AdaptHealth (AHCO) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: N/A
• Average Volume (3M): 801.58K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.83
• Revenue Growth: -0.61%
• EPS Growth: N/A
• Country: US
• Employees: 10,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.22
• Shares Outstanding: 135,297,760
• 10 Day Avg. Volume: 823,318
• 30 Day Avg. Volume: 801,584
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.62
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 6.70
• Enterprise Value/Ebitda: 4.92
• 1Y Price Target: $13.60
• Price Target Upside: 51.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 67 Neutral
• Price Target: $10.00 ▲(11.23% Upside)

AdaptHealth's overall stock score reflects a balanced view of its financial performance, technical analysis, valuation, and earnings call insights. The company's strong strategic positioning and financial stability are offset by challenges in revenue growth and cash flow generation. The earnings call provided positive guidance, but regulatory pressures remain a concern.

Positive Factors

Major Capitated Contract

This major contract enhances revenue stability and growth, increasing recurring revenue and strengthening market position in the healthcare sector.

Debt Reduction

Significant debt reduction improves financial stability and flexibility, allowing for strategic investments and reducing financial risk.

Advancements in Technology and AI

Investing in technology and AI enhances operational efficiency and patient care, potentially leading to cost reductions and improved competitive advantage.

Negative Factors

Decline in Overall Revenue

A decline in revenue indicates challenges in maintaining growth, potentially impacting long-term financial performance and market competitiveness.

Challenges in Sleep Health Segment

Limited growth in the Sleep Health segment suggests market share challenges, which could hinder overall revenue growth and segment profitability.

Potential Economic Pressure from CMS Proposed Rule

Regulatory changes could impose economic pressures, affecting pricing strategies and profitability, posing a risk to long-term industry dynamics.

AdaptHealth Business Overview & Revenue Model

Company Description

AdaptHealth Corp., together with its subsidiaries, provides home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, supplies, and related services, such as CPAP and bi-PAP services to individuals suffering from obstructive sleep apnea; medical devices and supplies, including continuous glucose monitors and insulin pumps to patients for the treatment of diabetes; HME to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home; and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy, and nutritional supply needs. It serves beneficiaries of Medicare, Medicaid, and commercial insurance payors. AdaptHealth Corp. is headquartered in Plymouth Meeting, Pennsylvania.

How the Company Makes Money

AdaptHealth generates revenue through multiple streams, primarily by renting and selling durable medical equipment (DME) to patients and healthcare providers. The company's revenue model is heavily reliant on reimbursement from Medicare, Medicaid, and private insurance payers, which compensates for the provision of medical equipment and related services. Key revenue streams include the sale of respiratory devices, sleep therapy products, and mobility aids, as well as ongoing rental income from equipment leases. Furthermore, AdaptHealth has established strategic partnerships with hospitals, healthcare systems, and physician groups to enhance patient referrals and streamline service delivery, contributing significantly to its earnings. The company also invests in technology to improve operational efficiency and patient engagement, which enhances its competitive positioning in the home healthcare market.

AdaptHealth Financial Statement Overview

Summary

AdaptHealth shows moderate financial performance with revenue growth and improved profitability. However, challenges exist in maintaining margins and generating free cash flow. The balance sheet is strong with reduced leverage, enhancing financial stability.

Income Statement

AdaptHealth's income statement shows a moderate performance with a TTM revenue growth rate of 6.29%, indicating a positive trend. However, the gross profit margin has decreased from 20.89% in 2024 to 13.49% in TTM, suggesting increased cost pressures. The net profit margin is relatively low at 2.49%, but it has improved from negative margins in previous years, indicating a recovery in profitability. The EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.10 in TTM, significantly improved from 1.36 in 2024, indicating reduced leverage and financial risk. The return on equity is modest at 5.16%, showing a reasonable return on shareholders' investments. The equity ratio is healthy, suggesting a stable capital structure.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow growth rate of -15.8% in TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is strong at 0.89, suggesting good cash generation relative to net income. However, the free cash flow to net income ratio is moderate at 0.42, reflecting constraints in free cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.04B	3.26B	3.20B	2.97B	2.45B	1.06B
Gross Profit	474.62M	681.09M	681.77M	417.43M	445.61M	161.23M
EBITDA	645.85M	670.84M	-171.09M	630.76M	544.21M	-82.17M
Net Income	81.74M	90.42M	-678.89M	69.32M	156.18M	-161.63M
Balance Sheet
Total Assets	4.35B	4.49B	4.51B	5.22B	5.25B	1.81B
Cash, Cash Equivalents and Short-Term Investments	68.63M	109.75M	77.13M	46.27M	149.63M	99.96M
Total Debt	1.95B	2.13B	2.29B	2.33B	2.37B	807.00M
Total Liabilities	2.76B	2.91B	3.04B	3.06B	3.18B	1.53B
Stockholders Equity	1.59B	1.57B	1.46B	2.16B	2.07B	354.89M
Cash Flow
Free Cash Flow	231.20M	235.78M	143.20M	-17.56M	72.37M	155.88M
Operating Cash Flow	552.34M	541.84M	480.67M	373.87M	275.68M	195.63M
Investing Cash Flow	-227.09M	-310.27M	-357.28M	-411.17M	-1.82B	-815.70M
Financing Cash Flow	-326.45M	-198.95M	-92.53M	-66.05M	1.60B	643.15M

AdaptHealth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AHCO, the sentiment is Negative. The current price of 8.99 is below the 20-day moving average (MA) of 9.15, below the 50-day MA of 9.15, and below the 200-day MA of 9.32, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 17.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AHCO.

AdaptHealth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPT	―	$1.49B	22.33	19.29%	―	40.98%	34.80%
AHCO	―	$1.22B	16.81	4.76%	―	-0.61%	―
LIVN	―	$2.87B	―	-17.87%	―	8.57%	-1154.64%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BVS	―	$559.74M	―	-0.10%	―	5.08%	99.38%
ESTA	―	$1.39B	-15.67	-261.18%	―	17.22%	1.65%
SENS	―	$287.18M	-3.45	-102.61%	―	5.94%	25.18%

AdaptHealth Corporate Events

AdaptHealth Reports Mixed Q2 2025 Results

AdaptHealth Corp. is a leading provider of healthcare-at-home solutions, offering home medical equipment, medical supplies, and related services across the United States. The company operates through segments such as Sleep Health, Respiratory Health, Diabetes Health, and Wellness at Home, serving approximately 4.2 million patients annually.

AdaptHealth’s Earnings Call: Strategic Moves Amid Challenges

The recent earnings call from AdaptHealth presented a mixed bag of positive developments and challenges. On the one hand, the announcement of a major new contract and improvements in key segments were significant positives. However, these were tempered by revenue declines, a reduction in EBITDA guidance, and potential future challenges from CMS rule changes.

AdaptHealth Announces Major Partnership with Healthcare System

On August 5, 2025, AdaptHealth Corp. announced a new five-year capitated partnership with a major national healthcare system, making it the exclusive provider of home medical equipment and supplies for over 10 million members. This agreement, covering Medicare Advantage, Medicaid Managed Care, and privately insured patients, positions AdaptHealth to drive non-acquired growth and transform healthcare services at home by delivering consistent experiences and predictable costs.

The most recent analyst rating on (AHCO) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on AdaptHealth stock, see the AHCO Stock Forecast page.