AMED - Embedded Expectations Analysis - 2021 10 20
Amedisys, Inc. (AMED:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 23.4x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about their hospice business, staffing challenges, and overall business growth.Specifically, management may have concerns about continued headwinds to its hospice business amid lingering pandemic impacts and the pace of the hospice business recovery. They may also have concerns about declining average daily census (ADC), high contractor costs, and the post-acquisition performance of CCH. In addition, they may lack confidence in their ability to sustain strong margins, cash flows, and net income growth. Furthermore, they may lack confidence in their ability to increase staff levels, drive sales calls growth, and gain new hospice admissions. Finally, they may have concerns about the impact of the CARES Act on smaller providers, and they may be overstating the potential of the Contessa acquisition.
Amedisys is a healthcare services company focused on providing care in the home. The company's operations involve servicing patients across the United States through its operating divisions: home health, hospice and personal care. The company's Home Health segment provides healthcare to help its patients recover from surgery or illness, live with chronic diseases, and prevent avoidable hospital readmissions. Hospice care is designed to provide comfort and support for those who are dealing with a terminal illness such as heart disease, pulmonary disease, Alzheimer's or cancer. Personal care provides assistance with the activities of daily living.
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