Addus HomeCare Corp (ADUS): A Healthcare Provider with High Outperformance Potential

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Addus HomeCare Corp (ADUS, Financial), a prominent player in the Healthcare Providers & Services industry, is currently trading at $95.79 per share. With a market capitalization of $1.55 billion, the company's stock has seen a gain of 3.07% today and a 2.83% increase over the past four weeks. The GF Score of Addus HomeCare Corp stands at an impressive 95 out of 100, indicating the highest outperformance potential. The GF Score is a comprehensive stock performance ranking system developed by GuruFocus, which is closely correlated with the long-term performance of stocks.

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Financial Strength Analysis

The Financial Strength of Addus HomeCare Corp is ranked at 8 out of 10. This rank is based on several factors including the company's debt burden, debt to revenue ratio, and Altman Z-Score. The company's interest coverage is 8.17, indicating a low debt burden. The debt to revenue ratio is 0.13, suggesting a healthy financial position. The Altman Z-Score of 4.90 further confirms the company's strong financial health.

Profitability Rank Analysis

The Profitability Rank of Addus HomeCare Corp is 9 out of 10. The company's operating margin stands at 7.85%, and the Piotroski F-Score is 6, indicating a stable financial situation. The five-year average trend of the Operating Margin is 9.70%, suggesting consistent profitability. The company has also shown profitability for 10 out of the past 10 years, further enhancing its rank.

Growth Rank Analysis

The Growth Rank of Addus HomeCare Corp is a perfect 10 out of 10. The company's 5-year revenue growth rate is 9.50, and the 3-year revenue growth rate is 8.90. The 5-year EBITDA growth rate is an impressive 15.30, indicating robust growth in the company's business operations.

GF Value Rank Analysis

The GF Value Rank of Addus HomeCare Corp is 9 out of 10. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.

Momentum Rank Analysis

The Momentum Rank of Addus HomeCare Corp is 5 out of 10. This rank is determined using the standardized momentum ratio and other momentum indicators, suggesting a moderate momentum for the company's stock.

Competitor Analysis

When compared to its competitors in the same industry, Addus HomeCare Corp stands out with its high GF Score. US Physical Therapy Inc (USPH, Financial) has a GF Score of 85, ModivCare Inc (MODV, Financial) has a GF Score of 70, and Healthcare Services Group Inc (HCSG, Financial) has a GF Score of 79. This comparison further highlights the strong performance potential of Addus HomeCare Corp. More details about the competitors can be found here.

Conclusion

In conclusion, Addus HomeCare Corp (ADUS, Financial) presents a promising investment opportunity with its high GF Score of 95, indicating the highest outperformance potential. The company's strong financial strength, high profitability, robust growth, and competitive GF Value Rank all contribute to its high GF Score. Based on this comprehensive analysis, Addus HomeCare Corp is expected to continue its strong performance in the future.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.