Addus HomeCare (ADUS) just posted third quarter results that showed net income of US$28.59 million and diluted EPS from continuing operations of US$1.54, both above the prior year period.
The stronger third quarter numbers arrived alongside a 1-day share price return of 3.16%, with Addus HomeCare now trading at US$126.29 and posting a 30-day share price return of 10.46% and a year-to-date share price gain of 18.49%.
Scan beyond Addus HomeCare and review hand picked peers delivering stronger earnings momentum in homecare and healthcare services through the 20 high quality undiscovered gems.
Addus HomeCare now carries fresher earnings and a higher share price, so the real tension is simple. Does the current valuation still leave enough upside for new buyers compared with the risks from here?
Most Popular Narrative: 5.5% Undervalued
On the analyst consensus Narrative on Simply Wall St, Addus HomeCare carries a fair value of $133.69 against a last close of $126.29. This frames the latest earnings beat as a story of modest undervaluation built on personal care scale, technology and acquisitions.
Ongoing expansion through acquisitions, now including the agreed purchase of AccentCare’s personal care division that is expected to add about US$280 million in annualized revenue and be immediately accretive, can increase scale and density in key states and support higher absolute EBITDA and cash flow.
See why 13 investors see Addus HomeCare as 6% undervalued.
Result: Fair Value of $133.69 (UNDERVALUED)
Still, the Addus HomeCare story can change quickly if Medicaid funding tightens or if caregiver wage pressure affects margins more than analysts expect.
Find out about the key risks to this Addus HomeCare narrative.
Next Steps
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