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Is NASDAQ:AMED suited for quality investing?

By Mill Chart

Last update: Aug 14, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if AMEDISYS INC (NASDAQ:AMED) is suited for quality investing. Investors should of couse do their own research, but we spotted AMEDISYS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of AMEDISYS INC

  • Over the past 5 years, AMEDISYS INC has experienced impressive revenue growth, with 8.03% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • AMEDISYS INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 171.0% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • AMEDISYS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.99, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • With a robust Profit Quality (5-year) ratio of 137.0%, AMEDISYS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • AMEDISYS INC has experienced impressive EBIT growth over the past 5 years, with 12.18% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, AMEDISYS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Zooming in on the fundamentals.

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Overall AMED gets a fundamental rating of 5 out of 10. We evaluated AMED against 115 industry peers in the Health Care Providers & Services industry. AMED scores excellent on profitability, but there are some minor concerns on its financial health. AMED is valued correctly, but it does not seem to be growing.

Check the latest full fundamental report of AMED for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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