Acadia Healthcare Company Inc (ACHC) is a leading company in the health domain. It mainly deals with mental illness, provides psychiatric treatment and all related facilities including clinics, care homes, schools, and colleges. It has its segments in the U.S and the U.K. Its gross income was 645.52 million in 2019 with revenue/sales up to 3.11 billion.
Whether you are an investor or a shareholder, the below five facts can be useful criteria to judge on the Acadia stocks.
- ACHC recently launched a mental health care system functioning from 14th July 2020, partnered with Tower Behavioural Health, Pennsylvania. It also plans to open a special unit for children and adolescents in 2021. This promises a boost in their revenue in the upcoming years.
- Earnings Per Share (EPS) for ACHC is $2.04 for Q1 2020. This is way below the average $11.88 earnings in the S&P 500.
- It has a P/E ratio of 20.97 which is again lower than the average S&P 500 P/E ratio of 22.22 indicating a lower growth rate for the future. Also, a Forward PE of 14.43 and 20.97 trailing in 12 months.
- The stocks are trading cheap for some time. It closed at $26.84 on 14th July. If you trust Zacks Ranking, ACHC is at #2 which denotes ‘buy’. This gives a clear indication this is the right time to buy. However one may notice, ACHC is currently overvalued given its PEG ratio to be 2.07. The average for the industry is ACHC is listed is 1.07. Usually, ratio 1 is desirable as it shows that the company market value is in par with its projected growth.
- ACHC faced a major drop in March when its share price went stooping low, $11.4 closing on 23rd March. This was probably due to the wake of the COVID-19 situation. Although the NASDAQ: ACHC at https://www.webull.com/quote/nasdaq-achc one month chart for June-July shows a pretty mixed trend for ACHC. With lows as much as $23 to high as $27.7, it has good prospects to grow in upcoming years but not at a high rate.
As an investor: The book value for ACHC shares is $28.29 as on 31st March. This is higher than the current trading price. It might be a perfect time to get your hands on the ACHC shares. However one should also consider the PEG ratio.
As a shareholder: A sluggish growth rate might discourage you to hold on to the shares. Rely more on the historical metric rather than the current data to have a better understanding of company potential. See if it suits your personal goals. You can check more stock news at stock market websites online. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.