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A Spotlight On Amedisys, Inc.'s (NASDAQ:AMED) Fundamentals

Simply Wall St

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Amedisys, Inc. (NASDAQ:AMED) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of AMED, it is a company with great financial health as well as a a strong history of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Amedisys here.

Flawless balance sheet with outstanding track record

AMED delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 25%, which is an optimistic signal for the future. AMED's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that AMED manages its cash and cost levels well, which is an important determinant of the company’s health. AMED appears to have made good use of debt, producing operating cash levels of 30.25x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NasdaqGS:AMED Income Statement, April 3rd 2019

Next Steps:

For Amedisys, there are three relevant factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for AMED’s future growth? Take a look at our free research report of analyst consensus for AMED’s outlook.
  2. Valuation: What is AMED worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AMED is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AMED? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.