Ardent Health, Inc. (NYSE: ARDT)

Sector: Healthcare Industry: Medical Care Facilities CIK: 0001756655
Market Cap 1.23 Bn
P/B 0.99
P/E 5.98
P/S 0.19
ROIC (Qtr) 9.39
Div Yield % 0.00
Rev 1y % (Qtr) 8.75
Total Debt (Qtr) 2.28 Bn
Debt/Equity (Qtr) 1.84

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 609.44M provide 31.51x coverage of short-term debt 19.34M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 366.64M fully covers other non-current liabilities 323.12M by 1.13x, showing strong long-term stability.
  • Operating cash flow of 366.64M provides strong 3.02x coverage of inventory 121.59M, indicating efficient inventory management.
  • Tangible assets of 4.19B provide robust 7.73x coverage of other current liabilities 541.96M, indicating strong asset backing.
  • Cash reserves of 609.44M provide solid 1.89x coverage of other non-current liabilities 323.12M, indicating strong liquidity.

Bear case

  • Operating cash flow of 366.64M barely covers its investment activities of (233.44M), with a coverage ratio of -1.57, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 609.44M provide limited coverage of acquisition spending of (23.20M), which is -26.27x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 729.41M relative to inventory of 121.59M (6 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of 325.88M show weak coverage of depreciation charges of 152.52M, with a 2.14 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 152.52M relative to operating cash flow of 366.64M, which is 0.42x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the Medical Care Facilities
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 HCA HCA Healthcare, Inc. 114.88 Bn 18.11 1.54 46.35 Bn
2 THC Tenet Healthcare Corp 18.07 Bn 13.34 0.87 13.19 Bn
3 UHS Universal Health Services Inc 14.64 Bn 10.65 0.86 5.11 Bn
4 FMS Fresenius Medical Care AG 14.10 Bn 16.69 0.61 14.98 Bn
5 EHC Encompass Health Corp 12.55 Bn 19.95 2.17 2.66 Bn
6 ENSG Ensign Group, Inc 10.08 Bn 30.72 2.09 2.16 Bn
7 DVA Davita Inc. 8.90 Bn 11.53 0.67 12.78 Bn
8 CHE Chemed Corp 6.38 Bn 22.87 2.52 0.14 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.57 1.26
EV to Cash from Ops. EV/CFO 7.99 12.78
EV to Debt EV to Debt 1.29 12.10
EV to EBIT EV/EBIT 8.99 10.74
EV to EBITDA EV/EBITDA 5.52 16.04
EV to Free Cash Flow [EV/FCF] EV/FCF 18.61 18.02
EV to Market Cap EV to Market Cap 2.43 432.64
EV to Revenue EV/Rev 0.46 2.77
Price to Book Value [P/B] P/B 0.97 -1.92
Price to Earnings [P/E] P/E 5.87 5.13
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.10
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -13.44
Dividend per Basic Share Div per Share (Qtr) 0.00 0.27
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 5.42
Interest Coverage Int. cover (Qtr) 5.78 -97.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -27.80 -114.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 8.22 65.22
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.97
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 73.33 -46.98
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 26.77 75.97
EBIT Growth (1y) % EBIT 1y % (Qtr) 64.97 -61.19
EBT Growth (1y) % EBT 1y % (Qtr) 112.18 -115.48
EPS Growth (1y) % EPS 1y % (Qtr) 111.27 -24.32
FCF Growth (1y) % FCF 1y % (Qtr) 58.61 309.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 31.94 17.88
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.23 1.04
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.65 0.39
Current Ratio Curr Ratio (Qtr) 2.08 1.39
Debt to Equity Ratio Debt/Equity (Qtr) 1.84 -13.19
Interest Cover Ratio Int Coverage (Qtr) 5.78 -97.94
Times Interest Earned Times Interest Earned (Qtr) 5.78 -97.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.60 -95.81
EBIT Margin % EBIT Margin % (Qtr) 5.15 -94.97
EBT Margin % EBT Margin % (Qtr) 4.26 -105.60
Gross Margin % Gross Margin % (Qtr) 18.40 23.31
Net Profit Margin % Net Margin % (Qtr) 3.20 -106.14