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Addus Homecare
(NASDAQ:ADUS)
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Rating:82Outperform
Price Target:
$136.00
▲(15.24% Upside)
Action:Reiterated
Date:09/15/26
ADUS scores well primarily due to strong financial performance (accelerating revenue, improved profitability over time, robust free cash flow, and materially reduced leverage) and a constructive earnings-call outlook (continued growth and margin resilience). The score is tempered by a more neutral near-term technical picture and a moderate valuation (P/E ~20.7) with no dividend yield data to support the valuation component.
Positive Factors
Scaled personal care expansion
The AccentCare transaction would materially expand Addus’s personal care scale, geographic reach, and customer base. Greater density across major states can strengthen payer relationships, broaden operating capabilities, and support durable revenue growth once regulatory approvals and closing conditions are completed.
Negative Factors
Caregiver capacity constrains growth
Caregiver availability directly limits Addus’s ability to convert patient demand into authorized, billable service hours. Persistent recruitment and retention pressure can cap organic growth and require higher labor spending, reducing the benefit of favorable demand and reimbursement conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Scaled personal care expansion
The AccentCare transaction would materially expand Addus’s personal care scale, geographic reach, and customer base. Greater density across major states can strengthen payer relationships, broaden operating capabilities, and support durable revenue growth once regulatory approvals and closing conditions are completed.
Read all positive factors
Addus Homecare (ADUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.14B
Dividend YieldN/A
Average Volume (3M)202.65K
Price to Earnings (P/E)20.1
Beta (1Y)0.27
Revenue Growth15.88%
EPS Growth25.01%
CountryUS
Employees50,659
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)5.68
Shares Outstanding18,674,300
10 Day Avg. Volume208,491
30 Day Avg. Volume202,653
Financial Highlights & Ratios
PEG Ratio1.04
Price to Book (P/B)1.83
Price to Sales (P/S)1.39
P/FCF Ratio19.09
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue1.26
Enterprise Value/Gross Profit3.90
Enterprise Value/Ebitda11.14
Forecast
1Y Price Target
$124.86Price Target Upside5.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)7.05
Revenue Forecast (FY)$1.52B
Addus Homecare Business Overview & Revenue Model
Company Description
Addus HomeCare Corporation, through its various subsidiaries, offers essential personal support services across the United States. The company primarily assists seniors, individuals with chronic illnesses or disabilities, and those at risk of hosp...
How the Company Makes Money
Addus HomeCare makes money by delivering home-based care services and receiving reimbursement from third-party payers based on authorized visits/hours of care or episodes of care, depending on the service line.
Key revenue streams:
1) Personal Ca...
Addus Homecare Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
The call was broadly positive, characterized by strong revenue, earnings, EBITDA, cash flow and debt-reduction performance; growth in Personal Care and hospice; improving home health trends; successful early performance from the Indiana acquisition; and an expanding acquisition pipeline. The main challenges were the Medicare Cap accrual, the year-over-year home health revenue decline, muted Texas census growth, slower New Mexico app adoption, the proposed home health temporary adjustment, a higher tax rate and the likelihood that cash flow benefits will moderate. Highlights significantly outweighed lowlights.Positive Updates
Strong Second-Quarter Financial Performance
Total revenue was $377.4 million, up 8% from $349.4 million in the second quarter of 2025. Adjusted earnings per share increased 16.1% to $1.73 from $1.49, and adjusted EBITDA rose 11.9% to $49.2 million from $43.9 million.
Negative Updates
Medicare Cap Accrual in Hospice
The company recorded a Medicare Cap accrual of a little over $3 million in the second quarter, primarily in Ohio. Management said the accrual was impactful to hospice gross margin and EBITDA, although it does not expect additional cap expense exposure for the remainder of the year and hopes to mitigate some of the expense before the end of the cap year.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Second-Quarter Financial Performance
Total revenue was $377.4 million, up 8% from $349.4 million in the second quarter of 2025. Adjusted earnings per share increased 16.1% to $1.73 from $1.49, and adjusted EBITDA rose 11.9% to $49.2 million from $43.9 million.
Read all positive updates
Company Guidance
Management expects full year adjusted EBITDA margin percentage to remain between 12% and 13%, with Q2 to Q3 probably pretty consistent, maybe a slight tick up, and a higher jump going into Q4, putting results toward the higher end of the 12%, pushing to 13% for the full year; it expects the hospice margin profile next year to remain fairly consistent with where we’ve been, no additional Medicare Cap expense exposure through the end of this year, consistent cash flow through the back half of this year but probably not quite to the level seen in the first 6 months, DSOs in that mid-30s range, and Personal Care year-over-year same-store census growth during the second half of 2026. The company said New Mexico’s rate increase for it would be around 4%, Texas rate increases, if achieved, should be impactful starting September 1 of next year, and the 80/20 portion of the Medicaid access rule could be eliminated potentially by year-end or sometime this year.Addus Homecare Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.48B | 1.42B | 1.15B | 1.06B | 951.12M | 864.50M |
| Gross Profit | 477.75M | 461.87M | 375.02M | 339.88M | 299.74M | 269.85M |
| EBITDA | 167.37M | 153.44M | 120.61M | 106.56M | 83.14M | 80.70M |
| Net Income | 105.31M | 95.91M | 73.60M | 62.52M | 46.02M | 45.13M |
Balance Sheet | ||||||
| Total Assets | 1.46B | 1.44B | 1.41B | 1.02B | 937.99M | 947.59M |
| Cash, Cash Equivalents and Short-Term Investments | 99.57M | 81.62M | 98.91M | 64.79M | 79.96M | 168.90M |
| Total Debt | 108.82M | 208.62M | 273.13M | 175.18M | 178.05M | 263.55M |
| Total Liabilities | 308.33M | 352.00M | 442.14M | 317.73M | 304.45M | 373.24M |
| Stockholders Equity | 1.15B | 1.09B | 970.49M | 706.69M | 633.54M | 574.34M |
Cash Flow | ||||||
| Free Cash Flow | 153.06M | 103.79M | 110.38M | 102.79M | 96.81M | 34.84M |
| Operating Cash Flow | 162.41M | 111.51M | 116.43M | 112.25M | 105.11M | 39.49M |
| Investing Cash Flow | -48.01M | -32.50M | -354.61M | -119.24M | -106.59M | -42.02M |
| Financing Cash Flow | -106.00M | -96.30M | 272.30M | -8.18M | -87.45M | 26.34M |
Addus Homecare Technical Analysis
Positive
118.01
Price Trends
116.47
Negative
108.72
Positive
105.67
Positive
Market Momentum
-0.88
Negative
49.36
Neutral
54.80
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 118.01 is above the 20-day moving average (MA) of 114.25, above the 50-day MA of 116.47, and above the 200-day MA of 105.67, indicating a neutral trend. The MACD of -0.88 indicates Negative momentum. The RSI at 49.36 is Neutral, neither overbought nor oversold. The STOCH value of 54.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADUS.
Addus Homecare Risk Analysis
Addus Homecare disclosed 32 risk factors in its most recent earnings report. Addus Homecare reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Addus Homecare Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $3.56B | 25.15 | 12.94% | 1.15% | 7.19% | 32.91% | |
82 Outperform | $2.14B | 20.13 | 9.57% | ― | 15.88% | 25.01% | |
70 Outperform | $2.67B | 9.23 | 150.20% | ― | 19.52% | 1337.90% | |
65 Neutral | $1.26B | 498.06 | -1.27% | 2.16% | 11.32% | -92.59% | |
62 Neutral | $1.39B | 42.27 | 9.51% | ― | 37.90% | 15.84% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ADUS
Addus Homecare
114.33
1.75
1.55%
NHC
National Healthcare
227.11
109.36
92.87%
USPH
US Physical Therapy
84.67
-1.78
-2.06%
PNTG
Pennant Group
39.73
15.74
65.61%
AVAH
Aveanna Healthcare Holdings
12.25
3.43
38.89%
Addus Homecare Corporate Events
Business Operations and StrategyExecutive/Board Changes
Addus HomeCare Announces Leadership Transition and Interim COO
Neutral
Aug 13, 2026
Addus HomeCare announced that President and Chief Operating Officer Heather Dixon left the company on August 7, 2026, marking a significant change in its senior leadership. The board and management publicly thanked Dixon for her service, noting he...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Addus HomeCare Reports Strong Q2 2026 Financial Growth
Positive
Aug 3, 2026
Addus HomeCare reported on August 3, 2026, that second-quarter 2026 net service revenues rose 8.0% year over year to $377.4 million, with net income up 25.2% to $27.6 million, or $1.49 per diluted share, and adjusted EBITDA increasing 11.9% to $49...
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.