Last Updated: 18 Sep 2024
Executive Summary
Acadia Healthcare Company Inc. (ACHC) is a leading provider of behavioral health services in the United States and Puerto Rico. The company operates a network of inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities, and outpatient behavioral health facilities. ACHC has a strong financial position with growing revenue and earnings. The company's stock price has been volatile in recent months, but it has outperformed the broader market over the past year.
Company Overview
Acadia Healthcare was founded in 1994 and is headquartered in Franklin, Tennessee. The company operates over 250 facilities in 40 states and Puerto Rico. ACHC provides a wide range of behavioral health services, including:
Inpatient psychiatric care
Residential treatment for substance abuse and mental health disorders
Outpatient therapy and counseling
Medication management
Case management
Fundamental Analysis
ACHC has a strong financial position with growing revenue and earnings. The company's revenue increased by 8.8% in the most recent quarter, and its earnings per share increased by 7.6%. ACHC's gross profit margin is 36.5%, and its operating margin is 17.9%. The company has a strong balance sheet with $1.2 billion in cash and equivalents and $1.5 billion in debt.
ACHC's valuation metrics are attractive. The company's forward price-to-earnings ratio is 20.37, which is below the industry average. ACHC's price-to-sales ratio is 2.41, which is also below the industry average.
Technical Analysis
ACHC's stock price has been volatile in recent months, but it has outperformed the broader market over the past year. The stock price is currently trading at $77.77, which is above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 55, which indicates that it is neither overbought nor oversold.
Short Term Outlook
ACHC's stock price is likely to continue to be volatile in the short term. However, the company's strong financial position and attractive valuation metrics suggest that the stock is a good long-term investment.
Long Term Outlook
ACHC is well-positioned to benefit from the growing demand for behavioral health services. The company's strong financial position and commitment to providing high-quality care will allow it to continue to grow its market share. ACHC's stock price is likely to appreciate over the long term.
Analyst Recommendations
Analysts are bullish on ACHC's stock. The consensus analyst rating is "buy," and the average analyst target price is $89.33.
