What is the AI rating for ACHC?

Acadia Healthcare Company, Inc. (ACHC) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are the key strengths of ACHC?

Adequate liquidity with 1.55x current ratio and $133.2M cash position providing near-term runway. Positive operating cash flow of $131.9M suggesting some cash generation despite net losses. Large revenue base of $3.3B providing market presence in specialty outpatient healthcare

What are the risks of investing in ACHC?

Critical profitability crisis: -$1.1B operating loss and -$1.1B net loss with -33.3% net margin indicates fundamental operational failure. Severely negative free cash flow of -$439.9M combined with $2.5B long-term debt creates imminent refinancing and solvency risk. Deteriorating shareholder value: -56.6% ROE and -$12.16 diluted EPS demonstrate value destruction and potential equity impairment

ACHC Stock Analysis - Acadia Healthcare Company, Inc. AI Rating & Fundamentals

Name: Acadia Healthcare Company, Inc. (ACHC) Stock
Brand: Acadia Healthcare Company, Inc.
Rating: 1 (1 reviews)

Investment Thesis

Acadia Healthcare faces severe operational distress with negative profitability across all metrics, including a -33.3% net margin and -$439.9M free cash flow despite $3.3B in revenue. The company is burning cash operationally while maintaining excessive leverage (1.28x debt-to-equity, $2.5B long-term debt), creating substantial solvency risk. The dramatic revenue increase of 2485.6% YoY suggests a major acquisition or accounting event, yet profitability deteriorated significantly, indicating integration challenges or fundamental business model deterioration.

ACHC Strengths

+ Adequate liquidity with 1.55x current ratio and $133.2M cash position providing near-term runway
+ Positive operating cash flow of $131.9M suggesting some cash generation despite net losses
+ Large revenue base of $3.3B providing market presence in specialty outpatient healthcare

ACHC Risks

! Critical profitability crisis: -$1.1B operating loss and -$1.1B net loss with -33.3% net margin indicates fundamental operational failure
! Severely negative free cash flow of -$439.9M combined with $2.5B long-term debt creates imminent refinancing and solvency risk
! Deteriorating shareholder value: -56.6% ROE and -$12.16 diluted EPS demonstrate value destruction and potential equity impairment
! Negative interest coverage of -38.5x indicates inability to service debt from operations, suggesting unsustainable capital structure
! CapEx of $571.8M exceeds operating cash flow, indicating growth investments failing to generate offsetting returns

Key Metrics to Watch

* Operating cash flow trends and sustainability of $131.9M generation amid negative net income
* Debt refinancing schedule and ability to manage $2.5B long-term debt maturity with negative free cash flow
* Path to operating profitability and operating margin recovery from -32.2%
* Quality of revenue growth and contribution margin from the 2485.6% YoY revenue increase
* Capital expenditure efficiency and ROI on $571.8M CapEx investment

ACHC Financial Metrics

Revenue

$3.3B

Net Income

$-1.1B

EPS (Diluted)

$-12.16

Free Cash Flow

$-439.9M

Total Assets

$5.5B

Cash Position

$133.2M

ACHC Profitability Ratios

Gross Margin N/A

Operating Margin -32.2%

Net Margin -33.3%

ROE -56.6%

ROA -20.0%

FCF Margin -13.3%

ACHC Balance Sheet & Liquidity

Current Ratio

1.55x

Quick Ratio

1.54x

Debt/Equity

1.28x

Debt/Assets

61.3%

Interest Coverage

-38.52x

Long-term Debt

$2.5B

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.

Data Source: SEC EDGAR | Analysis Date: Mar 19, 2026 | Data as of: 2025-12-31 | Powered by Claude AI