Acadia Healthcare Company Isn't Great, But The Big Picture Justifies Optimism

Acadia Healthcare Company is a leading pure-play behavioral healthcare provider with 279 facilities and a growing patient base. ACHC's revenue continues to climb, but profitability is pressured by rising labor costs and a tight labor market. Despite higher net leverage and volatile cash flows, shares appear attractively priced on an absolute basis. I rate ACHC a very soft 'buy' given its growth prospects, valuation, and long-term demand catalysts.

I have always had an appreciation for the healthcare industry. And I have, over the years, dug into many companies in the space. This includes everything from pharmaceutical providers to hospital owners to medical equipment producers to insurers and more. But during all this time, one