Addus HomeCare Stock Analysis, Valuation (NASDAQ:ADUS)
View the Addus HomeCare stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for ADUS stock is shown in the video.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Addus Homecare Corporation Stock Rating 3.5/5
Amigobulls ADUS stock analysis uses latest quarter 2018 Q2 financial data like Addus HomeCare revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for Addus HomeCare valuation analysis. Addus HomeCare stock rating is our opinion about the business fundamentals of the company.
Should you buy ADUS stock?
- The TTM operating margin was good at 5.38 for Addus HomeCare.
- Net margins stood at a healthy 3.4% (average) for Addus HomeCare in the Trailing Twelve Months.
- When compared with the Medical sector average PS ratio of 6.6, the price-to-sales ratio of 1.8 for ADUS stock is attractive.
- Addus HomeCare's return on invested capital of 9.2 is good.
- The LTM ROE of 9 for Addus HomeCare is attractive.
- The company has a healthy free cash flow margin of 3.5.
Should you sell ADUS stock?
- With a debt/equity ratio of 0.55, Addus HomeCare is highly leveraged in comparison to Medical peers.
- The ADUS stock currently trades at a PE of 43.4, which is expensive, compared to the sector average of 25.2.
Amigobulls Addus HomeCare stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of ADUS stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
Among the financials of the company, Addus HomeCare revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of ADUS technical analysis to check whether the fundamental story is reflected in the market sentiment.