PENNANT GROUP INC/THE (PNTG) Stock Fundamental Analysis
USA - NASDAQ:PNTG - US70805E1091 - Common Stock
24.12 USD
-0.64 (-2.58%)
24.12 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PNTG. PNTG was compared to 101 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of PNTG get a neutral evaluation. Nothing too spectacular is happening here. PNTG is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, PNTG could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year PNTG was profitable.
In the past year PNTG had a positive cash flow from operations.
Each year in the past 5 years PNTG has been profitable.
Of the past 5 years PNTG 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.57%, PNTG is in the better half of the industry, outperforming 70.30% of the companies in the same industry.
The Return On Equity of PNTG (8.56%) is better than 69.31% of its industry peers.
PNTG has a Return On Invested Capital of 4.75%. This is comparable to the rest of the industry: PNTG outperforms 57.43% of its industry peers.
PNTG had an Average Return On Invested Capital over the past 3 years of 3.91%. This is significantly below the industry average of 9.19%.
The last Return On Invested Capital (4.75%) for PNTG is above the 3 year average (3.91%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 8.56% | ||
| ROIC | 4.75% |
ROA(3y)2.36%
ROA(5y)2.14%
ROE(3y)7.56%
ROE(5y)8.28%
ROIC(3y)3.91%
ROIC(5y)3.28%
1.3 Margins
PNTG's Profit Margin of 3.36% is fine compared to the rest of the industry. PNTG outperforms 67.33% of its industry peers.
PNTG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.17%, PNTG is in the better half of the industry, outperforming 60.40% of the companies in the same industry.
PNTG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 20.32%, PNTG is in line with its industry, outperforming 43.56% of the companies in the same industry.
PNTG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.17% | ||
| PM (TTM) | 3.36% | ||
| GM | 20.32% |
OM growth 3Y49.09%
OM growth 5Y24.56%
PM growth 3Y74.18%
PM growth 5Y34.45%
GM growth 3Y1.25%
GM growth 5Y-2.76%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PNTG is destroying value.
Compared to 1 year ago, PNTG has more shares outstanding
PNTG has more shares outstanding than it did 5 years ago.
PNTG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
PNTG has an Altman-Z score of 2.56. This is not the best score and indicates that PNTG is in the grey zone with still only limited risk for bankruptcy at the moment.
PNTG's Altman-Z score of 2.56 is in line compared to the rest of the industry. PNTG outperforms 54.46% of its industry peers.
The Debt to FCF ratio of PNTG is 1.53, which is an excellent value as it means it would take PNTG, only 1.53 years of fcf income to pay off all of its debts.
PNTG's Debt to FCF ratio of 1.53 is amongst the best of the industry. PNTG outperforms 86.14% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that PNTG is not too dependend on debt financing.
The Debt to Equity ratio of PNTG (0.12) is better than 74.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.52
WACC9.09%
2.3 Liquidity
A Current Ratio of 1.21 indicates that PNTG should not have too much problems paying its short term obligations.
PNTG has a Current ratio of 1.21. This is in the lower half of the industry: PNTG underperforms 60.40% of its industry peers.
PNTG has a Quick Ratio of 1.21. This is a normal value and indicates that PNTG is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.21, PNTG perfoms like the industry average, outperforming 44.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.93% over the past year.
The Earnings Per Share has been growing by 50.93% on average over the past years. This is a very strong growth
Looking at the last year, PNTG shows a very strong growth in Revenue. The Revenue has grown by 30.58%.
The Revenue has been growing by 15.48% on average over the past years. This is quite good.
EPS 1Y (TTM)20.93%
EPS 3Y26.9%
EPS 5Y50.93%
EPS Q2Q%12.5%
Revenue 1Y (TTM)30.58%
Revenue growth 3Y16.5%
Revenue growth 5Y15.48%
Sales Q2Q%30.08%
3.2 Future
PNTG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.28% yearly.
The Revenue is expected to grow by 17.04% on average over the next years. This is quite good.
EPS Next Y22.4%
EPS Next 2Y18.5%
EPS Next 3Y18.28%
EPS Next 5YN/A
Revenue Next Year26.87%
Revenue Next 2Y18.95%
Revenue Next 3Y17.04%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.19, which indicates a rather expensive current valuation of PNTG.
64.36% of the companies in the same industry are more expensive than PNTG, based on the Price/Earnings ratio.
PNTG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.27, PNTG is valued on the expensive side.
PNTG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PNTG is cheaper than 64.36% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PNTG to the average of the S&P500 Index (22.86), we can say PNTG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 18.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PNTG is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as PNTG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.49 | ||
| EV/EBITDA | 17.56 |
4.3 Compensation for Growth
PNTG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PNTG has a very decent profitability rating, which may justify a higher PE ratio.
PNTG's earnings are expected to grow with 18.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)0.46
EPS Next 2Y18.5%
EPS Next 3Y18.28%
5. Dividend
5.1 Amount
PNTG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.12
-0.64 (-2.58%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.11%
Inst Owner Change0.27%
Ins Owners4.64%
Ins Owner Change1.43%
Market Cap833.59M
Analysts81.82
Price Target34.27 (42.08%)
Short Float %1.66%
Short Ratio1.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.75%
Min EPS beat(2)-1.96%
Max EPS beat(2)11.46%
EPS beat(4)2
Avg EPS beat(4)4.59%
Min EPS beat(4)-1.96%
Max EPS beat(4)11.46%
EPS beat(8)5
Avg EPS beat(8)5.38%
EPS beat(12)6
Avg EPS beat(12)0.86%
EPS beat(16)7
Avg EPS beat(16)-2.83%
Revenue beat(2)2
Avg Revenue beat(2)2.14%
Min Revenue beat(2)2.09%
Max Revenue beat(2)2.19%
Revenue beat(4)3
Avg Revenue beat(4)1.36%
Min Revenue beat(4)-0.34%
Max Revenue beat(4)2.19%
Revenue beat(8)7
Avg Revenue beat(8)3.29%
Revenue beat(12)11
Avg Revenue beat(12)2.98%
Revenue beat(16)13
Avg Revenue beat(16)2.41%
PT rev (1m)2.44%
PT rev (3m)1.82%
EPS NQ rev (1m)-1.02%
EPS NQ rev (3m)2.46%
EPS NY rev (1m)0%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)3.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 18.27 | ||
| P/S | 1.04 | ||
| P/FCF | 34.49 | ||
| P/OCF | 20 | ||
| P/B | 2.66 | ||
| P/tB | 21.09 | ||
| EV/EBITDA | 17.56 |
EPS(TTM)1.04
EY4.31%
EPS(NY)1.32
Fwd EY5.47%
FCF(TTM)0.7
FCFY2.9%
OCF(TTM)1.21
OCFY5%
SpS23.12
BVpS9.07
TBVpS1.14
PEG (NY)1.04
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 8.56% | ||
| ROCE | 6.39% | ||
| ROIC | 4.75% | ||
| ROICexc | 4.86% | ||
| ROICexgc | 8.57% | ||
| OM | 5.17% | ||
| PM (TTM) | 3.36% | ||
| GM | 20.32% | ||
| FCFM | 3.03% |
ROA(3y)2.36%
ROA(5y)2.14%
ROE(3y)7.56%
ROE(5y)8.28%
ROIC(3y)3.91%
ROIC(5y)3.28%
ROICexc(3y)4%
ROICexc(5y)3.33%
ROICexgc(3y)6.26%
ROICexgc(5y)5.05%
ROCE(3y)5.26%
ROCE(5y)4.41%
ROICexcg growth 3Y73.2%
ROICexcg growth 5Y43.25%
ROICexc growth 3Y62.52%
ROICexc growth 5Y34.54%
OM growth 3Y49.09%
OM growth 5Y24.56%
PM growth 3Y74.18%
PM growth 5Y34.45%
GM growth 3Y1.25%
GM growth 5Y-2.76%
F-Score7
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.53 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 235.42% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 8.08 | ||
| Cash Conversion | 85.47% | ||
| Profit Quality | 90.11% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.56 |
F-Score7
WACC9.09%
ROIC/WACC0.52
Cap/Depr(3y)260.04%
Cap/Depr(5y)213.36%
Cap/Sales(3y)2.47%
Cap/Sales(5y)2.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.93%
EPS 3Y26.9%
EPS 5Y50.93%
EPS Q2Q%12.5%
EPS Next Y22.4%
EPS Next 2Y18.5%
EPS Next 3Y18.28%
EPS Next 5YN/A
Revenue 1Y (TTM)30.58%
Revenue growth 3Y16.5%
Revenue growth 5Y15.48%
Sales Q2Q%30.08%
Revenue Next Year26.87%
Revenue Next 2Y18.95%
Revenue Next 3Y17.04%
Revenue Next 5YN/A
EBIT growth 1Y36.9%
EBIT growth 3Y73.69%
EBIT growth 5Y43.85%
EBIT Next Year43.24%
EBIT Next 3Y25.26%
EBIT Next 5YN/A
FCF growth 1Y157.4%
FCF growth 3YN/A
FCF growth 5Y46.34%
OCF growth 1Y111.88%
OCF growth 3YN/A
OCF growth 5Y32.7%