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Ardent Health Partners, Inc. (ARDT)
NYSE:ARDT
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Ardent Health Partners, Inc.
(NYSE:ARDT)
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Select Model
Rating:71Outperform
Price Target:
$14.00
▲(7.44% Upside)
Ardent Health Partners, Inc. achieves a solid overall score driven by strong financial performance and an attractive valuation. The company's robust revenue growth and profitability, coupled with a low P/E ratio, make it appealing despite some technical resistance and reliance on debt financing. The absence of earnings call and corporate events data limits further insights.
Positive Factors
Revenue Growth
Consistent revenue growth indicates robust demand for healthcare services and effective execution of business strategies, supporting long-term expansion.
Cash Generation
Strong cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and strengthening the balance sheet.
Profitability Improvement
Improved profitability reflects successful cost management and operational efficiency, contributing to sustainable financial health.
Negative Factors
Debt Reliance
High reliance on debt can increase financial risk and limit flexibility, potentially impacting long-term stability if not managed carefully.
Operational Efficiency
Lower operational efficiency margins indicate potential inefficiencies in cost management, which could hinder profitability if not addressed.
Liquidity Concerns
Limited conversion of net income to free cash flow may constrain liquidity, affecting the company's ability to invest and meet obligations.
Ardent Health Partners, Inc. (ARDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.86B
Dividend YieldN/A
Average Volume (3M)389.78K
Price to Earnings (P/E)7.3
Beta (1Y)0.50
Revenue Growth10.03%
EPS Growth197.26%
CountryUS
Employees19,200
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.52
Shares Outstanding143,106,450
10 Day Avg. Volume553,018
30 Day Avg. Volume389,784
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.17
Enterprise Value/Revenue0.65
Enterprise Value/Gross Profit1.07
Enterprise Value/Ebitda6.58
Forecast
1Y Price Target
$17.57Price Target Upside34.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Ardent Health Partners, Inc. Business Overview & Revenue Model
Company DescriptionArdent Health Partners, LLC owns and operates a network of hospitals and clinics that provides a range of healthcare services in the United States. It operates acute care hospitals, including rehabilitation hospitals and surgical hospitals. The company was founded in 2001 and is based in Brentwood, Tennessee. Ardent Health Partners, LLC is a subsidiary of EGI-AM Investments, L.L.C.
How the Company Makes MoneyArdent Health Partners generates revenue primarily through the provision of healthcare services, which include inpatient and outpatient care, surgical services, emergency services, and rehabilitation services. The company's revenue model is largely based on reimbursements from government programs such as Medicare and Medicaid, as well as private insurance payers. Key revenue streams include patient services revenue, which accounts for the majority of its income, and ancillary services like laboratory and imaging services, which provide additional financial support. Ardent Health also engages in strategic partnerships with other healthcare organizations and participates in value-based care initiatives that can lead to shared savings and improved reimbursement rates. These factors, combined with a focus on operational efficiency and patient satisfaction, contribute to the company's overall financial performance.
Ardent Health Partners, Inc. Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call indicates a solid start to the fiscal year with strong admissions and revenue growth, operational improvements, and strategic acquisitions. However, challenges such as payer claim denials and delays in CMS approval present headwinds.Q1-2025 Updates
Positive Updates
Strong Admissions and Revenue Growth
Admissions grew 7.6% driven by strong underlying growth and heightened flu season. First quarter revenue increased 4% to $1.5 billion compared to the prior year.
Operational Improvements and Cost Efficiency
Supply cost as a percent of revenue declined 60 basis points year-over-year. Contract labor costs declined 60 basis points year-over-year to 3.8% of total salaries and benefits.
NextCare Acquisition Integration
Integration of 18 NextCare urgent care clinics expected to generate additional downstream volumes in Tulsa and Albuquerque markets.
Positive Market Position and Outlook
The company reaffirms full year 2025 financial guidance. S&P upgraded credit rating to B+ from B, reflecting improved net leverage and cash flow profile.
Negative Updates
Payer Claim Denials
Notable increase in payer claim denials compared to the first quarter of 2024, impacting year-over-year growth.
Outpatient Surgery Decline
Outpatient surgeries declined 2.3% in the first quarter, affected by approximately 1.5% from the timing of leap year.
Challenges with CMS Approval
First quarter results excluded any benefit from the 2025 New Mexico DPP program, which is awaiting final CMS approval.
Company Guidance
During Ardent Health Partners' first-quarter 2025 earnings call, the company reaffirmed its full-year financial guidance, highlighting several key metrics and strategic initiatives. Admissions grew by 7.6%, with inpatient surgeries up 3.4% and adjusted admissions increasing by 2.7%, aligning with their full-year outlook of 2% to 3%. Revenue rose by 4% to $1.5 billion, driven by strong market demand, despite a 70 basis point headwind from transferring certain services. Adjusted EBITDA increased by 2.5% to $98 million, supported by a 60 basis point reduction in supply costs as a percentage of revenue. The company reported solid cash liquidity of $495 million and a lease-adjusted net leverage ratio of 3 times. Strategic efforts focused on expanding outpatient and acute care footprints, with a $500 million cash reserve aiding this expansion. Ardent emphasized disciplined operational improvements, aiming for 100 to 200 basis points of margin expansion over the next several years.Ardent Health Partners, Inc. Financial Statement Overview
Summary
Ardent Health Partners, Inc. exhibits strong revenue growth and improved profitability, supported by a stable balance sheet and robust cash flow generation. Effective cost management and shareholder returns are evident, though there are areas for improvement in operational efficiency and liquidity management. The reliance on debt financing poses a potential risk, but the company maintains a solid financial position in the medical care facilities industry.Income Statement
Ardent Health Partners, Inc. has shown strong revenue growth with a 10.29% increase from 2023 to 2024. The gross profit margin is robust at 57.51% for 2024, indicating effective cost management. The net profit margin improved significantly to 3.53% in 2024 from 0.93% in 2023, reflecting enhanced profitability. However, the EBIT and EBITDA margins, at 6.80% and 9.32% respectively, suggest room for improvement in operational efficiency.75
Positive
Balance Sheet
The company's balance sheet shows a moderate debt-to-equity ratio of 1.50, indicating a balanced approach to leveraging. Return on equity improved to 13.83% in 2024, showcasing effective use of shareholder funds. The equity ratio stands at 30.69%, which is reasonable but suggests a reliance on debt financing. Overall, the balance sheet reflects stability with potential risks from leverage.68
Positive
Cash Flow
Ardent Health Partners, Inc. has demonstrated a positive free cash flow growth rate of 51.26% from 2023 to 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.50, suggesting efficient cash conversion. However, the free cash flow to net income ratio is 0.61, indicating that not all net income is translating into free cash flow, which could be a concern for liquidity.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2018 | Dec 2017 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.20B | 5.97B | 5.41B | 5.13B | 4.16B | 3.00B |
| Gross Profit | 3.79B | 3.43B | 5.27B | 4.17B | 4.16B | 3.00B |
| EBITDA | 615.44M | 555.92M | 350.00M | 531.70M | 281.84M | 230.91M |
| Net Income | 254.86M | 210.34M | 50.29M | 188.91M | -143.02M | -35.65M |
Balance Sheet | ||||||
| Total Assets | 5.03B | 4.96B | 4.73B | 4.86B | 2.75B | 2.37B |
| Cash, Cash Equivalents and Short-Term Investments | 540.63M | 556.78M | 437.58M | 456.12M | 59.66M | 71.96M |
| Total Debt | 2.27B | 2.28B | 2.40B | 2.39B | 1.26B | 952.69M |
| Total Liabilities | 3.38B | 3.43B | 3.65B | 3.81B | 2.03B | 1.61B |
| Stockholders Equity | 1.25B | 1.13B | 670.90M | 639.05M | 331.64M | 377.72M |
Cash Flow | ||||||
| Free Cash Flow | 108.13M | 127.52M | 84.29M | -189.47M | -1.07M | -2.06M |
| Operating Cash Flow | 301.98M | 315.03M | 221.70M | -38.36M | 159.59M | 119.47M |
| Investing Cash Flow | -219.32M | -220.46M | -137.98M | 46.58M | -525.11M | -983.27M |
| Financing Cash Flow | 123.43M | 24.64M | -102.26M | -270.33M | 353.22M | 843.15M |
Ardent Health Partners, Inc. Technical Analysis
Positive
13.03
Price Trends
12.19
Positive
13.09
Positive
13.79
Negative
Market Momentum
0.17
Positive
56.05
Neutral
33.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARDT, the sentiment is Positive. The current price of 13.03 is above the 20-day moving average (MA) of 12.95, above the 50-day MA of 12.19, and below the 200-day MA of 13.79, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 56.05 is Neutral, neither overbought nor oversold. The STOCH value of 33.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARDT.
Ardent Health Partners, Inc. Risk Analysis
Ardent Health Partners, Inc. disclosed 54 risk factors in its most recent earnings report. Ardent Health Partners, Inc. 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
Ardent Health Partners, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.86B | 7.26 | 25.56% | ― | 10.03% | 197.26% | |
69 Neutral | 1.90B | 18.24 | 10.26% | 2.01% | 25.19% | 13.44% | |
69 Neutral | 1.57B | 11.88 | 8.21% | 2.03% | -16.10% | -48.97% | |
67 Neutral | 2.13B | 14.51 | 4.52% | ― | 5.64% | 0.00% | |
59 Neutral | 1.75B | 111.57 | -154.73% | ― | 11.53% | 0.00% | |
46 Neutral | 1.97B | -7.93 | -230.26% | ― | 3.99% | -14.74% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
ARDT
Ardent Health Partners, Inc.
13.22
-6.12
-31.64%
ACHC
Acadia Healthcare
22.02
-53.68
-70.91%
BKD
Brookdale Senior Living
8.35
1.69
25.38%
NHC
National Healthcare
122.75
0.22
0.18%
SEM
Select Medical
12.55
-6.02
-32.42%
AVAH
Aveanna Healthcare Holdings
8.39
2.80
50.09%
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.