Addus HomeCare Corporation Fundamental Analysis (NASDAQ: ADUS)
Addus HomeCare Corporation Fundamental Analysis (NASDAQ: ADUS)
Addus HomeCare Corporation (NASDAQ: ADUS) shows moderate financial fundamentals with a PE ratio of 21.07, profit margin of 7.13%, and ROE of 9.57%. The company generates $1.5B in annual revenue with strong year-over-year growth of 23.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
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 21.07 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ADUS's PEG of 0.91 indicates potential undervaluation.
Price to Book
The market values Addus HomeCare Corporation at 1.93 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.29 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 $7.13 as profit after all expenses.
Operating Margin
Core operations generate 10.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.57 in profit for every $100 of shareholder equity.
ROA
Addus HomeCare Corporation generates $7.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Addus HomeCare Corporation produces operating cash flow of $164.09M, showing steady but balanced cash generation.
Free Cash Flow
Addus HomeCare Corporation generates strong free cash flow of $154.65M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.29 in free cash annually.
FCF Yield
ADUS converts 6.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How ADUS Stacks Against Its Sector Peers
| Metric | ADUS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.07 | 31.70 | Better (Cheaper) |
| ROE | 9.57% | 448.00% | Weak |
| Net Margin | 7.13% | 22837.00% | Weak |
| Debt/Equity | 0.09 | 0.54 | Strong (Low Leverage) |
| Current Ratio | 1.69 | 5.63 | Neutral |
| ROA | 7.23% | -49.00% (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
59.58%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
148.34%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
-12.56%
Industry Style: Defensive, Growth, Innovation
Declining