NYSE:AAC

Stock Analysis Report

Executive Summary

AAC Holdings, Inc. provides inpatient and outpatient substance use treatment services for individuals with drug addiction, alcohol addiction, and co-occurring mental/behavioral health issues in the United States.

Snowflake

Fundamentals

Overvalued with concerning outlook.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.1%

AAC

7.0%

US Healthcare

1.0%

US Market


1 Year Return

-94.3%

AAC

-8.8%

US Healthcare

8.0%

US Market

Return vs Industry: AAC underperformed the US Healthcare industry which returned -8.8% over the past year.

Return vs Market: AAC underperformed the US Market which returned 8% over the past year.


Shareholder returns

AACIndustryMarket
7 Day5.1%7.0%1.0%
30 Day-48.9%1.8%-0.07%
90 Day-63.3%-2.7%-1.0%
1 Year-94.3%-94.3%-7.3%-8.8%10.4%8.0%
3 Year-97.7%-97.7%33.7%27.7%46.2%36.7%
5 Year-98.2%-98.2%59.4%48.8%64.3%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.36x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AAC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AAC's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AAC is good value based on its PB Ratio (0.4x) compared to the US Healthcare industry average (2.5x).


Next Steps

Future Growth

How is AAC Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

76.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AAC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AAC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AAC's revenue (7.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: AAC's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AAC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has AAC Holdings performed over the past 5 years?

-80.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AAC is unprofitable, and losses have increased over the past 5 years at a rate of -80.1% per year.

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

Earnings vs Industry: AAC is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (5.6%).


Return on Equity

High ROE: AAC has a negative Return on Equity (-23541.29%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: AAC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: AAC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is AAC Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: AAC's short term assets ($53.3M) do not cover its short term liabilities ($417.4M)

Long Term Liabilities: AAC's short term assets (53.3M) exceeds its long term liabilities (45.3M)


Debt to Equity History and Analysis

Debt Level: AAC's debt to equity ratio (76321%) is considered high

Reducing Debt: AAC's debt to equity ratio has increased from 132.9% to 76321% over the past 5 years.


Balance Sheet

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

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


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AAC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: AAC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -6.2% each year


Next Steps

Dividend

What is AAC Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

1.8yrs

Average management tenure


CEO

Michael Cartwright (51yo)

6.3yrs

Tenure

US$950,499

Compensation

Mr. Michael T. Cartwright co-founded American Addiction Centers, Inc. in 2007 and has been its Chairman since 2011. Mr. Cartwright has been Chief Executive Officer of American Addiction Centers, Inc. since ...


CEO Compensation Analysis

Compensation vs. Market: Michael's total compensation ($USD950.50K) is above average for companies of similar size in the US market ($USD509.77K).

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


Management Age and Tenure

1.8yrs

Average Tenure

47yo

Average Age

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


Board Age and Tenure

7.7yrs

Average Tenure

51yo

Average Age

Experienced Board: AAC's board of directors are considered experienced (7.7 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

BuyUS$161,46212 Jun 19
Lucius Burch
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares201,003
Max PriceUS$0.81
BuyUS$44,43911 Jun 19
Stephen Ebbett
EntityIndividual
Role
Head of Marketing
Chief Digital & Marketing Officer
Shares55,549
Max PriceUS$0.80
BuyUS$13,47022 May 19
W. Cash
EntityIndividual
Shares10,000
Max PriceUS$1.35
BuyUS$45,87003 Dec 18
Michael Nanko
EntityIndividual
Shares21,000
Max PriceUS$2.20
BuyUS$55,75030 Nov 18
W. Cash
EntityIndividual
Shares25,000
Max PriceUS$2.23
BuyUS$54,75030 Nov 18
Darrell Freeman
EntityIndividual
Shares25,000
Max PriceUS$2.19

Ownership Breakdown


Management Team

  • Steve Ebbett (39yo)

    Chief Digital & Marketing Officer

    • Tenure: 1.1yrs
  • Chris Chi (47yo)

    Chief Legal Officer

    • Tenure: 0.8yrs
  • Michael Cartwright (51yo)

    Chairman & CEO

    • Tenure: 6.3yrs
    • Compensation: US$950.50k
  • Mike Stetar

    Chief Technology Officer

    • Tenure: 8.8yrs
  • Andrew McWilliams (47yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
    • Compensation: US$887.68k
  • Larry Weinstein

    Chief Medical Officer

    • Tenure: 1.8yrs
  • Karen Abbott

    Chief Compliance Officer

    • Tenure: 0.7yrs

Board Members

  • Lucius Burch (77yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$140.00k
  • Michael Cartwright (51yo)

    Chairman & CEO

    • Tenure: 6.3yrs
    • Compensation: US$950.50k
  • Jerry Bostelman (50yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$170.00k

Company Information

AAC Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AAC Holdings, Inc.
  • Ticker: AAC
  • Exchange: NYSE
  • Founded: 2014
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: US$9.810m
  • Shares outstanding: 25.22m
  • Website: https://www.americanaddictioncenters.org

Number of Employees


Location

  • AAC Holdings, Inc.
  • 200 Powell Place
  • Brentwood
  • Tennessee
  • 37027
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AACNYSE (New York Stock Exchange)YesNew Common StockUSUSDOct 2014
A36DB (Deutsche Boerse AG)YesNew Common StockDEEUROct 2014

Biography

AAC Holdings, Inc. provides inpatient and outpatient substance use treatment services for individuals with drug addiction, alcohol addiction, and co-occurring mental/behavioral health issues in the United  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:26
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.