TacticScaleWhat Adapthealth Does & How It Makes Money (AHCO)
Updated October 2026 · reflects Adapthealth's latest reported financials
US home medical equipment and supplies provider. It distributes, rents and services home medical equipment and recurring supplies to patients, and gets paid mainly by Medicare, Medicaid and commercial insurers.
How Adapthealth makes money
It distributes, rents and services home medical equipment and recurring supplies to patients, and gets paid mainly by Medicare, Medicaid and commercial insurers.
What Adapthealth does
AdaptHealth Corp. is a US distributor of home medical equipment, medical supplies and related home services. Founded in 2012 and based in Conshohocken, Pennsylvania, it has four segments: Sleep Health (CPAP and BiLevel therapy for obstructive sleep apnea), Respiratory Health (home oxygen and mechanical ventilation), Diabetes Health (continuous glucose monitors and insulin pumps), and Wellness at Home (equipment for patients discharged from hospitals and other facilities). Its broad catalog runs from PAP machines, oxygen concentrators and ventilators to hospital beds, wheelchairs, walkers, commodes, and wound care, incontinence, enteral and breast pump supplies. Much of this is chronic therapy with ongoing resupply needs. Revenue comes mainly from reimbursement by Medicare, Medicaid and commercial insurance payors, so the business depends on payor relationships and reimbursement rates.
Products & services
- CPAP and BiLevel sleep therapy equipment and supplies
- Home oxygen concentrators and ventilators
- Continuous glucose monitors and insulin pumps
- Hospital beds, wheelchairs and walkers
- Wound care, incontinence and enteral supplies
- Breast pumps and orthopedic bracing
What is Adapthealth worth?
On an owner-earnings DCF, Adapthealth's most-likely value is about $19 versus a recent price near $6 (213% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$13) with a margin of safety — so the honest verdict here is “Deeply discounted.” Fair value earns its keep only at the extremes, not in the wide middle.
On the financials alone, $6 is below even the no-growth floor ($13); the market's discount — expectations and sentiment beyond the numbers — is pricing in ≈ -13.6%/yr. A bargain only if that pessimism is overdone.
⚠ High leverage — net debt is 9.2× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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