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 has an excellent profitability rating, but there are some minor concerns on its financial health. ADUS is not valued too expensively and it also shows a decent growth rate.

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

1.2 Ratios

The Return On Assets of ADUS (6.02%) is better than 84.47% of its industry peers.
With a decent Return On Equity value of 8.16%, ADUS is doing good in the industry, outperforming 66.99% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.35%, ADUS is in the better half of the industry, outperforming 69.90% of the companies in the same industry.
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 last Return On Invested Capital (7.35%) for ADUS is above the 3 year average (7.23%), which is a sign of increasing profitability.

		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

With an excellent Profit Margin value of 6.36%, ADUS belongs to the best of the industry, outperforming 83.50% of the companies in the same industry.
ADUS's Profit Margin has improved in the last couple of years.
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.
ADUS has a better Gross Margin (32.66%) 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

ADUS 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, ADUS has more shares outstanding
ADUS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ADUS is higher compared to a year ago.

2.2 Solvency

ADUS has an Altman-Z score of 4.80. This indicates that ADUS is financially healthy and has little risk of bankruptcy at the moment.
ADUS has a better Altman-Z score (4.80) than 82.52% of its industry peers.
ADUS has a debt to FCF ratio of 1.56. This is a very positive value and a sign of high solvency as it would only need 1.56 years to pay back of 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.
ADUS has a better Debt to Equity ratio (0.14) than 73.79% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.14
Debt/FCF	1.56
Altman-Z	4.8

ROIC/WACC0.85

WACC8.66%

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 Current ratio of 1.66. This is in the better half of the industry: ADUS outperforms 63.11% of its industry peers.
ADUS has a Quick Ratio of 1.66. This is a normal value and indicates that ADUS is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.66, ADUS is doing good in the industry, outperforming 67.96% of the companies in the same industry.

		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.
The Earnings Per Share has been growing by 16.61% on average over the past years. This is quite good.
The Revenue has grown by 18.77% in the past year. This is quite good.
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

ADUS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.72% yearly.
ADUS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.83% yearly.

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

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 17.40 indicates a rather expensive valuation of ADUS.
Based on the Price/Earnings ratio, ADUS is valued a bit cheaper than 76.70% of the companies in the same industry.
ADUS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
ADUS is valuated correctly with a Price/Forward Earnings ratio of 14.72.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADUS indicates a somewhat cheap valuation: ADUS is cheaper than 78.64% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.72. ADUS is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	17.4
Fwd PE	14.72

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ADUS is valued a bit cheaper than 62.14% of the companies in the same industry.
66.99% of the companies in the same industry are more expensive than ADUS, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	19.51
EV/EBITDA	14

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.
ADUS has an outstanding profitability rating, which may justify a higher PE ratio.
ADUS's earnings are expected to grow with 12.60% in the coming years. This may justify a more expensive valuation.