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 103 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of AHCO while its profitability can be described as average. AHCO is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
AHCO had positive earnings in the past year.
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.
In the past 5 years AHCO always reported a positive cash flow from operatings.
1.2 Ratios
AHCO has a Return On Assets of 1.80%. This is comparable to the rest of the industry: AHCO outperforms 53.40% of its industry peers.
The Return On Equity of AHCO (5.14%) is better than 61.16% of its industry peers.
The Return On Invested Capital of AHCO (6.50%) is better than 66.99% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AHCO is significantly below the industry average of 9.71%.
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
AHCO's Profit Margin of 1.99% is fine compared to the rest of the industry. AHCO outperforms 61.16% 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 77.67% of its industry peers.
AHCO's Operating Margin has improved in the last couple of years.
AHCO's Gross Margin of 21.92% is in line compared to the rest of the industry. AHCO outperforms 44.66% of its industry peers.
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.
Compared to 1 year ago, AHCO has more shares outstanding
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
AHCO has an Altman-Z score of 1.31. This is a bad value and indicates that AHCO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AHCO (1.31) is worse than 66.99% of its industry peers.
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.
With a Debt to FCF ratio value of 8.57, AHCO perfoms like the industry average, outperforming 53.40% 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 worse Debt to Equity ratio (1.27) than 66.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 8.57 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.87
WACC7.46%
2.3 Liquidity
A Current Ratio of 1.33 indicates that AHCO should not have too much problems paying its short term obligations.
AHCO has a Current ratio of 1.33. This is comparable to the rest of the industry: AHCO outperforms 41.75% 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 has a Quick ratio of 1.09. This is in the lower half of the industry: AHCO underperforms 63.11% of its industry peers.
| 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 140.14% over the past year.
Measured over the past years, AHCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.23% on average per year.
AHCO shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.35%.
AHCO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 43.84% yearly.
EPS 1Y (TTM)140.14%
EPS 3Y10.23%
EPS 5YN/A
EPS Q2Q%-150%
Revenue 1Y (TTM)24.35%
Revenue growth 3Y9.93%
Revenue growth 5Y43.84%
Sales Q2Q%-1.84%
3.2 Future
The Earnings Per Share is expected to grow by 26.69% on average over the next years. This is a very strong growth
AHCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.92% yearly.
EPS Next Y38.27%
EPS Next 2Y34.71%
EPS Next 3Y26.83%
EPS Next 5Y26.69%
Revenue Next Year0.58%
Revenue Next 2Y2.53%
Revenue Next 3Y4.05%
Revenue Next 5Y5.92%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 16.35, AHCO is valued correctly.
AHCO's Price/Earnings ratio is a bit cheaper when compared to the industry. AHCO is cheaper than 75.73% of the companies in the same industry.
When comparing the Price/Earnings ratio of AHCO to the average of the S&P500 Index (27.28), we can say AHCO is valued slightly cheaper.
With a Price/Forward Earnings ratio of 8.56, the valuation of AHCO can be described as very reasonable.
AHCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. AHCO is cheaper than 90.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, AHCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 8.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AHCO indicates a rather cheap valuation: AHCO is cheaper than 94.17% of the companies listed 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 95.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.33 | ||
| EV/EBITDA | 4.34 |
4.3 Compensation for Growth
The 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 26.83% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y34.71%
EPS Next 3Y26.83%
5. Dividend
5.1 Amount
AHCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.32
-0.05 (-0.53%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.92%
Inst Owner Change1.19%
Ins Owners1.65%
Ins Owner Change5.56%
Market Cap1.26B
Analysts81.43
Price Target13.13 (40.88%)
Short Float %7.95%
Short Ratio5.77
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)-0.96%
PT rev (3m)-0.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-3.17%
EPS NY rev (3m)-6.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 8.56 | ||
| P/S | 0.31 | ||
| P/FCF | 5.33 | ||
| P/OCF | 2.32 | ||
| P/B | 0.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.34 |
EPS(TTM)0.57
EY6.12%
EPS(NY)1.09
Fwd EY11.68%
FCF(TTM)1.75
FCFY18.75%
OCF(TTM)4.02
OCFY43.08%
SpS30.04
BVpS11.64
TBVpS-8.96
PEG (NY)0.43
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 | 1.31 |
F-Score8
WACC7.46%
ROIC/WACC0.87
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)140.14%
EPS 3Y10.23%
EPS 5YN/A
EPS Q2Q%-150%
EPS Next Y38.27%
EPS Next 2Y34.71%
EPS Next 3Y26.83%
EPS Next 5Y26.69%
Revenue 1Y (TTM)24.35%
Revenue growth 3Y9.93%
Revenue growth 5Y43.84%
Sales Q2Q%-1.84%
Revenue Next Year0.58%
Revenue Next 2Y2.53%
Revenue Next 3Y4.05%
Revenue Next 5Y5.92%
EBIT growth 1Y56.69%
EBIT growth 3Y12.08%
EBIT growth 5Y59.71%
EBIT Next Year180.2%
EBIT Next 3Y47.81%
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%