Addus Homecare Intrinsic Value Calculation – ADDUS HOMECARE Reports Record Earnings Results for FY2023 Q2
August 9, 2023
🌥️Earnings Overview
On July 31, 2023, ADDUS HOMECARE ($NASDAQ:ADUS) reported its earnings results for the second quarter of fiscal year 2023, which ended on June 30, 2023. Total revenue for the quarter amounted to USD 260.0 million, showing an increase of 9.7% compared to the same period the prior year. The net income for the quarter amounted to USD 14.8 million, a 32.0% year-over-year growth.
Share Price
On Monday, ADDUS HOMECARE reported record earnings results for the second quarter of FY2023, with stock opening at $90.3 and closing at $91.6, up by 1.1% from its prior closing price of $90.6. This marks the highest close in the company’s history and is indicative of a strong performance in the quarter. This strong performance was largely due to strong demand for the company’s home healthcare services, as well as increased efficiency in operations and cost-cutting initiatives. This increase was attributed to a combination of strong top-line growth and improved financial discipline as a result of improved operational efficiency.
This cash flow was mainly driven by increased sales and continued cost-cutting measures. Overall, ADDUS HOMECARE had a strong second quarter and reported record earnings results, which is indicative of a promising outlook for the company going forward. Investors should continue to be bullish on the company’s financials and look for more positive news in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Addus Homecare. More…
| Total Revenues | Net Income | Net Margin |
| 999.12 | 53.83 | 5.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Addus Homecare. More…
| Operations | Investing | Financing |
| 103.02 | -23.27 | -116.48 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Addus Homecare. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 928.38 | 262.03 | 40.04 |
Key Ratios Snapshot
Some of the financial key ratios for Addus Homecare are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.7% | 23.0% | 7.9% |
| FCF Margin | ROE | ROA |
| 9.6% | 7.6% | 5.3% |
Analysis – Addus Homecare Intrinsic Value Calculation
At GoodWhale, we recently completed an analysis of ADDUS HOMECARE‘s financials. Based off our proprietary Valuation Line, we believe that the fair value of ADDUS HOMECARE shares is around $106.8. However, the stock is currently being traded at $91.6, which indicates that it is undervalued by 14.2%. Given that the stock is currently trading at a discount, this presents an attractive opportunity for investors who are looking to get in on a good deal. More…
Peers
The home healthcare industry is highly competitive, with Addus HomeCare Corp competing against larger companies such as EMC Instytut Medyczny SA, New York Health Care Inc, and Beijing Health (Holdings) Ltd. Addus has been able to compete successfully by offering a more personalized and customized approach to home healthcare.
– EMC Instytut Medyczny SA ($LTS:0LTC)
EMC Instytut Medyczny SA is a medical research institute based in Warsaw, Poland. It was founded in 2001 and is one of the leading research institutes in the country. The institute conducts research in various fields of medicine, including oncology, cardiology, and neurology. It has a staff of over 200 scientists and operates a network of clinics and hospitals across Poland.
– New York Health Care Inc ($OTCPK:BBAL)
New York Health Care Inc is a publicly traded company that provides health care services. It has a market capitalization of $335.37 million and a return on equity of 21.67%. The company offers a wide range of health care services, including primary care, specialty care, and hospital care. It also provides a variety of other services, such as home health care, dental care, and mental health services.
– Beijing Health (Holdings) Ltd ($SEHK:02389)
Beijing Health (Holdings) Ltd is a holding company that operates in the healthcare industry. The company has a market cap of 412M as of 2022 and a ROE of -1.75%. The company’s main businesses include hospital management, pharmaceutical retail, and healthcare services.
Summary
ADDUS HOMECARE‘s FY2023 Q2 earnings results showed a 9.7% increase in total revenue compared to the same period the previous year, while net income grew by 32.0%. This is an impressive performance from ADDUS HOMECARE, and should be of interest to investors who are looking for an opportunity to capitalize on strong growth. Furthermore, ADDUS HOMECARE has seen its profits increase significantly, suggesting a healthy bottom line which could sustain further growth in the future.
Investors should also take into account that the company is well-positioned for continued success, given its strong customer base and industry leading technology. All in all, ADDUS HOMECARE looks like a promising investment opportunity for those looking to capitalize on impressive growth.
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