Home Health Stocks Hold Steady in April
Home Health Stocks Hold Steady in April
Health care mergers and acquisitions firm Stoneridge Partners’ most recent Home Health Index (HHI) shows that home health stocks held largely steady in April, decreasing just 0.03% over the previous month. The stocks did, however, slightly underperform the broader market, with the S&P 500 up 2.23% in April compared to March.
The Stoneridge Partners HHI follows the monthly market values for home health, hospice and personal care giants Amedisys, Inc. (Nasdaq: AMED) and LHC Group, Inc. (Nasdaq: LHCG). Stoneridge also tracks market changes for Addus HomeCare Corporation (Nasdaq: ADUS), though it is not included in the final HHI tabulations.
“Home health stock values were pretty consistent last month as the three publicly-traded companies neared their first quarter financial results,” Stoneridge Partners President Rich Tinsley said. “Addus had a very strong April, and LHC Group also fared well. Amedisys values showed some negative fluctuation compared to March.”
Addus stock was up 5.03% in April compared to March. Lafayette, Louisiana-based LHC Group saw its stock values rise by 2.55%, while stock of Baton Rouge, Louisiana-based Amedisys took a 2.19% dip in April compared to the previous month. Despite these small monthly shifts, both LHC and Amedisys have charted very strong performances annually. Amedisys stock was still up 89.96% on a year-over-year basis in April, and LHC Group was up 59.68% year over year.
Despite a solid first quarter, Amedisys’s stock values were down 6.21% following the release of its Q1 financial results at the start of the month, trading at $119.88 per share.
“It’s definitely going to be interesting to follow these companies and their stock values as Patient-Driven Groupings Model (PDGM) implementation draws closer,” Tinsley said. “The companies have all touted their preparation and readiness — but there’s bound to be some speed bumps in the road approaching January 1, 2020.”
Quote Of The Month
“When a person already feels vulnerable by illness – they heal at better rates and with more positive outcomes in familiar and comfortable surroundings”, home health nurse, Tarita Bumbray.
Read the Full Article Here: Bedside Manners: Home Health Nurses Become First Line of Care
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.
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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.
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This graph displays HH Index performance since 2002.
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This graph compares the HH Index to the price of Addus stock (non-Medicare).
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(Home Health Index May 2019 | Stoneridge Partners)
Here are the results of the stock prices for the past two years:
| Company | 4/30/19 | 1 mos change | YTD change | 4/30/18 | 4/30/17 |
| Amedisys | 120.25 | -2.69% | +2.92% | 65.97 | 57.63 |
| LHC Group | 111.19 | +2.76% | +19.00% | 74.45 | 55.43 |
| HH Index* | 115.72 | +0.07% | +10.06% | 70.21 | 54.24 |
| S&P | 2931 | +2.23% | +17.45% | 2654.8 | 2388.13 |
| Addus | 67.65 | +5.03% | -0.60% | 52.15 | 34.6 |
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) | 4/30/19 | 4/30/18 | 4/30/17 |
| Amedisys | 4480 | 2260 | 1950 |
| LHC Group | 3800 | 1440 | 1010 |
| HH Index Total | 8280 | 3700 | 3739 |
| Addus | 832 | 607 | 409 |
Enterprise Value (EV), aka Selling Price, as Percent of Revenue
| Company | 4/30/19 | 4/30/18 | 4/30/17 |
| Amedisys | 259% | 150% | 137% |
| LHC Group | 210% | 136% | 122% |
| HH Index Average* | 235% | 143% | 128% |
| Addus | 161% | 145% | 102% |
Multiples of EV/EBITDA
Think of this as selling price as a multiple of EBITDA.
| Company | 4/30/19 | 4/30/18 | 4/30/17 |
| Amedisys | 25.43 | 17.59 | 23.92 |
| LHC Group | 23.07 | 16.08 | 13.06 |
| HH Index Average* | 24.25 | 16.84 | 18.92 |
| Addus | 21.23 | 18.44 | 13.10 |
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 May 2019 | Stoneridge Partners)
Recent Transactions From Around The Country
- Arose+LivHome acquired Forever Young Home Care in North Carolina
- Jet Health Inc. acquired Boise-based First Choice Home Health and Hospice
- The Ensign Group, Inc. acquired Hospice operations in Austin and Houston, TX
- Blue Wolf, Peloton Equity acquired In-Home Care VNA
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.
SOLD!!! By Stoneridge
- Stoneridge Partners represented an Ohio based agency that closed April 2019
Another Cartoon Favorite
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Home Health Index May 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
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