Taking everything into account, ADUS scores 6 out of 10 in our fundamental rating. ADUS was compared to 103 industry peers in the Health Care Providers & Services industry. ADUS scores excellent on profitability, but there are some minor concerns on its financial health. ADUS has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

ADUS had positive earnings in the past year.
ADUS had a positive operating cash flow in the past year.
ADUS had positive earnings in each of the past 5 years.
Each year in the past 5 years ADUS had a positive operating cash flow.

1.2 Ratios

ADUS has a better Return On Assets (6.02%) than 84.47% of its industry peers.
ADUS has a Return On Equity of 8.16%. This is in the better half of the industry: ADUS outperforms 66.99% of its industry peers.
ADUS has a better Return On Invested Capital (7.35%) than 69.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADUS is in line with the industry average of 9.16%.
The 3 year average ROIC (7.23%) for ADUS is below the current ROIC(7.35%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	6.02%
ROE	8.16%
ROIC	7.35%

ROA(3y)5.41%

ROA(5y)4.94%

ROE(3y)7.9%

ROE(5y)7.59%

ROIC(3y)7.23%

ROIC(5y)6.68%

1.3 Margins

The Profit Margin of ADUS (6.36%) is better than 83.50% of its industry peers.
In the last couple of years the Profit Margin of ADUS has grown nicely.
ADUS's Operating Margin of 9.15% is fine compared to the rest of the industry. ADUS outperforms 78.64% of its industry peers.
In the last couple of years the Operating Margin of ADUS has grown nicely.
The Gross Margin of ADUS (32.66%) is better than 63.11% of its industry peers.
ADUS's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	9.15%
PM (TTM)	6.36%
GM	32.66%

OM growth 3Y3.25%

OM growth 5Y11.69%

PM growth 3Y6.89%

PM growth 5Y10.42%

GM growth 3Y1.33%

GM growth 5Y3.3%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADUS is destroying value.
Compared to 1 year ago, ADUS has more shares outstanding
Compared to 5 years ago, ADUS has more shares outstanding
Compared to 1 year ago, ADUS has a worse debt to assets ratio.

2.2 Solvency

ADUS has an Altman-Z score of 4.78. This indicates that ADUS is financially healthy and has little risk of bankruptcy at the moment.
ADUS's Altman-Z score of 4.78 is amongst the best of the industry. ADUS outperforms 82.52% of its industry peers.
The Debt to FCF ratio of ADUS is 1.56, which is an excellent value as it means it would take ADUS, only 1.56 years of fcf income to pay off all of its debts.
ADUS has a Debt to FCF ratio of 1.56. This is amongst the best in the industry. ADUS outperforms 86.41% of its industry peers.
ADUS has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ADUS (0.14) is better than 73.79% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.14
Debt/FCF	1.56
Altman-Z	4.78

ROIC/WACC0.85

WACC8.65%

2.3 Liquidity

A Current Ratio of 1.66 indicates that ADUS should not have too much problems paying its short term obligations.
ADUS has a better Current ratio (1.66) than 63.11% of its industry peers.
A Quick Ratio of 1.66 indicates that ADUS should not have too much problems paying its short term obligations.
ADUS's Quick ratio of 1.66 is fine compared to the rest of the industry. ADUS outperforms 67.96% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.66
Quick Ratio	1.66

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

ADUS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.93%, which is quite good.
Measured over the past years, ADUS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.61% on average per year.
ADUS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.77%.
Measured over the past years, ADUS shows a quite strong growth in Revenue. The Revenue has been growing by 12.22% on average per year.

EPS 1Y (TTM)12.93%

EPS 3Y14.18%

EPS 5Y16.61%

EPS Q2Q%20%

Revenue 1Y (TTM)18.77%

Revenue growth 3Y10.13%

Revenue growth 5Y12.22%

Sales Q2Q%25.02%

3.2 Future

The Earnings Per Share is expected to grow by 10.72% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.83% on average over the next years. This is quite good.

EPS Next Y19.22%

EPS Next 2Y14.9%

EPS Next 3Y12.6%

EPS Next 5Y10.72%

Revenue Next Year23.72%

Revenue Next 2Y15.11%

Revenue Next 3Y11.6%

Revenue Next 5Y8.83%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 17.69, the valuation of ADUS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ADUS indicates a somewhat cheap valuation: ADUS is cheaper than 77.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.30. ADUS is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.96, ADUS is valued correctly.
78.64% of the companies in the same industry are more expensive than ADUS, based on the Price/Forward Earnings ratio.
ADUS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	17.69
Fwd PE	14.96

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ADUS is valued a bit cheaper than the industry average as 62.14% of the companies are valued more expensively.
ADUS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ADUS is cheaper than 67.96% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	19.84
EV/EBITDA	13.91

4.3 Compensation for Growth

ADUS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of ADUS may justify a higher PE ratio.
A more expensive valuation may be justified as ADUS's earnings are expected to grow with 12.60% in the coming years.