ACHC (ACHC) Stock Analysis

Verdict: HOLD

Post-earnings sell-off driven by margin compression and heavy debt load outweighs consistent revenue growth and EPS beats.

Investment score: 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.

Peers

PeerP/EP/BP/SEV/EBITDAROIC %Net margin %
UHS6.781.340.565.390.08
PACS30.007.041.3523.900.04
CON23.099.571.8414.330.08
BKD-17.60-64.341.1622.77-0.07
NHC28.793.272.3516.490.08

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