10.09 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AHCO. AHCO was compared to 103 industry peers in the Health Care Providers & Services industry. While AHCO is still in line with the averages on profitability rating, there are concerns on its financial health. AHCO has a decent growth rate and is not valued too expensively.
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.
- The reported net income has been mixed in the past 5 years: AHCO reported negative net income in multiple years.
- AHCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AHCO has a Return On Assets (1.69%) which is in line with its industry peers.
- AHCO has a Return On Equity of 4.83%. This is in the better half of the industry: AHCO outperforms 60.19% of its industry peers.
- The Return On Invested Capital of AHCO (4.53%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for AHCO is below the industry average of 9.21%.
- The 3 year average ROIC (4.25%) for AHCO is below the current ROIC(4.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 4.83% | ||
| ROIC | 4.53% |
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 (2.33%) is better than 63.11% of its industry peers.
- AHCO's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 7.82%, AHCO is doing good in the industry, outperforming 74.76% of the companies in the same industry.
- AHCO's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 25.32%, AHCO perfoms like the industry average, outperforming 53.40% of the companies in the same industry.
- AHCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.82% | ||
| PM (TTM) | 2.33% | ||
| GM | 25.32% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AHCO is destroying value.
- The number of shares outstanding for AHCO has been increased compared to 1 year ago.
- Compared to 5 years ago, AHCO has more shares outstanding
- Compared to 1 year ago, AHCO has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.07, we must say that AHCO is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.07, AHCO is not doing good in the industry: 71.84% of the companies in the same industry are doing better.
- AHCO has a debt to FCF ratio of 9.48. This is a negative value and a sign of low solvency as AHCO would need 9.48 years to pay back of all of its debts.
- AHCO has a Debt to FCF ratio (9.48) which is in line with its industry peers.
- A Debt/Equity ratio of 1.27 is on the high side and indicates that AHCO has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.27, AHCO is not doing good in the industry: 63.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 9.48 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.57
WACC7.92%
2.3 Liquidity
- AHCO has a Current Ratio of 1.33. This is a normal value and indicates that AHCO is financially healthy and should not expect problems in meeting its short term obligations.
- AHCO has a Current ratio of 1.33. This is comparable to the rest of the industry: AHCO outperforms 48.54% of its industry peers.
- 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 in line compared to the rest of the industry. AHCO outperforms 43.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
- AHCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 119.39%, which is quite impressive.
- AHCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.23% yearly.
- The Revenue for AHCO has decreased by -19.72% in the past year. This is quite bad
- AHCO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 43.84% yearly.
EPS 1Y (TTM)119.39%
EPS 3Y10.23%
EPS 5YN/A
EPS Q2Q%6.67%
Revenue 1Y (TTM)-19.72%
Revenue growth 3Y9.93%
Revenue growth 5Y43.84%
Sales Q2Q%1.79%
3.2 Future
- The Earnings Per Share is expected to grow by 20.59% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 7.27% on average over the next years.
EPS Next Y15.88%
EPS Next 2Y30.55%
EPS Next 3Y28.56%
EPS Next 5Y20.59%
Revenue Next Year-0.06%
Revenue Next 2Y3.16%
Revenue Next 3Y5.08%
Revenue Next 5Y7.27%
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
- With a Price/Earnings ratio of 31.53, AHCO can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as AHCO.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, AHCO is valued at the same level.
- AHCO is valuated reasonably with a Price/Forward Earnings ratio of 9.87.
- Based on the Price/Forward Earnings ratio, AHCO is valued cheaply inside the industry as 88.35% 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 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.53 | ||
| Fwd PE | 9.87 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AHCO is valued cheaper than 93.20% 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 92.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.41 | ||
| EV/EBITDA | 5.2 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AHCO does not grow enough to justify the current Price/Earnings ratio.
- 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 28.56% in the coming years.
PEG (NY)1.99
PEG (5Y)N/A
EPS Next 2Y30.55%
EPS Next 3Y28.56%
5. Dividend
5.1 Amount
- AHCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ADAPTHEALTH CORP / AHCO FAQ
What is the ChartMill fundamental rating of ADAPTHEALTH CORP (AHCO) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AHCO.
What is the valuation status of ADAPTHEALTH CORP (AHCO) stock?
ChartMill assigns a valuation rating of 6 / 10 to ADAPTHEALTH CORP (AHCO). This can be considered as Fairly Valued.
How profitable is ADAPTHEALTH CORP (AHCO) stock?
ADAPTHEALTH CORP (AHCO) has a profitability rating of 6 / 10.
What is the valuation of ADAPTHEALTH CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ADAPTHEALTH CORP (AHCO) is 31.53 and the Price/Book (PB) ratio is 0.87.