NasdaqGS:ACHC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Acadia Healthcare Company

Executive Summary

Acadia Healthcare Company, Inc. develops and operates inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities, and outpatient behavioral healthcare facilities to serve the behavioral health and recovery needs of communities in the United States, the United Kingdom, and Puerto Rico.


Snowflake Analysis

Good value with limited growth.


Similar Companies

Share Price & News

How has Acadia Healthcare Company's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ACHC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.9%

ACHC

4.1%

US Healthcare

4.0%

US Market


1 Year Return

-26.1%

ACHC

13.7%

US Healthcare

4.9%

US Market

Return vs Industry: ACHC underperformed the US Healthcare industry which returned 13.7% over the past year.

Return vs Market: ACHC underperformed the US Market which returned 5% over the past year.


Shareholder returns

ACHCIndustryMarket
7 Day3.9%4.1%4.0%
30 Day-11.3%-1.7%1.3%
90 Day64.6%26.9%29.5%
1 Year-26.1%-26.1%15.2%13.7%7.2%4.9%
3 Year-47.8%-47.8%29.2%23.5%36.1%27.2%
5 Year-68.3%-68.3%39.1%29.6%65.3%46.9%

Price Volatility Vs. Market

How volatile is Acadia Healthcare Company's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Acadia Healthcare Company undervalued compared to its fair value and its price relative to the market?

17.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACHC ($25.57) is trading below our estimate of fair value ($31.13)

Significantly Below Fair Value: ACHC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ACHC is good value based on its PE Ratio (19.9x) compared to the Healthcare industry average (24x).

PE vs Market: ACHC is poor value based on its PE Ratio (19.9x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: ACHC is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ACHC is good value based on its PB Ratio (0.9x) compared to the US Healthcare industry average (2.7x).


Next Steps

Future Growth

How is Acadia Healthcare Company forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

22.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACHC's forecast earnings growth (22.8% per year) is above the savings rate (2.2%).

Earnings vs Market: ACHC's earnings (22.8% per year) are forecast to grow slower than the US market (22.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ACHC's revenue (5.5% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: ACHC's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACHC's Return on Equity is forecast to be low in 3 years time (7.7%).


Next Steps

Past Performance

How has Acadia Healthcare Company performed over the past 5 years?

-22.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACHC has a large one-off loss of $80.7M impacting its March 31 2005 financial results.

Growing Profit Margin: ACHC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ACHC's earnings have declined by -22.7% per year over the past 5 years.

Accelerating Growth: ACHC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ACHC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (10.1%).


Return on Equity

High ROE: ACHC's Return on Equity (4.6%) is considered low.


Next Steps

Financial Health

How is Acadia Healthcare Company's financial position?


Financial Position Analysis

Short Term Liabilities: ACHC's short term assets ($503.0M) do not cover its short term liabilities ($579.6M).

Long Term Liabilities: ACHC's short term assets ($503.0M) do not cover its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: ACHC's debt to equity ratio (125.8%) is considered high.

Reducing Debt: ACHC's debt to equity ratio has reduced from 163% to 125.8% over the past 5 years.

Debt Coverage: ACHC's debt is not well covered by operating cash flow (10.7%).

Interest Coverage: ACHC's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Acadia Healthcare Company current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ACHC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ACHC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ACHC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ACHC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ACHC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Debbie Osteen (64yo)

1.58yrs

Tenure

US$7,722,613

Compensation

Ms. Debra K. Osteen, also known as Debbie, has been Chief Executive Officer and Director of Acadia Healthcare Company, Inc. since December 16, 2018. Ms. Osteen led Universal Health Services, Inc’s Behavior ...


CEO Compensation Analysis

Compensation vs Market: Debbie's total compensation ($USD7.72M) is above average for companies of similar size in the US market ($USD4.70M).

Compensation vs Earnings: Debbie's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Debra Osteen
CEO & Director1.58yrsUS$7.72m0.23% $5.2m
David Duckworth
Chief Financial Officer8yrsUS$1.63m0.087% $2.0m
John Hollinsworth
Executive Vice President of Operations1yrUS$2.11m0.067% $1.5m
Christopher Howard
Executive VP9.42yrsUS$1.53m0.23% $5.3m
Laurence Harrod
Executive Vice President of Finance0.92yrUS$1.15m0.061% $1.4m
Gretchen Hommrich
Director of Investor Relationsno datano datano data
Anne Kelly
Chief Quality & Compliance Officerno datano datano data
Isa Diaz
Senior Vice President of Strategic Affairs1.5yrsno datano data
Bryan Kaegi
Senior Vice President of Government Relationsno datano datano data
Michael Genovese
Chief Medical Officerno datano datano data

1.5yrs

Average Tenure

56yo

Average Age

Experienced Management: ACHC's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Debra Osteen
CEO & Director1.58yrsUS$7.72m0.23% $5.2m
Reeve Waud
Independent Chairman & Lead Director1.58yrsUS$337.01k0.74% $16.9m
E. Bissell
Independent Director7.5yrsUS$299.01k0.033% $744.8k
William Grieco
Independent Director9.25yrsUS$314.51k0.082% $1.9m
Jason Bernhard
Independent Director0.58yrUS$200.00k0.013% $290.4k
William Petrie
Independent Director7.67yrsUS$282.01k0.037% $841.7k
Vicky Gregg
Independent Director4.17yrsUS$297.01k0.025% $569.5k
Wade Miquelon
Independent Director8.5yrsUS$289.51k0.046% $1.1m

5.8yrs

Average Tenure

62yo

Average Age

Experienced Board: ACHC's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ACHC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Acadia Healthcare Company, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Acadia Healthcare Company, Inc.
  • Ticker: ACHC
  • Exchange: NasdaqGS
  • Founded: 2005
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: US$2.274b
  • Shares outstanding: 88.94m
  • Website: https://www.acadiahealthcare.com

Number of Employees


Location

  • Acadia Healthcare Company, Inc.
  • 6100 Tower Circle
  • Suite 1000
  • Franklin
  • Tennessee
  • 37067
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACHCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2011
7RADB (Deutsche Boerse AG)YesCommon StockDEEURNov 2011

Biography

Acadia Healthcare Company, Inc. develops and operates inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities, and outpatient behavioral healthcare facilities to serve the behavioral health and recovery needs of communities in the United States, the United Kingdom, and Puerto Rico. The company operates acute inpatient psychiatric facilities, which cares to stabilize patients that are either threat to themselves or others by hourly observation, daily intervention, and monitoring by psychiatrists; and specialty treatment facilities, including residential recovery and eating disorder facilities, and comprehensive treatment centers that provide continuum care for adults with addictive disorders and co-occurring mental disorders. It also provides residential treatment centers, which treat patients with behavioral disorders in a non-hospital setting, including outdoor programs; and outpatient community-based services, such as community-based programs that are designed to offer therapeutic treatment to children and adolescents who have a clinically-defined emotional, psychiatric, or chemical dependency disorders. In addition, the company provides mental health rehabilitation services comprising relapse prevention and social integration services, as well as vocational opportunities; acute services for patients at risk to themselves or others, as well as crisis intervention and treatment of behavioral emergencies; and long-term and non-acute care services for adults suffering from mental illness, addiction, learning disability, or brain injury. Further, it provides education and children’s services for children and young people with special educational needs; adult care services; and care first services for employees. As of December 31, 2019, the company operated a network of 585 behavioral healthcare facilities with 18,200 beds. The company was founded in 2005 and is headquartered in Franklin, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 23:51
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.