Accendra Health: Debt Reduction Creates Long-Term Opportunity (Upgrade)

Seeking Profits5.3K FollowersFollow5ShareSavePlay(9min)Comment(1)SummaryAccendra Health is upgraded to "Buy" after severe underperformance, trading at just 2x 2027 free cash flow.ACH faces significant margin pressure and a challenging balance sheet, with net leverage expected at 4.9-5x by end-2026.2026 is likely a trough year due to a major contract loss; growth is expected to resume in 2027, aided by UnitedHealth volumes.Balance sheet repair will take years, but current valuation offers substantial long-term upside for patient, diversified investors. grandriver/E+ via Getty Images Shares of Accendra Health, Inc. (ACH), have been a poor performer over the past year, losing over 60% of their value. The company, formerly known as Owens & Minor, has struggled with a significantly overleveraged balance sheet and narrow margins. This has forced the company to divestThis article was written bySeeking Profits5.3K FollowersFollowOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.