📊 ADUS Key Takeaways
Is Addus HomeCare Corp (ADUS) a Good Investment?
Addus demonstrates robust fundamental strength with 23.2% YoY revenue growth and exceptional free cash flow generation (13.9% FCF margin), supported by a fortress balance sheet (0.08x D/E). However, weak returns on equity (2.2%) and assets (1.7%) indicate capital deployment inefficiencies that create execution risk despite strong operational momentum.
Addus HomeCare shows strong fundamental momentum with 23.2% revenue growth, 30.3% net income growth, and 23.4% EPS growth, indicating operating leverage and solid execution. The balance sheet is conservative with low debt, strong liquidity, and healthy free cash flow generation, which supports resilience and flexibility. Profitability is solid for the industry, though ROE remains moderate and margin durability should be monitored as the business scales.
Why Buy Addus HomeCare Corp Stock? ADUS Key Strengths
- Strong organic revenue growth of 23.2% YoY with consistent EPS growth of 23.4%, indicating sustainable demand in home healthcare sector
- Exceptional free cash flow generation at $50.7M (13.9% FCF margin) with minimal capex requirements ($1.7M), demonstrating capital-light business model and cash conversion efficiency
- Conservative balance sheet with low leverage (0.08x D/E), strong interest coverage (15.8x), and solid liquidity (1.83x current ratio) providing financial flexibility
- Strong double-digit revenue, net income, and EPS growth, indicating high-quality expansion
- Healthy profitability profile with 32.5% gross margin, 9.7% operating margin, and positive operating leverage
- Conservative financial position with 1.80x current ratio, 0.11x debt-to-equity, and over $100M in free cash flow
ADUS Stock Risks: Addus HomeCare Corp Investment Risks
- Severely depressed return on equity (2.2%) and return on assets (1.7%) despite profitability, suggesting significant capital inefficiency or excess asset base requiring management resolution
- Exposure to labor cost inflation, regulatory changes, and healthcare reimbursement rate pressures inherent to service sector and Medicare/Medicaid-dependent business
- Significant margin compression from operating (9.4%) to net (6.9%) indicating material non-operating expenses that require clarification and monitoring
- Net margin of 6.7% leaves limited room if reimbursement rates, labor costs, or service mix deteriorate
- ROE of 8.8% is respectable but not especially strong relative to the equity base
- Growth quality should be watched to ensure earnings and cash flow keep pace with revenue over time
Key Metrics to Watch
- Return on Equity and Return on Assets trajectory - critical to validate whether capital efficiency improves with scale
- Free Cash Flow sustainability and growth rate relative to revenue growth deceleration
- Debt/Equity ratio and capital deployment strategy - monitor for acquisitions, buybacks, or shareholder distributions
- Operating margin and net margin trend
- Free cash flow conversion versus net income
Addus HomeCare Corp (ADUS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Addus HomeCare Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ADUS Profit Margin, ROE & Profitability Analysis
ADUS vs Services Sector: How Addus HomeCare Corp Compares
How Addus HomeCare Corp compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Addus HomeCare Corp Stock Overvalued? ADUS Valuation Analysis 2026
Based on fundamental analysis, Addus HomeCare Corp has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Addus HomeCare Corp Balance Sheet: ADUS Debt, Cash & Liquidity
ADUS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Addus HomeCare Corp's revenue has grown significantly by 65% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.83 reflects profitable operations.
ADUS Revenue Growth, EPS Growth & YoY Performance
ADUS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $337.7M | $21.2M | $1.16 |
| Q3 2025 | $289.8M | $20.2M | $1.10 |
| Q2 2025 | $286.9M | $18.1M | $1.10 |
| Q1 2025 | $280.7M | $15.8M | $0.97 |
| Q3 2024 | $270.7M | $15.4M | $0.95 |
| Q2 2024 | $260.0M | $14.9M | $0.91 |
| Q1 2024 | $251.6M | $12.7M | $0.78 |
| Q3 2023 | $240.5M | $11.5M | $0.71 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Addus HomeCare Corp Dividends, Buybacks & Capital Allocation
ADUS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Addus HomeCare Corp (CIK: 0001468328)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ADUS
What is the AI rating for ADUS?
Addus HomeCare Corp (ADUS) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ADUS's key strengths?
Claude: Strong organic revenue growth of 23.2% YoY with consistent EPS growth of 23.4%, indicating sustainable demand in home healthcare sector. Exceptional free cash flow generation at $50.7M (13.9% FCF margin) with minimal capex requirements ($1.7M), demonstrating capital-light business model and cash conversion efficiency. ChatGPT: Strong double-digit revenue, net income, and EPS growth, indicating high-quality expansion. Healthy profitability profile with 32.5% gross margin, 9.7% operating margin, and positive operating leverage.
What are the risks of investing in ADUS?
Claude: Severely depressed return on equity (2.2%) and return on assets (1.7%) despite profitability, suggesting significant capital inefficiency or excess asset base requiring management resolution. Exposure to labor cost inflation, regulatory changes, and healthcare reimbursement rate pressures inherent to service sector and Medicare/Medicaid-dependent business. ChatGPT: Net margin of 6.7% leaves limited room if reimbursement rates, labor costs, or service mix deteriorate. ROE of 8.8% is respectable but not especially strong relative to the equity base.
What is ADUS's revenue and growth?
Addus HomeCare Corp reported revenue of $363.6M.
Does ADUS pay dividends?
Addus HomeCare Corp does not currently pay dividends.
Where can I find ADUS SEC filings?
Official SEC filings for Addus HomeCare Corp (CIK: 0001468328) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ADUS's EPS?
Addus HomeCare Corp has a diluted EPS of $1.36.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ADUS a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Addus HomeCare Corp has a BUY rating with 82% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ADUS stock overvalued or undervalued?
Valuation metrics for ADUS: ROE of 2.2% (sector avg: 16%), net margin of 6.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ADUS stock in 2026?
Our dual AI analysis gives Addus HomeCare Corp a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ADUS's free cash flow?
Addus HomeCare Corp's operating cash flow is $52.4M, with capital expenditures of $1.7M. FCF margin is 13.9%.
How does ADUS compare to other Services stocks?
Vs Services sector averages: Net margin 6.9% (avg: 10%), ROE 2.2% (avg: 16%), current ratio 1.83 (avg: 1.5).