Acadia Healthcare Company Inc (ACHC) Stock Analysis
Verdict: WATCH (do not buy)
Post-earnings sell-off driven by margin compression and heavy debt load outweighs consistent revenue growth and EPS beats.
Investment score: 44/100
Analysis as of
Is Acadia Healthcare Company Inc stock worth reviewing? The TradeMates thesis
Acadia Healthcare faces a crisis of confidence as top-line growth fails to translate to bottom-line stability. With negative net margins of -33.4% and a P/B of 1.28x (roughly in line with peer UHS at 1.34x despite UHS being highly profitable), the risk-reward profile is skewed to the downside. The model avoids the stock until evidence of margin stabilization appears.
7-factor investment score
- Valuation: 48/100 (weight 20%)
- Financial Health: 35/100 (weight 15%)
- Technical Momentum: 30/100 (weight 15%)
- Earnings Quality: 65/100 (weight 15%)
- Insider Sentiment: 50/100 (weight 10%)
- Analyst Consensus: 60/100 (weight 10%)
- Risk-Adjusted Return: 40/100 (weight 15%)
Acadia Healthcare Company Inc opportunities and risks
What speaks for ACHC
- Behavioral Health Demand Tailwind
What speaks against ACHC
- Persistent Margin Deterioration
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ACHC | n/a | 0.8x | n/a | 31.3% | -33.4% | -0.7% |
| UHS | 6.8x | 0.6x | 5.4x | 48.6% | 8.4% | 8.9% |
| PACS | 30.0x | 1.4x | 23.9x | 19.2% | 4.5% | 3.2% |
| CON | 23.1x | 1.8x | 14.3x | 27.8% | 8.0% | 7.1% |
| BKD | n/a | 1.2x | 22.8x | 14.3% | -6.6% | 0.3% |
| NHC | 28.8x | 2.4x | 16.5x | 37.2% | 8.1% | 4.7% |
| Peer median | 23.1x | 1.4x | 16.5x | 27.8% | 8.0% | 4.7% |
Frequently asked questions about Acadia Healthcare Company Inc (ACHC)
Is ACHC stock a good investment?
The TradeMates model rates Acadia Healthcare Company Inc as WATCH (do not buy) with an investment score of 44/100. Acadia Healthcare faces a crisis of confidence as top-line growth fails to translate to bottom-line stability. With negative net margins of -33.4% and a P/B of 1.28x (roughly in line with peer UHS at 1.34x despite UHS being highly profitable), the risk-reward profile is skewed to the downside. The model avoids the stock until evidence of margin stabilization appears. This is algorithmic model output, not personal investment advice.
Is ACHC stock a buy?
The TradeMates model verdict for ACHC is WATCH (do not buy) with an investment score of 44/100. Treat this as a model signal to review, not a personal buy recommendation.