NasdaqGS:ADUS

Stock Analysis Report

Executive Summary

Addus HomeCare Corporation provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States.

Snowflake

Fundamentals

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Addus HomeCare's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ADUS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.8%

ADUS

5.3%

US Healthcare

0.5%

US Market


1 Year Return

27.2%

ADUS

4.4%

US Healthcare

16.1%

US Market

Return vs Industry: ADUS exceeded the US Healthcare industry which returned 4.4% over the past year.

Return vs Market: ADUS exceeded the US Market which returned 16.1% over the past year.


Shareholder returns

ADUSIndustryMarket
7 Day4.8%5.3%0.5%
30 Day4.2%12.3%3.9%
90 Day2.0%15.7%6.6%
1 Year27.2%27.2%6.2%4.4%18.7%16.1%
3 Year163.3%163.3%51.9%45.1%47.2%37.7%
5 Year285.3%285.3%69.6%58.0%61.5%43.7%

Price Volatility Vs. Market

How volatile is Addus HomeCare's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Addus HomeCare undervalued compared to its fair value and its price relative to the market?

8.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADUS ($88.34) is trading below our estimate of fair value ($96.88)

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


Price To Earnings Ratio

PE vs Industry: ADUS is poor value based on its PE Ratio (57.3x) compared to the Healthcare industry average (21.5x).

PE vs Market: ADUS is poor value based on its PE Ratio (57.3x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: ADUS is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: ADUS is overvalued based on its PB Ratio (2.9x) compared to the US Healthcare industry average (2.6x).


Next Steps

Future Growth

How is Addus HomeCare forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

34.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADUS's forecast earnings growth (34.7% per year) is above the savings rate (2.7%).

Earnings vs Market: ADUS's earnings (34.7% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: ADUS's revenue (14.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ADUS's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ADUS's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has Addus HomeCare performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADUS has high quality earnings.

Growing Profit Margin: ADUS's current net profit margins (3.4%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: ADUS's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: ADUS's earnings growth over the past year (27.2%) exceeds its 5-year average (12.5% per year).

Earnings vs Industry: ADUS earnings growth over the past year (27.2%) exceeded the Healthcare industry 9.7%.


Return on Equity

High ROE: ADUS's Return on Equity (4.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Addus HomeCare's financial position?


Financial Position Analysis

Short Term Liabilities: ADUS's short term assets ($386.5M) exceeds its short term liabilities ($76.3M)

Long Term Liabilities: ADUS's short term assets ($386.5M) exceeds its long term liabilities (72.8M)


Debt to Equity History and Analysis

Debt Level: ADUS's debt to equity ratio (12.8%) is considered satisfactory.

Reducing Debt: ADUS's debt to equity ratio has increased from 0% to 12.8% over the past 5 years.

Debt Coverage: ADUS's debt is well covered by operating cash flow (27.6%).

Interest Coverage: ADUS's interest payments on its debt are well covered by EBIT (15.4x coverage).


Balance Sheet

Inventory Level: ADUS has a low level of unsold assets or inventory.

Debt Coverage by Assets: ADUS's debt is covered by short term assets (assets are 6.4x debt).


Next Steps

Dividend

What is Addus HomeCare's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate ADUS'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 ADUS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ADUS'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 ADUS'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 Addus HomeCare's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

R. Allison (63yo)

3.8yrs

Tenure

US$2,944,699

Compensation

Mr. R. Dirk Allison has been the Chief Executive Officer and President of Addus HealthCare Inc. since January 16, 2016. Mr. Allison has been the Chief Executive Officer and President at Addus HomeCare Corp ...


CEO Compensation Analysis

Compensation vs Market: R.'s total compensation ($USD2.94M) is about average for companies of similar size in the US market ($USD3.85M).

Compensation vs Earnings: R.'s compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.0yrs

Average Tenure

54.5yo

Average Age

Experienced Management: ADUS's management team is considered experienced (2 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

61yo

Average Age

Experienced Board: ADUS's board of directors are considered experienced (3.8 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$56,959,50015 Nov 19
Eos
EntityCompany
Shares690,000
Max PriceUS$82.55
SellUS$32,595,20012 Jun 19
Eos
EntityCompany
Shares440,000
Max PriceUS$74.08
SellUS$68,04023 Jan 19
R. Allison
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares1,080
Max PriceUS$63.00
SellUS$45,21218 Jan 19
W. Bickham
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP
Shares705
Max PriceUS$64.13
SellUS$39,128,80129 Nov 18
Eos
EntityCompany
Shares540,000
Max PriceUS$75.21
SellUS$368,80029 Nov 18
Brian Poff
EntityIndividual
Role
Chief Financial Officer
CFO, Executive VP
Shares5,000
Max PriceUS$73.76

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13%.


Management Team

  • R. Allison (63yo)

    CEO, President & Director

    • Tenure: 3.8yrs
    • Compensation: US$2.94m
  • Brad Bickham (56yo)

    COO & Executive VP

    • Tenure: 2.8yrs
    • Compensation: US$1.67m
  • Darby Anderson (53yo)

    Executive VP & Chief Development Officer

    • Tenure: 12.1yrs
    • Compensation: US$911.99k
  • Brian Poff (45yo)

    CFO, Executive VP

    • Tenure: 3.5yrs
    • Compensation: US$1.26m
  • Diane Kumarich

    Senior Vice President of National Contracts & Business Development

    • Tenure: 1.5yrs
  • Laurie Manning (64yo)

    Executive VP & Chief Human Resource Officer

    • Tenure: 2.3yrs
    • Compensation: US$952.83k
  • Paul Akin

    Senior Vice President of Project Management & Integration

    • Tenure: 1.8yrs
  • Matthew Howland

    Senior Vice President of Operations

    • Tenure: 1.8yrs
  • Monica Raines

    Senior VP & Chief Compliance Officer

    • Tenure: 1.5yrs
  • Sean Gaffney (40yo)

    Executive VP & Chief Legal Officer

    • Tenure: 0.6yrs

Board Members

  • Mark First (54yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$139.97k
  • R. Allison (63yo)

    CEO, President & Director

    • Tenure: 3.8yrs
    • Compensation: US$2.94m
  • Steve Geringer (73yo)

    Independent Chairman

    • Tenure: 3.8yrs
    • Compensation: US$167.72k
  • Michael Earley (63yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$152.97k
  • Darin Gordon (48yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$147.47k
  • Susan Weaver (58yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$130.47k
  • Jean Rush (61yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$72.03k

Company Information

Addus HomeCare Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Addus HomeCare Corporation
  • Ticker: ADUS
  • Exchange: NasdaqGS
  • Founded: 1979
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$1.362b
  • Shares outstanding: 15.41m
  • Website: https://www.addus.com

Number of Employees


Location

  • Addus HomeCare Corporation
  • 6801 Gaylord Parkway
  • Suite 110
  • Frisco
  • Texas
  • 75034
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADUSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2009
A41DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2009

Biography

Addus HomeCare Corporation provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States. It ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 00:12
End of Day Share Price2019/11/20 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.