Adapthealth Corp.

AHCO

Services-Home Health Care Services

Mkt Cap

$1.344B

PE

-1.93

Debt

$2.239B

Cash

$79.57M

EV

$3.503B

FCF

$53.22M

Market Cap

$1.344B

P/E Ratio

-1.93

Debt

$2.239B

Cash

$79.57M

EV

$3.503B

FCF

$53.22M

Charts data: {"Earnings":[{"time":"2017-12-30","value":-693},{"time":"2018-12-30","value":2086094},{"time":"2019-12-30","value":-17062000},{"time":"2020-12-30","value":-64481000},{"time":"2021-12-30","value":141796000},{"time":"2022-12-30","value":63449000},{"time":"2023-12-30","value":-678895000}],"Sales":[{"time":"2018-12-30","value":345278337},{"time":"2019-12-30","value":529644247},{"time":"2020-12-30","value":1056389000},{"time":"2021-12-30","value":2454535000},{"time":"2022-12-30","value":2970595000},{"time":"2023-12-30","value":3200177000}],"Net Margins":[{"time":"2018-12-30","value":0.0060417749289611525},{"time":"2019-12-30","value":-0.03221407595124884},{"time":"2020-12-30","value":-0.06103906799483902},{"time":"2021-12-30","value":0.05776898679383264},{"time":"2022-12-30","value":0.021359020667576698},{"time":"2023-12-30","value":-0.2121429533428932}],"Assets":[{"time":"2017-12-30","value":310616},{"time":"2018-12-30","value":254124282},{"time":"2019-12-30","value":546121693},{"time":"2020-12-30","value":1813472000},{"time":"2021-12-30","value":5250484000},{"time":"2022-12-30","value":5219587000},{"time":"2023-12-30","value":4508650000}],"Stockholders Equity":[{"time":"2017-12-30","value":24307},{"time":"2018-12-30","value":113274181},{"time":"2019-12-30","value":-14519195},{"time":"2020-12-30","value":418343000},{"time":"2021-12-30","value":2066689000},{"time":"2022-12-30","value":2157758000},{"time":"2023-12-30","value":1466669000}],"ROE":[{"time":"2017-12-30","value":-0.028510305673262844},{"time":"2018-12-30","value":0.01841632383994019},{"time":"2019-12-30","value":1.1751340208599719},{"time":"2020-12-30","value":-0.15413428693679587},{"time":"2021-12-30","value":0.06861022630884472},{"time":"2022-12-30","value":0.029405058398578526},{"time":"2023-12-30","value":-0.4628822181419257}],"ROA":[{"time":"2017-12-30","value":-0.002231050557601669},{"time":"2018-12-30","value":0.011474310825598319},{"time":"2019-12-30","value":0.05437767695486874},{"time":"2020-12-30","value":0.03934221206613612},{"time":"2021-12-30","value":0.04296841967331012},{"time":"2022-12-30","value":0.03648008932507495},{"time":"2023-12-30","value":-0.1327228771361716}]}

AdaptHealth Corp., together with its subsidiaries, provides home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, supplies, and related services, including CPAP and bi-PAP services to individuals suffering from obstructive sleep apnea; medical devices and supplies, including continuous glucose monitors and insulin pumps to patients for the treatment of diabetes; HME to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home; and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy, and nutritional supply needs. It serves beneficiaries of Medicare, Medicaid, and commercial insurance payors. The company is headquartered in Plymouth Meeting, Pennsylvania.

Sector

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10-Q
3/31/18

DCF

Discounted Cash Flow Valuation of Adapthealth Corp.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$53.22M	$43.39M	$35.38M	$28.84M	$23.51M	$19.17M	$15.63M	$12.74M	$10.39M	$8.471M	$6.906M	$69.06M
DCF		$37.73M	$26.75M	$18.96M	$13.44M	$9.532M	$6.758M	$4.791M	$3.396M	$2.408M	$1.707M	$17.07M
Value	$142.6M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 100%

Earnings Stability -49%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-	0.6%	-3.2%	-6.1%	5.8%	2.1%	-21%	-21%
ROA	-0.22%	1.1%	5.4%	3.9%	4.3%	3.6%	-13%	-13%
ROE	-2.9%	1.8%	120%	-15%	6.9%	2.9%	-46%	-47%

What is the average Net Margin?

The average Net Margin over the past 5 years is -3.67%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -2.32%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +0.87%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -2.2%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +11.24%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -16.06%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-	-	10.37	5.17	31.16	-128.16	15.53	42.07
Debt Equity	-	1.25	-27.91	1.93	1.09	1.04	1.52	1.52
MIN
Graham Stability	-	-	-	-	-	100%	-1.4K%	-1.4K%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 42.07.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -12.30.

What is the Graham’s Stability?

Graham’s Stability measure stands at -14.47.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Data are missing

Years	12-2018	12-2020	12-2022	Trend
Revenue	56%	45%	7.7%	-17%
Net Income	-	-	-	-
Stockholders Equity	67%	52%	-32%	-100K%
FCF	-	-2.8%	-	-350%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +56.1%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -16.98%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +66.89%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -99.84K%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -352.38%.