Amedisys Intrinsic Stock Value – Amedisys Divests Personal Care Division to HouseWorks, Focusing on Home Health, Hospice and High Acuity Care Units.
February 17, 2023
Trending News ☀️
Amedisys Intrinsic Stock Value – Amedisys ($NASDAQ:AMED) recently announced an agreement with HouseWorks to divest its personal care division as part of a larger shift towards focusing on Home Health, Hospice, and High Acuity Care units. This move towards further specializing in their Home Health and other vital services comes after Amedisys first acquired the Massachusetts-based personal care company, Associated Home Care, in 2016. HouseWorks, eCaring’s partner, provides software and services to more than 75 home care agencies with over 15,000 caregivers and is primed to take over the operations that Amedisys divested.
This new focus for Amedisys is sure to create positive changes for the company and their customers. Even though the divestment of their personal care division is a change from what they have done in the past, it is one that highlights their desire to become a more specialized provider of Home Health and other important services. By divesting the personal care division, Amedisys can continue to expand their Home Health and other units, improving services for patients and giving peace of mind to those who trust them with their care.
Stock Price
Following the news, AMEDISYS stock opened at $95.4 and closed at $96.9, up by 1.8% from the prior closing price of 95.2. It appears investors are giving the move a thumbs up across the board. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Amedisys. More…
| Total Revenues | Net Income | Net Margin |
| 2.22k | 120.94 | 5.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Amedisys. More…
| Operations | Investing | Financing |
| 97.57 | -104.29 | -90.03 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Amedisys. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.98k | 912.52 | 31.27 |
Key Ratios Snapshot
Some of the financial key ratios for Amedisys are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.5% | 2.5% | 8.3% |
| FCF Margin | ROE | ROA |
| 4.1% | 11.6% | 5.8% |
Analysis – Amedisys Intrinsic Stock Value
At GoodWhale, we have conducted an extensive analysis of AMEDISYS‘s fundamentals. Using our proprietary Valuation Line, we have determined that the fair value of AMEDISYS shares is around $190.4. This is significantly more than the current trading price of $96.9, representing an undervaluation of 49.1%. This is a great opportunity to invest in AMEDISYS and benefit from the increase in share price. More…
Peers
Its competitors include National Healthcare Corp, Aveanna Healthcare Holdings Inc, and Nova Leap Health Corp.
– National Healthcare Corp ($NYSEAM:NHC)
National Healthcare Corporation is a diversified healthcare services company that owns and operates long-term care facilities, hospitals, home health agencies, and hospice care businesses. The company has a market capitalization of $942.75 million and a return on equity of 2.65%. National Healthcare Corporation is headquartered in Nashville, Tennessee.
– Aveanna Healthcare Holdings Inc ($NASDAQ:AVAH)
Aveanna Healthcare Holdings Inc is a publicly traded company that provides health care services. The company has a market capitalization of 290.03 million as of 2022 and a return on equity of -71.08%. The company’s primary business is providing in-home health care services to patients. The company operates in the United States, Canada, and Puerto Rico.
– Nova Leap Health Corp ($TSXV:NLH)
Nova Leap Health Corp is a Canadian publicly traded company with a market cap of 23.25M as of 2022. The company is a provider of home health care services. The company has a Return on Equity of 1.6%. The company’s services include personal care, nursing, and homemaking services.
Summary
Investors have reacted positively to the news that Amedisys, a US based home health services provider, has divested its Personal Care division to HouseWorks to better focus on its Home Health, Hospice and High Acuity units. Analysts believe that the divesture will allow Amedisys to become more focused on its core business, bolstering its bottom line and leading to improved profitability. In addition, Amedisys is expected to increase its market share in the home health market due to its increased resources. With the divestment now complete, investors are optimistic that Amedisys is positioned for success in the future.
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