Company Overview
Acadia Healthcare Company, Inc. operates within the Healthcare sector, specifically the Medical Care Facilities industry, providing behavioral healthcare services across the United States and Puerto Rico. The company owns and operates a network of acute inpatient psychiatric facilities, specialty treatment facilities comprising residential recovery centers, and eating disorder facilities. In terms of scale, the company maintains a market capitalization of $2.10B and generates annual revenue of $3.31B while employing approximately 19,000 individuals. The combination of a $2.10B market cap and $3.31B in revenue indicates that Acadia Healthcare holds a significant operational footprint within the behavioral health landscape, supported by a substantial workforce of 19,000 employees to deliver its specialized services.
Financial Health
The company reports revenue of $3.31B for the trailing twelve months, yet it recorded a net income of -$1,102,771,968, revealing a substantial gap between top-line sales and bottom-line profitability that suggests a heavy cost structure or significant non-operating expenses impacting the bottom line. Despite the net loss, the company generated an EBITDA of $577.21M, which serves as a proxy for operating cash flow before interest and taxes. The free cash flow stands at -$370,052,864, indicating that current operational cash generation is insufficient to cover capital expenditures and other cash outflows, thereby limiting immediate financial flexibility for debt repayment or acquisitions. The margins reflect this financial pressure, with a gross margin of 41.5%, an operating margin of 5.8%, and a negative profit margin of -33.3%, where the wide disparity between the positive operating margin and negative profit margin highlights the impact of interest or other non-operating costs. Regarding liquidity and leverage, the company holds $133.24M in cash against $2.65B in total debt, resulting in a debt-to-equity ratio of 124.03, which characterizes a highly leveraged balance sheet rather than a conservative one. Short-term liquidity is supported by a current ratio of 1.55, suggesting the company can cover its short-term obligations with its current assets, though the high leverage complicates this picture. Finally, the Return on Equity is -41.0% while the Return on Assets is 4.2%, revealing that management effectiveness is currently challenged by the negative equity impact, even though the assets generate a modest positive return.
Valuation Assessment
Valuation metrics present a complex picture, with a trailing P/E ratio of N/A due to the lack of positive earnings, while the forward P/E is 13.56, implying that the market expects earnings to recover or turn positive in the future to justify this multiple. The price-to-book ratio is 1.05, indicating that the company trades at a slight premium to its book value, which is notable given the negative net income. Alternative valuation metrics such as the price-to-sales ratio of 0.63 and an EV/EBITDA of 8.33 suggest that the market is pricing the company based on sales and adjusted earnings power rather than current profitability. The stock has a 52-week high of $31.04 and a 52-week low of $11.43, and without a specific current price provided in the facts, the range defines the recent volatility, with the forward P/E suggesting a re-rating potential if earnings improve. The beta of 0.73 indicates that the stock exhibits lower price volatility relative to the broader market, moving less than 1:1 with market swings.
Growth & Income
The company demonstrates a revenue growth rate of 6.1% year-over-year, whereas earnings growth is N/A due to the negative net income, implying that top-line expansion is currently outpacing any bottom-line improvement. The company does not pay dividends, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which means the company reinvests its earnings or retains capital rather than distributing income to shareholders. This reinvestment strategy is necessitated by the negative net income and negative free cash flow, preventing the distribution of profits to investors. Overall, the growth and income profile is defined by solid top-line expansion of 6.1% paired with a complete absence of dividend income, reflecting a capital-intensive phase where growth is prioritized over shareholder distributions.