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Stock impact report

Addus HomeCare: More Challenges To Think About With CMS Proposals [Seeking Alpha]

Addus HomeCare Corporation (ADUS) 
Last addus homecare corporation earnings: 3/17 04:05 pm Check Earnings Report
Company Research Source: Seeking Alpha
The company is struggling to meet the opportunity cost of capital on its investments, corroborating its flat market values. Proposed regulatory changes, including mandatory staffing standards for nursing homes, could have a material impact on ADUS' operations. Net-net, reiterate hold. Investment briefing Since the last publication on Addus HomeCare Corporation ( NASDAQ: ADUS ) the stock has sold off sharply and now trades at 52-week lows. Recent proposals made by The CMS have weighed in heavily, and the company's soft economic performance is only adding fuel to the fire here in my opinion. This report will unpack all of the latest investment findings for ADUS and link this back to the broader hold thesis. In short, the company is having a hard time meeting the opportunity cost of capital we require (12%) on its investments, leading to flat market values. Still, the company trades at high earnings multiples, but tight asset multiples, not the ideal setup. Net-net, I continue Show less Read more
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