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Aveanna Healthcare Holdings
(NASDAQ:AVAH)
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Rating:70Outperform
Price Target:
$15.50
▲(13.80% Upside)
Action:Upgraded
Date:08/17/26
AVAH scores well due to a clear operating turnaround and a constructive earnings update (raised guidance, improving cash generation), supported by strong price trend signals. The score is held back primarily by balance-sheet risk from high leverage, and secondarily by an overextended RSI that may imply increased near-term volatility.
Positive Factors
Raised guidance and broad-based growth
Higher guidance following strong quarterly growth indicates improving demand and execution across Aveanna’s care and medical solutions offerings. If management delivers against its upgraded targets, greater scale should support reinvestment, strengthen payer relationships, and improve the durability of earnings growth.
Negative Factors
High leverage and thin equity cushion
Aveanna’s debt-heavy capital structure leaves limited equity protection if operating performance weakens or integration costs rise. Although much variable-rate debt is hedged and management targets sub-3x net leverage, the current burden can restrict capital allocation and make deleveraging a multiyear task.
Read all positive and negative factors
Positive Factors
Negative Factors
Raised guidance and broad-based growth
Higher guidance following strong quarterly growth indicates improving demand and execution across Aveanna’s care and medical solutions offerings. If management delivers against its upgraded targets, greater scale should support reinvestment, strengthen payer relationships, and improve the durability of earnings growth.
Read all positive factors
Aveanna Healthcare Holdings (AVAH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.71B
Dividend YieldN/A
Average Volume (3M)3.36M
Price to Earnings (P/E)9.4
Beta (1Y)1.25
Revenue Growth19.52%
EPS Growth1337.90%
CountryUS
Employees35,500
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.33
Shares Outstanding218,290,680
10 Day Avg. Volume3,453,283
30 Day Avg. Volume3,358,454
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$14.88Price Target Upside9.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.82
Revenue Forecast (FY)$2.69B
Aveanna Healthcare Holdings Business Overview & Revenue Model
Company Description
Aveanna Healthcare Holdings Inc. operates as a diverse platform for home-based care services throughout the United States. The company delivers a range of critical offerings, including private duty nursing (PDN), adult home health and hospice care...
How the Company Makes Money
Aveanna makes money by delivering home-based healthcare services and home-delivered medical products and being reimbursed primarily by government-sponsored programs and managed care plans. Key revenue streams include: (1) Private Duty Services (in...
Aveanna Healthcare Holdings Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveys a clear recovery and momentum: strong revenue and adjusted EBITDA growth, raised full‑year guidance, improved payer and government engagements (including a major California PDN budget win), positive cash generation, and preferred‑payer traction across segments. Primary risks are operational — caregiver labor constraints, short‑term wage pass‑throughs that can pressure margins, integration and timing risks (notably final California rate details) and a sizable but largely hedged debt position. Overall, the positives (accelerating organic growth, guidance raise, liquidity, payer wins and structural rate improvements) materially outweigh the manageable execution and timing headwinds.Positive Updates
Strong Top-Line Growth
Q2 revenue of $670.5M, up 13.7% year-over-year; full-year revenue guidance raised to greater than $2.68B.
Negative Updates
Ongoing Labor Market Constraints
Management identified the caregiver labor environment as the primary gating factor for capacity and growth; company continues to need wage pass-throughs and investments to reopen capacity.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q2 revenue of $670.5M, up 13.7% year-over-year; full-year revenue guidance raised to greater than $2.68B.
Read all positive updates
Company Guidance
Aveanna raised 2026 guidance to revenue greater than $2.68 billion and adjusted EBITDA greater than $365 million, driven by a strong Q2 (revenue $670.5M, +13.7% YoY; adj. EBITDA $95.4M, +8%; consolidated gross margin $218.5M or 32.6%), healthy liquidity (cash on hand ~$97M, total liquidity ~$433M), YTD operating cash flow $85.3M and free cash flow $75.4M, and a $10M annual interest savings from a 75 bps term‑loan repricing; segment metrics include PDS revenue/hour $44.62 (+1.7%), PDS gross margin $160M or 28.9% with a $12.88 spread/hour and 37 preferred‑payer agreements covering 64% of PDS MCO volume, home health revenue ~$69M with 10.5k admissions, 14.7k episodes (81% episodic, episodes +18.5%) and Medicare revenue/episode ~$3.2k (gross margin 53.9%), and Medical Solutions revenue $47.5M (≈95k unique patients, +4.4%; rev/UPS ≈$500; GM 45.1%); management upgraded long‑term organic growth targets to PDS 5–6%, home health & hospice 8–10% (from 5–7%), Medical Solutions 8–10%, reiterated goal of double‑digit annual revenue growth and a sub‑3x net leverage target.Aveanna Healthcare Holdings Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
38
Negative
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.60B | 2.43B | 2.02B | 1.90B | 1.79B | 1.68B |
| Gross Profit | 831.71M | 805.15M | 635.54M | 595.43M | 553.23M | 542.40M |
| EBITDA | 299.15M | 274.56M | 187.38M | 39.17M | -525.06M | -17.95M |
| Net Income | 274.76M | 225.03M | -10.93M | -134.52M | -662.03M | -117.04M |
Balance Sheet | ||||||
| Total Assets | 2.11B | 2.03B | 1.66B | 1.61B | 1.71B | 2.33B |
| Cash, Cash Equivalents and Short-Term Investments | 97.20M | 193.26M | 84.29M | 43.94M | 19.22M | 30.49M |
| Total Debt | 1.51B | 1.51B | 1.50B | 1.50B | 1.36B | 1.30B |
| Total Liabilities | 1.82B | 1.83B | 1.79B | 1.74B | 1.72B | 1.70B |
| Stockholders Equity | 287.28M | 194.46M | -122.09M | -127.44M | -4.17M | 637.95M |
Cash Flow | ||||||
| Free Cash Flow | 165.83M | 114.79M | 26.32M | 16.56M | -60.41M | -27.30M |
| Operating Cash Flow | 168.20M | 122.24M | 32.64M | 22.67M | -48.40M | -11.35M |
| Investing Cash Flow | -183.89M | -22.30M | -6.32M | -8.79M | -25.29M | -681.83M |
| Financing Cash Flow | 12.15M | 9.03M | 14.03M | 10.85M | 62.42M | 586.33M |
Aveanna Healthcare Holdings Technical Analysis
Neutral
13.62
Price Trends
12.12
Positive
10.08
Positive
8.81
Positive
Market Momentum
>-0.01
Positive
42.62
Neutral
22.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVAH, the sentiment is Neutral. The current price of 13.62 is above the 20-day moving average (MA) of 13.40, above the 50-day MA of 12.12, and above the 200-day MA of 8.81, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.62 is Neutral, neither overbought nor oversold. The STOCH value of 22.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
85 Outperform | $3.44B | 24.60 | 12.94% | 1.17% | 7.19% | 32.91% | |
82 Outperform | $2.06B | 19.73 | 9.57% | ― | 15.88% | 25.01% | |
70 Outperform | $2.71B | 9.43 | 150.20% | ― | 19.52% | 1337.90% | |
62 Neutral | $1.36B | 40.92 | 9.51% | ― | 37.90% | 15.84% | |
52 Neutral | $2.59B | -18.72 | 405.63% | ― | -4.42% | 44.67% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
AVAH
Aveanna Healthcare Holdings
12.43
3.80
44.03%
ADUS
Addus Homecare
111.70
-3.16
-2.75%
BKD
Brookdale Senior Living
10.84
2.78
34.49%
NHC
National Healthcare
223.35
103.82
86.85%
PNTG
Pennant Group
38.79
12.93
50.00%
Aveanna Healthcare Holdings Corporate Events
Private Placements and Financing
Aveanna Healthcare completes secondary common stock offering
Neutral
Aug 24, 2026
On August 20, 2026, Aveanna Healthcare Holdings Inc. entered an underwriting agreement with RBC Capital Markets and certain selling stockholders, including affiliates of J.H. Whitney Equity Partners VII, LLC and current and former company insiders...
Business Operations and StrategyFinancial Disclosures
Aveanna Healthcare Raises 2026 Outlook After Strong Quarter
Positive
Aug 13, 2026
Aveanna Healthcare Holdings reported strong financial results for the second quarter and first half of 2026, with second-quarter revenue rising 13.7% year over year to $670.5 million and net income increasing to $40.3 million from $27.0 million in...
Business Operations and StrategyFinancial Disclosures
Aveanna Highlights Growth and Scale in Investor Presentation
Positive
Aug 13, 2026
On August 13, 2026, Aveanna Healthcare Holdings Inc. released an investor presentation outlining its current financial profile and operating scale. The company reported more than $2.68 billion in revenue, gross margin of 32.2% year-to-date 2026, a...
Business Operations and StrategyExecutive/Board Changes
Aveanna Healthcare Director Resigns Following CDC Appointment
Neutral
Aug 7, 2026
On August 5, 2026, Aveanna Healthcare Holdings Inc. announced that Dr. Erica Schwartz, a Class III independent director and Chair of the Clinical Quality Committee, resigned from its Board of Directors effective immediately following her nominatio...
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.