Aveanna Healthcare Holdings Inc (AVAH)
NASDAQ:AVAH
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Aveanna Healthcare Holdings
(NASDAQ:AVAH)
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Rating:63Neutral
Price Target:
$7.00
▲(3.40% Upside)
Action:Reiterated
Date:06/02/26
AVAH scores as moderately attractive: improving profitability/cash generation and upbeat, raised guidance are tempered by high leverage and weak technical trend; valuation is a supportive offset due to a low P/E.
Positive Factors
Profitability turnaround
Net income has returned to positive and margins expanded materially, reflecting sustained operating improvements and better cost control. This shift from past multi-year losses to repeatable profitability enhances cash conversion and operational resilience over the next several quarters, improving funding for growth and deleveraging.
Negative Factors
High leverage
Substantial outstanding debt and a heavily debt-weighted capital structure constrain financial flexibility and raise refinancing, covenant, and interest-rate risks. Even with positive FCF, coverage of total debt is modest, which could slow deleveraging and limit capital allocation options through the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability turnaround
Net income has returned to positive and margins expanded materially, reflecting sustained operating improvements and better cost control. This shift from past multi-year losses to repeatable profitability enhances cash conversion and operational resilience over the next several quarters, improving funding for growth and deleveraging.
Read all positive factors
Aveanna Healthcare Holdings (AVAH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.44B
Dividend YieldN/A
Average Volume (3M)1.63M
Price to Earnings (P/E)5.5
Beta (1Y)1.21
Revenue Growth20.49%
EPS Growth4335.46%
CountryUS
Employees33,500
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.27
Shares Outstanding217,755,200
10 Day Avg. Volume1,695,820
30 Day Avg. Volume1,632,783
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)8.46
Price to Sales (P/S)0.68
P/FCF Ratio14.33
Enterprise Value/Market Cap1.99
Enterprise Value/Revenue1.14
Enterprise Value/Gross Profit3.49
Enterprise Value/Ebitda9.38
Forecast
1Y Price Target
$10.00Price Target Upside47.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.68
Revenue Forecast (FY)$2.60B
Aveanna Healthcare Holdings Business Overview & Revenue Model
Company Description
Aveanna Healthcare Holdings Inc., a diversified home care platform company, provides private duty nursing (PDN), adult home health and hospice, home-based pediatric therapy, and enteral nutrition services in the United States. Its patient- centere...
How the Company Makes Money
Aveanna primarily makes money by delivering reimbursable healthcare services and supplying certain in-home medical products, then billing third-party payors based on authorized services provided. Key revenue streams include: (1) Private Duty Servi...
Aveanna Healthcare Holdings Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial trajectory: strong double-digit revenue growth, outsized EBITDA improvement, expanding preferred-payer penetration across all segments, improved collections from RCM/automation, and a raised full-year guidance. Key risks discussed include ongoing labor cost pressure (partially mitigated via rate wins and wage pass-throughs), Q1 seasonality and one-time timing items that affect comparability, weather disruption, regulatory scrutiny in the industry, and the need to continue deleveraging. On balance, management presented tangible execution wins and prudent caution around known headwinds.Positive Updates
Strong Top-Line and EBITDA Growth
Q1 revenue of $647.9M (approximately $648M) increased 15.9% YoY; Q1 adjusted EBITDA of $84.4M increased 25.2% YoY. Consolidated gross margin was $205.4M (31.7%). Management attributes growth to improved rates, volume, and operational efficiencies.
Negative Updates
Labor Costs and Wage Pressure
Cost of revenue per hour rose to $32.50, up $2.17 (8.1% YoY). Management cites the labor market as the primary ongoing challenge; wage pass-throughs are supporting hiring but increase cost base and pressure spreads.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line and EBITDA Growth
Q1 revenue of $647.9M (approximately $648M) increased 15.9% YoY; Q1 adjusted EBITDA of $84.4M increased 25.2% YoY. Consolidated gross margin was $205.4M (31.7%). Management attributes growth to improved rates, volume, and operational efficiencies.
Read all positive updates
Company Guidance
Aveanna raised its full‑year 2026 guidance to revenue of $2.56–$2.58 billion and adjusted EBITDA of $328–$332 million (guidance excludes the pending Family First acquisition, expected to close late Q2); Q1 results that supported the raise included revenue of $647.9 million (+15.9% y/y), adjusted EBITDA of $84.4 million (+25.2%), consolidated gross margin of $205.4 million (31.7%), and liquidity of ~$525 million (cash $189M, $110M securitization availability, $226M revolver undrawn, $24.5M LOCs). Segment metrics: Private Duty Services revenue ≈$536M (+16.4%) on ~12.1M hours (+10.7%), revenue/hour $44.43 (+5.7%), gross margin $149.2M (27.9%), cost of revenue/hour $32.50 (+$2.17, +8.1%), spread/hour $12.38, and PDS preferred payer mix ~60% of MCO volume (up from 57%) with 4 preferred wins in Q1 (target +8 for 2026 to 38 total); Home Health & Hospice revenue ≈$66.6M (+17.4%) with ~11,000 admissions (+13.4% organic), 14.9k episodes (+23.1%), ~80% episodic mix (goal >75%), Medicare revenue/episode $3.17k (+0.5%), gross margin 53.7%, and preferred payers moving toward a 50 target (45 at year‑end 2025, +4 in Q1); Medical Solutions revenue $45.7M (+7.4%) with ~93k UPS (+4.5%), revenue/UPS $491 (+2.9%), gross margin $20.4M (44.7%), and 20 preferred payer agreements to date (18 at 2025 exit, +2 in Q1, targeting 25). Balance sheet/debt: ~$1.48B variable rate debt with $520M hedged via swaps and $880M under interest rate caps (caps/swaps expiries noted; additional cap effective July 2026 limits exposure on $520M above SOFR thresholds), YTD operating cash flow $4.3M and free cash flow negative $3.8M (Q1 is seasonally the low point; 2025 FCF was ~$131M).Aveanna Healthcare Holdings Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
38
Negative
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.52B | 2.43B | 2.02B | 1.90B | 1.79B | 1.68B |
| Gross Profit | 823.98M | 805.15M | 635.54M | 595.43M | 553.23M | 542.40M |
| EBITDA | 306.37M | 274.56M | 187.38M | 39.17M | -525.06M | -17.95M |
| Net Income | 261.49M | 225.03M | -10.93M | -134.52M | -662.03M | -117.04M |
Balance Sheet | ||||||
| Total Assets | 2.02B | 2.03B | 1.66B | 1.61B | 1.71B | 2.33B |
| Cash, Cash Equivalents and Short-Term Investments | 189.27M | 193.26M | 84.29M | 43.94M | 19.22M | 30.49M |
| Total Debt | 1.50B | 1.34B | 1.50B | 1.50B | 1.36B | 1.30B |
| Total Liabilities | 1.78B | 1.83B | 1.79B | 1.74B | 1.72B | 1.70B |
| Stockholders Equity | 240.05M | 194.46M | -122.09M | -127.44M | -4.17M | 637.95M |
Cash Flow | ||||||
| Free Cash Flow | 136.63M | 114.79M | 26.32M | 16.56M | -60.41M | -27.30M |
| Operating Cash Flow | 138.84M | 122.24M | 32.64M | 22.67M | -48.40M | -11.35M |
| Investing Cash Flow | -24.51M | -22.30M | -6.32M | -8.79M | -25.29M | -681.83M |
| Financing Cash Flow | 3.45M | 5.41M | 14.03M | 10.85M | 62.42M | 586.33M |
Aveanna Healthcare Holdings Technical Analysis
Negative
6.77
Price Trends
6.79
Negative
7.25
Negative
8.00
Negative
Market Momentum
-0.04
Positive
43.33
Neutral
20.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVAH, the sentiment is Negative. The current price of 6.77 is below the 20-day moving average (MA) of 7.12, below the 50-day MA of 6.79, and below the 200-day MA of 8.00, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 43.33 is Neutral, neither overbought nor oversold. The STOCH value of 20.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVAH.
Aveanna Healthcare Holdings Risk Analysis
Aveanna Healthcare Holdings disclosed 55 risk factors in its most recent earnings report. Aveanna Healthcare Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aveanna Healthcare Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.94B | 24.15 | 11.68% | 1.80% | 11.40% | 13.96% | |
77 Outperform | $1.67B | 17.07 | 9.34% | ― | 19.55% | 21.54% | |
71 Outperform | $1.05B | 36.32 | 9.23% | ― | 36.76% | 11.22% | |
63 Neutral | $1.44B | 5.48 | 241.47% | ― | 20.49% | 4335.46% | |
62 Neutral | $2.04B | 15.30 | 7.83% | 1.69% | -10.76% | -20.86% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $2.84B | -14.36 | 9999.00% | ― | -0.36% | 16.69% |
* Healthcare Sector Average
AVAH
Aveanna Healthcare Holdings
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1.17
21.23%
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Aveanna Healthcare Holdings Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Aveanna Healthcare Raises 2026 Guidance After Family First Acquisition
Positive
Jun 2, 2026
On June 1, 2026, Aveanna subsidiary Pediatric Services of America completed the $175.5 million cash acquisition of Family First Homecare, a multi-state pediatric home care provider with 27 locations in seven states. The deal, funded with cash on h...
Executive/Board ChangesShareholder Meetings
Aveanna Shareholders Back Directors, Auditor and Executive Pay
Positive
May 29, 2026
Aveanna Healthcare Holdings Inc. held its 2026 Annual Meeting of Stockholders on May 29, 2026, at which stockholders elected three Class II directors, Rodney D. Windley, Sam Weil, and Steven E. Rodgers, to three-year terms expiring at the 2029 Ann...
Business Operations and StrategyPrivate Placements and Financing
Aveanna Healthcare Reprices Credit Facilities to Cut Borrowing Costs
Positive
May 28, 2026
On May 26, 2026, Aveanna Healthcare LLC, a wholly owned subsidiary of Aveanna Healthcare Holdings Inc., executed a thirteenth amendment to its first lien credit agreement, repricing its senior secured term loan and revolving credit facilities. The...
Business Operations and StrategyFinancial Disclosures
Aveanna Healthcare Issues 2026 Outlook, Highlights Growth
Positive
May 15, 2026
On May 15, 2026, Aveanna Healthcare Holdings Inc. released an investor presentation outlining its 2026 financial guidance and operating scale, projecting revenue of $2.56 billion to $2.58 billion, a year-to-date gross margin of 31.7%, and adjusted...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Aveanna Healthcare Lifts 2026 Outlook After Strong Quarter
Positive
May 14, 2026
Aveanna Healthcare Holdings reported strong first-quarter results for the period ended April 4, 2026, with revenue rising 15.9% year over year to $647.9 million and net income jumping to $41.7 million from $5.2 million a year earlier. Adjusted EBI...
Business Operations and StrategyFinancial Disclosures
Aveanna Issues 2026 Guidance and Growth Outlook
Positive
Mar 20, 2026
Aveanna Healthcare Holdings Inc., a large U.S. home healthcare provider, operates 366 locations in 38 states, employs roughly 29,000 caregivers, and delivered 46.1 million homecare hours in fiscal 2025. The company, which reported a 33.3% gross ma...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Aveanna Healthcare Posts Strong Q4, Affirms 2026 Outlook
Positive
Mar 19, 2026
Aveanna Healthcare reported strong fourth-quarter and full-year 2025 results on March 19, 2026, with Q4 revenue rising 27.4% year over year to $662.5 million and net income jumping to $178.8 million, while adjusted EBITDA grew 54.0% to $85.0 milli...
Business Operations and StrategyM&A Transactions
Aveanna to Acquire Family First Homecare in Cash Deal
Positive
Mar 12, 2026
On March 9, 2026, Aveanna subsidiary Pediatric Services of America, LLC agreed to acquire all membership interests of Family First Holding, LLC, a multi-state pediatric home care provider operating as Family First Homecare, for $175.5 million in c...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.