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AdaptHealth Corp. and subsidiaries ("AdaptHealth" or "the Company") is a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment ( HME ), medical supplies, and related services. The Company operates under four reportable segments that align with its product categories: (i) Sleep Health, (ii) Respiratory Health, (iii) Diabetes Health, and (iv)…
Operating margin is thin at 2.80%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 0.5% YoY. Margins deteriorated 5.3pp alongside, both lines moving the wrong way.
ROIC dropped from 5.97% to 2.02%, capital efficiency is deteriorating. Net debt of $1.80B represents 8.2x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$3.29B
▼ -0.5% YoY
Net Income (TTM)
-$81M
▼ -178.3% YoY
Op. Margin
2.23%
▼ -5.3pp YoY
ROIC
1.65%
▼ -4.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$192M
▼ -7.0% YoY
Op. Cash Flow (TTM)
$600M
▲ +11.1% YoY
Net Debt
$1.95B
Cash & Equiv.
$48M
5Y CAGR: +25.2%
5Y CAGR: +7.1%
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