📊 AVAH Key Takeaways
Investment Thesis
Aveanna demonstrates solid operational performance with strong 20.2% revenue growth and healthy profitability metrics, but faces concerning leverage with a 6.68x debt-to-equity ratio and weak interest coverage of 1.8x. The exceptional 115.7% ROE is artificially inflated by minimal equity base rather than operational excellence, masking underlying financial stress from high debt levels.
AVAH Strengths
- Strong revenue growth of 20.2% YoY indicating market expansion in home healthcare
- Solid profitability with 33.3% gross margin and 10.2% operating margin showing pricing power
- Positive free cash flow of $117.1M (4.8% FCF margin) with capex discipline
- Adequate liquidity with 1.32x current ratio supporting operational needs
AVAH Risks
- Dangerously high leverage at 6.68x debt-to-equity ratio with $1.3B long-term debt against $194.5M equity
- Weak interest coverage of 1.8x leaves minimal cushion for debt service in economic downturns
- Minimal equity base creates refinancing risk and limits financial flexibility for acquisitions or downturns
- Net income flat YoY (+0.0%) despite 20.2% revenue growth suggests margin compression or one-time items
- High insider trading activity (22 Form 4 filings in 90 days) warrants monitoring for potential concerns
Key Metrics to Watch
- Debt-to-equity ratio trending - critical threshold is maintaining below 5.0x
- Interest coverage ratio improvement - needs to exceed 2.5x for safety
- Operating margin sustainability - watch for margin compression in competitive markets
- Free cash flow growth relative to debt reduction - validate leverage improvement commitment
AVAH Financial Metrics
💡 AI Analyst Insight
The relatively thin 4.8% FCF margin may limit capital allocation flexibility.
AVAH Profitability Ratios
AVAH vs Default Sector
How Aveanna Healthcare Holdings, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
AVAH Balance Sheet & Liquidity
AVAH 5-Year Financial Trend
5-Year Trend Summary: Aveanna Healthcare Holdings, Inc.'s revenue has grown significantly by 36% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.06 indicates the company is currently unprofitable.
AVAH Growth Metrics (YoY)
AVAH Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $509.0M | $14.1M | $0.06 |
| Q2 2025 | $505.0M | $2.7M | $0.01 |
| Q1 2025 | $490.7M | $5.2M | $0.03 |
| Q3 2024 | $478.0M | -$40.1M | $-0.21 |
| Q2 2024 | $471.9M | $2.7M | $0.01 |
| Q1 2024 | $466.4M | -$11.2M | $-0.06 |
| Q3 2023 | $443.0M | $24.3M | $0.13 |
| Q2 2023 | $443.0M | -$6.4M | $-0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AVAH Capital Allocation
AVAH SEC Filings
Access official SEC EDGAR filings for Aveanna Healthcare Holdings, Inc. (CIK: 0001832332)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AVAH
What is the AI rating for AVAH?
Aveanna Healthcare Holdings, Inc. (AVAH) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are AVAH's key strengths?
Strong revenue growth of 20.2% YoY indicating market expansion in home healthcare. Solid profitability with 33.3% gross margin and 10.2% operating margin showing pricing power.
What are the risks of investing in AVAH?
Dangerously high leverage at 6.68x debt-to-equity ratio with $1.3B long-term debt against $194.5M equity. Weak interest coverage of 1.8x leaves minimal cushion for debt service in economic downturns.
What is AVAH's revenue and growth?
Aveanna Healthcare Holdings, Inc. reported revenue of $2.4B.
Does AVAH pay dividends?
Aveanna Healthcare Holdings, Inc. does not currently pay dividends.
Where can I find AVAH SEC filings?
Official SEC filings for Aveanna Healthcare Holdings, Inc. (CIK: 0001832332) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AVAH's EPS?
Aveanna Healthcare Holdings, Inc. has a diluted EPS of $1.05.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.