Addus HomeCare Corporation
Addus HomeCare Corporation Fundamental Analysis
Addus HomeCare Corporation (ADUS) shows weak financial fundamentals with a PE ratio of 20.56, profit margin of 6.74%, and ROE of 9.24%. The company generates $1.4B in annual revenue with moderate year-over-year growth of 9.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ADUS's fundamental strength across five key dimensions:
Efficiency Score
WeakADUS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentADUS trades at attractive valuation levels.
Growth Score
ExcellentADUS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentADUS maintains a strong and stable balance sheet.
Profitability Score
WeakADUS struggles to sustain strong margins.
Key Financial Metrics
Is ADUS Expensive or Cheap?
P/E Ratio
ADUS trades at 20.56 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ADUS's PEG of 1.82 indicates fair valuation.
Price to Book
The market values Addus HomeCare Corporation at 1.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.84 times EBITDA. This signals the market has high growth expectations.
How Well Does ADUS Make Money?
Net Profit Margin
For every $100 in sales, Addus HomeCare Corporation keeps $6.74 as profit after all expenses.
Operating Margin
Core operations generate 9.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.24 in profit for every $100 of shareholder equity.
ROA
Addus HomeCare Corporation generates $6.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Addus HomeCare Corporation generates limited operating cash flow of $111.75M, signaling weaker underlying cash strength.
Free Cash Flow
Addus HomeCare Corporation produces free cash flow of $91.02M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.92 in free cash annually.
FCF Yield
ADUS converts 4.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How ADUS Stacks Against Its Sector Peers
| Metric | ADUS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.56 | 29.45 | Better (Cheaper) |
| ROE | 9.24% | 779.00% | Weak |
| Net Margin | 6.74% | -24936.00% (disorted) | Weak |
| Debt/Equity | 0.19 | 0.26 | Strong (Low Leverage) |
| Current Ratio | 1.80 | 4.65 | Neutral |
| ROA | 6.67% | -19344.00% (disorted) | Weak |
ADUS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Addus HomeCare Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.58%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
136.92%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
687.03%
Industry Style: Defensive, Growth, Innovation
High Growth