One-glance verdict
Undervalued
$14.18 our estimate vs market $9.19
Wall Street consensus: $12.00 (-15.4% lower than our fair-value estimate)
35% below our estimate, below the bear case
Fundamentals snapshot
InnovAge Holding Corp.
INNV · NMS · Healthcare · Medical Care Facilities
Current price
$9.19
52-week range
$3.94 - $12.64
Market cap
$1.25B
Balance sheet
Healthy
1.36x Concerning
Net cash $54.38M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 15.9% last year.
- Reward Free cash flow was positive in 2/10 years.
- Risk Return on equity was -0.3% last year — the company lost money on shareholders' equity.
What this company does
InnovAge Holding Corp.
InnovAge Holding Corp. provides medical and senior care services, mainly through its unique PACE programs that offer a comprehensive medical and social support system for elderly individuals to stay in their homes. The money it makes comes from government programs that pay for these services, which is important because it shows a stable, predictable revenue stream from a dedicated funding source. This model helps seniors get the care they need while allowing InnovAge to manage its operations and provide consistent services.
How the company got here
InnovAge Holding Corp. was founded in 1989, initially as a not-for-profit organization. It transitioned to a for-profit company in 2016 and later changed its name from TCO Group Holdings, Inc. to InnovAge Holding Corp. in January 2021, coinciding with its initial public offering (IPO) in March 2021. The company is headquartered in Denver, Colorado, and has grown to become a leading provider of a specific type of senior care across several states. InnovAge's history is rooted in a commitment to a particular model of care designed to help seniors live independently in their communities.
What it actually does
InnovAge provides comprehensive healthcare and support services for seniors, primarily through the Program of All-Inclusive Care for the Elderly (PACE) model. This model is designed for frail seniors who qualify for nursing home care but wish to remain in their homes and communities. InnovAge receives a fixed monthly payment (known as capitation) from Medicare and Medicaid for each participant, and from this payment, the company is responsible for providing all of the participant's medical, social, and emotional needs. This includes medical care, therapy services, meals, transportation, and social activities, aiming to keep seniors healthy and engaged while reducing hospitalizations and the need for more intensive care settings.
Program of All-Inclusive Care for the Elderly (PACE)
The core of InnovAge's business is its PACE program, which serves seniors who are 55 years or older and qualify for both Medicare and Medicaid. InnovAge operates PACE centers, which are physical facilities that act as hubs for medical care, therapy, meals, and social activities. These centers also coordinate in-home care services, ensuring participants receive a full spectrum of support. The company receives a predictable, fixed monthly payment per participant from government programs like Medicare and Medicaid, and it is responsible for covering all healthcare costs for those individuals. This approach aims to provide coordinated, value-based care that prioritizes seniors' well-being and independence.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$-9.72M
FY2025 Q2
$5.41M
FY2025 Q3
$21.73M
FY2025 Q4
$8.82M
FY2026 Q1
$-153.00K
FY2026 Q2
$19.00M
FY2026 Q3
$14.54M
FY2026 Q4
$17.02M
Revenue
$261.95M
Net income
$8.29M
Diluted EPS
0.06
Operating cash flow
$21.29M
Free cash flow
$17.02M
Fetching…
Sources
Revenue
$251.94M
Net income
$-29.46M
Diluted EPS
-0.22
Operating cash flow
$18.14M
Free cash flow
$14.54M
Fetching…
Sources
Revenue
$239.71M
Net income
$10.62M
Diluted EPS
0.08
Operating cash flow
$21.36M
Free cash flow
$19.00M
Fetching…
Sources
Revenue
$236.10M
Net income
$8.02M
Diluted EPS
0.06
Operating cash flow
$3.92M
Free cash flow
$-153.00K
Fetching…
Sources
Revenue
$221.42M
Net income
$-785.00K
Diluted EPS
0.00
Operating cash flow
$9.00M
Free cash flow
$8.82M
Fetching…
Sources
Revenue
$218.14M
Net income
$-11.38M
Diluted EPS
-0.08
Operating cash flow
$24.63M
Free cash flow
$21.73M
Fetching…
Sources
Revenue
$209.00M
Net income
$-13.22M
Diluted EPS
-0.10
Operating cash flow
$6.75M
Free cash flow
$5.41M
Fetching…
Sources
Revenue
$205.14M
Net income
$-4.93M
Diluted EPS
-0.04
Operating cash flow
$-7.52M
Free cash flow
$-9.72M
Fetching…
Sources
Is it cheap or expensive?
Fair value $14.18 vs current price $9.19
Wall Street consensus is the average analyst price target: $12.00 (-15.4% lower than our fair-value estimate).
Our most-likely fair value is $14.18 a share — about 54.3% above today's price of $9.19, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $54.4M - more cash than debt. Interest coverage 1.4x.
Net debt
$-54.38M
Interest coverage
1.36x
InnovAge Holding Corp.'s profit covers its interest bill about 1.4 times over. which is weaker than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
INNV
BASELINE
InnovAge Holding Corp.
Total debt $86.95M Interest coverage 1.36x This is the baseline the peer rows are being compared against.
Total debt $108.82M Interest coverage 10.18x +651% vs INNV Carries about 7.5x more debt cushion than INNV.
Total debt $1.51B Interest coverage 1.94x +43% vs INNV Carries about 1.4x more debt cushion than INNV.
Total debt $1.27B Interest coverage 6.19x +357% vs INNV Carries about 4.6x more debt cushion than INNV.
Total debt $2.29B Interest coverage 53.24x +3,828% vs INNV Carries about 39.3x more debt cushion than INNV.
What you should know
The case for and against INNV
2 Rewards
1 Risk
Rewards
-
Revenue grew 15.9% last year.
-
Free cash flow was positive in 2/10 years.
Risks
-
Return on equity was -0.3% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
18.38x
P/B
5.31x
P/S
1.27x
EV/EBITDA
45.80x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
68.5%
Operating margin
5.0%
Net margin
-0.3%
ROE
-0.3%
ROA
0.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.32x
Current ratio
1.05x
Quick ratio
0.92x
Total debt
$86.95M
Total cash
$141.33M
Growth
How the business has been compounding
Revenue TTM
$989.71M
Revenue 5Y CAGR
9.1%
EPS TTM
-0.02
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$64.71M
Free CF TTM
$50.41M
FCF margin
5.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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