Amedysis Stock Dips, LHC Group Up in Latest HHI
Amedisys Stock Dips, LHC Group Up in Latest HHI
Stoneridge Partners’ latest Home Health Index (HHI) shows that after a positive January, February was largely a mixed bag in terms of home health stock performance.
According to the healthcare mergers and acquisitions firm’s monthly update, home health stocks dipped 2.63% in February compared to the previous month. The index underperformed the S&P 500, which climbed 3.28% during the same timeframe.
Stoneridge Partners’ HHI follows the market values for Amedisys Inc. (Nasdaq: AMED) and LHC Group Inc. (Nasdaq: LHCG), two of the largest home health, hospice and personal care providers in the United States. Stoneridge also follows market changes for Addus HomeCare Corporation (Nasdaq: ADUS), though it does not factor those changes into its final HHI tabulations.
“Results for home health stocks were mixed last month, but overall we’re still seeing strong year-to-date performance,” said Stoneridge Partners President and CEO Rich Tinsley. “And February brought positive news for Addus stock, which rebounded nicely after a dip to start off 2019.”
Stock values for Frisco, Texas-based Addus were up 8.90% in February compared to January, according to the latest HHI results. Meanwhile, stock values for Baton Rouge, Louisiana-based Amedisys were down 6.46% in February compared to January. The company’s 52-week high is $140.91 per share, while its 52-week low is $56.95 per share.
Lafayette, Louisiana-based LHC Group’s stock saw gains of 2.19% in February compared to the previous month. LHC Group’s 52-week high is $114.22 per share, while its 52-week low is $59.21 per share.
Year to date, Amedisys and LHC Group stock values are up 4.97% and 13.86%, respectively.
Amedisys and LHC Group both released their 2018 fourth quarter financial results on February 27th. Amedisys 2018 net service revenue checked in at $1.66 billion, while LHC Group’s net service revenue on the year came in at $1.81 billion.
“Amedisys and LHC Group both capped off pretty strong years in February.” Tinsley said. “Each company has been especially active on the M&A front – particularly with LHC Group engaged in the Almost Family integration throughout the year.”
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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.
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.
This graph displays HH Index performance since 2002.
This graph compares the HH Index to the price of Addus stock (non-Medicare).
(Home Health Index March 2019 | Stoneridge Partners)
Here are the results of the stock prices for the past two years:
|Company||2/28/19||1 mos change||YTD change||2/28/18||2/28/17|
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)||2/28/19||2/28/18||2/28/17|
|HH Index Total||7690||4278||3294|
Enterprise Value (EV), aka Selling Price, as Percent of Revenue
|HH Index Average*||240%||128%||112%|
Multiples of EV/EBITDA
Think of this as selling price as a multiple of EBITDA.
|HH Index Average*||26.00||19.02||15.62|
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 to it’s reporting. (Home Health Index March 2019 | Stoneridge Partners)
Recent Transactions From Around The Country
- The Ensign Group, a subsidary of Cornerstone Healthcare, Inc. has acquired All County Home Care and Hospice in Boerne, TX
- Help at Home LLC acquired Coastal Home Care and Altrus, two Georgia home and community based companies.
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.
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Home Health Index March 2019 | Stoneridge Partners