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At-Home Healthcare Is Growing Fast: Can CAH Ride the Trend?
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Key Takeaways
Cardinal Health is scaling At-Home Solutions through investments and acquisitions in specialized home care.
CAH expects its Other growth businesses to deliver 11-13% revenues and 15-18% profit growth in fiscal 2027.
ADS, Strive Medical and AdaptHealth's Diabetes business are expanding CAH's at-Home capabilities and scale.
Cardinal Health (CAH - Free Report) is positioning its At-Home Solutions business to capture the continued shift toward home-based healthcare, particularly through diabetes and other specialized care needs. Management described at-Home as a fast-growing yet fragmented market, creating opportunities to scale through both organic investments and acquisitions. The business delivered strong operating performance in the fourth quarter, supported by investments in distribution capacity, technology and automation. Its nearly 99% fill rate and best-ever quarter for on-time departures highlight the operational infrastructure being built to support rising home-care demand.
The integration of Advanced Diabetes Supply (“ADS”) is becoming an important component of this strategy. Cardinal Health said the integration was progressing ahead of schedule on synergies, while recent investments in home care are strengthening the framework established through ADS. The company is also scaling through the completed acquisition of Strive Medical and the announced acquisition of AdaptHealth’s Diabetes Health business. Management expects these transactions to contribute to growth while expanding its at-Home capabilities.
Beyond distribution, Cardinal Health is building connectivity across the healthcare ecosystem. Its continued care pathway program simplifies diabetes supply management for both pharmacies and patients, allowing the company to extend its role beyond traditional product distribution.
CAH’s strategy also relies on expanding its network and capabilities through acquisitions and customer relationships. Strive and AdaptHealth’s Diabetes Health businesses are expected to add scale, while Cardinal Health continues to invest in technology, capacity and capabilities across its growth businesses. For fiscal 2027, management expects the Other growth businesses, which include At-Home Solutions, to deliver 11-13% revenue growth and 15-18% profit growth.
Peer Updates
BrightSpring Health Services (BTSG - Free Report) is expanding its at-home footprint through a platform spanning home health, hospice, personal care and home-based primary care. In the second quarter, Provider Services revenues increased 30%, led by Home Health Care revenue growth of 51%. The growth in Home Health was supported by census gains, de novo expansion and contributions from Amedisys and LHC branches. Personal Care hours served also grew above the industry rate, while home-based primary care continued showing reductions in hospitalizations and healthcare costs.
BrightSpring is integrating these services and pursuing tuck-in acquisitions and expansions, using scale, technology, AI and capabilities to broaden access, improve efficiency and capture demand across home-based care markets.
Addus HomeCare (ADUS - Free Report) is expanding its position in home-based care primarily through Personal Care, while using acquisitions to increase geographic density and service scale. Personal Care revenues rose 6.8% in the second quarter, with hours served up 2.2% and census increasing sequentially across most markets.
Addus also expanded into Indiana through HomeCourt Home Care and agreed to acquire another Indianapolis-area provider, extending its presence around Illinois. Hospice revenues increased 11.1%, while hospice census rose 6.5%. Although Home Health revenues declined 2.8%, admissions and operating performance improved sequentially. Addus is also evaluating additional personal care and home health acquisitions to broaden coverage and regional reach.
CAH’s Price Performance, Valuation and Estimates
Shares of CAH have gained 7.1% so far this year compared with the industry’s 2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Cardinal Health trades at a forward price-to-earnings of 17.1X, above the industry average. However, it is trading lower than its five-year high of 22.19X. CAH carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cardinal Health’s fiscal 2027 earnings implies an 11.5% rise from the year-ago reported number.
View the Zacks #1 Rank List
Image: Bigstock
At-Home Healthcare Is Growing Fast: Can CAH Ride the Trend?
Key Takeaways
Cardinal Health (CAH - Free Report) is positioning its At-Home Solutions business to capture the continued shift toward home-based healthcare, particularly through diabetes and other specialized care needs. Management described at-Home as a fast-growing yet fragmented market, creating opportunities to scale through both organic investments and acquisitions. The business delivered strong operating performance in the fourth quarter, supported by investments in distribution capacity, technology and automation. Its nearly 99% fill rate and best-ever quarter for on-time departures highlight the operational infrastructure being built to support rising home-care demand.
The integration of Advanced Diabetes Supply (“ADS”) is becoming an important component of this strategy. Cardinal Health said the integration was progressing ahead of schedule on synergies, while recent investments in home care are strengthening the framework established through ADS. The company is also scaling through the completed acquisition of Strive Medical and the announced acquisition of AdaptHealth’s Diabetes Health business. Management expects these transactions to contribute to growth while expanding its at-Home capabilities.
Beyond distribution, Cardinal Health is building connectivity across the healthcare ecosystem. Its continued care pathway program simplifies diabetes supply management for both pharmacies and patients, allowing the company to extend its role beyond traditional product distribution.
CAH’s strategy also relies on expanding its network and capabilities through acquisitions and customer relationships. Strive and AdaptHealth’s Diabetes Health businesses are expected to add scale, while Cardinal Health continues to invest in technology, capacity and capabilities across its growth businesses. For fiscal 2027, management expects the Other growth businesses, which include At-Home Solutions, to deliver 11-13% revenue growth and 15-18% profit growth.
Peer Updates
BrightSpring Health Services (BTSG - Free Report) is expanding its at-home footprint through a platform spanning home health, hospice, personal care and home-based primary care. In the second quarter, Provider Services revenues increased 30%, led by Home Health Care revenue growth of 51%. The growth in Home Health was supported by census gains, de novo expansion and contributions from Amedisys and LHC branches. Personal Care hours served also grew above the industry rate, while home-based primary care continued showing reductions in hospitalizations and healthcare costs.
BrightSpring is integrating these services and pursuing tuck-in acquisitions and expansions, using scale, technology, AI and capabilities to broaden access, improve efficiency and capture demand across home-based care markets.
Addus HomeCare (ADUS - Free Report) is expanding its position in home-based care primarily through Personal Care, while using acquisitions to increase geographic density and service scale. Personal Care revenues rose 6.8% in the second quarter, with hours served up 2.2% and census increasing sequentially across most markets.
Addus also expanded into Indiana through HomeCourt Home Care and agreed to acquire another Indianapolis-area provider, extending its presence around Illinois. Hospice revenues increased 11.1%, while hospice census rose 6.5%. Although Home Health revenues declined 2.8%, admissions and operating performance improved sequentially. Addus is also evaluating additional personal care and home health acquisitions to broaden coverage and regional reach.
CAH’s Price Performance, Valuation and Estimates
Shares of CAH have gained 7.1% so far this year compared with the industry’s 2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Cardinal Health trades at a forward price-to-earnings of 17.1X, above the industry average. However, it is trading lower than its five-year high of 22.19X. CAH carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cardinal Health’s fiscal 2027 earnings implies an 11.5% rise from the year-ago reported number.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.