Addus HomeCare Corporation
$88.49
-1.1%Addus HomeCare Corporation, together with its subsidiaries, provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States. It operates through three segments: Personal Care, Hospice, and Home Health. The Personal Care segment provides non-medical assistance with activities of daily living. This segment offers services that include assistance with bathing, grooming, oral care, feeding and dressing, medication reminders, meal planning and preparation, housekeeping, and transportation services. The Hospice segment provides palliative nursing care, social work, spiritual counseling, homemaker, and bereavement counseling services for people who are terminally ill, as well as related services for their families. The Home Health segment offers skilled nursing and physical, occupational, and speech therapy for the individuals who requires assistance during an illness or after hospitalization. The company's payor clients include federal, state, and local governmental agencies; managed care organizations; commercial insurers; and private individuals. As of December 31, 2021, the company served consumers through 206 offices located in 22 states. Addus HomeCare Corporation was founded in 1979 and is based in Frisco, Texas.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 17.1).
Valuation inputs: P/E 17.1, earnings yield +5.9%, momentum -1.1%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +8.8%, ROIC +8.0%).
Profitability stack: net margin +6.7%, ROE +8.8%, ROIC +8.0%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +24.5%, momentum -1.1%, net margin +6.7%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Addus HomeCare Corporation Market vs Earnings Trajectory
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Addus HomeCare Corporation Fair Value Envelope
Addus HomeCare Corporation Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Addus HomeCare Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Declining FCF warrants attention. Investigate whether due to temporary factors or fundamental deterioration.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
Addus HomeCare Corporation Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Addus HomeCare Corporation Street Expectations Map
Wall Street analysts project that ADUS stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 122.00, with estimates ranging from a low of 92.00 to a high of 139.00.
The consensus 1-year price target stands at 122.00, with estimates ranging from a low of 92.00 to a high of 139.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Addus HomeCare Corporation Insider Positioning
During the last 12 months, insiders have sold $8.10M worth of ADUS shares, with no buying activity reported.
3 Months
0
0.00
678
63.16K
-63K
-$63K
3-6 Months
0
0.00
27.3K
2.99M
-3.0M
-$2.99M
6-9 Months
0
0.00
20.2K
2.20M
-2.2M
-$2.20M
9-12 Months
0
0.00
24.6K
2.84M
-2.8M
-$2.84M
Top Buyers
No buying activity
Top Sellers
Allison R Dirk
Director, Officer: Chairman And Ceo
$3.68M
Anderson Darby
Officer: Evp, Chief Govt Rel Officer
$2.38M
Poff Brian
Officer: Evp, Chief Financial Officer
$518K
Bickham W Bradley
Officer: President And Coo
$463K
Gaffney Sean
Officer: Evp, Chief Legal Officer
$219K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $8.10M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
ADUS has not reported any dividend yield values in the available annual periods.
adus Dividend History
Learning Layer
Related Guides
Build conviction on ADUS by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.