Company Overview
Addus HomeCare Corporation operates within the healthcare sector specifically as a medical care facility provider, delivering essential personal care services to elderly, chronically ill, disabled persons, and individuals facing a risk of hospitalization or institutionalization across the United States. This operational model focuses on supporting vulnerable populations in their home environments, thereby addressing the critical need for long-term care outside of traditional institutional settings. The company maintains a substantial market capitalization of $1.85 billion and generates annual revenue of $1.42 billion, supported by a workforce of 5,982 employees. These financial figures indicate that Addus HomeCare holds a significant position within the home health care market, reflecting a mature yet expanding business scale capable of sustaining operations across a broad geographic footprint.
Financial Health
The company reported a trailing twelve-month revenue of $1.42 billion with a corresponding net income of $95.91 million and an EBITDA of $156.23 million, illustrating a substantial gap between top-line revenue and bottom-line profit that reveals a cost structure heavily influenced by labor and operational expenses inherent in the service sector. Free cash flow stands at $72.16 million, which provides the organization with financial flexibility to manage capital expenditures, service expansion, or potential debt servicing without relying solely on external financing. The gross margin is reported at 32.5%, indicating that the company retains roughly one-third of revenue after direct costs of services are deducted, while the operating margin of 11.3% and profit margin of 6.7% demonstrate the efficiency of overhead management and the final impact of all expenses on net earnings. The balance sheet shows $81.62 million in cash against $171.36 million in total debt, resulting in a debt-to-equity ratio of 15.79, which suggests a leveraged capital structure where debt obligations are significantly higher than liquid cash reserves. Liquidity is supported by a current ratio of 1.80, indicating that the company holds sufficient current assets to cover its short-term liabilities with a comfortable buffer. Return on equity is 9.3% and return on assets is 6.1%, metrics that reveal how effectively management generates profits from shareholder investments and the total asset base respectively.
Valuation Assessment
The trailing twelve-month P/E ratio is 19.02, while the forward P/E is projected at 13.33, implying that the market expects earnings growth that will significantly narrow the valuation multiple between the current period and the forward period. The price-to-book ratio stands at 1.66, indicating that the stock trades at a premium of 66% above its book value, which reflects market confidence in the company's intangible assets, brand value, and future service contracts. Alternative valuation metrics include a price-to-sales ratio of 1.30 and an EV/EBITDA of 12.10, suggesting that the company is valued moderately relative to its revenue and cash generation capabilities when adjusted for enterprise value. The stock has a 52-week high of $124.44 and a 52-week low of $89.75, and without a specific current share price provided in the available facts, the valuation range is strictly defined by these historical trading extremes which bound the company's recent volatility. The beta value is 0.93, meaning the stock's price volatility tracks closely with the broader market, exhibiting slightly less sensitivity to market-wide fluctuations than a benchmark index.
Growth & Income
Revenue growth year over year is 25.6%, while earnings growth year over year is 52.1%, demonstrating that profitability is expanding at a rate nearly twice as fast as top-line revenue, which implies improved operational leverage or favorable margin expansion. The company does not pay a dividend, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%, indicating that the organization retains all of its net income for reinvestment into business operations rather than returning cash to shareholders. This retention strategy aligns with the high earnings growth rate, suggesting management prioritizes funding growth initiatives over immediate income distribution. The overall profile combines moderate valuation multiples with strong earnings acceleration and a non-dividend policy, positioning the asset for capital appreciation through business expansion rather than income generation.