Addus HomeCare Corporation provides services including personal care and assistance with activities of daily living, and adult day care. The company was founded in 1979 and is based in Downers Grove, Illinois.
ADUS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Addus HomeCare Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Addus HomeCare Corp ranked in the 89th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1860.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for ADUS, they are:
The compound growth rate in the free cash flow of Addus HomeCare Corp over the past 5.41 years is 1.33%; that's higher than 87.95% of free cash flow generating stocks in the Healthcare sector.
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately merely 13.98% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
ADUS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 44.94% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PTN, VASO, SEM, HNGR, and AMS can be thought of as valuation peers to ADUS, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
Investment Thesis Addus HomeCare Corporation (ADUS) operates in the Home Care space, which is expected to grow aggressively over the coming decade due to multiple industry tailwinds. The company has demonstrated strong growth in both earnings and revenue, and management has also succeeded in making several acquisitions in a highly...
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