Last Updated: 14 Nov 2024
Executive Summary
Addus HomeCare Corporation (ADUS) is a leading provider of personal care services to the elderly, chronically ill, disabled, and at-risk individuals in the United States. With a market capitalization of $2.23 billion, the company has been experiencing steady growth in revenue and earnings. The latest stock price of $123.29 represents a 28.87% premium to its book value.
Company Overview
Addus HomeCare was founded in 2003 and is headquartered in Frisco, Texas. The company operates through a network of over 180 locations in 22 states. Its services include personal care, companionship, homemaking, and skilled nursing.
Fundamental Analysis
Revenue: Revenue for the trailing twelve months (TTM) ended September 30, 2024, was $1.13 billion, a 7% increase year-over-year.
Earnings: Diluted EPS for the TTM was $4.27, a 15.8% increase year-over-year.
Profitability: Addus HomeCare has a profit margin of 6.5% and an operating margin of 8.96%.
Valuation: The company trades at a trailing PE ratio of 28.87 and a forward PE ratio of 21.01. Its price-to-sales ratio is 2.046 and its price-to-book ratio is 2.441.
Technical Analysis
Trend: The stock is currently trading above its 50-day and 200-day moving averages, indicating a bullish trend.
Support and Resistance: The stock has support at $114.2 (200-day moving average) and resistance at $136.12 (52-week high).
Short Term Outlook
In the short term, Addus HomeCare is expected to continue its growth trajectory. The company's strong balance sheet and experienced management team position it well to capitalize on the growing demand for home health care services.
Long Term Outlook
The long-term outlook for Addus HomeCare is positive. The aging population and increasing prevalence of chronic diseases are expected to drive demand for home health care services. The company's focus on providing high-quality care and expanding its geographic reach should support its long-term growth.
Analyst Recommendations
Analysts are generally bullish on Addus HomeCare. Five analysts have a "Strong Buy" rating, four have a "Buy" rating, and one has a "Sell" rating. The average analyst target price is $138.6.
