One-glance verdict
Within fair range
$12.96 our estimate vs market $10.85
Wall Street consensus: $10.50 (-19.0% lower than our fair-value estimate)
16% below our estimate
Fundamentals snapshot
InnovAge Holding Corp.
INNV · NMS · Healthcare · Medical Care Facilities
Current price
$10.85
52-week range
$3.94 - $12.64
Market cap
$1.48B
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 provides a complete package of healthcare and support services to older adults, helping them live at home instead of moving into a nursing home. The company makes its money from fixed monthly payments from government programs for each person it cares for, which creates a steady and predictable income stream. This model is important because it allows the company to focus on preventative care to keep seniors healthy and costs down over the long term.
How the company got here
Founded in 1989, InnovAge started as a non-profit organization focused on helping seniors live independently. A key turning point was its conversion to a for-profit company, which allowed it to raise more money for growth. This led to its initial public offering (IPO, the first time a company sells its stock to the public) in March 2021, raising $350 million. Today, InnovAge is the largest provider in the country of a specific type of senior care program called PACE, based on the number of people it serves.
What it actually does
InnovAge provides complete healthcare services for frail seniors who are eligible for nursing home care but prefer to live in their own homes. Think of it as a one-stop shop for all of a senior's health needs, combining the services of a doctor's office, physical therapy, and social support all in one. The company operates centers where participants can receive medical care, meals, and socialize, and also provides transportation and in-home assistance. The goal is to provide better care at a lower cost by preventing expensive hospital stays and nursing home admissions.
Program of All-Inclusive Care for the Elderly (PACE)
The company operates entirely through the Program of All-Inclusive Care for the Elderly (PACE), a model that provides comprehensive medical and social services to eligible seniors. Instead of billing for each individual service, InnovAge receives a fixed monthly payment per participant from government programs like Medicare and Medicaid. This payment model, known as capitation (a fixed fee per person), covers all of the person's healthcare costs, from doctor visits and medications to in-home help and transportation. Because InnovAge is responsible for the total cost of care, it is focused on keeping seniors healthy and preventing more serious and expensive health issues.
What management is betting on now
Management's current strategy focuses on growing by increasing the number of seniors enrolled in its existing centers and making those centers more efficient. They are also looking to expand into new states and areas where their services are needed. The company is also investing in technology to better coordinate care and improve the experience for its participants. Another key priority is exploring partnerships and acquisitions of other senior care providers to accelerate its growth.
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 $12.96 vs current price $10.85
Wall Street consensus is the average analyst price target: $10.50 (-19.0% lower than our fair-value estimate).
Our most-likely fair value is $12.96 a share — about 19.5% away from today's price of $10.85, so the stock currently looks fairly priced.
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 $2.25B 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
21.70x
P/B
6.26x
P/S
1.50x
EV/EBITDA
54.37x
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
—
Payout ratio
0.0%
Last ex-div date
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