Aveanna Healthcare Holdings Inc.
Aveanna Healthcare Holdings Inc. Fundamental Analysis
Aveanna Healthcare Holdings Inc. (AVAH) shows weak financial fundamentals with a PE ratio of 19.88, profit margin of 3.29%, and ROE of -1.36%. The company generates $2.3B in annual revenue with moderate year-over-year growth of 6.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -119.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AVAH's fundamental strength across five key dimensions:
Efficiency Score
WeakAVAH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAVAH trades at attractive valuation levels.
Growth Score
ExcellentAVAH delivers strong and consistent growth momentum.
Financial Health Score
ModerateAVAH shows balanced financial health with some risks.
Profitability Score
WeakAVAH struggles to sustain strong margins.
Key Financial Metrics
Is AVAH Expensive or Cheap?
P/E Ratio
AVAH trades at 19.88 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AVAH's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Aveanna Healthcare Holdings Inc. at 151.33 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 1.13 times EBITDA. This is generally considered low.
How Well Does AVAH Make Money?
Net Profit Margin
For every $100 in sales, Aveanna Healthcare Holdings Inc. keeps $3.29 as profit after all expenses.
Operating Margin
Core operations generate 10.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.36 in profit for every $100 of shareholder equity.
ROA
Aveanna Healthcare Holdings Inc. generates $4.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aveanna Healthcare Holdings Inc. generates limited operating cash flow of $89.53M, signaling weaker underlying cash strength.
Free Cash Flow
Aveanna Healthcare Holdings Inc. produces free cash flow of $82.50M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.39 in free cash annually.
FCF Yield
AVAH converts 5.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
151.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
135.67
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.36
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How AVAH Stacks Against Its Sector Peers
| Metric | AVAH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.88 | 29.45 | Better (Cheaper) |
| ROE | -135.90% | 779.00% | Weak |
| Net Margin | 3.29% | -24936.00% (disorted) | Weak |
| Debt/Equity | 135.67 | 0.26 | Weak (High Leverage) |
| Current Ratio | 1.23 | 4.65 | Neutral |
| ROA | 4.17% | -19344.00% (disorted) | Weak |
AVAH outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aveanna Healthcare Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.97%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
86.23%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
460.96%
Industry Style: Defensive, Growth, Innovation
High Growth