(AHCO) Adapthealth - Overview
Sector: Healthcare | Industry: Medical Devices | Exchange: NASDAQ (USA) | Market Cap: 1.426m USD | Total Return: 11.3% in 12m
Avg Turnover: 14.6M
Qual. Beats: -1
Rev. Trend: -80.4%
Qual. Beats: 0
Warnings
Interest Coverage Ratio 0.7 is critical
Altman Z'' -0.68 < 1.0 - financial distress zone
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
AdaptHealth Corp. (NASDAQ: AHCO) is a national provider of home medical equipment (HME) and medical supplies, operating through four primary segments: Sleep Health, Respiratory Health, Diabetes Health, and Wellness at Home. The company manages a broad inventory ranging from oxygen concentrators and ventilators to insulin pumps and continuous glucose monitors. Its business model relies on a diversified payer mix, servicing patients covered by Medicare, Medicaid, and private commercial insurance.
The company operates within the Health Care Distributors sub-industry, a sector currently driven by an aging U.S. population and a structural shift toward lower-cost home-based care over institutional settings. As a distributor, AdaptHealth functions as a critical intermediary between medical device manufacturers and patients requiring chronic therapy management. Investors looking for deeper fundamental analysis should review the latest valuation metrics for AHCO on ValueRay.
Founded in 2012 and headquartered in Conshohocken, Pennsylvania, the company maintains an extensive distribution network to fulfill prescriptions for durable medical equipment and recurring consumable supplies. This logistical infrastructure is designed to support patient transitions from acute care facilities to home environments while managing complex regulatory and reimbursement frameworks.
- Medicare reimbursement rate fluctuations impact core Sleep and Respiratory revenue margins
- CPAP and diabetes device adoption drives long-term recurring supply revenue growth
- Elevated debt levels and interest expense pressure net income and valuation
- Strategic acquisitions and organic census growth determine market share expansion pace
- Regulatory changes in home healthcare billing affect cash flow and profitability
| Net Income: -79.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -1.85 > 1.0 |
| NWC/Revenue: -1.95% < 20% (prev 6.41%; Δ -8.36% < -1%) |
| CFO/TA 0.14 > 3% & CFO 600.0m > Net Income -79.6m |
| Net Debt (2.13b) to EBITDA (479.2m): 4.45 < 3 |
| Current Ratio: 0.92 > 1.5 & < 3 |
| Outstanding Shares: last quarter (135.8m) vs 12m ago 0.73% < -2% |
| Gross Margin: 5.38% > 18% (prev 0.05%; Δ 533.5% > 0.5%) |
| Asset Turnover: 64.56% > 50% (prev 59.26%; Δ 5.30% > 0%) |
| Interest Coverage Ratio: 0.72 > 6 (EBITDA TTM 479.2m / Interest Expense TTM 102.9m) |
| A: -0.01 (Total Current Assets 687.5m - Total Current Liabilities 743.3m) / Total Assets 4.42b |
| B: -0.15 (Retained Earnings -649.0m / Total Assets 4.42b) |
| C: 0.02 (EBIT TTM 74.3m / Avg Total Assets 4.43b) |
| D: -0.22 (Book Value of Equity -649.0m / Total Liabilities 2.91b) |
| Altman-Z'' = -0.68 = B |
| DSRI: 0.86 (Receivables 392.0m/418.5m, Revenue 2.86b/2.63b) |
| GMI: 0.88 (GM 5.38% / 4.75%) |
| AQI: 0.96 (AQ_t 0.66 / AQ_t-1 0.69) |
| SGI: 1.09 (Revenue 2.86b / 2.63b) |
| TATA: -0.15 (NI -79.6m - CFO 600.0m) / TA 4.42b) |
| Beneish M = -3.36 (Cap -4..+1) = AA |
As of May 27, 2026, the stock is trading at USD 10.36 with a total of 584,048 shares traded.
Over the past week, the price has changed by -3.36%,
over one month by -20.80%,
over three months by +14.10% and
over the past year by +11.28%.
Adapthealth has received a consensus analysts rating of 4.38. Therefore, it is recommended to buy AHCO.
- StrongBuy: 5
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 14 | 35.1% |
P/E Forward = 12.5471
P/S = 0.4338
P/B = 0.9461
Revenue TTM = 2.86b USD
EBIT TTM = 74.3m USD
EBITDA TTM = 479.2m USD
Long Term Debt = 1.80b USD (from longTermDebt, last quarter)
Short Term Debt = 78.3m USD (from shortTermDebt, last quarter)
Debt = 2.18b USD (from shortLongTermDebtTotal, last quarter) + Leases 177.4m
Net Debt = 2.13b USD (calculated: Debt 2.18b - CCE 48.0m)
Enterprise Value = 3.56b USD (1.43b + Debt 2.18b - CCE 48.0m)
Interest Coverage Ratio = 0.72 (Ebit TTM 74.3m / Interest Expense TTM 102.9m)
EV/FCF = 18.53x (Enterprise Value 3.56b / FCF TTM 192.0m)
FCF Yield = 5.40% (FCF TTM 192.0m / Enterprise Value 3.56b)
FCF Margin = 6.71% (FCF TTM 192.0m / Revenue TTM 2.86b)
Net Margin = -2.78% (Net Income TTM -79.6m / Revenue TTM 2.86b)
Gross Margin = 5.38% ((Revenue TTM 2.86b - Cost of Revenue TTM 2.71b) / Revenue TTM)
Gross Margin QoQ = 12.37% (prev 19.17%)
Tobins Q-Ratio = 0.80 (Enterprise Value 3.56b / Total Assets 4.42b)
Interest Expense / Debt = 4.73% (Interest Expense 102.9m / Debt 2.18b)
Taxrate = 21.0% (US default 21%)
NOPAT = 58.7m (EBIT 74.3m * (1 - 21.00%))
Current Ratio = 0.92 (Total Current Assets 687.5m / Total Current Liabilities 743.3m)
Debt / Equity = 1.45 (Debt 2.18b / totalStockholderEquity, last quarter 1.51b)
Debt / EBITDA = 4.45 (Net Debt 2.13b / EBITDA 479.2m)
Debt / FCF = 11.10 (Net Debt 2.13b / FCF TTM 192.0m)
Total Stockholder Equity = 1.56b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.80% (Net Income -79.6m / Total Assets 4.42b)
RoE = -3.61% (Net Income TTM -79.6m / Total Stockholder Equity 2.21b)
RoCE = 1.86% (EBIT 74.3m / Capital Employed (Equity 2.21b + L.T.Debt 1.80b))
RoIC = 1.57% (NOPAT 58.7m / Invested Capital 3.74b)
WACC = 5.66% (E(1.43b)/V(3.60b) * Re(8.60%) + D(2.18b)/V(3.60b) * Rd(4.73%) * (1-Tc(0.21)))
Discount Rate = 8.60% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 37.78 | Cagr: 0.93%
[DCF] Terminal Value 73.10% ; FCFF base≈225.0m ; Y1≈197.3m ; Y5≈159.4m
[DCF] Fair Price = 3.15 (EV 2.56b - Net Debt 2.13b = Equity 428.7m / Shares 136.1m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -1.23 | # QB: -1
Revenue Correlation: -80.41 | Revenue CAGR: -9.37% | SUE: 0.23 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.15 | Chg30d=-31.36% | Revisions=-33% | Analysts=6
EPS next Quarter (2026-09-30): EPS=0.32 | Chg30d=+0.79% | Revisions=+11% | Analysts=6
EPS current Year (2026-12-31): EPS=0.84 | Chg30d=-15.75% | Revisions=-33% | GrowthEPS=+54.9% | GrowthRev=+7.5%
EPS next Year (2027-12-31): EPS=1.17 | Chg30d=-5.15% | Revisions=+0% | GrowthEPS=+39.7% | GrowthRev=+6.5%
[Analyst] Revisions Ratio: -33%