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 106 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 is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
In the past year AHCO was profitable.
AHCO had a positive operating cash flow in the past year.
In multiple years AHCO reported negative net income over the last 5 years.
In the past 5 years AHCO always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.80%, AHCO perfoms like the industry average, outperforming 55.66% of the companies in the same industry.
AHCO's Return On Equity of 5.14% is fine compared to the rest of the industry. AHCO outperforms 61.32% of its industry peers.
The Return On Invested Capital of AHCO (6.50%) is better than 66.04% of its industry peers.
AHCO had an Average Return On Invested Capital over the past 3 years of 4.25%. This is below the industry average of 8.79%.
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
The Profit Margin of AHCO (1.99%) is better than 61.32% of its industry peers.
AHCO's Profit Margin has declined in the last couple of years.
The Operating Margin of AHCO (9.03%) is better than 81.13% 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 46.23% 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.
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
AHCO has an Altman-Z score of 1.26. This is a bad value and indicates that AHCO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.26, AHCO is not doing good in the industry: 66.98% of the companies in the same industry are doing better.
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.
Looking at the Debt to FCF ratio, with a value of 8.57, AHCO is in line with its industry, outperforming 56.60% 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.
AHCO has a Debt to Equity ratio of 1.27. This is in the lower half of the industry: AHCO underperforms 68.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 8.57 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.89
WACC7.31%
2.3 Liquidity
A Current Ratio of 1.33 indicates that AHCO should not have too much problems paying its short term obligations.
AHCO's Current ratio of 1.33 is in line compared to the rest of the industry. AHCO outperforms 43.40% of its industry peers.
A Quick Ratio of 1.09 indicates that AHCO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.09, AHCO is not doing good in the industry: 64.15% of the companies in the same industry are doing better.
| 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 146.51% 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 strong growth in Revenue. The Revenue has grown by 26.67%.
The Revenue has been growing by 43.84% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)146.51%
EPS 3Y10.23%
EPS 5YN/A
EPS Q2Q%117.8%
Revenue 1Y (TTM)26.67%
Revenue growth 3Y9.93%
Revenue growth 5Y43.84%
Sales Q2Q%-0.19%
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 3.48% on average per year.
EPS Next Y47.9%
EPS Next 2Y31.81%
EPS Next 3Y29.25%
EPS Next 5Y26.69%
Revenue Next Year1.06%
Revenue Next 2Y2.93%
Revenue Next 3Y3.48%
Revenue Next 5YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.98, which indicates a correct valuation of AHCO.
Based on the Price/Earnings ratio, AHCO is valued a bit cheaper than 79.25% of the companies in the same industry.
AHCO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
With a Price/Forward Earnings ratio of 8.78, the valuation of AHCO can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AHCO is valued cheaper than 92.45% of the companies in the same industry.
AHCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 8.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AHCO is valued cheaper than 95.28% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AHCO indicates a rather cheap valuation: AHCO is cheaper than 95.28% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.46 | ||
| EV/EBITDA | 4.05 |
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.
The decent profitability rating of AHCO may justify a higher PE ratio.
A more expensive valuation may be justified as AHCO's earnings are expected to grow with 29.25% in the coming years.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y31.81%
EPS Next 3Y29.25%
5. Dividend
5.1 Amount
AHCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.79
-0.03 (-0.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.37%
Inst Owner Change0%
Ins Owners2.96%
Ins Owner Change5.32%
Market Cap1.05B
Analysts80
Price Target13.26 (70.22%)
Short Float %9.09%
Short Ratio6.85
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)1.08%
PT rev (3m)14.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-96.86%
EPS NY rev (1m)4.07%
EPS NY rev (3m)2.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.68%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 8.78 | ||
| P/S | 0.26 | ||
| P/FCF | 4.46 | ||
| P/OCF | 1.94 | ||
| P/B | 0.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.05 |
EPS(TTM)0.6
EY7.7%
EPS(NY)0.89
Fwd EY11.39%
FCF(TTM)1.75
FCFY22.44%
OCF(TTM)4.02
OCFY51.57%
SpS30.05
BVpS11.65
TBVpS-8.97
PEG (NY)0.27
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 | 1.26 |
F-Score8
WACC7.31%
ROIC/WACC0.89
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)146.51%
EPS 3Y10.23%
EPS 5YN/A
EPS Q2Q%117.8%
EPS Next Y47.9%
EPS Next 2Y31.81%
EPS Next 3Y29.25%
EPS Next 5Y26.69%
Revenue 1Y (TTM)26.67%
Revenue growth 3Y9.93%
Revenue growth 5Y43.84%
Sales Q2Q%-0.19%
Revenue Next Year1.06%
Revenue Next 2Y2.93%
Revenue Next 3Y3.48%
Revenue Next 5YN/A
EBIT growth 1Y56.69%
EBIT growth 3Y12.08%
EBIT growth 5Y59.71%
EBIT Next Year181.92%
EBIT Next 3Y47.42%
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%