Latest Ratios: P/E Ratio 10.8x · EV/EBITDA 6.3x · ROE 8.5%. (2016–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.5B | $1.2B | $2.3B | — | — | — | — | — |
| Enterprise Value | $3.0B | $2.8B | $4.0B | — | — | — | — | — |
| P/E Ratio → | 10.77 | 9.20 | 10.81 | — | — | — | — | — |
| P/S Ratio | 0.23 | 0.20 | 0.38 | — | — | — | — | — |
| P/B Ratio | 0.87 | 0.74 | 1.49 | — | — | — | — | — |
| P/FCF | 5.73 | 4.83 | 17.78 | — | — | — | — | — |
| P/OCF | 3.15 | 2.65 | 7.20 | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.44 | 0.67 | — | — | — | — | — |
| EV / EBITDA | 6.31 | 5.83 | 7.23 | — | — | — | — | — |
| EV / EBIT | 9.33 | 8.21 | 9.31 | — | — | — | — | — |
| EV / FCF | — | 10.84 | 31.31 | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 97.5% | 97.5% | 82.7% | 97.4% | 81.4% | 100.0% | 100.0% | 100.0% |
| Operating Margin | 5.1% | 5.1% | 6.8% | 4.2% | 4.2% | 3.6% | 4.1% | 4.0% |
| Net Profit Margin | 2.1% | 2.1% | 3.5% | 0.9% | 3.7% | -3.4% | -1.2% | 0.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|
| ROE | 8.5% | 8.5% | 16.2% | 4.7% | 21.4% | -19.4% | -6.2% | 3.7% |
| ROA | 2.7% | 2.7% | 4.2% | 1.0% | 5.0% | -5.6% | -2.1% | 1.3% |
| ROIC | 7.5% | 7.5% | 9.7% | 5.7% | 6.6% | 6.3% | 8.4% | 11.7% |
| ROCE | 7.9% | 7.9% | 10.0% | 5.6% | 7.0% | 7.5% | 9.3% | 11.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.34 | 1.34 | 1.50 | 2.21 | 2.27 | 1.77 | 1.25 | 0.61 |
| Debt / EBITDA | 4.71 | 4.71 | 4.13 | 6.47 | 6.72 | 4.30 | 4.12 | 1.54 |
| Net Debt / Equity | — | 0.92 | 1.13 | 1.81 | 1.84 | 1.69 | 1.16 | 0.37 |
| Net Debt / EBITDA | 3.23 | 3.23 | 3.13 | 5.29 | 5.44 | 4.10 | 3.81 | 0.95 |
| Debt / FCF | — | 6.01 | 13.53 | 23.24 | — | — | — | 40.82 |
| Interest Coverage | 6.19 | 6.19 | 6.54 | 3.20 | 4.80 | 0.94 | 1.72 | 2.65 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.97 | 1.97 | 1.94 | 1.63 | 1.74 | 1.38 | 1.45 | 1.44 |
| Quick Ratio | 1.85 | 1.85 | 1.82 | 1.52 | 1.61 | 1.24 | 1.29 | 1.29 |
| Cash Ratio | 0.68 | 0.68 | 0.59 | 0.44 | 0.56 | 0.10 | 0.14 | 0.28 |
| Asset Turnover | — | 1.20 | 1.20 | 1.06 | 1.06 | 1.52 | 1.26 | 1.94 |
| Inventory Turnover | 1.31 | 1.31 | 8.98 | 1.34 | 8.91 | — | — | — |
| Days Sales Outstanding | — | 39.60 | 45.46 | 53.02 | 43.54 | 46.40 | 55.18 | 45.26 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | 92.5% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.3% | 10.9% | 9.3% | — | — | — | — | — |
| FCF Yield | 17.4% | 20.7% | 5.6% | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | — | — | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | — | — | — | — | — |
| Shares Outstanding | — | $141M | $133M | $143M | $143M | $141M | $141M | $141M |
Includes 30+ ratios · 7 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying ARDT stock.
Ardent Health Inc.'s current P/E ratio is 10.8x. The historical average is 10.0x. This places it at the 50th percentile of its historical range.
Ardent Health Inc.'s current EV/EBITDA is 6.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.5x.
Ardent Health Inc.'s return on equity (ROE) is 8.5%. The historical average is 4.1%.
Based on historical data, Ardent Health Inc. is trading at a P/E of 10.8x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Ardent Health Inc. has 97.5% gross margin and 5.1% operating margin.
Ardent Health Inc.'s Debt/EBITDA ratio is 4.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Operating margin volatility and EPS miss
Metrics are mathematically derived from official filings.
Margin Compression Masks Underlying Pressures
Operating margin fell to 2.7% in 2026Q2 from 8.3% a year earlier, per reported financials, while gross margin swung wildly due to accounting reclassifications, indicating persistent cost escalation.
The reported gross margin of 6.0% in 2026Q2 versus 83.6% in 2025Q2 is an accounting artifact, as clinical labor is classified as operating expense, not cost of revenue. The operating margin decline from 8.3% to 2.7% year-over-year suggests that wage inflation and contract labor costs are eroding profitability, consistent with the EPS miss. Net margin of 1.0% in 2026Q2 is thin, and the 2024Q4 spike to 7.1% appears non-recurring, highlighting earnings instability.
Return on Capital Remains Subdued
ROIC dipped to 1.0% in 2026Q2 from 8.0% in 2024Q4, based on reported figures, indicating that capital efficiency is not compounding and may be decaying.
ROIC has been volatile, with a negative reading in 2024Q2 (-3.8%) and a peak of 8.0% in 2024Q4, but the recent trend is downward. The low ROIC relative to peers like HCA (19.9%) suggests that ARDT's joint-venture model, while capital-efficient, is not yet generating superior returns on invested capital. The improvement in equity from retained earnings has not translated into higher returns, implying that margin pressure is offsetting balance sheet strength.
Working Capital Efficiency Shows Mixed Signals
Cash conversion cycle turned positive to 21 days in 2026Q2 from negative 39 days in 2025Q2, per financial statements, reflecting a shift in payables management and potential strain on supplier relationships.
The CCC swing is driven by a sharp reduction in DPO from 124 days in 2025Q2 to 25 days in 2026Q2, while DSO remained stable around 39 days. This suggests that ARDT is paying suppliers faster, possibly to secure supply or due to renegotiated terms, which consumes cash. Asset turnover has been stable at 0.31, indicating that the heavy infrastructure investment is not yet yielding higher revenue per asset, a concern given the capital intensity.
Leverage Declines but Coverage Weakens
Debt-to-equity improved to 1.30 in 2026Q2 from 2.10 in 2024Q1, per reported data, yet interest coverage fell to 2.44 from 11.65 in 2024Q4, signaling reduced debt service comfort.
While the balance sheet has deleveraged through equity growth, the interest coverage ratio has deteriorated sharply, from 11.65 in 2024Q4 to 2.44 in 2026Q2, as operating income declined. D/EBITDA spiked to 26.81 in 2026Q2 from 6.09 in 2024Q4, indicating that EBITDA has contracted significantly relative to debt. This suggests that the company's debt load is becoming less comfortable despite the lower D/E, and investors should monitor refinancing risk if margins do not recover.
Liquidity Buffer Provides Cushion
Current ratio improved to 2.10 in 2026Q2 from 1.65 in 2024Q2, per reported figures, with cash rising to $724.5M, offering a solid buffer against operational shocks.
The quick ratio of 1.99 indicates that ARDT can cover short-term obligations without relying on inventory, which is minimal in healthcare services. The strengthening liquidity position, driven by cash accumulation, provides a cushion against the volatility in operating cash flow, which swung from -$88.3M in 2026Q1 to $158.1M in 2026Q2. However, the reliance on lumpy supplemental reimbursements may overstate the sustainability of this liquidity.
Misapplied Metric: Gross Margin
Gross margin is the most misapplied ratio for ARDT, as the 97.5% reported figure is an accounting artifact that obscures true cost structure, per financial statements.
Analysts often compare gross margins across industries, but for ARDT, clinical labor and supply costs are classified as operating expenses, making gross margin misleadingly high. The correct metric to assess profitability is operating margin, which at 5.15% reflects the high fixed-cost nature of hospital operations. Investors should focus on EBITDA margin or EBITDAR to normalize for rent and JV structures, as gross margin provides no insight into cost efficiency.