AdaptHealth Corp. Common Stock (AHCO)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at AdaptHealth through a Graham lens: what is the business worth, and what could go wrong? It distributes home medical equipment—sleep therapy, respiratory, diabetes, wellness—a necessary but competitive field. There may be some stickiness in recurring supplies and insurer relationships, but I see no wide moat. The financials are messy. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $740.3 million but net income was a loss of $133.9 million, or $0.99 per diluted share. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $819.8 million and the net loss was $16.0 million, or $0.12 per share. For fiscal year 2025, revenue was $3.2 billion and net loss was $70.8 million, or $0.52 per share, after fiscal year 2024 net income of $90.4 million. FairStock classifies this as a TURNAROUND: loss in the latest year after earlier profits. The balance sheet worries me: debt-to-equity is 1.49, Altman Z-score is 0.08, and Piotroski is 4/9. ROCE is only 2.28%. Free cash flow is the bright spot: $97.7 million trailing, an 11.3% FCF yield. But at $6.33 on 2026-10-13, P/B is 0.61 and EV/EBITDA is 10.43. The market is pricing skepticism, not a bargain. I need evidence that losses are temporary and cash flow persists before calling it safe.

In plain English: AdaptHealth provides home medical equipment and supplies, such as sleep apnea machines, oxygen equipment, and diabetes supplies. The business is currently losing money, carries a lot of debt, and recent results have been weak, though it still produces cash. At $6.33, the stock looks inexpensive compared with the company's accounting value, but the weak profits and financial risk make it a uncertain bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer