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AHCO AdaptHealth Corp. - Fundamental Analysis

BEARISH
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AHCO Stock | Fundamental Analysis & Investment Insights
NASDAQ Healthcare Medical Devices
Current Price Live
$10.65
Analyst Target
$13.38
+25.6% Upside
52W High
$11.63
52W Low
$7.11

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Confidence Score
85%
Analysis Accuracy
AHCO's Piotroski F-Score of 4/9 indicates weak financial health, falling short of the threshold for stability. The absence of an Altman Z-Score raises concern about potential distress risk, especially given a high debt/equity ratio of 1.17 and a current ratio of 1.08. While the stock trades below its Graham Number ($12.4) and intrinsic value ($9.55), its valuation is undermined by deteriorating earnings quality, persistent negative earnings surprises, and a 27.3% YoY EPS decline. Insider selling activity and a technical trend score of 10/100 further signal bearish sentiment. Despite modest revenue growth, profitability remains weak, with low margins and ROE.

Key Strengths

Trading below Graham Number ($12.4), suggesting potential undervaluation on a defensive basis
Price/Sales of 0.44 indicates low valuation relative to revenue
Positive Q/Q EPS growth of 128.6% in most recent quarter suggests short-term recovery momentum
Debt/Equity of 1.17 is below sector average (2.68), indicating relatively moderate leverage
Recent 6-month price return of +15.9% shows some market re-rating despite long-term underperformance

Key Risks

Piotroski F-Score of 4/9 signals weak financial health and declining operational efficiency
Persistent negative earnings surprises over the last 4 quarters (average -42.54%) indicate poor earnings quality
Insider selling of $0.13M in last 6 months with no buys reflects bearish sentiment from insiders
Current ratio of 1.08 and quick ratio of 0.69 suggest tight liquidity and potential short-term solvency concerns
5-year price performance down 70.2% and 3-year down 48.4% reflect deep market skepticism and structural issues
AI Fair Value Estimate
Based on comprehensive analysis
$9.55
-10.3% below current price

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