Addus Homecare (ADUS) AI Stock Analysis

• Market Cap: $2.15B
• Dividend Yield: N/A
• Average Volume (3M): 142.21K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 0.45
• Revenue Growth: 14.29%
• EPS Growth: 7.85%
• Country: US
• Employees: 6,165
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 1.49
• Shares Outstanding: 18,407,240
• 10 Day Avg. Volume: 141,772
• 30 Day Avg. Volume: 142,210
• PEG Ratio: 2.70
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 1.85
• P/FCF Ratio: 19.31
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 5.40
• Enterprise Value/Ebitda: 16.57
• 1Y Price Target: $137.83
• Price Target Upside: 17.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 81 Outperform
• Price Target: $132.00 ▲(12.93% Upside)

Addus Homecare's strong financial performance and positive earnings call are the most significant factors driving the score. The company's strategic acquisitions and revenue growth in key segments bolster its position. Technical analysis and valuation suggest stability, with no immediate concerns. Challenges in the Home Health segment and regulatory risks are noted but do not overshadow the overall positive outlook.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for Addus Homecare's services, driven by market trends favoring home-based care. This trend is expected to continue, supporting long-term growth.

Debt Reduction

Reducing debt enhances financial stability and flexibility, allowing Addus Homecare to invest in growth opportunities and manage economic uncertainties effectively.

Strategic Acquisitions

Strategic acquisitions like Helping Hands Home Care expand market presence and service offerings, strengthening competitive positioning and driving future growth.

Negative Factors

Home Health Segment Challenges

Declining revenue in the Home Health segment suggests operational challenges or competitive pressures, potentially impacting overall growth if not addressed.

CMS Proposed Payment Rule Concerns

Potential reductions in Medicare payments could pressure margins and service availability, posing a risk to profitability and operational sustainability.

Labor Challenges in Clinical Hiring

Persistent labor challenges may limit service capacity and growth, impacting the ability to meet rising demand and maintain service quality.

Addus Homecare Business Overview & Revenue Model

Company Description

Addus Homecare (ADUS) is a leading provider of home care services in the United States, specializing in delivering personal care, home health care, and hospice services to individuals in need. The company operates in the home care sector, focusing on improving the quality of life for seniors and individuals with disabilities through a range of tailored care solutions. Addus Homecare's core services include assistance with daily living activities, skilled nursing care, and specialized therapy, offering a comprehensive approach to home-based healthcare.

How the Company Makes Money

Addus Homecare generates revenue primarily through the provision of home care services, which are reimbursed by various payers, including Medicare, Medicaid, and private insurance companies. The company's revenue model is predominantly fee-for-service, where they bill for the hours of care provided to clients. Key revenue streams include personal care services, skilled nursing services, and therapy services. Additionally, partnerships with healthcare providers and payers enhance their service offerings and patient access, contributing to the overall growth and stability of their earnings. As the demand for home care services continues to rise due to an aging population and a shift towards home-based care, Addus Homecare's revenue potential is bolstered by these market trends.

Addus Homecare Financial Statement Overview

Summary

Addus Homecare demonstrates strong financial performance with consistent revenue growth, stable profitability margins, a solid balance sheet, and robust cash flow management. The company is well-positioned for future growth with manageable debt levels and efficient operations.

Income Statement

Addus Homecare demonstrates strong revenue growth with a consistent increase over the past years. The Gross Profit Margin and Net Profit Margin are stable, reflecting efficient operations and profitability. EBIT and EBITDA margins also show a healthy margin, indicating effective cost management. Overall, the income statement reflects robust financial health.

Balance Sheet

The company's balance sheet is solid with a moderate Debt-to-Equity Ratio, indicating a balanced approach to leveraging. Return on Equity is commendable, showing the company's ability to generate profits from shareholders' equity. The Equity Ratio is strong, suggesting a stable financial structure with low risk of over-leverage.

Cash Flow

Operating cash flows are strong and consistently cover net income, demonstrating efficient cash management. Free Cash Flow has shown a positive trend, indicating the company's ability to generate cash after accounting for capital expenditures. This positions the company well for future investments or debt repayment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.27B	1.15B	1.06B	951.12M	864.50M	764.77M
Gross Profit	415.24M	375.02M	339.88M	299.74M	269.85M	226.24M
EBITDA	135.36M	120.61M	106.56M	83.14M	80.70M	57.18M
Net Income	82.97M	73.60M	62.52M	46.02M	45.13M	33.13M
Balance Sheet
Total Assets	1.41B	1.41B	1.02B	937.99M	947.59M	892.58M
Cash, Cash Equivalents and Short-Term Investments	91.18M	98.91M	64.79M	79.96M	168.90M	145.08M
Total Debt	222.25M	273.13M	175.18M	178.05M	263.55M	239.67M
Total Liabilities	387.08M	442.14M	317.73M	304.45M	373.24M	373.91M
Stockholders Equity	1.02B	970.49M	706.69M	633.54M	574.34M	518.68M
Cash Flow
Free Cash Flow	96.79M	110.38M	102.79M	96.81M	34.84M	102.58M
Operating Cash Flow	100.42M	116.43M	112.25M	105.11M	39.49M	109.41M
Investing Cash Flow	-356.09M	-354.61M	-119.24M	-106.59M	-42.02M	-214.24M
Financing Cash Flow	173.54M	272.30M	-8.18M	-87.45M	26.34M	138.19M

Addus Homecare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 116.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADUS, the sentiment is Positive. The current price of 116.89 is below the 20-day moving average (MA) of 117.48, above the 50-day MA of 115.34, and above the 200-day MA of 110.55, indicating a neutral trend. The MACD of 1.50 indicates Positive momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 42.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADUS.

Addus Homecare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADUS	―	$2.15B	25.78	8.54%	―	14.29%	7.85%
ASTH	―	$1.56B	60.46	3.50%	―	51.97%	-64.10%
NHC	―	$1.85B	17.81	10.65%	2.09%	25.19%	13.44%
PNTG	―	$872.34M	32.28	11.44%	―	30.58%	24.86%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AGL	―	$330.09M	―	-60.64%	―	10.12%	-29.12%

Addus Homecare Corporate Events

Addus Homecare Appoints New President and COO

On August 4, 2025, Addus HealthCare, a subsidiary of Addus HomeCare Corporation, announced the appointment of Heather Dixon as President and Chief Operating Officer, effective September 15, 2025. Dixon, who brings extensive experience in healthcare leadership, succeeds W. Bradley Bickham, who will transition to an advisory role until his retirement in March 2026. Dixon’s appointment is expected to bolster Addus’s operational excellence and support its growth strategy. Her previous roles include CFO positions at Acadia Healthcare and Everside Health, and she has served as an independent director for Addus since March 2023.

The most recent analyst rating on (ADUS) stock is a Buy with a $147.00 price target. To see the full list of analyst forecasts on Addus Homecare stock, see the ADUS Stock Forecast page.

Addus HomeCare Reports Strong Q2 2025 Growth

Addus HomeCare Corporation is a provider of home care services, primarily offering personal care, hospice, and home health services across 23 states in the United States. The company focuses on assisting individuals who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill, and disabled.

Addus HomeCare Earnings Call Highlights Growth Amid Challenges

The recent earnings call for Addus HomeCare Corporation painted a generally positive picture, with strong revenue growth and strategic acquisitions taking center stage. Despite some challenges, such as clinical hiring difficulties and concerns over CMS’s proposed payment changes, the overall sentiment leaned towards optimism, with the positive developments slightly outweighing the negatives.

Addus HomeCare Reports Strong Q2 2025 Financial Results

On August 4, 2025, Addus HomeCare Corporation announced its financial results for the second quarter of 2025, reporting a 21.8% increase in net service revenues to $349.4 million and a net income of $22.1 million. The company completed the acquisition of Helping Hands Home Care, expanding its operations in Pennsylvania. This acquisition aligns with Addus’s strategy to offer comprehensive home-based care services and is expected to enhance its market presence and capabilities. The company’s financial performance reflects strong organic growth, supported by increased demand for home-based care services and strategic acquisitions.

The most recent analyst rating on (ADUS) stock is a Buy with a $147.00 price target. To see the full list of analyst forecasts on Addus Homecare stock, see the ADUS Stock Forecast page.