue Next Year0.27%
Revenue Next 2Y2.25%
Revenue Next 3Y4.05%
Revenue Next 5Y5.92%
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.
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
AHCO is valuated rather expensively with a Price/Earnings ratio of 20.42.
Based on the Price/Earnings ratio, AHCO is valued a bit cheaper than the industry average as 65.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.48, AHCO is valued a bit cheaper.
The Price/Forward Earnings ratio is 8.36, which indicates a very decent valuation of AHCO.
Based on the Price/Forward Earnings ratio, AHCO is valued cheaply inside the industry as 87.38% of the companies are valued more expensively.
AHCO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 8.36 |
4.2 Price Multiples
AHCO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AHCO is cheaper than 92.23% 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 95.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.26 | ||
| EV/EBITDA | 4.33 |
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.
A more expensive valuation may be justified as AHCO's earnings are expected to grow with 26.83% in the coming years.
PEG (NY)0.69
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 |
9.19
-0.09 (-0.97%)
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 Change-1.64%
Ins Owners1.65%
Ins Owner Change1.44%
Market Cap1.24B
Analysts81.43
Price Target13.13 (42.87%)
Short Float %10.39%
Short Ratio9.15
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)-6.15%
EPS NY rev (3m)-12.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 8.36 | ||
| P/S | 0.31 | ||
| P/FCF | 5.26 | ||
| P/OCF | 2.29 | ||
| P/B | 0.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.33 |
EPS(TTM)0.45
EY4.9%
EPS(NY)1.1
Fwd EY11.96%
FCF(TTM)1.75
FCFY19.01%
OCF(TTM)4.02
OCFY43.69%
SpS30.04
BVpS11.64
TBVpS-8.96
PEG (NY)0.69
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 | 1.31 |
F-Score8
WACC8.06%
ROIC/WACC0.81
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)132.61%
EPS 3Y10.23%
EPS 5YN/A
EPS Q2Q%-92.31%
EPS Next Y29.77%
EPS Next 2Y35.34%
EPS Next 3Y26.83%
EPS Next 5Y26.69%
Revenue 1Y (TTM)1.9%
Revenue growth 3Y9.93%
Revenue growth 5Y43.84%
Sales Q2Q%-0.7%
Revenue Next Year0.27%
Revenue Next 2Y2.25%
Revenue Next 3Y4.05%
Revenue Next 5Y5.92%
EBIT growth 1Y56.69%
EBIT growth 3Y12.08%
EBIT growth 5Y59.71%
EBIT Next Year179.42%
EBIT Next 3Y47.59%
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%