Operating Margin

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Price: 109.465 USD -0.82% Market Closed

Market Cap: $2B

9.2%

Improving

by 0.4%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

9.2%

Operating Income

$123.3m

Revenue

$1.3B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

9.2%

Operating Income

$123.3m

Revenue

$1.3B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		Addus Homecare Corp NASDAQ:ADUS	2B USD	Loading...
US		CVS Health Corp NYSE:CVS	104.7B USD	Loading...
US	C	Cigna Group XMUN:CGN	63.4B EUR	Loading...
US		Cigna Corp NYSE:CI	74.2B USD	Loading...
DE		Fresenius SE & Co KGaA XETRA:FRE	27.2B EUR	Loading...
DE		Fresenius Medical Care AG XMUN:FME	21.9B EUR	Loading...
US		Laboratory Corporation of America Holdings NYSE:LH	22B USD	Loading...
US		Quest Diagnostics Inc NYSE:DGX	20B USD	Loading...
US		Guardant Health Inc NASDAQ:GH	14.5B USD	Loading...
DE	F	Fresenius Medical Care AG & Co KGaA XETRA:FME	10.8B EUR	Loading...
US		DaVita Inc NYSE:DVA	7.6B USD	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Addus Homecare Corp
Glance View

Economic Moat

None

Market Cap

2B USD

Industry

Health Care

Addus Homecare Corp., tracing its roots back to 1979, stands as a beacon in the realm of home and community-based healthcare services. Headquartered in Frisco, Texas, the company has effectively built its reputation by focusing on the often-overlooked demographic of elderly individuals who wish to maintain their independence while still receiving necessary medical and personal care. Addus operates by dispatching a skilled workforce of healthcare professionals directly to clients' homes, providing services that range from personal care and assistance with daily living activities to more specialized medical care. This approach not only allows seniors to stay comfortably in familiar surroundings but also helps minimize hospital readmission rates, catering to a growing preference for in-home care among patients and their families. The financial engine of Addus Homecare is driven predominantly by its contractual relations with various state and federal agencies, as well as private pay clients, leveraging reimbursements from Medicaid and Medicare programs. These government partnerships form the backbone of its revenue stream, capturing a significant share of the vast spending in the healthcare sector. As America's population continues to age, the demand for Addus's services aligns with broader demographic shifts, reflecting a strategic positioning that capitalizes on a critical societal need. This business model ensures steady cash flows while adapting to regulatory environments, enabling Addus Homecare to navigate the complex healthcare landscape and maintain its status as a vital player in the industry.

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ADUS Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Addus Homecare Corp
NASDAQ:ADUS

Peer Comparison

Market Distribution

Other Profitability Ratios

Addus Homecare Corp
Glance View

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Addus Homecare Corp NASDAQ:ADUS