The U.S. mental health market is turning into one of the most dynamic areas of healthcare. Demand for treatment for addiction, depression and anxiety disorders is growing, while insurance coverage is expanding. This puts the spotlight on a company that has built the largest network of specialized facilities in the U.S., and is growing revenues and profits at double-digit rates.

Analysis highlights

• The company operates more than 250 facilities across the U.S. and is the largest mental health care provider in the country.
• Revenues have grown more than 10% in the past year and net income has held steady at over $300 million.
• Strong demand for addiction treatment and psychiatric care has ensured double-digit patient growth over the long term.
• Valuations are around 14-15x EV/EBITDA, which is below most hospital operators.
• Debt is higher, but the business generates stable cash flow and management is actively reinvesting in expansion.

Company profile

Acadia Healthcare Company $ACHC is an American…