Addus HomeCare Corporation – Buy Medical Stocks In 2021
Elderly citizens and those who are terminally ill face high costs. These include healthcare costs, nursing home costs, and the emotional toll that a person goes through in the latter years of life. However, there are companies that have found a niche and that present an alternative to such a scenario. Addus HomeCare specializes in offering home care and hospice services to chronically ill and disabled patients at a fraction of the cost that a nursing home would charge. One good thing is that the service is offered at the home of the patient. So, there is no need to go anywhere, and Addus does not have to incur significant capital expenditure to build facilities. If you are looking for the best medical stocks to invest in, then companies like Addus HomeCare can seem like an interesting proposition.
The Business And Financials Of Addus HomeCare
Addus HomeCare earns more than 80% of its revenue from personal care, while 17.3% comes from hospice services. In absolute numbers, around $680 million is earned from personal care services, $146 million comes from hospice services, and $18 million comes from home care. Personal care services include housekeeping, personal hygiene, meal preparation, housekeeping, and dressing. Hospice services include spiritual counseling, bereavement counseling, palliative nursing, and social work. Home health services include physical therapy, speech therapy, occupational therapy, and skilled nursing services. From 2015 to 2021, the revenue CAGR has been a respectable 15%, while adjusted EBITDA has grown at an average annual rate of almost 26%. If you were on the lookout to buy medical stocks in 2021, then it may be a good idea to check out companies like Addus HomeCare that offer an alternative to traditional nursing homes and institutional elderly care.
Addus HomeCare’s stock is up more than 5.8% on a 1-year basis as of November 2021. The 5-year record is even more robust, with the stock growing more than 200% during that time. Addus HomeCare does not pay a dividend and has been trending up since October 2021.