- Earlier this week, Addus HomeCare reported third-quarter results showing a 25% increase in net service revenues and a 31.6% rise in adjusted EBITDA, along with recent insider selling by its Executive Vice President and Chief Government Relations Officer, Darby Anderson, who sold 20,000 shares.
- Expansion through acquisitions such as Del Cielo Home Care Services in Texas is further extending Addus's presence in the growing home-based healthcare sector, even as potential Medicaid and Medicare funding pressures remain on the horizon.
- We'll now explore how Addus's robust Q3 performance and market expansion may influence its future investment narrative.
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Addus HomeCare Investment Narrative Recap
To be a shareholder in Addus HomeCare, you need to believe in the sustained demand for home-based healthcare and the company’s ability to grow through acquisitions, while managing risks related to government funding. The recent Q3 results highlight impressive revenue and earnings growth, but insider selling and persistent funding concerns do not materially affect the immediate catalysts, chiefly, Addus's continued expansion and execution in its core personal care segment. At present, the main short-term risk remains changes to government reimbursement policies, while stable demand conditions remain the biggest catalyst.
Of recent announcements, the acquisition of Del Cielo Home Care Services in Texas stands out. This directly supports Addus’s efforts to build density within key geographies, reinforcing the business’s current growth catalysts and helping mitigate market concentration risks, especially in states with significant Medicaid and Medicare exposure. However, while acquisitions can boost scale, the exposure to regulatory funding shifts...
Read the full narrative on Addus HomeCare (it's free!)
Addus HomeCare's narrative projects $1.7 billion revenue and $136.9 million earnings by 2028. This requires 10.1% yearly revenue growth and a $53.9 million earnings increase from $83.0 million today.
Uncover how Addus HomeCare's forecasts yield a $142.91 fair value, a 27% upside to its current price.
Exploring Other Perspectives
Fair value views from five Simply Wall St Community members span from US$111.80 to US$218.23 per share. Despite strong recent earnings, many are closely watching the risk of upcoming Medicare and Medicaid funding changes, so it pays to compare these outlooks.
Explore 5 other fair value estimates on Addus HomeCare - why the stock might be worth just $111.80!
Build Your Own Addus HomeCare Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Addus HomeCare research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
- Our free Addus HomeCare research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Addus HomeCare's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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