NasdaqGS:ACHC

Stock Analysis Report

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.

Rewards

Trading at 21.9% below its fair value

Earnings are forecast to grow 35.73% per year

Risk Analysis

Interest payments are not well covered by earnings



Snowflake Analysis

Fair value with moderate growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

ACHC

2.3%

US Healthcare

1.7%

US Market


1 Year Return

15.5%

ACHC

14.8%

US Healthcare

23.6%

US Market

Return vs Industry: ACHC matched the US Healthcare industry which returned 15.2% over the past year.

Return vs Market: ACHC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

ACHCIndustryMarket
7 Day0.5%2.3%1.7%
30 Day1.5%3.1%3.5%
90 Day6.3%19.8%11.7%
1 Year15.5%15.5%16.8%14.8%26.2%23.6%
3 Year-13.1%-13.1%53.1%46.3%53.2%43.3%
5 Year-45.3%-45.3%66.0%54.6%75.5%56.1%

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?

21.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACHC ($33.48) is trading below our estimate of fair value ($42.84)

Significantly Below Fair Value: ACHC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ACHC is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.

PE vs Market: ACHC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ACHC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ACHC is good value based on its PB Ratio (1.2x) compared to the US Healthcare industry average (3.1x).


Next Steps

Future Growth

How is Acadia Healthcare Company forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

35.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACHC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: ACHC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ACHC's is expected to become profitable in the next 3 years.

Revenue vs Market: ACHC's revenue (5% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: ACHC's revenue (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 (7.9%).


Next Steps

Past Performance

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

-30.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACHC is currently unprofitable.

Growing Profit Margin: ACHC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ACHC is unprofitable, and losses have increased over the past 5 years at a rate of -30.2% per year.

Accelerating Growth: Unable to compare ACHC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ACHC is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (6.2%).


Return on Equity

High ROE: ACHC has a negative Return on Equity (-8.61%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Acadia Healthcare Company's financial position?


Financial Position Analysis

Short Term Liabilities: ACHC's short term assets ($536.9M) exceed its short term liabilities ($458.2M).

Long Term Liabilities: ACHC's short term assets ($536.9M) do not cover its long term liabilities ($3.8B).


Debt to Equity History and Analysis

Debt Level: ACHC's debt to equity ratio (129.4%) is considered high.

Reducing Debt: ACHC's debt to equity ratio has increased from 116.2% to 129.4% over the past 5 years.

Debt Coverage: ACHC's debt is not well covered by operating cash flow (10.8%).

Interest Coverage: ACHC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: ACHC has a high level of physical assets or inventory.

Debt Coverage by Assets: ACHC's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years0%

Current dividend yield vs market & industry

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

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

What is the CEO of Acadia Healthcare Company's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Debbie Osteen (63yo)

1.1yrs

Tenure

US$387,500

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 ($USD387.50K) is below average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: Insufficient data to compare Debbie's compensation with company performance.


Management Age and Tenure

1.1yrs

Average Tenure

55yo

Average Age

Experienced Management: ACHC's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

5.3yrs

Average Tenure

63yo

Average Age

Experienced Board: ACHC's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$1,723,16320 Sep 19
P2 Capital Partners, LLC
EntityCompany
Shares53,950
Max PriceUS$31.94
BuyUS$68,751,90520 Sep 19
P2 Capital Partners, LLC
EntityCompany
Shares2,200,226
Max PriceUS$32.75
BuyUS$530,66009 Sep 19
Debra Osteen
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares20,000
Max PriceUS$26.53

Ownership Breakdown

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


Management Team

  • Chris Howard (52yo)

    Executive VP

    • Tenure: 8.9yrs
    • Compensation: US$1.79m
  • Catherine McDonald

    President of the Clinic - Acadia Vermilion Hospital

    • Tenure: 24yrs
  • Laurence Harrod (63yo)

    Executive Vice President of Finance

    • Tenure: 0.4yrs
  • Isa Diaz

    Senior Vice President of Strategic Affairs

    • Tenure: 1yrs
  • David Duckworth (39yo)

    Chief Financial Officer

    • Tenure: 7.5yrs
    • Compensation: US$1.74m
  • Gretchen Hommrich

    Director of Investor Relations

    • Debbie Osteen (63yo)

      CEO & Director

      • Tenure: 1.1yrs
      • Compensation: US$387.50k
    • John Hollinsworth (55yo)

      Executive Vice President of Operations

      • Tenure: 0.5yrs
    • Bryan Kaegi

      Senior Vice President of Government Relations

      • Michael Genovese

        Chief Medical Officer


        Board Members

        • Reeve Waud (56yo)

          Chairman & Lead Director

          • Tenure: 1.1yrs
          • Compensation: US$292.01k
        • E. Bissell (59yo)

          Independent Director

          • Tenure: 7yrs
          • Compensation: US$284.01k
        • William Grieco (66yo)

          Independent Director

          • Tenure: 8.8yrs
          • Compensation: US$287.01k
        • Jason Bernhard

          Independent Director

          • Tenure: 0.08yrs
        • William Petrie (72yo)

          Independent Director

          • Tenure: 7.2yrs
          • Compensation: US$269.51k
        • Vicky Gregg (64yo)

          Independent Director

          • Tenure: 3.7yrs
          • Compensation: US$269.51k
        • Wade Miquelon (54yo)

          Independent Director

          • Tenure: 8yrs
          • Compensation: US$274.51k
        • Debbie Osteen (63yo)

          CEO & Director

          • Tenure: 1.1yrs
          • Compensation: US$387.50k

        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$2.965b
        • Shares outstanding: 88.57m
        • 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 and elderly care services; and care first services for employees. As of December 31, 2018, the company operated a network of 583 behavioral healthcare facilities with 18,084 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 Analysis2020/01/20 00:20
        End of Day Share Price2020/01/17 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        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.