NasdaqCM:AHCO

Stock Analysis Report

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Executive Summary

AdaptHealth Corp., together with its subsidiaries, provides home healthcare equipment, medical supplies, and home and related services in the United States. More Details


Snowflake Analysis

High growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AHCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: AHCO's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

17.4%

AHCO

3.7%

US Healthcare

1.5%

US Market


1 Year Return

262.1%

AHCO

17.3%

US Healthcare

22.3%

US Market

Return vs Industry: AHCO exceeded the US Healthcare industry which returned 17.3% over the past year.

Return vs Market: AHCO exceeded the US Market which returned 22.3% over the past year.


Shareholder returns

AHCOIndustryMarket
7 Day17.4%3.7%1.5%
30 Day16.5%3.3%8.8%
90 Day64.8%15.1%10.8%
1 Year262.1%262.1%18.9%17.3%25.1%22.3%
3 Yearn/a41.4%35.5%49.5%39.6%
5 Yearn/a84.9%71.6%105.8%83.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

36.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AHCO ($34.94) is trading below our estimate of fair value ($55)

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


Price To Earnings Ratio

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

PE vs Market: AHCO 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 AHCO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AHCO is overvalued based on its PB Ratio (4.9x) compared to the US Healthcare industry average (3.2x).


Next Steps

Future Growth

How is AdaptHealth forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

69.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AHCO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: AHCO's revenue (35.8% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: AHCO's revenue (35.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AHCO's Return on Equity is forecast to be low in 3 years time (15.9%).


Next Steps

Past Performance

How has AdaptHealth performed over the past 5 years?

-35.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AHCO is currently unprofitable.

Growing Profit Margin: AHCO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AHCO is unprofitable, and losses have increased over the past 5 years at a rate of 35.5% per year.

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

Earnings vs Industry: AHCO is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (22.6%).


Return on Equity

High ROE: AHCO has a negative Return on Equity (0.22%), as it is currently unprofitable.


Next Steps

Financial Health

How is AdaptHealth's financial position?


Financial Position Analysis

Short Term Liabilities: AHCO's short term assets ($484.4M) exceed its short term liabilities ($314.8M).

Long Term Liabilities: AHCO's short term assets ($484.4M) do not cover its long term liabilities ($794.3M).


Debt to Equity History and Analysis

Debt Level: AHCO's debt to equity ratio (170.3%) is considered high.

Reducing Debt: Insufficient data to determine if AHCO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: AHCO's debt is well covered by operating cash flow (21.7%).

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


Balance Sheet


Next Steps

Dividend

What is AdaptHealth current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if AHCO'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 AHCO'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?

1.8yrs

Average management tenure


CEO

Luke McGee (37 yo)

8.92yrs

Tenure

US$9,480,071

Compensation

Mr. Luke McGee serves as the Chief Executive Officer of QMES Holdings LLC since November 11, 2017. Mr. McGee serves as the Chief Executive Officer of AdaptHealth Corp. since 2012 and its Director since Nov...


CEO Compensation Analysis

Compensation vs Market: Luke's total compensation ($USD9.48M) is above average for companies of similar size in the US market ($USD5.19M).

Compensation vs Earnings: Luke's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Luke McGee
CEO & Director8.92yrsUS$9.48m1.05%
$ 32.8m
Joshua Parnes
President & Director1.08yrsUS$6.83m0.35%
$ 10.9m
Christopher Joyce
General Counsel & Secretary2.92yrsUS$2.40m0.20%
$ 6.4m
Jason Clemens
Chief Financial Officer0.33yrno data0.093%
$ 2.9m
Shaw Rietkerk
Chief Operating Officerno datano data0.17%
$ 5.3m
Frank Mullen
Chief Accounting Officer0.25yrno datano data
Andy Palan
Chief Technology Officer0.67yrno datano data
Brittany Lett
Vice President of Marketingno datano datano data

1.8yrs

Average Tenure

43.5yo

Average Age

Experienced Management: AHCO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Luke McGee
CEO & Director8.92yrsUS$9.48m1.05%
$ 32.8m
Joshua Parnes
President & Director1.08yrsUS$6.83m0.35%
$ 10.9m
Richard Barasch
Independent Chairman of the Board1.08yrsUS$119.10k2.14%
$ 67.2m
Dale Wolf
Independent Director1.08yrsUS$65.80k0.031%
$ 978.7k
Alan Quasha
Independent Director1.08yrsUS$79.13k0.019%
$ 581.3k
Bradley Coppens
Director0.42yrno data0.0070%
$ 220.5k
David Williams
Director0.42yrno data0.0070%
$ 220.5k
Susan Weaver
Independent Director2.83yrsUS$72.05k0.046%
$ 1.4m
Terence Connors
Independent Director1.08yrsUS$78.30k0.015%
$ 465.1k

1.1yrs

Average Tenure

59yo

Average Age

Experienced Board: AHCO's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24.3%.


Top Shareholders

Company Information

AdaptHealth Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AdaptHealth Corp.
  • Ticker: AHCO
  • Exchange: NasdaqCM
  • Founded:
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Implied Market Cap: US$3.132b
  • Market Cap: US$2.237b
  • Shares outstanding: 89.63m
  • Website: https://www.adapthealth.com

Number of Employees


Location

  • AdaptHealth Corp.
  • 220 West Germantown Pike
  • Suite 250
  • Plymouth Meeting
  • Pennsylvania
  • 19462
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AHCONasdaqCM (Nasdaq Capital Market)YesClass A Common StockUSUSDNov 2019

Biography

AdaptHealth Corp., together with its subsidiaries, provides home healthcare equipment, medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, su...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/05 23:03
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
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.