- ACADIA HEALTHCARE CO INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ACADIA HEALTHCARE CO INC increased its bottom line by earning $0.86 versus $0.53 in the prior year. This year, the market expects an improvement in earnings ($1.46 versus $0.86).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 84.1% when compared to the same quarter one year prior, rising from $12.20 million to $22.45 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 20.6%. Since the same quarter one year prior, revenues rose by 20.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.63, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 3.79, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 79.16% and other important driving factors, this stock has surged by 37.44% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. The Health Services industry as a whole closed the day down 0.6% versus the S&P 500, which was down 0.2%. Laggards within the Health Services industry included Allied Healthcare Products ( AHPI), down 1.8%, American Shared Hospital Services ( AMS), down 4.5%, Electromed ( ELMD), down 2.2%, USMD Holdings ( USMD), down 2.1% and Arrhythmia Research Technology ( HRT), down 2.0%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: Acadia Healthcare ( ACHC) is one of the companies that pushed the Health Services industry lower today. Acadia Healthcare was down $1.73 (3.4%) to $49.47 on light volume. Throughout the day, 261,571 shares of Acadia Healthcare exchanged hands as compared to its average daily volume of 451,100 shares. The stock ranged in price between $49.35-$51.54 after having opened the day at $51.42 as compared to the previous trading day's close of $51.20. Acadia Healthcare Company, Inc. develops and operates inpatient psychiatric facilities, residential treatment centers, group homes, and substance abuse facilities in the United States. Acadia Healthcare has a market cap of $3.1 billion and is part of the health care sector. Shares are up 8.2% year-to-date as of the close of trading on Wednesday. Currently there are 7 analysts who rate Acadia Healthcare a buy, no analysts rate it a sell, and 2 rate it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Acadia Healthcare as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from TheStreet Ratings analysis on ACHC go as follows: