| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 67 | 10.7x | 17.8x | Top tier | |
Growth | 81 | 19.5% | 7.1% | Top tier | |
Quality | 58 | 27.1% | 4.5% | Around median | |
Safety | 42 | 4.4x | 2.6x | Around median | |
Capital Return | 38 | — | 2.12% | Bottom tier | |
Momentum | 95 | 20.9% | 2.9% | Top tier | |
Sentiment | 36 | 7 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Aveanna Healthcare Holdings Inc. provides home- and community-based healthcare services through three operating segments: Private Duty Services, Home Health & Hospice, and Medical Solutions. Private Duty Services represents approximately 83% of revenue, and the company generates income from care hours reimbursed by government programs and managed payers, home health episodes, and Medical Solutions patients served; in Q2 FY2026, revenue per hour in Private Duty Services was $44.62, revenue per Medicare episode was approximately $3.2 thousand, and revenue per unique patient in Medical Solutions was approximately $500.
In Q2 FY2026, revenue increased 13.7% year over year to $670.5 million, gross profit was $218.5 million at a 32.6% margin, while net income reached $40.3 million and earnings per share were $0.18. Compared with Q2 FY2025, gross profit increased from $210.8 million, but its margin declined from approximately 35.8% to 32.6%, while net income increased from $27.0 million.
Each operating segment grew in Q2 FY2026: Home Health & Hospice revenue increased 14.8% to approximately $69 million, Private Duty Services increased 14.0%, and Medical Solutions grew 9.4% to $47.5 million. Adjusted earnings before interest, taxes, depreciation, and amortization were $95.4 million, up 8%, a rate below revenue growth, while Home Health & Hospice recorded a gross margin of 53.9% and Medical Solutions recorded 45.1%. Following the quarter’s results, management raised its FY2026 outlook to revenue exceeding $2.68 billion and adjusted earnings before interest, taxes, depreciation, and amortization exceeding $365 million.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on AVAH is “Buy,” with an average price target of $14.38 and a wide range of $11 to $16. The average target is only approximately 2.7% above the top of the 52-week range of $14, while the highest target exceeds that level by approximately 14.3% and the lowest target is approximately 21.4% below it, reflecting meaningful divergence in value estimates. The data does not provide an earnings multiple that could be used as an additional anchor, so the available valuation framework depends primarily on analyst targets relative to the 52-week range and on the company’s ability to execute its FY2026 outlook while protecting margins.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Q2 FY2026 revenue increased 13.7% to $670.5 million, with Private Duty Services growing 14.0%, Home Health & Hospice 14.8%, and Medical Solutions 9.4%. Management attributes this performance to improved reimbursement rates, higher volumes, preferred payer agreements, and operational efficiency. Following the August 13, 2026, results, the company raised its outlook to revenue exceeding $2.68 billion and adjusted earnings before interest, taxes, depreciation, and amortization exceeding $365 million.
The California FY2027 budget included a significant investment in pediatric private duty nursing rates beginning January 1, 2027, after the state’s last increase on July 1, 2018. Management said hour-coverage rates in California had fallen by approximately 30% over previous years because reimbursement and wages lagged the market. Aveanna plans to pass through wage increases around October 2026, aiming to increase hours worked by existing caregivers, recruit new nurses, and help discharge eligible patients from hospitals to their homes.
The number of preferred payer agreements in Private Duty Services reached 37 in Q2 FY2026 and represented 64% of managed care organization volumes, compared with 60% at the end of Q1. In Home Health, the company achieved its target of 50 preferred payers, and the episode-based mix reached 81%. These agreements allow caregiver capacity to be directed toward payers offering better rates, but the company passes a significant portion of the improvement through to wages rather than targeting a large expansion in the margin percentage.
Variable-rate debt was approximately $1.48 billion at the end of Q2 FY2026, but $1.4 billion of it was protected by interest-rate caps. The company reduced the term loan interest rate by 75 basis points and expects annual savings of approximately $10 million. During the first half of FY2026, it generated $85.3 million in operating cash flow and $75.4 million in free cash flow, while liquidity was approximately $433 million.
Aveanna closed the acquisition of Family First Homecare in early June 2026 and funded it, along with closing costs, entirely from available cash. Management said on the August 13, 2026, call that the integration was progressing in line with or better than expectations and that the acquired company strengthened the business in Florida and service areas in Iowa and South Dakota. Aveanna expects to complete most integration work, including back-office transitions and the electronic medical records system, by late Q4 FY2026.
Approximately 83% of revenue comes from Private Duty Services, concentrating exposure to reimbursement rates and the availability of nurses and caregivers. Consolidated gross margin also declined to 32.6% from approximately 35.8% in Q2 FY2025, while management emphasizes that rate improvements will be partially passed through to wages. The $1.48 billion of variable-rate debt and the divergence in analyst targets between $11 and $16 add two further layers of financial and valuation risk.
