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Addus HomeCare Corp (ADUS) stock analysis

ADUSNasdaqServices-Home Health Care ServicesFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 4, 2026Score 20/3014% below fair value
$125.49−0.80 (-0.63%)

Close on Nov 11, 2026Market cap $2.34BP/E 20.9Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value5Growth4Performance5Health6Dividend0

Solid20 of 30 checks passed

Addus HomeCare passes 20 of the 30 checks behind our score; 6 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
5/6
Growth
4/6
Past performance
5/6
Financial health
6/6
Dividend
0/6

What stands out

  • Trading below fair value

    The share price of $125.49 is below our fair value estimate of $145.60.

  • Return on capital over 10%

    Return on invested capital was 10.5%, above the 10% that usually covers the cost of capital.

  • Low debt

    Debt is 1.9% of shareholders' equity, under the 40% we consider low.

  • Earnings grew over 5 years

    Net income grew 23.7% a year on average over the last five fiscal years.

What to watch

  • Margin of safety under 20%

    The price is 13.8% below fair value, less than the 20% cushion we look for.

  • Return on equity under 15%

    Return on equity was 10.0% over the last twelve months and averaged 8.7% over five years; we look for 15% on both.

  • Gross margin slipping

    Gross margin was 32.3% over the last twelve months, against 32.7% a year earlier.

  • No dividend

    Addus HomeCare has not paid a dividend in the last twelve months.

Valuation5/6

  • P/E below its 5-year median

    Addus HomeCare's P/E of 20.9 is below its own 5-year median of 27.3.

  • P/E below the industry

    Addus HomeCare's P/E of 20.9 is below the Health Services median of 23.9.

  • EV/EBITDA below its 5-year median

    Addus HomeCare's EV/EBITDA of 13.2 is below its 5-year median of 17.1.

  • P/B below the industry

    Addus HomeCare's price-to-book of 1.99 is below the Health Services median of 3.52.

  • Trading below fair value

    The share price of $125.49 is below our fair value estimate of $145.60.

  • Margin of safety under 20%

    The price is 13.8% below fair value, less than the 20% cushion we look for.

Growth4/6

  • Revenue growing 10%+ a year

    Revenue grew 14.4% a year over the last three fiscal years.

  • EPS growing 10%+ a year

    Diluted EPS grew 22.5% a year over the last three fiscal years.

  • Earnings growth accelerating

    Net income grew 29.7% over the last twelve months, against a 5-year average of 23.7% a year.

  • Growing faster than the industry

    Revenue grew 11.5% over the last twelve months; the Health Services median is 9.1%.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin slipping

    Gross margin was 32.3% over the last twelve months, against 32.7% a year earlier.

Past performance5/6

  • Return on equity under 15%

    Return on equity was 10.0% over the last twelve months and averaged 8.7% over five years; we look for 15% on both.

  • Return on capital over 10%

    Return on invested capital was 10.5%, above the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    Addus HomeCare's return on equity of 10.0% is above the Health Services median of 4.6%.

  • Earnings grew over 5 years

    Net income grew 23.7% a year on average over the last five fiscal years.

  • Net margin above its 5-year average

    Net margin was 7.4% over the last twelve months, against a 5-year average of 5.8%.

  • Net margin above the industry

    Addus HomeCare's net margin of 7.4% is above the Health Services median of -2.6%.

Financial health6/6

  • Low debt

    Debt is 1.9% of shareholders' equity, under the 40% we consider low.

  • Debt falling against equity

    Debt to equity fell from 37.6% five years ago to 1.9%.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 694% of total debt.

  • Interest well covered

    Operating income covers interest expense 19.7 times.

  • Short-term assets cover short-term debts

    Current assets are 1.64 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 7.21; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Addus HomeCare has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$145.60

The share price is 14% below this estimate.

20%+ below
Near fair value
20%+ above
$125.49Price$145.60Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E25.6×27.3×23.9×$153.6940%
EV/EBITDA16.6×17.1×16.2×$156.7835%
P/B2.9×2.2×3.5×$180.8110%
Earnings power7.6% cost of equity––$74.4515%
Fair value$145.60100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 27.3
  • Health Services median 23.9

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$28.52M
Value traded per 1% price move
$25.17M

Downside

Low risk

Typical loss in a bad month
11.9%
Volatility (annualized)
27%
Sharpe ratio, 1 year
0.25
Beta to the S&P 500 (5Y)
0.54

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

32.5%+2.9 pts over 5 years

Operating margin

9.7%+3.9 pts over 5 years

Net margin

6.7%+2.4 pts over 5 years

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