PENNANT GROUP INC/THE (PNTG) Stock Fundamental Analysis
NASDAQ:PNTG - Nasdaq - US70805E1091 - Common Stock - Currency: USD
PNTG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 103 industry peers in the Health Care Providers & Services industry. PNTG has an average financial health and profitability rating. PNTG is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
PNTG had positive earnings in the past year.
In the past year PNTG had a positive cash flow from operations.
PNTG had positive earnings in each of the past 5 years.
PNTG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.42%, PNTG is doing good in the industry, outperforming 68.93% of the companies in the same industry.
PNTG has a better Return On Equity (8.38%) than 69.90% of its industry peers.
The Return On Invested Capital of PNTG (4.48%) is comparable to the rest of the industry.
PNTG had an Average Return On Invested Capital over the past 3 years of 3.91%. This is significantly below the industry average of 9.71%.
The 3 year average ROIC (3.91%) for PNTG is below the current ROIC(4.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.42% | ||
| ROE | 8.38% | ||
| ROIC | 4.48% |
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 has a better Profit Margin (3.40%) than 67.96% 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 5.28%, PNTG is in the better half of the industry, outperforming 62.14% of the companies in the same industry.
In the last couple of years the Operating Margin of PNTG has grown nicely.
PNTG has a Gross Margin of 20.38%. This is comparable to the rest of the industry: PNTG outperforms 40.78% of its industry peers.
In the last couple of years the Gross Margin of PNTG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.28% | ||
| PM (TTM) | 3.4% | ||
| GM | 20.38% |
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
PNTG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PNTG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PNTG has more shares outstanding
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 2.46. 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 has a Altman-Z score (2.46) which is in line with its industry peers.
PNTG has a debt to FCF ratio of 6.02. This is a slightly negative value and a sign of low solvency as PNTG would need 6.02 years to pay back of all of its debts.
PNTG's Debt to FCF ratio of 6.02 is in line compared to the rest of the industry. PNTG outperforms 59.22% of its industry peers.
PNTG has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
PNTG's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. PNTG outperforms 69.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.48
WACC9.31%
2.3 Liquidity
A Current Ratio of 1.41 indicates that PNTG should not have too much problems paying its short term obligations.
PNTG has a Current ratio (1.41) which is comparable to the rest of the industry.
PNTG has a Quick Ratio of 1.41. This is a normal value and indicates that PNTG is financially healthy and should not expect problems in meeting its short term obligations.
PNTG has a Quick ratio of 1.41. This is comparable to the rest of the industry: PNTG outperforms 53.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.25% over the past year.
Measured over the past years, PNTG shows a very strong growth in Earnings Per Share. The EPS has been growing by 50.93% on average per year.
Looking at the last year, PNTG shows a very strong growth in Revenue. The Revenue has grown by 30.03%.
Measured over the past years, PNTG shows a quite strong growth in Revenue. The Revenue has been growing by 15.48% on average per year.
EPS 1Y (TTM)26.25%
EPS 3Y26.9%
EPS 5Y50.93%
EPS Q2Q%35%
Revenue 1Y (TTM)30.03%
Revenue growth 3Y16.5%
Revenue growth 5Y15.48%
Sales Q2Q%33.73%
3.2 Future
The Earnings Per Share is expected to grow by 15.77% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.10% on average over the next years. This is quite good.
EPS Next Y21.1%
EPS Next 2Y17.95%
EPS Next 3Y15.77%
EPS Next 5YN/A
Revenue Next Year23.64%
Revenue Next 2Y15.65%
Revenue Next 3Y13.1%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.24, which indicates a rather expensive current valuation of PNTG.
Based on the Price/Earnings ratio, PNTG is valued a bit cheaper than 62.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of PNTG to the average of the S&P500 Index (27.54), we can say PNTG is valued inline with the index average.
With a Price/Forward Earnings ratio of 17.95, PNTG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, PNTG is valued a bit cheaper than 63.11% of the companies in the same industry.
PNTG is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.24 | ||
| Fwd PE | 17.95 |
4.2 Price Multiples
PNTG's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PNTG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 92.82 | ||
| EV/EBITDA | 18.5 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PNTG may justify a higher PE ratio.
A more expensive valuation may be justified as PNTG's earnings are expected to grow with 15.77% in the coming years.
PEG (NY)1.1
PEG (5Y)0.46
EPS Next 2Y17.95%
EPS Next 3Y15.77%
5. Dividend
5.1 Amount
No dividends for PNTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:PNTG (7/21/2025, 12:00:52 PM)
23.47
+0.04 (+0.17%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.21%
Inst Owner Change-0.03%
Ins Owners3.98%
Ins Owner Change1.6%
Market Cap809.01M
Analysts81.82
Price Target33.46 (42.56%)
Short Float %2.12%
Short Ratio3.05
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)3
Avg EPS beat(4)7.44%
Min EPS beat(4)-1.96%
Max EPS beat(4)11.46%
EPS beat(8)6
Avg EPS beat(8)6.49%
EPS beat(12)6
Avg EPS beat(12)0.71%
EPS beat(16)7
Avg EPS beat(16)-3.87%
Revenue beat(2)1
Avg Revenue beat(2)0.88%
Min Revenue beat(2)-0.34%
Max Revenue beat(2)2.09%
Revenue beat(4)3
Avg Revenue beat(4)2.2%
Min Revenue beat(4)-0.34%
Max Revenue beat(4)5.54%
Revenue beat(8)7
Avg Revenue beat(8)3.31%
Revenue beat(12)11
Avg Revenue beat(12)2.93%
Revenue beat(16)13
Avg Revenue beat(16)2.33%
PT rev (1m)-0.61%
PT rev (3m)0.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.27%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)1.92%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.24 | ||
| Fwd PE | 17.95 | ||
| P/S | 1.08 | ||
| P/FCF | 92.82 | ||
| P/OCF | 46.17 | ||
| P/B | 2.66 | ||
| P/tB | 27.14 | ||
| EV/EBITDA | 18.5 |
EPS(TTM)1.01
EY4.3%
EPS(NY)1.31
Fwd EY5.57%
FCF(TTM)0.25
FCFY1.08%
OCF(TTM)0.51
OCFY2.17%
SpS21.7
BVpS8.81
TBVpS0.86
PEG (NY)1.1
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.42% | ||
| ROE | 8.38% | ||
| ROCE | 6.03% | ||
| ROIC | 4.48% | ||
| ROICexc | 4.52% | ||
| ROICexgc | 7.8% | ||
| OM | 5.28% | ||
| PM (TTM) | 3.4% | ||
| GM | 20.38% | ||
| FCFM | 1.16% |
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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 6.02 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 131.86% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 7.1 | ||
| Cash Conversion | 37.92% | ||
| Profit Quality | 34.28% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 2.46 |
F-Score7
WACC9.31%
ROIC/WACC0.48
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)26.25%
EPS 3Y26.9%
EPS 5Y50.93%
EPS Q2Q%35%
EPS Next Y21.1%
EPS Next 2Y17.95%
EPS Next 3Y15.77%
EPS Next 5YN/A
Revenue 1Y (TTM)30.03%
Revenue growth 3Y16.5%
Revenue growth 5Y15.48%
Sales Q2Q%33.73%
Revenue Next Year23.64%
Revenue Next 2Y15.65%
Revenue Next 3Y13.1%
Revenue Next 5YN/A
EBIT growth 1Y47.43%
EBIT growth 3Y73.69%
EBIT growth 5Y43.85%
EBIT Next Year36.24%
EBIT Next 3Y17.95%
EBIT Next 5YN/A
FCF growth 1Y8.68%
FCF growth 3YN/A
FCF growth 5Y46.34%
OCF growth 1Y-20.74%
OCF growth 3YN/A
OCF growth 5Y32.7%