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Fundamental analysis: AdaptHealth Corp. (AHCO)

Awarener score: 4.2

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (unknown) and growth (unknown), and the company's inclination to return cash to the stockholders (Bottom).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: a result could not be reached

  • Business growth could not be estimated, due to not enough input data. It's been unavailable to compare with peer companies.
  • AdaptHealth Corp. business stability could not be estimated, due to insufficient input data. It looks we cannot compare it to rivals.

Margins score: 5.7

  • AHCO profit margins -on goods and services sold- are usually hardly sufficient. They stand mediocre against rival companies.
  • Business profit on sales tends to be good. It's great when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain excellent in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still well ranked against similar companies.
  • Profits -before income taxes- are usually hardly sufficient considering total sales, and remain more than average in relation to rivals.
  • Total net profit tends to be hardly sufficient when confronted to sales. Company stands more than average in relation to comparable firms.

Growth score: 1.6

  • AdaptHealth Corp. profit -on goods and services sold- has been growing at a low pace. It's been in good shape compared to competitors.
  • In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
  • In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
  • In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
  • In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
  • In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
  • The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 6.0

  • AHCO had to pay sparse income taxes in relation to profits made in the past years. It's been slightly worse than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 5.2

  • AdaptHealth Corp. usually gets sufficient returns on the resources it controls. It proves more than average in relation to peer firms.
  • Due to insufficient track history, we were unable to estimate typical returns on invested capital (ROIC). They remain undisclosed in relation to similar companies.
  • Normal return on equity (ROE) is unavailable at this time, because of not enough yearly inputs to calculate. It ranks unknown against competitors.
  • In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 3.2

  • AHCO usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands great when measured against rival firms.
  • The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is weak when measured against industry peers.
  • In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
  • The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
  • As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
  • The company has greatly enlarged the pool of investors in previous years, resulting in more mouths feeding on the pie of profits. It remains in a very weak position compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 4.6

  • AdaptHealth Corp. intangible assets (like brands and goodwill) represent a huge portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
  • The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be a disappointment compared to similar firms.
  • A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains worse than most rival firms.
  • Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. It looks last-in-rank when measured against rivals.
  • For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's a disappointment compared to peer firms.
  • For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is bottom tier against similar enterprises.
  • Usually, sales are on a month and a half credit. It still ranks more than average in relation to peers.
  • Normally has approximately somewhat less than one month of sales worth in inventory. It comes up as excellent in relation to competitors.
  • On average, it takes less than three months from the purchase to charging customers. It happens to be top-notch against peers.
  • On average pays suppliers two months after the purchase. It ranks substantially worse when measured against industry peers.
  • The company pays its suppliers less than one month before charging its customers, so there's little money invested in working capital. It's excellent in relation to similar companies.
  • Usual business earnings barely cover net interest expenses. Creditors may be earning money by assuming risks, but hardly shareholders. Situation is risky, profitability must increase, or additional stockholders' funding will eventually be required. It stands worse than most rival firms.
  • Business earnings have usually been extremely low when measured against loans taken. Even severely cutting back reinvesting in the business, it could take more than twenty years to repay the obligations. Additional stockholders' funding may be a quicker way, but at the cost of increasing the mouths to feed on the eventual pie of profits. It ranks weak when measured against comparable enterprises.
  • Revenues are reasonable in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks rather normal in relation to similar firms.
  • Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 4.8

  • AdaptHealth Corp. looks very expensive in relation to profits and financial position. It happens to be great when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands top-notch against similar companies.
  • The company usually generates somewhat more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be reasonable. It's still great when measured against industry firms.
  • In the past twelve months, the company has greatly enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among plenty more stockholders. It came up in a very weak position compared to peer ventures.
  • The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks bottom tier against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is somewhat high. Improvement expectations are already in the stock price, which presents some risks. It ranks great when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks excellent in relation to rival firms.
  • The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains well ranked against peer firms.
  • In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a mediocre earnings power ability when measured against the current stock price and financial position. It's still in good shape compared to peer companies.

Total score: 4.4


AHCO logos

Company at a glance: AdaptHealth Corp. (AHCO)

Sector, industry: Healthcare, Medical Devices

Market Cap: 2.69 billions

Revenues TTM: 2.79 billions

AdaptHealth Corp., together with its subsidiaries, provides home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, supplies, and related services, such as CPAP and bi-PAP services to individuals suffering from obstructive sleep apnea; medical devices and supplies, including continuous glucose monitors and insulin pumps to patients for the treatment of diabetes; HME to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home; and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy, and nutritional supply needs. It serves beneficiaries of Medicare, Medicaid, and commercial insurance payors. AdaptHealth Corp. is headquartered in Plymouth Meeting, Pennsylvania.

Awarener score: 4.2

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (unknown) and growth (unknown), and the company's inclination to return cash to the stockholders (Bottom).