State Medicaid rate increases: annual rate adjustments (typically 2-4%) directly impact revenue per billable hour across 70% of the business
Same-store census growth: organic growth in clients served within existing contracts, driven by aging demographics and hospital discharge trends
Caregiver wage inflation and retention: labor costs represent 60-65% of revenue, with wage pressures from minimum wage increases and competitive labor markets
M&A activity: the company has historically grown through tuck-in acquisitions of regional home care providers at 5-7x EBITDA multiples
low - Home care services are largely non-discretionary and driven by demographic trends (aging population) rather than economic cycles. Approximately 85% of revenue comes from government programs with stable funding. However, state budget pressures during recessions can delay rate increases or tighten eligibility criteria. Private pay clients (5-10% of revenue) show modest sensitivity to household income and wealth effects.
Rising interest rates have moderate negative impact through two channels: (1) higher borrowing costs on the company's revolving credit facility (currently $150-200M drawn at SOFR + 200-250 bps) used for acquisitions, and (2) valuation multiple compression as investors rotate from growth-oriented healthcare services to higher-yielding alternatives. However, the company's low leverage (0.19x D/E) and strong cash generation ($100M+ operating cash flow) limit financing risk. Rate increases do not materially affect customer demand as services are government-reimbursed.
State Medicaid budget pressures: fiscal constraints in key states (Illinois, New Mexico, New York represent 40%+ of revenue) could lead to rate freezes, eligibility tightening, or program cuts
Regulatory compliance complexity: operating across 24 states requires managing diverse licensing, training, and documentation requirements; compliance failures can result in contract termination or exclusion from government programs
Labor market structural tightness: demographic trends show declining labor force participation among traditional caregiver demographics (women aged 25-54), creating long-term wage pressure and recruitment challenges
growth - The stock attracts investors seeking exposure to demographic tailwinds (aging population, 10,000 Americans turning 65 daily through 2030) and healthcare services consolidation. The company's 9-10% organic revenue growth, M&A optionality, and margin expansion story appeal to growth-at-a-reasonable-price (GARP) investors. The 5.3% FCF yield and low leverage also attract quality-focused investors seeking defensive growth with downside protection.
No analyst coverage available for this stock.
2 signals unavailable — limited data for this stock
Trend
-5.7% vs SMA 50 · -10.6% vs SMA 200
Momentum
Volume distribution is neutral or leaning toward distribution. No compelling squeeze setup based on current money flow data.
Based on volume distribution analysis. Direct short interest data (short float %, days to cover) is not available in current data sources.
ADUS News
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About
addus homecare corporation provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the united states. it operates in three segments: personal care, hospice, and home health. the personal care segment provides non-medical assistance with activities of daily living. this segment's services include assistance with bathing, grooming, oral care, feeding and dressing, medication reminders, meal planning and preparation, housekeeping, and transportation services. the hospice segment provides palliative nursing care, social work, spiritual counseling, homemaker, and bereavement counseling services for people who are terminally ill, as well as related services for their families. the home health segment offers skilled nursing and physical, occupational, and speech therapy for the individuals who requires assistance during an illness or after hospitalization. the company's payor clients include f
| Symbol | Price | Day % | Mkt Cap↓ | P/E | Rev Grw | Margin | ELO |
|---|---|---|---|---|---|---|---|
ADUS◀ | $99.56 | +2.76% | $1.9B | 19.1 | +2320.6% | 674.2% | 1500 |
| $68.56 | -3.59% | $13.3B | — | +12626.1% | -14525.8% | 1500 | |
| $513.72 | -0.71% | $11.8B | — | +43205.3% | -3008.0% | 1500 | |
| $87.60 | +0.60% | $11.5B | — | +3288.2% | -4239.0% | 1500 | |
| $183.72 | -1.59% | $10.7B | 29.2 | +1871.5% | 680.1% | 1500 | |
| $206.53 | -0.59% | $10.6B | — | +6554.5% | -2868.8% | 1500 | |
| $74.81 | +1.81% | $10.5B | 51.8 | +2325815.3% | -19.7% | 1500 | |
| Sector avg | — | -0.19% | — | 33.4 | +342240.2% | -3329.6% | 1500 |