[fusion_builder_container hundred_percent=”no” equal_height_columns=”no” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” parallax_speed=”0.3″ video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” border_style=”solid” type=”legacy”][fusion_builder_row][fusion_builder_column type=”1_1″ type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”true” min_height=”” hover_type=”none” link=”” first=”true” border_sizes_top=”” border_sizes_bottom=”” border_sizes_left=”” border_sizes_right=””][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Growth of Home Health, Post-Acute Care Stocks Continues in August

After a strong surge in July, stock values for home health and post-acute care providers moderated but continued their upward trajectory in August according to the new Home Health and Post-Acute Care Indices from national healthcare mergers and acquisitions firm Stoneridge Partners.

The home health sector has continued its steady rebound from the spring’s coronavirus-related disruption, while operators in the broader post-acute care landscape have also made positive gains in the face of persistent headwinds. Overall, the Home Health Index (HHI) added to July’s gains by nearly 5% in August, and the Post-Acute Care Index (PAI) grew by almost 2% over the same period.

“While gains like those we saw in July are exciting, I think this month’s numbers tell an even better story,” said Stoneridge Partner President and CEO Rich Tinsley. “Large swings – even in a positive direction – can mean volatility, but sustained, incremental gains show some stabilization in the market. Home health providers have pretty much said their volumes have recovered to pre-COVID-19 levels — or even higher. I’m hopeful this means we’re back on track for consistent growth.”

The S&P 500 also showed improved performance, up more than 7% in August compared to the previous month.

Home Health Index

The Stoneridge Partners HHI tracks the stock values of Amedisys Inc. (Nasdaq: AMED) and LHC Group Inc. (Nasdaq: LHCG), two of the country’s largest home health providers. Amedisys and LHC Group both have their headquarters in Louisiana.

In August, Amedisys saw its stock value rise more than 3% over July’s results. LHC Group’s stock value saw even larger gains — improving nearly 7% on a month-over-month basis.

“Both companies announced some interesting moves in August,” Tinsley said. “LHC Group announced another joint venture, this time with University Health Care System. On its end, Amedisys beefed up its personal care network by teaming up with BrightStar Care, a huge home care franchise company.”

Year to date, the HHI is up more than 48%.

Post-Acute Care Index

The PAI combines Amedisys and LHC Group stock values with values for Addus HomeCare Corporation (Nasdaq: ADUS), The Pennant Group Inc. (Nasdaq: PNTG), Encompass Health Corp. (NYSE: EHC) and Brookdale Senior Living Inc. (NYSE: BKD).

LHC Group and Amedisys helped to buoy the PAI in August, as Brookdale, Encompass Health and Addus all saw small dips in their stock values.

Birmingham, Alabama-based Encompass Health’s stock value was down just more than 4% in August compared to July, while Brentwood, Tennessee-based Brookdale’s stock value dropped less than a percent over that same period. Frisco, Texas-based Addus — which recently announced plans to exit the Nevada market due to Medicaid rate challenges — saw its stock dip almost 3% in August compared to the previous month.

But the strongest performance in the August PAI belonged to Eagle, Idaho-based The Pennant Group, which saw its stock value soar by almost 48% in August compared to July.

Quote Of The Month

“Many people living with serious medical illnesses also suffer from comorbid behavioral health issues,” according to a recent report from the Center to Advance Palliative Care (CAPC).

Read the Full Article Here: Providers Seek to Integrate Behavioral Health with Palliative Care

Articles Featuring Stoneridge

View our quarterly M&A webinars on current valuation trends, deal flow, and pertinent regulatory changes in home health, home care, hospice, ID/DD, and behavioral health industries. Visit the Speaker Series Webinar Library on our website.

Our Partner and Executive Vice President Benjamin Bogan discussed the current state of the health care M&A market in Home Health Care News.

Our Associate Partner Tony Siebel discusses the current state of the M&A market for Medication-Assisted Treatment Clinics in our most recent Stoneridge Q&A.

Traditions Health Acquires Physician’s Choice Hospice and Palladium Hospice. Our Partner and Executive Vice President Ben Bogan acted as sell side advisor to Palladium Hospice.

See It To Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)

This graph compares the percentage of the Home Health Index to the percentage change in the S&P 500 Index going back to 2002.

[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.[visualizer id=”8361″]

This graph displays HH Index performance since 2002.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).[visualizer id=”8362″]

(Home Health Index September 2020 | Stoneridge Partners)

Here are the results of the stock prices for the past two years:

Company 8/31/20 1 mos change YTD change 8/31/19 8/31/18
Amedisys 241.9 +3.31% +45.55% 128.71 125.01
LHC Group 208.44 +6.83% +51.31% 118.5 98.93
HH Index* 225.17 +4.91% +48.16% 123.61 111.97
S&P 3505 +7.15% +8.49% 2926.46 2884
Addus 93.66 -2.85% -3.66% 87.98 64.90

Although we track the performance of Addus, they are not included in our HH Index because very little of their revenue comes from Medicare.

Enterprise Value (EV)

EV (in M) 8/31/20 8/31/19 8/31/18
Amedisys 8210 4490 3980
LHC Group 6440 4130 3430
HH Index Total 14650 8620 7410
Addus 1390 1150 804


Enterprise Value (EV), aka Selling Price, as Percent of Revenue

Company 8/31/20 8/31/19 8/31/18
Amedisys 416% 248% 252%
LHC Group 308% 203% 253%
HH Index Average* 362% 226% 253%
Addus 188% 203% 176%


Multiples of EV/EBITDA

Think of this as selling price as a multiple of EBITDA.

Company 8/31/20 8/31/19 8/31/18
Amedisys 33.92 24.92 26.41
LHC Group 30.79 20.33 33.19
HH Index Average* 32.36 22.63 29.80
Addus 24.93 27.74 22.30

The Stoneridge Partners Post-Acute Care Index is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)
  • Addus (ADUS)
  • The Pennant Group, Inc. (PNTG)
  • Encompass Health (EHC)
  • Brookdale Senior Living Inc. (BKD)

This graph displays Post-Acute Care Index performance starting late 2019.

[visualizer id=”11962″]

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company for its reporting. (Home Health Index September 2020 | Stoneridge Partners)

Recent Transactions From Around The Country

  • Jet Health Inc., a home health provider, acquired Carrington Hospice Care Inc.
  • Bristol Hospice acquired Irvine-based Remita Health, a hospice provider with six locations in Arizona.
  • Alleo Health System acquired Atlanta-based Angel Heart Hospice.
  • Actinium Healthcare Holdings – a Dallas, Texas-based private equity firm – acquired Central Home Health Services of Texas Inc.
  • Hometown Healthcare Management acquired Lane Nursing Home.

[/fusion_text][fusion_separator style_type=”default” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” sep_color=”#ad9863″ top_margin=”” bottom_margin=”” border_size=”” icon=”” icon_size=”” icon_circle=”” icon_circle_color=”” width=”” alignment=”center” /][fusion_title title_type=”text” rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ before_text=”” rotation_text=”” highlight_text=”” after_text=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” content_align=”left” size=”1″ font_size=”” animated_font_size=”” fusion_font_family_title_font=”” fusion_font_subset_title_font=”” fusion_font_variant_title_font=”” line_height=”” letter_spacing=”” margin_top=”” margin_bottom=”” margin_top_mobile=”” margin_bottom_mobile=”” text_color=”” animated_text_color=”” highlight_color=”” style_type=”default” sep_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=”” margin_top_small=”” margin_bottom_small=””]

Exclusively Listed For Sale By Stoneridge Partners


Do you know of any acquisitions that have taken place? We are interested in your comments. Contact us; Stoneridge Partners

[/fusion_title][fusion_code]W2FjYWRwX2xpc3RpbmdzXQ==[/fusion_code][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Home Health Index September 2020 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 and toll-free 800-218-3944
Previous editions of this monthly newsletter can be searched for at the bottom of the home page of the Home Health Index. Links to Google Finance: Amedisys | LHC Group

[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Facebooktwitter
Read More

[fusion_builder_container hundred_percent=”no” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” overlay_color=”” video_preview_image=”” border_size=”” border_color=”” border_style=”solid” padding_top=”” padding_bottom=”” padding_left=”” padding_right=””][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”true” min_height=”” hover_type=”none” link=”” first=”true”][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

July Home Health, Post-Acute Care Stocks Rebound, Showing Highest Gains in Months

There’s good news for both home health and post-acute care stock values according to the latest Home Health (HHI) and Post-Acute Care (PAI) indices from national healthcare mergers and acquisitions firm Stoneridge Partners.

The HHI continued its upward trajectory after last month’s positive results, soaring more than 15% in July. And after taking a tumble last month, the PAI picked up some steam and improved by an impressive 10% over June’s results. The S&P, comparatively, rose about 5.5% from June to July.

“I think this shows that with time, home health and post-acute companies are adjusting as best they can to COVID-19,” said Stoneridge Partners President and CEO Rich Tinsley. “They’ve been able to secure some more PPE and make sure their protocols are operating effectively. I also think there’s a greater need for their services, and patients are less hesitant to access them. That bodes well for these companies.”

Home Health Index

The Stoneridge Partners HHI follows the stock values of Baton Rouge, Louisiana-based Amedisys, Inc. (Nasdaq: AMED) and Lafayette, Louisiana-based LHC Group, Inc. (Nasdaq: LHCG).

In July, Amedisys stock values jumped nearly 18% over June, while LHC Group stock ticked up nearly 12%. These strong performances pushed the HHI up nearly 15% — its biggest one-month improvement since November of 2019.

Even with the financial turmoil that has roiled the U.S. economy since the beginning of the year, the HHI has posted a year-over-year increase of more than 66%.

“All of us in the healthcare industry have known for years that home health is a critical component in the spectrum of care resources,” Tinsley said. “The pandemic seems to have shone an even brighter light on the importance of the work home health providers do.”

Post-Acute Care Index

 Stoneridge also tracks stock values for leading post-acute care companies in its PAI.

Along with Amedisys and LHC Group, the PAI also includes Addus HomeCare Corporation (Nasdaq: ADUS), The Pennant Group, Inc. (Nasdaq: PNTG), Encompass Health Corp. (NYSE: EHC) and Brookdale Senior Living (NYSE: BKD).

While the PAI’s July performance didn’t best the HHI, the 10% month-over-month increase is welcome news after last month’s 3% decline.

Stock values for Birmingham, Alabama-based Encompass — which operates a mix of inpatient rehabilitation hospitals, home health and hospice agencies — jumped nearly 10% between June and July. Meanwhile, Eagle, Idaho-based Pennant Group recorded an increase of nearly 11% during the same period. Pennant operates home health, hospice and senior living businesses. Additionally, Frisco, Texas-based Addus, which focuses on Medicaid home-based care, saw its stock prices tick up more than 4% last month.

Brentwood, Tennessee-based Brookdale was the only company in the PAI to trend downward between June and July. The company, focused largely on the senior living community model, saw its stock values fall just over 6%. Still, that’s a marked improvement over last month’s performance when Brookdale’s stock plummeted more than 19%.

“It’s no surprise that post-acute care companies offering home-based care are faring better than those with a less diversified portfolio of services during the pandemic,” Tinsley said. “Congregate living facilities have worked incredibly hard to avoid coronavirus outbreaks in their facilities, but it’s a much more challenging environment and I think the current stock values reflect that.”

Quote Of The Month

“Hospitals have been given permission — for patients that were actively in an outpatient [setting] for that facility — to send them to outpatient therapists by way of telehealth into patients’ homes.” – National Association for Home Care & Hospice (NAHC) President William A. Dombi

Read the Full Article Here: Dombi: Regulatory Flexibilities: Mean More Competition for Home Health Providers

Articles Featuring Stoneridge

Join our quarterly M&A webinar on current valuation trends, deal flow, and pertinent regulatory changes in home health, home care, hospice, ID/DD, and behavioral health industries. Sign up here: Webinar Registration

Stoneridge Partners has a new updated website. Visit it here: Stoneridge Partners

See It To Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)

This graph compares the percentage of the Home Health Index to the percentage change in the S&P 500 Index going back to 2002.

[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.[visualizer id=”8361″]

This graph displays HH Index performance since 2002.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).[visualizer id=”8362″]

(Home Health Index August 2020 | Stoneridge Partners)

Here are the results of the stock prices for the past two years:

Company 7/31/20 1 mos change YTD change 7/31/19 7/31/18
Amedisys 234.16 +15.21% +40.89% 135.06 106.62
LHC Group 195.11 +10.66% +41.63% 123.51 91.15
HH Index* 214.64 +13.14% +41.23% 129.29 98.89
S&P 3271.12 +5.22% +1.25% 2980.38 2822.74
Addus 96.41 +3.99% -0.83% 81.05 67.05

Although we track the performance of Addus, they are not included in our HH Index because very little of their revenue comes from Medicare.

Enterprise Value (EV)

EV (in M) 7/31/20 7/31/19 7/31/18
Amedisys 7740 4770 3100
LHC Group 6390 4370 3010
HH Index Total 14130 9140 6110
Addus 1350 1020 634


Enterprise Value (EV), aka Selling Price, as Percent of Revenue

Company 7/31/20 7/31/19 7/31/18
Amedisys 393% 263% 201%
LHC Group 306% 216% 272%
HH Index Average* 350% 240% 237%
Addus 226% 186% 149%


Multiples of EV/EBITDA

Think of this as selling price as a multiple of EBITDA.

Company 7/31/20 7/31/19 7/31/18
Amedisys 31.99 26.49 22.41
LHC Group 30.58 22.83 30.17
HH Index Average* 31.29 24.66 26.29
Addus 34.98 24.84 19.51

The Stoneridge Partners Post-Acute Care Index is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)
  • Addus (ADUS)
  • The Pennant Group, Inc. (PNTG)
  • Encompass Health (EHC)
  • Brookdale Senior Living Inc. (BKD)

This graph displays Post-Acute Care Index performance starting late 2019.

[visualizer id=”11962″]

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company for its reporting. (Home Health Index August 2020 | Stoneridge Partners)

Recent Transactions From Around The Country

  • Providence Treatment, an outpatient addiction treatment provider with three locations in the Greater Philadelphia area, has acquired Main Line Recovery, an outpatient facility in Haverford, Pennsylvania, offering comprehensive assessment for behavioral health concerns and psychotherapy for individuals, couples, families and groups.
  • The Pennant Group Inc. announced that it has purchased two home health agencies with multiple locations throughout southeastern Idaho and northern Utah.

[/fusion_text][fusion_separator style_type=”default” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” sep_color=”#ad9863″ top_margin=”” bottom_margin=”” border_size=”” icon=”” icon_size=”” icon_circle=”” icon_circle_color=”” width=”” alignment=”center” /][fusion_title title_type=”text” rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ before_text=”” rotation_text=”” highlight_text=”” after_text=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” content_align=”left” size=”1″ font_size=”” animated_font_size=”” fusion_font_family_title_font=”” fusion_font_subset_title_font=”” fusion_font_variant_title_font=”” line_height=”” letter_spacing=”” margin_top=”” margin_bottom=”” margin_top_mobile=”” margin_bottom_mobile=”” text_color=”” animated_text_color=”” highlight_color=”” style_type=”default” sep_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Exclusively Listed For Sale By Stoneridge Partners


Do you know of any acquisitions that have taken place? We are interested in your comments. Contact us; Stoneridge Partners

[/fusion_title][fusion_code]W2FjYWRwX2xpc3RpbmdzXQ==[/fusion_code][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Home Health Index August 2020 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 and toll-free 800-218-3944
Previous editions of this monthly newsletter can be searched for at the bottom of the home page of the Home Health Index. Links to Google Finance: Amedisys | LHC Group

[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Facebooktwitter
Read More

[fusion_builder_container hundred_percent=”no” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” overlay_color=”” video_preview_image=”” border_size=”” border_color=”” border_style=”solid” padding_top=”” padding_bottom=”” padding_left=”” padding_right=””][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”true” min_height=”” hover_type=”none” link=”” first=”true”][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Home Health Stocks Continue to Rise as Post-Acute Care Stock Values Fall

More than three months after the beginning of the nationwide quarantine due to COVID-19, the U.S. economy has showed signs that it is stabilizing. But according to the latest Home Health (HHI) and Post-Acute Care (PAI) Indices from national healthcare mergers and acquisitions firm Stoneridge Partners, not all post-acute care providers have been as lucky.

The HHI for June rose by 5% over May’s results, but the PAI went in the opposite direction – dropping more than 3% last month as the coronavirus continues to affect the senior care industry.

“I’m not surprised that home health stocks continued to tick up last month,” said Stoneridge Partners President and CEO Rich Tinsley. “Post-acute care stocks, on the other hand, took a slight – but expected – tumble. It makes sense when you think about the impact this virus is having on the industry. People still have concerns about congregate care right now, but home-based care is looking good.”

Home Health Index

The Stoneridge HHI follows the stock values of Baton Rouge, Louisiana-based Amedisys, Inc. (Nasdaq: AMED) and Lafayette, Louisiana-based LHC Group, Inc. (Nasdaq: LHCG).

Amedisys stock values rose more than 3% in June over May, while LHC Group stock increased 7% during that same period, leading to a 5% improvement for the overall HHI in June. In comparison, the S&P 500 rose by just less than 3%.

Post-Acute Care Index

Stoneridge tracks stock values for post-acute care companies in its PAI, which also includes Amedisys and LHC Group, as well as Addus HomeCare Corporation (Nasdaq: ADUS), The Pennant Group, Inc. (Nasdaq: PNTG), Encompass Health Corp. (NYSE: EHC) and Brookdale Senior Living (NYSE: BKD).

Even including the positive results from Amedisys and LHC Group, the PAI still dropped just more than 3% overall in June. Brentwood, Tennessee-based Brookdale took the biggest month-over-month fall – with a business model that’s mostly centered around senior living communities, Brookdale’s stock value plummeted by more than 19% last month.

“Senior living operators like Brookdale have been hit hard by the coronavirus,” Tinsley said. “It’s going to take them longer to rebound than it will for home health companies.”

Meanwhile, Birmingham, Alabama-based Encompass saw its stock values fall by more than 15%. Encompass operates a mix of inpatient rehabilitation hospitals, home health and hospice agencies.

Eagle, Idaho-based Pennant Group — which operates home health, hospice and senior living businesses — saw its stock dip more than 11% in June compared to May. And stock values for Frisco, Texas-based Addus, which focuses on Medicaid home-based care, fell more than 6%.

“Post-acute providers offering a diverse mix of services have been better able to weather the pandemic overall, but they still don’t have the stability of in-home, Medicare-reimbursed providers like Amedisys or LHC Group right now,” Tinsley said.

Quote Of The Month

“Much of the burden of COVID-19 on older adults has rightly been focused on long-term care facilities, where the majority of deaths have taken place,” – Dr. Madhuri Reddy, co-founder and chief medical officer at CareAcademy.

Read the Full Article Here: Home Care Agencies Starting to ‘Wake Up’ to Infection Control

Articles Featuring Stoneridge

Stoneridge Partners has a new updated website. Visit it here: Stoneridge Partners

See It To Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)

This graph compares the percentage of the Home Health Index to the percentage change in the S&P 500 Index going back to 2002.

[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.[visualizer id=”8361″]

This graph displays HH Index performance since 2002.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).[visualizer id=”8362″]

(Home Health Index July 2020 | Stoneridge Partners)

Here are the results of the stock prices for the past two years:

Company 6/30/20 1 mos change YTD change 6/30/19 6/30/18
Amedisys 198.54 +3.27% +19.46% 121.41 86.7
LHC Group 174.32 +6.77% +26.54% 119.58 85.34
HH Index* 186.43 +4.91% +22.67% 120.50 86.02
S&P 3100.29 +1.81% -4.04% 2941.76 2706.92
Addus 92.56 -6.91% -4.79% 74.95 56.7

Although we track the performance of Addus, they are not included in our HH Index because very little of their revenue comes from Medicare.

Enterprise Value (EV)

EV (in M) 6/30/20 6/30/19 6/30/18
Amedisys 6730 4270 2880
LHC Group 5830 3770 2950
HH Index Total 12560 8040 5830
Addus 1280 945 637


Enterprise Value (EV), aka Selling Price, as Percent of Revenue

Company 6/30/20 6/30/19 6/30/18
Amedisys 340% 247% 186%
LHC Group 279% 206% 266%
HH Index Average* 310% 227% 226%
Addus 214% 173% 149%


Multiples of EV/EBITDA

Think of this as selling price as a multiple of EBITDA.

Company 6/30/20 6/30/19 6/30/18
Amedisys 327.90 24.27 20.81
LHC Group 27.87 21.67 29..56
HH Index Average* 27.89 22.97 25.19
Addus 33.11 23.05 19.60

The Stoneridge Partners Post-Acute Care Index is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)
  • Addus (ADUS)
  • The Pennant Group, Inc. (PNTG)
  • Encompass Health (EHC)
  • Brookdale Senior Living Inc. (BKD)

This graph displays Post-Acute Care Index performance starting late 2019.

[visualizer id=”11962″]

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company for its reporting. (Home Health Index July 2020 | Stoneridge Partners)

Recent Transactions From Around The Country

  • Tennessee-based Alleo Health System has acquired Upper Cumberland Hospice and Palliative Care Services.
  • Summit BHC, a leading provider of addiction treatment and behavioral health services, acquired Highland Hospital, a 131-bed psychiatric facility in Charleston, West Virginia.

[/fusion_text][fusion_separator style_type=”default” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” sep_color=”#ad9863″ top_margin=”” bottom_margin=”” border_size=”” icon=”” icon_size=”” icon_circle=”” icon_circle_color=”” width=”” alignment=”center” /][fusion_title title_type=”text” rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ before_text=”” rotation_text=”” highlight_text=”” after_text=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” content_align=”left” size=”1″ font_size=”” animated_font_size=”” fusion_font_family_title_font=”” fusion_font_subset_title_font=”” fusion_font_variant_title_font=”” line_height=”” letter_spacing=”” margin_top=”” margin_bottom=”” margin_top_mobile=”” margin_bottom_mobile=”” text_color=”” animated_text_color=”” highlight_color=”” style_type=”default” sep_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Exclusively Listed For Sale By Stoneridge Partners


Do you know of any acquisitions that have taken place? We are interested in your comments. Contact us; Stoneridge Partners

[/fusion_title][fusion_code]W2FjYWRwX2xpc3RpbmdzXQ==[/fusion_code][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Home Health Index July 2020 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 and toll-free 800-218-3944
Previous editions of this monthly newsletter can be searched for at the bottom of the home page of the Home Health Index. Links to Google Finance: Amedisys | LHC Group

[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Facebooktwitter
Read More

[fusion_builder_container hundred_percent=”no” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” overlay_color=”” video_preview_image=”” border_size=”” border_color=”” border_style=”solid” padding_top=”” padding_bottom=”” padding_left=”” padding_right=””][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”no” min_height=”” hover_type=”none” link=””][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Home Health, Post-Acute Care Stocks Values Continue to Gain Ground in May

After two months of uncertainty, the U.S. economy continues to show small but clear signs of stabilization. And according to the latest Home Health (HHI) and Post-Acute Care (PAI) Indices from mergers and acquisitions firm Stoneridge Partners, that’s especially true for post-acute and home health providers.

An influx of coronavirus relief funding distributed by the U.S. Department of Health and Human Services (HHS) under the CARES Act continued to lift healthcare stock values in May, particularly for home health providers, which received roughly $1.7 billion from the Act’s Provider Relief Fund.

“Home health and post-acute stocks followed up their April gains with even better performance in May,” said Stoneridge Partners President Rich Tinsley. “That’s partly because of the relief funding and regulatory waivers that Medicare providers have received, but also because of the continued focus on home-based care nationally.”

Home Health Index

The Stoneridge HHI follows the stock values of Baton Rouge, Louisiana-based Amedisys Inc. (Nasdaq: AMED) and Lafayette, Louisiana-based LHC Group Inc. (Nasdaq: LHCG). Amedisys stock values improved by more than 4% in May compared to April, and LHC Group stock soared 20% higher during that same period – resulting in an 11% improvement for the overall HHI in May. In comparison, the S&P 500 rose by just more than 4%.

Post-Acute Care Index

Stoneridge also tracks stock values for post-acute care companies in its PAI, which includes both Amedisys and LHC Group, plus Addus HomeCare Corporation (Nasdaq: ADUS), The Pennant Group Inc. (Nasdaq: PNTG), Encompass Health Corp. (NYSE: EHC) and Brookdale Senior Living (NYSE: BKD).

Eagle, Idaho-based The Pennant Group saw the biggest month-over-month stock value increase in May, shooting up more than 22% over April’s results. Frisco, Texas-based Addus, and Birmingham, Alabama-based Encompass Health saw their stocks climb by 18% and nearly 10%, respectively, during that same period. Brookdale, meanwhile, saw more modest gains, as its stock rose by just more than 1% in May compared to April.

“Brookdale has some additional challenges as a senior living operator,” Tinsley said. “ They care for seniors in communal settings, and those types of providers have been hit hard by the coronavirus. Their pandemic response efforts have looked different from what we’ve seen from home-based care enterprises, and their financial recovery will likely look different as well.”

See It To Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)

This graph compares the percentage of the Home Health Index to the percentage change in the S&P 500 Index going back to 2002.
[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.
[visualizer id=”8361″]

This graph displays HH Index performance since 2002.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).
[visualizer id=”8362″]

(Home Health Index June 2020 | Stoneridge Partners)

Here are the results of the stock prices for the past two years:

Company 5/31/20 1 mos change YTD change 5/31/19 5/31/18
Amedisys 192.05 +4.11% +15.55% 111.88 76.67
LHC Group 162.51 +20.01% +17.97% 112.95 77.23
HH Index* 177.28 -11.40% +16.65% 112.42 76.95
S&P 3044.31 +4.33% -5.77% 2751.98 2732.54
Addus 98.96 +18.13% -1.79% 68.01 58.25

Although we track the performance of Addus, they are not included in our HH Index because very little of their revenue comes from Medicare.

Enterprise Value (EV)

EV (in M) 5/31/20 5/31/19 5/31/18
Amedisys 6400 3840 2510
LHC Group 5440 3980 1430
HH Index Total 11840 7820 3940
Addus 1350 860 586


Enterprise Value (EV), aka Selling Price, as Percent of Revenue

Company 5/31/20 5/31/19 5/31/18
Amedisys 323% 222% 162%
LHC Group 260% 197% 135%
HH Index Average* 292% 210% 149%
Addus 225% 157% 137%


Multiples of EV/EBITDA

Think of this as selling price as a multiple of EBITDA.

Company 5/31/20 5/31/19 5/31/18
Amedisys 26.51 21.84 18.13
LHC Group 26.03 20.76 15.97
HH Index Average* 26.27 21.30 17.05
Addus 34.88 20.99 18.01

The Stoneridge Partners Post-Acute Care Index  is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)
  • Addus (ADUS)
  • The Pennant Group, Inc. (PNTG)
  • Encompass Health (EHC)
  • Brookdale Senior Living Inc. (BKD)

This graph displays Post-Acute Care Index performance starting late 2019.
[visualizer id=”11962″]

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company for its reporting. (Home Health Index June 2020 | Stoneridge Partners)

More

Home Health Index May 2020 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 and toll-free 800-218-3944

Previous editions of this monthly newsletter can be searched for at the bottom of the home page of the Home Health Index. Links to Google Finance: Amedisys | LHC Group

Please follow us on Facebook  and Linkedin

[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Facebooktwitter
Read More

[fusion_builder_container hundred_percent=”no” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” overlay_color=”” video_preview_image=”” border_size=”” border_color=”” border_style=”solid” padding_top=”” padding_bottom=”” padding_left=”” padding_right=””][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”no” min_height=”” hover_type=”none” link=””][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Home Health and Post-Acute Care Stock Values Stabilize in April Thanks to Stimulus Funds

Stock values for home health and post-acute care providers started clawing their way back in April from the significant hits they took in the previous month. That’s according to the new Home Health (HHI) and Post-Acute (PAI) Indices compiled by national healthcare mergers and acquisitions advisory firm Stoneridge Partners.

As the U.S. continues its response to the coronavirus pandemic, resulting in record unemployment and widespread shelter-in-place orders, multiple Congressional stimulus packages have helped reduce daily stock market downswings. Overall, the S&P 500 climbed more than 11% in April as compared to March; a comparatively dismal month that saw a drop in the S&P of roughly 14%.

Healthcare providers also benefitted from emergency financial relief in April, as the U.S. Centers for Medicare & Medicaid Services (CMS) sought to stabilize the industry on the frontlines of the country’s coronavirus response.

“Toward the middle of April, CMS began distributing $30 billion in funding created by the CARES Act to all types of Medicare providers to help sustain cash flow and cover COVID-19 costs,” said Rich Tinsley, President and CEO of Stoneridge Partners. “Policymakers already followed up on that $30 billion with additional emergency relief, too, with more likely coming in May.”

Home Health Index

The Stoneridge Partners HHI tracks monthly stock values for Amedisys Inc. (Nasdaq: AMED) and LHC Group Inc. (Nasdaq: LHCG). In April, Amedisys saw a slight gain over the previous month, with stock values climbing less just more than 0.3%. In contrast, LHC Group’s stock dipped by nearly 8% during that same period.

Post-Acute Index

The Stoneridge Partners PAI includes both Amedisys and LHC Group, as well as Addus HomeCare Corporation (Nasdaq: ADUS), The Pennant Group (Nasdaq: PNTG), Encompass Health Corp. (NYSE: EHC) and Brookdale Senior Living Inc. (NYSE: BKD).

Stock values for the additional companies making up the PAI saw marked improvements in April. Addus stock rose by nearly 17% in April over March, while The Pennant Group bested even that performance with a more than 28% gain. Brookdale’s stock values increased by almost 14% during the same period, and Encompass Health saw a more than 3% gain compared to March.

Year to date, the stock values for Addus (13.70%), Brookdale (40.99%) Encompass Health (15.56%), LHC Group (11.44%) and The Pennant Group (19.99%) are all up, while Amedisys stock is down 4.61%.

Earnings Calls

Amedisys, Addus, Brookdale and LHC Group are all holding conference calls this week to discuss Q1 2020 financial results.

Encompass Health hosted its Q1 earnings call on April 29, using a portion of the call to specifically discuss the difficulties of working through the Patient-Driven Groupings Model (PDGM) and the coronavirus at the same time.

“We had a lot of momentum heading into 2020, and January and February were a strong start to the year,” Encompass Health CEO Mark Tarr said during the call. “In mid-March, we began experiencing a significant impact from the COVID-19 pandemic.”

See It To Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)

This graph compares the percentage of the Home Health Index to the percentage change in the S&P 500 Index going back to 2002.
[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.
[visualizer id=”8361″]

This graph displays HH Index performance since 2002.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).
[visualizer id=”8362″]

(Home Health Index May 2020 | Stoneridge Partners)

Here are the results of the stock prices for the past two years:

Company 4/30/20 1 mos change YTD change 4/30/19 4/30/18
Amedisys 184.16 +0.34% +10.81% 120.25 65.97
LHC Group 129.99 -7.85% -5.64% 111.19 74.45
HH Index* 157.08 -3.05% +3.35% 115.72 70.21
S&P 2912.43 +11.26% -9.85% 2931 2654.8
Addus 81.02 +16.56% -16.66% 67.65 52.15

Although we track the performance of Addus, they are not included in our HH Index because very little of their revenue comes from Medicare.

Enterprise Value (EV)

EV (in M) 4/30/20 4/30/19 4/30/18
Amedisys 6470 4480 2260
LHC Group 4220 3800 1440
HH Index Total 10690 8280 3700
Addus 1130 832 607


Enterprise Value (EV), aka Selling Price, as Percent of Revenue

Company 4/30/20 4/30/19 4/30/18
Amedisys 331% 259% 150%
LHC Group 203% 210% 136%
HH Index Average* 267% 235% 143%
Addus 189% 161% 145%


Multiples of EV/EBITDA

Think of this as selling price as a multiple of EBITDA.

Company 4/30/20 4/30/19 4/30/18
Amedisys 27.04 25.43 17.59
LHC Group 20.78 23.07 16.08
HH Index Average* 23.91 24.25 16.84
Addus 29.32 21.23 18.44

The Stoneridge Partners Post-Acute Care Index  is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)
  • Addus (ADUS)
  • The Pennant Group, Inc. (PNTG)
  • Encompass Health (EHC)
  • Brookdale Senior Living Inc. (BKD)

This graph displays Post-Acute Care Index performance starting late 2019.
[visualizer id=”11962″]

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company for its reporting. (Home Health Index May 2020 | Stoneridge Partners)

More

Home Health Index May 2020 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 and toll-free 800-218-3944

Previous editions of this monthly newsletter can be searched for at the bottom of the home page of the Home Health Index. Links to Google Finance: Amedisys | LHC Group

Please follow us on Facebook  and Linkedin

[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Facebooktwitter
Read More

Home Health Stocks Withstand March Coronavirus Turmoil

March was a tumultuous month for the U.S. economy, as the spread of the coronavirus across the country closed businesses, sent workers home and resulted in record unemployment.

The stock market plunged, then was bolstered late in the month after the implementation of federal economic stimulus packages including the $2 trillion CARES Act. Still, the S&P 500 finished down more than 14%. But the new Stoneridge Partners Home Health Index (HHI) and Post-Acute Care Index (PAI) show that while stock values for post-acute care providers were not spared from the abrupt downturn, some home health stocks avoided the market volatility and continued on an upward trajectory.

The Stoneridge Partners HHI tracks the stock values of Baton Rouge, Louisiana-based Amedisys Inc. (Nasdaq: AMED) and Lafayette, Louisiana-based LHC Group Inc. (Nasdaq: LHCG). Amedisys stock values were up more than 5% in March, while LHC Group’s stock saw a more than 13% bump – leading to a nearly 9% overall increase for the HHI compared to February.

“The market was incredibly volatile in March as the country faced unprecedented challenges due to the coronavirus,” Stoneridge Partners President Rich Tinsley said. “Home health stocks weren’t entirely immune to that, but they rebounded nicely because of continued macro-level headwinds and the fact home health providers play such a vital role in providing care during this global emergency.”

Home health providers were also buoyed by multiple regulatory actions taken by the Centers for Medicare and Medicaid Services (CMS), such as expanding telehealth rules, suspending the Review Choice Demonstration (RCD) and loosening homebound requirements under Medicare.

“CMS realizes how important in-home care is right now, especially with older adults self-isolating and maintaining social distance,” Tinsley said.

The results were not as positive for the post-acute care providers tracked by the Stoneridge Partners PAI.

Stock values for Frisco, Texas-based Addus were down almost 13% in March compared to February, and Birmingham, Alabama-based Encompass Health was down nearly 17%. Eagle, Idaho-based Pennant — the home health and hospice spinoff that was once part of The Ensign Group (Nasdaq: ENSG) — was down almost 92% in March compared to February. And Brentwood, Tennessee-based Brookdale Senior Living saw an eye-popping 110% decrease in its stock values.

“I’m not surprised that senior housing operators saw such large losses in March because they’re among those exposed to the most risk from the coronavirus. I’m confident those values will bounce back once we see our efforts to contain the virus begin to take hold across the country,” Tinsley said.

See It To Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)

This graph compares the percentage of the Home Health Index to the percentage change in the S&P 500 Index going back to 2002.
[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.
[visualizer id=”8361″]

This graph displays HH Index performance since 2002.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).
[visualizer id=”8362″]

(Home Health Index April 2020 | Stoneridge Partners)

 

Here are the results of the stock prices for the past two years:

Company 3/31/20 1 mos change YTD change 3/31/19 3/31/18
Amedisys 183.54 +0.34% +10.81% 122.94 60.34
LHC Group 140.2 -7.85% -5.64% 108.43 61.56
HH Index* 161.87 -3.05% +3.35% 115.69 59.30
S&P 2584.59 +11.26% -9.85% 2867.19 2631
Addus 67.6 +16.56% -16.66% 64.41 48.65

Although we track the performance of Addus, they are not included in our HH Index because very little of their revenue comes from Medicare.

 

Enterprise Value (EV)

EV (in M) 3/31/20 3/31/19 3/31/18
Amedisys 5680 3930 2090
LHC Group 4420 3800 1280
HH Index Total 10100 7730 4249
Addus 928 775 500


Enterprise Value (EV), aka Selling Price, as Percent of Revenue

Company 3/31/20 3/31/19 3/31/18
Amedisys 290% 237% 138%
LHC Group 213% 210% 120%
HH Index Average* 252% 224% 123%
Addus 155% 150% 120%


Multiples of EV/EBITDA

Think of this as selling price as a multiple of EBITDA.

Company 3/31/20 3/31/19 3/31/18
Amedisys 24.49 23.36 16.29
LHC Group 21.77 23.06 14.27
HH Index Average* 23.13 23.21 18.53
Addus 24.05 19.80 15.21

 

The Stoneridge Partners Post-Acute Care Index  is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)
  • Addus (ADUS)
  • The Pennant Group, Inc. (PNTG)
  • Encompass Health (EHC)
  • Brookdale Senior Living Inc. (BKD)

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company for its reporting. (Home Health Index April 2020 | Stoneridge Partners)

More

Home Health Index April 2020 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 and toll-free 800-218-3944

Previous editions of this monthly newsletter can be searched for at the bottom of the home page of the Home Health Index. Links to Google Finance: Amedisys | LHC Group

Please follow us on Facebook  and Linkedin

Facebooktwitter
Read More

[fusion_builder_container hundred_percent=”no” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” overlay_color=”” video_preview_image=”” border_size=”” border_color=”” border_style=”solid” padding_top=”” padding_bottom=”” padding_left=”” padding_right=””][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”true” min_height=”” hover_type=”none” link=”” first=”true”][fusion_text]

Uncertainty over PDGM, Coronavirus Results in Setback for Home Health Stocks in February

The latest Home Health Index (HHI) from mergers and acquisitions advisory firm Stoneridge Partners shows home health stocks took a hit in February, bringing their recent momentum to an abrupt halt. The continued transition to the Patient-Driven Groupings Model (PDGM) and fear over the spread of coronavirus are the most likely culprits behind the decline, which mirrored an almost identical downturn in the broader market. Both the HHI and the S&P 500 were down just more than 9% for the month.

“After starting 2020 on a high note, home health stocks struggled in the second month of the year,” said Rich Tinsley, President and CEO of Stoneridge Partners. “Some of that we expected as companies are still in the early stages of their adjustment to PDGM. What we couldn’t necessarily have anticipated was the market’s response to the spread of coronavirus. Home health stocks were not spared from the downturn caused by fear over the virus’ arrival in the U.S.”

Last month, rising anxieties over the continued spread of coronavirus contributed to the largest single-week stock market downturn since 2008, with roughly $6 trillion in market value taken off the table.

Released monthly, the HHI follows the stock values of Baton Rouge, Louisiana-based Amedisys, Inc. (Nasdaq: AMED) and Lafayette, Louisiana-based LHC Group, Inc. (Nasdaq: LHCG). LHC Group bore the brunt of the HHI’s decline last month, losing 20% of its stock value compared to January. Alternatively, the stock value of Baton Rouge, Louisiana-based Amedisys was down just 1.43%.

Even considering February’s losses, LHC is still outperforming its market values from last fall. Over the trailing 12 months, LHC Group’s stock was up more than 14% as of February. Amedisys’ 12-month performance was even more impressive, up nearly 42%.

“Financially, both companies had a strong year in 2019,” Tinsley said. “And even though February was a tough month for the market in general, there are plenty of reasons for them to remain optimistic about the rest of 2020.”

Post-Acute Market Performance

The Stoneridge Partners Post-Acute Index (PAI) is now in its second month, tracking stock values for Encompass Health Corp. (NYSE: EHC), Brookdale Senior Living, Inc. (NYSE: BKD) and The Pennant Group, Inc. (Nasdaq: PNTG). Additionally, Stoneridge has moved its monitoring of stock values for Addus HomeCare Corporation (Nasdaq: ADUS) from the monthly HHI to the Post-Acute index.

Companies in the PAI also suffered setbacks in February. Addus stock values were down almost 24% in February compared to January. Similarly, stock values for Encompass Health and Brookdale were down nearly 3% and 0.30% compared to January, respectively.

Meanwhile, The Pennant Group — the publicly traded home health and hospice provider that spun off from The Ensign Group last year — saw its stock values buck the trend and climb by almost 3% in February compared to the previous month.

See It To Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)

This graph compares the percentage of the Home Health Index to the percentage change in the S&P 500 Index going back to 2002.

[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.[visualizer id=”8361″]

This graph displays HH Index performance since 2002.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).[visualizer id=”8362″]

(Home Health Index March 2020 | Stoneridge Partners)

Here are the results of the stock prices for the past two years:

Company 2/28/20 1 mos change YTD change 2/28/19 2/28/18
Amedisys 174.01 -1.43% +4.70% 122.65 59.21
LHC Group 121.46 -20.00% -11.83% 106.39 64.38
HH Index* 147.74 -9.06% -2.79% 114.52 60.85
S&P 2954.22 -9.18% -8.56% 2796.5 2718.5
Addus 76.27 -23.69% -21.55% 66.35 34.35

Although we track the performance of Addus, they are not included in our HH Index because very little of their revenue comes from Medicare.

Enterprise Value (EV)

EV (in M) 2/28/20 2/28/19 2/28/18
Amedisys 6320 4010 2020
LHC Group 4400 3680 1310
HH Index Total 10720 7690 4278
Addus 1230 761 410


Enterprise Value (EV), aka Selling Price, as Percent of Revenue

Company 2/28/20 2/28/19 2/28/18
Amedisys 323% 247% 134%
LHC Group 214% 232% 131%
HH Index Average* 269% 240% 128%
Addus 206% 156% 99%


Multiples of EV/EBITDA

Think of this as selling price as a multiple of EBITDA.

Company 2/28/20 2/28/19 2/28/18
Amedisys 26.40 24.39 16.08
LHC Group 22.68 27.61 13.99
HH Index Average* 24.54 26.00 19.02
Addus 31.93 20.31 12.02

The Stoneridge Partners Post-Acute Care Index is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)
  • Addus (ADUS)
  • The Pennant Group, Inc. (PNTG)
  • Encompass Health (EHC)
  • Brookdale Senior Living Inc. (BKD)

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company for its reporting. (Home Health Index March 2020 | Stoneridge Partners)

More

Home Health Index March 2020 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 and toll-free 800-218-3944

Previous editions of this monthly newsletter can be searched for at the bottom of the home page of the Home Health Index. Links to Google Finance: Amedisys | LHC Group

Please follow us on Facebook and Linkedin

[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Facebooktwitter
Read More

Stoneridge Partners’ Home Health Stocks Start Strong And Post Acute Index Premiere

Home health stocks start strong in 2020

The latest Home Health Index (HHI) from mergers and acquisitions (M&A) advisory firm Stoneridge Partners shows home health stocks have continued their strong performance into 2020, handily outpacing the broader market in January.

The HHI was up nearly 6% in January compared to December 2019. That surge easily bested the S&P 500, which was down slightly — 0.16% — in January compared to the previous month.

January marked the first month home health providers have operated under the new Patient-Driven Groupings Model (PDGM). While the effect PDGM will have across the broader industry is still unclear, early returns seem to indicate that large providers like Amedisys and LHC Group have weathered the initial storm and may be looking for gains in the second half of 2020 as new M&A or patient-acquisition opportunities emerge.

“Small and mid-sized home health businesses may have cash flow challenges come March and April,” Stoneridge Partners President Rich Tinsley said. “That could set up a scenario where bigger players see opportunities for expansion in key markets moving forward, either through direct acquisitions or patient volume growth as competitors leave the market.”

Stoneridge’s HHI tracks the stock values for Baton Rouge, Louisiana-based Amedisys, Inc. (Nasdaq: AMED) and Lafayette, Louisiana-based LHC Group, Inc. (Nasdaq: LHCG). The HHI also follows stock prices for Frisco, Texas-based Addus HomeCare Corporation, but doesn’t include them in its final calculations due to the company’s focus on Medicaid-supported personal care services.

Amedisys stock values were up 5.83% in January compared to December, while LHC Group stocks were up 5.48% during the same period. Addus stock was up 4.25% in January compared to December.

Stoneridge premieres post-acute care index

New for 2020, Stoneridge Partners is rolling out a second index tracking the performance of key publicly-traded post-acute care providers. The new monthly report includes stock values for the companies traditionally monitored by the current HHI and adds results for the Pennant Group, Inc. (Nasdaq: PNTG), Encompass Health Corporation (NYSE: EHC) and Brookdale Senior Living (NYSE: BKD).

The inaugural Post-Acute Care Index shows a mixed bag for providers. As noted above, stock values for Amedisys and LHC Group both climbed in January – and Encompass Health also performed well last month with stock values up more than 10%. Alternatively, The Pennant Group and Brookdale struggled to start off the year, with stock values down 25% and 10%, respectively.

Quote Of The Month

“As we turn the page to a new decade, 2020 will mark a major turning point in not only delivering care but in helping patients achieve greater wellness.  Health systems across the world are beginning to take a more dedicated focus on the social determinants of health, the non-medical elements contributing to someone’s health and wellness.” – Adrian Schauer, CEO of cloud-based home care technology provider AlayaCare

Read the Full Article Here:  How Technology is Driving Wellness in Home Care

Articles Featuring Stoneridge

Associate Partner Tom Lillis was featured in Home Health Care News on the PDGM impact.  Read the full article here: Voices: Tom Lillis, Associate Partner, Stoneridge Partners

CLOSED by Stoneridge

  • Partner Joe Lynch represented a Texas-based agency that closed since the last Home Health Index

See It To Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)

This graph compares the percentage of the Home Health Index to the percentage change in the S&P 500 Index going back to 2002.
[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.
[visualizer id=”8361″]

This graph displays HH Index performance since 2002.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).
[visualizer id=”8362″]

(Home Health Index February 2020 | Stoneridge Partners)

 

Here are the results of the stock prices for the past two years:

Company 1/31/20 1 mos change YTD change 1/31/19 1/31/18
Amedisys 176.49 +5.83% +6.19% 131.12 52.88
LHC Group 145.75 +5.48% +5.80% 104.11 63.60
HH Index* 161.12 +5.67% +6.01% 117.62 58.03
S&P 3225.52 -0.16% -.016% 2707.76 2825.09
Addus 94.34 +4.25% -2.96% 60.93 36.60

Although we track the performance of Addus, they are not included in our HH Index because very little of their revenue comes from Medicare.

 

Enterprise Value (EV)

EV (in M) 1/31/20 1/31/19 1/31/18
Amedisys 6200 4170 1840
LHC Group 5000 3610 1280
HH Index Total 11200 7780 4017
Addus 1470 687 410


Enterprise Value (EV), aka Selling Price, as Percent of Revenue

Company 1/31/20 1/31/19 1/31/18
Amedisys 328% 257% 125%
LHC Group 243% 227% 127%
HH Index Average* 286% 242% 124%
Addus 222% 141% 99%


Multiples of EV/EBITDA

Think of this as selling price as a multiple of EBITDA.

Company 1/31/20 1/31/19 1/31/18
Amedisys 32.96 25.39 15.94
LHC Group 23.30 27.09 13.63
HH Index Average* 28.13 26.24 16.88
Addus 31.59 18.35 12.04

 

The Stoneridge Partners Post-Acute Care Index  is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)
  • Addus (ADUS)
  • The Pennant Group, Inc. (PNTG)
  • Encompass Health (EHC)
  • Brookdale Senior Living Inc. (BKD)

This graph displays Post-Acute Care Index performance starting late 2019.
[visualizer id=”11962″]

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company for its reporting. (Home Health Index February 2020 | Stoneridge Partners)

Recent Transactions From Around The Country

  • Alayacare acquired New York-based Arrow Solutions to tackle US Medicaid market
  • Summit BHC, a Tennessee provider of addiction treatment and behavioral health services, has acquired Peak View Behavioral Health, which operates a 112-bed psychiatric hospital in northeast Colorado Springs
  • Hospice Care of South Carolina, a portfolio company of The Vistria Group, acquired Agapé Hospice

Exclusively Listed For Sale By Stoneridge Partners

Do you know of any acquisitions that have taken place?  We are interested in your comments.  Contact us; Stoneridge Partners

 

Another Cartoon Favorite 

   

 

More

Home Health Index February 2020 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 and toll-free 800-218-3944

Previous editions of this monthly newsletter can be searched for at the bottom of the home page of the Home Health Index. Links to Google Finance: Amedisys | LHC Group

Please follow us on Facebook  and Linkedin

Facebooktwitter
Read More

Stoneridge Partners’ Home Health Index Shows Continued Good News for Home Health Stocks; Firm to Launch New Post-Acute Industry Index in 2020

Stoneridge Partners’ Home Health Index Shows Continued Good News for Home Health Stocks; Firm to Launch New Post-Acute Industry Index in 2020

The newest Home Health Index (HHI) from Stoneridge Partners is in — and home health stocks were up once again.

Stock values rose 2.5% in December over November’s results according to the HHI. Even though December’s results were no match for November’s 19% surge, it still represents good news for home health companies heading into the launch of the Patient-Driven Groupings Model (PDGM) on January 1, 2020.

“December was another good month for Amedisys and LHC Group,” Stoneridge Partners President Rich Tinsley said. “Leadership from both companies said they were confident in their ability to weather the PDGM storm, and pre-implementation returns suggest they were right.”

The monthly index from healthcare mergers and acquisitions advisory firm Stoneridge Partners has traditionally tracked the stock values of Baton Rouge, La.-based Amedisys, Inc. (Nasdaq: AMED) and Lafayette, La.-based LHC Group, Inc. (Nasdaq: LHCG). The HHI has also monitored stock prices for Frisco, Tx.-based Addus HomeCare Corporation (Nasdaq: ADUS), though they are not included in the HHI’s final calculations due to its Medicaid-heavy revenue mix.

Amedisys stock values were up 1.95% in December. Meanwhile, LHC Group stock values were up 3.16% during the same period. Addus stock was up 4.12% in December compared to November. Overall, home health stocks were mostly aligned with the broader market’s performance in December, as the S&P 500 was up 2.78% compared to the previous month.

Stoneridge Partners Adds New Index Tracking Performance of Post-Acute Care Companies

With the ongoing changes to the operating landscape for home health companies and the burgeoning focus on coordinated care, Stoneridge Partners will introduce a new index starting in 2020 that also monitors the performance of select publicly-traded post-acute care providers. Starting in January, this new monthly compendium will not only include stock values for the current HHI companies, but also for Pennant Group, Inc. (Nasdaq: PNTG), Encompass Health (NYSE: EHC) and Brookdale Senior Living (NYSE: BKD).

“The team at Stoneridge comes from all across the healthcare spectrum, and because of that we pride ourselves on being able to see the big picture,” Tinsley said. “Adding a post-acute index will help us get a clearer view of the rapidly-evolving healthcare landscape, which is meaningful both to us and our clients.”

Quote Of The Month

“Homecare continues to march forward with strong policy-based and political support as the preferred focus for health care innovations,” – William A. Dombi, president of the National Association for Home Care & Hospice (NAHC).

Read the Full Article Here:  Why Homecare is the Answer to 2020’s Big Health Care Questions

See It To Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)

This graph compares the percentage of the Home Health Index to the percentage change in the S&P 500 Index going back to 2002.
[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.
[visualizer id=”8361″]

This graph displays HH Index performance since 2002.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).
[visualizer id=”8362″]

(Home Health Index January 2020 | Stoneridge Partners)

 

Here are the results of the stock prices for the past two years:

Company 12/31/19 1 mos change YTD change 12/31/18 12/31/17
Amedisys 166.2 +1.95% +42.25% 116.84 52.71
LHC Group 137.76 +3.16% +47.43% 93.44 61.25
HH Index* 151.98 +2.50% +44.55% 105.14 56.44
S&P 3230.78 +2.78% +29.47% 2495.44 2673.61
Addus 97.22 +4.12% +42.84% 68.06 34.8

Although we track the performance of Addus, they are not included in our HH Index because very little of their revenue comes from Medicare.

 

Enterprise Value (EV)

EV (in M) 12/31/19 12/31/18 12/31/17
Amedisys 5690 3700 1810
LHC Group 4750 3260 1200
HH Index Total 10440 6960 3888
Addus 1340 773 398


Enterprise Value (EV), aka Selling Price, as Percent of Revenue

Company 12/31/19 12/31/18 12/31/17
Amedisys 301% 228% 123%
LHC Group 231% 205% 120%
HH Index Average* 266% 217% 120%
Addus 224% 158% 96%


Multiples of EV/EBITDA

Think of this as selling price as a multiple of EBITDA.

Company 12/31/19 12/31/18 12/31/17
Amedisys 30.23 22.55 15.68
LHC Group 22.13 24.41 12.84
HH Index Average* 26.18 23.48 16.38
Addus 31.77 20.64 11.67

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company for its reporting. (Home Health Index January 2020 | Stoneridge Partners)

Recent Transactions From Around The Country

  • Care Advantage, Inc. acquired Amaisa Home Care in Leesburg, VA
  • Discovery Behavioral Health acquired Associated Behavioral Health Care of Seattle
  • AlayaCare acquired Procura, a division of Complia Health and one of AlayaCare’s largest global competitors
  • The Pennant Group, Inc. (NASDAQ: PNTG), the parent company of the Pennant group of affiliated home health, hospice and senior living companies, today announced that a subsidiary of Cornerstone Healthcare, Inc., Pennant’s home health and hospice portfolio subsidiary, has acquired the assets of Desert View Home Health, which provides home health services in Clark County, Nevada.
  • Traditions Health, LLC has purchased privately owned Round Rock, Texas-based Guiding Hospice, growing the company’s footprint in the Austin area.
  • HouseWorks, a Massachusetts-based agency acquired Extended Family
  • Discovery Behavioral Health has acquired Casa Palmera, a nationally recognized facility in San Diego that provides treatment for adults with drug and/or alcohol addiction.

CLOSED by Stoneridge

  • Stoneridge Partners, Partner Joe Lynch represented a Texas-based agency that closed January 2020
  • Stoneridge Partners, Partner Ben Bogan represented an Illinois hospice agency that closed January 2020
  • Stoneridge Partners, Associate Partner Coley McDevitt represented a Texas home health agency that closed January 2020

Exclusively Listed For Sale By Stoneridge Partners

Do you know of any acquisitions that have taken place?  We are interested in your comments.  At the top of this column is a “Contact Tab” with a section for comments.  These can be sent anonymously and the return email address can be left blank.

 

Another Cartoon Favorite 

   

 

More

Home Health Index January 2020 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 and toll-free 800-218-3944

Previous editions of this monthly newsletter can be searched for at the bottom of the home page of the Home Health Index. Links to Google Finance: Amedisys | LHC Group

Please follow us on Facebook  and Linkedin

Facebooktwitter
Read More

Home Health Stocks Propelled by 2020 Final Rule

Home Health Stocks Propelled by 2020 Final Rule

The new Stoneridge Partners Home Health Index (HHI) shows home health stocks soaring in November, dramatically rebounding after a somewhat disappointing October. Home health stocks tracked by the HHI climbed more than 19% compared to the previous month, making November one of the strongest months in recent history.

“We saw an overall decline in home health stock values of more than 2.5% in October, but we knew that wouldn’t last long,” Stoneridge Partners President Rich Tinsley said. “We expected a solid rebound since the home health final payment rule for fiscal year 2020 included a significant improvement to the Patient-Driven Groupings Model, particularly when it comes to the overhaul’s behavioral adjustment component.”

Instead of the steep 8.01% behavioral adjustment included in a proposed version of PDGM, the final payment rule sets a more manageable 4.36% behavioral adjustment.

Mergers and acquisitions advisory firm Stoneridge Partners monitors the stock values of Baton Rouge, Louisiana-based Amedisys, Inc. (Nasdaq: AMED) and Lafayette, Louisiana-based LHC Group, Inc. (Nasdaq: LHCG) each month. The HHI also monitors stock prices for Frisco, Texas-based Addus HomeCare Corporation (Nasdaq: ADUS), but does not include its results in the monthly report due to differences in Addus’ patient base and its primary focus on personal care services.

Amedisys saw a more than 21% increase in its stock price in November, and LHC Group stock values climbed almost 17% during the same period. Addus stock was also up from October to November by nearly 10%. Home health stocks handily outperformed the broader market in November, as the S&P 500 was only up 3.29% compared to the previous month.

“Both Amedisys and LHC Group have some tailwinds in their favor moving forward – PDGM will likely create more merger and acquisition opportunities for both companies,” Tinsley said. “Their executives have repeatedly touted those opportunities during recent earnings calls.”

Thanks to November’s gains, Amedisys, LHC Group and Addus stock prices are also well outperforming their 2018 results. Year-to-date, Amedisys is up by almost 30%, LHC Group is up by almost 43%, and Addus has increased by nearly 37% over 2018. Additionally, the HHI is up almost 41% year-to-date.

Quote Of The Month

“I think there’s a stigma associated with mental health and a lot of attitudes that there’s something wrong with a person’s intellect or morality.  But mental illness has nothing to do with any of that, you know, it has to do with how your brain is working.” – Adriane Howard, a licensed independent clinical social worker with Empower Behavioral Health

Read the Full Article Here:  Dealing with grief during the holidays, mental health resources available

Webinar Announcement

What you need to know about buying and selling home care agencies

Date: December 19, 2019
Time: 10am Pacific / 11am Mountain / 12pm Central / 1pm Eastern
Location: Online (Go-to-Webinar)
Cost: FREE!

See More Information Here: What you need to know about buying and selling home care agencies

See It To Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)

This graph compares the percentage of the Home Health Index to the percentage change in the S&P 500 Index going back to 2002.
[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.
[visualizer id=”8361″]

This graph displays HH Index performance since 2002.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).
[visualizer id=”8362″]

(Home Health Index December 2019 | Stoneridge Partners)

 

Here are the results of the stock prices for the past two years:

Company 11/30/19 1 mos change YTD change 11/30/18 11/30/17
Amedisys 162.96 +21.13% +39.47% 137.93 54.0
LHC Group 133.4 +16.81% +42.77% 105.43 65.77
HH Index* 148.18 +19.19% +40.94% 121.68 59.72
S&P 3140.98 +3.29% +25.87% 2739.67 2637.37
Addus 93.21 +9.66% +36.95% 75.45 33.3

Although we track the performance of Addus, they are not included in our HH Index because very little of their revenue comes from Medicare.

 

Enterprise Value (EV)

EV (in M) 11/30/19 11/30/18 11/30/17
Amedisys 5560 4060 1820
LHC Group 4200 3400 1280
HH Index Total 9760 7460 4046
Addus 1280 834 410


Enterprise Value (EV), aka Selling Price, as Percent of Revenue

Company 11/30/19 11/30/18 11/30/17
Amedisys 294% 250% 125%
LHC Group 224% 214% 133%
HH Index Average* 259% 232% 130%
Addus 213% 171% 100%


Multiples of EV/EBITDA

Think of this as selling price as a multiple of EBITDA.

Company 11/30/19 11/30/18 11/30/17
Amedisys 29.55 24.71 17.25
LHC Group 21.49 25.47 13.91
HH Index Average* 25.52 25.09 18.20
Addus 30.3 22.27 12.27

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company for its reporting. (Home Health Index December 2019 | Stoneridge Partners)

Recent Transactions From Around The Country

  • Soleo Health, a provider of specialty infusion services, acquired Paragon Infusion Therapy’s pharmacy business located in Dayton, OH
  • Discovery Behavioral Health, a nationwide leader in mental health services, has acquired Authentic Recovery Center (ARC), located in West Los Angeles, CA

CLOSED by Stoneridge

  • Stoneridge Partners, Partner Joe Lynch represented a South Carolina hospice agency that closed December 2019
  • Stoneridge Partners, Partner Ben Bogan represented a Pennsylvania home health agency that closed November 2019

Exclusively Listed For Sale By Stoneridge Partners

Do you know of any acquisitions that have taken place?  We are interested in your comments.  At the top of this column is a “Contact Tab” with a section for comments.  These can be sent anonymously and the return email address can be left blank.

 

Another Cartoon Favorite 

   

 

More

Home Health Index December 2019 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 and toll-free 800-218-3944

Previous editions of this monthly newsletter can be searched for at the bottom of the home page of the Home Health Index. Links to Google Finance: Amedisys | LHC Group

Please follow us on Facebook  and Linkedin

Facebooktwitter
Read More
Call Now Button(814) 723-9000