📊 AVAH Key Takeaways
Is Aveanna Healthcare Holdings, Inc. (AVAH) a Good Investment?
While Aveanna demonstrates strong revenue growth (+20.2% YoY) and improving operating margins, the company exhibits significant financial stress: negative free cash flow (-$4.5M) despite net income of $41.7M indicates earnings quality concerns, and extreme leverage (5.40x Debt/Equity) with weak interest coverage (2.4x) creates refinancing risk. The disconnect between reported profitability and actual cash generation in a capital-intensive business is unsustainable.
Aveanna shows solid top-line momentum, healthy gross and operating margins, and positive free cash flow generation, which indicates the core business is scaling profitably. However, flat net income despite 20.2% revenue growth, very high leverage, and weak interest coverage materially constrain financial flexibility and reduce the quality of the earnings profile. The fundamentals support a balanced view: operationally improved, but still burdened by debt risk.
Aveanna Healthcare Holdings, Inc. Key Strengths (AVAH)
- Strong revenue growth at 20.2% YoY ($647.9M total revenue)
- Improving profitability with gross margin of 31.7% and operating margin of 10.7%
- Adequate liquidity with $189.3M in cash and 1.47x current ratio
- Solid ROE of 17.4% demonstrates reasonable returns on shareholder capital
- Revenue growth of 20.2% YoY with positive operating leverage
- Gross margin of 33.3% and operating margin of 10.5% indicate a profitable core business
- Positive operating cash flow of $125.86M and free cash flow of $117.06M support liquidity
AVAH Stock Risks: Aveanna Healthcare Holdings, Inc. Investment Risks
- Negative free cash flow (-$4.5M) despite positive net income - major earnings quality concern
- Severe leverage at 5.40x Debt/Equity with only 2.4x interest coverage - refinancing risk
- Operating cash flow of only $4.3M represents just 10% of net income - suggests non-cash gains or working capital distress
- Capital expenditure of $8.8M exceeds operating cash flow - unsustainable cash burn in capital-intensive business
- Debt/Equity of 6.68x and long-term debt of $1.30B create significant balance sheet risk
- Interest coverage of 1.8x leaves limited cushion if earnings soften or borrowing costs remain elevated
- Net income was flat YoY despite strong revenue growth, suggesting earnings quality and margin durability need scrutiny
Key Metrics to Watch
- Operating cash flow trend and reconciliation to net income
- Debt refinancing schedule and covenant compliance
- Free cash flow improvement path and ability to fund capital needs
- Working capital changes and accounts receivable quality
- Interest coverage and net debt reduction progress
- Net income growth and free cash flow margin versus revenue growth
Aveanna Healthcare Holdings, Inc. (AVAH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Aveanna Healthcare Holdings, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
AVAH Profit Margin, ROE & Profitability Analysis
AVAH vs Services Sector: How Aveanna Healthcare Holdings, Inc. Compares
How Aveanna Healthcare Holdings, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Aveanna Healthcare Holdings, Inc. Stock Overvalued? AVAH Valuation Analysis 2026
Based on fundamental analysis, Aveanna Healthcare Holdings, Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Aveanna Healthcare Holdings, Inc. Balance Sheet: AVAH Debt, Cash & Liquidity
AVAH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Aveanna Healthcare Holdings, Inc.'s revenue has grown significantly by 36% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.06 indicates the company is currently unprofitable.
AVAH Revenue Growth, EPS Growth & YoY Performance
AVAH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $559.2M | $5.2M | $0.03 |
| Q3 2025 | $509.0M | $14.1M | $0.06 |
| Q2 2025 | $505.0M | $2.7M | $0.01 |
| Q1 2025 | $490.7M | $5.2M | $0.03 |
| Q3 2024 | $478.0M | -$40.1M | $-0.21 |
| Q2 2024 | $471.9M | $2.7M | $0.01 |
| Q1 2024 | $466.4M | -$11.2M | $-0.06 |
| Q3 2023 | $443.0M | $24.3M | $0.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Aveanna Healthcare Holdings, Inc. Dividends, Buybacks & Capital Allocation
AVAH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Aveanna Healthcare Holdings, Inc. (CIK: 0001832332)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AVAH
What is the AI rating for AVAH?
Aveanna Healthcare Holdings, Inc. (AVAH) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AVAH's key strengths?
Claude: Strong revenue growth at 20.2% YoY ($647.9M total revenue). Improving profitability with gross margin of 31.7% and operating margin of 10.7%. ChatGPT: Revenue growth of 20.2% YoY with positive operating leverage. Gross margin of 33.3% and operating margin of 10.5% indicate a profitable core business.
What are the risks of investing in AVAH?
Claude: Negative free cash flow (-$4.5M) despite positive net income - major earnings quality concern. Severe leverage at 5.40x Debt/Equity with only 2.4x interest coverage - refinancing risk. ChatGPT: Debt/Equity of 6.68x and long-term debt of $1.30B create significant balance sheet risk. Interest coverage of 1.8x leaves limited cushion if earnings soften or borrowing costs remain elevated.
What is AVAH's revenue and growth?
Aveanna Healthcare Holdings, Inc. reported revenue of $647.9M.
Does AVAH pay dividends?
Aveanna Healthcare Holdings, Inc. does not currently pay dividends.
Where can I find AVAH SEC filings?
Official SEC filings for Aveanna Healthcare Holdings, Inc. (CIK: 0001832332) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AVAH's EPS?
Aveanna Healthcare Holdings, Inc. has a diluted EPS of $0.19.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AVAH's fundamental grade?
Based on our AI fundamental analysis in June 2026, Aveanna Healthcare Holdings, Inc. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is AVAH stock overvalued or undervalued?
Valuation metrics for AVAH: ROE of 17.4% (sector avg: 16%), net margin of 6.4% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
What is AVAH's AI grade for 2026?
Our dual AI analysis gives Aveanna Healthcare Holdings, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AVAH's free cash flow?
Aveanna Healthcare Holdings, Inc.'s operating cash flow is $4.3M, with capital expenditures of $8.8M. FCF margin is -0.7%.
How does AVAH compare to other Services stocks?
Vs Services sector averages: Net margin 6.4% (avg: 10%), ROE 17.4% (avg: 16%), current ratio 1.47 (avg: 1.5).
Is Aveanna Healthcare Holdings, Inc. carrying too much debt?
AVAH has a debt-to-equity ratio of 5.40x, which is above the Services sector average of 0.7x. However, the current ratio of 1.47 suggests adequate short-term liquidity.