Targeted Strategies for Today's Evolving Markets

MissionIR Blog

Almost Family Inc. (AFAM) Stock Combines Business Benefits with Deep Social Relevance

AFAM has closed the second week of May 2008 at $21.60, which is tantalizingly close to the annual high of $25.38. The Price to Earnings Ratio continues to be below 15, even after this surge. Profits have jumped 47% during the Most Recent Quarter, with handsome contributions from organic growth and an acquisition. Though all investment traffic lights are green for this stock, there is more than money that may greet a potential investor.

The company is intricately woven into Medicare. It provides a generous blend of care for the elderly and infirm in its own facilities, as well in private homes. Increased longevity is a double-edged sword for societies that enjoy continuous economic growth: it is an unabashed mark of human progress, but it also brings responsibilities in terms of looking after senior citizens.

The company operates a total of 33 certified facilities to offer post-hospitalization care. These are in addition to 22 personal care locations, around which the company offers doorstep services to help the elderly and those who cannot manage daily personal chores on their own. Competition in this genre of Healthcare Facilities is limited, and demand is set to grow rapidly.

The company makes good business of its noble services. The business results of the Most Recent Quarter seem to be part of a stable trend. The sales growth rate over the past five years is more than 10%. Earnings per Share have grown by nearly 42% during this period. Total Debt is less than Equity and Interest Coverage has been nearly 12 times during the last four quarters. The business has delivered nearly 20% Return on Equity over the last five years.

Let us hear your thoughts below:

This entry was posted in Small Cap News. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *