PENNANT GROUP INC/THE (PNTG)
US70805E1091 - Common Stock
Overall PNTG gets a fundamental rating of 5 out of 10. We evaluated PNTG against 118 industry peers in the Health Care Providers & Services industry. PNTG has only an average score on both its financial health and profitability. PNTG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PNTG was profitable.
PNTG had a positive operating cash flow in the past year.
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
PNTG has a Return On Assets of 2.49%. This is in the better half of the industry: PNTG outperforms 69.23% of its industry peers.
The Return On Equity of PNTG (9.58%) is better than 75.21% of its industry peers.
With a Return On Invested Capital value of 3.80%, PNTG perfoms like the industry average, outperforming 58.12% of the companies in the same industry.
PNTG had an Average Return On Invested Capital over the past 3 years of 2.85%. This is significantly below the industry average of 8.65%.
The last Return On Invested Capital (3.80%) for PNTG is above the 3 year average (2.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 9.58% | ||
| ROIC | 3.8% |
ROA(3y)1.43%
ROA(5y)1.59%
ROE(3y)5.81%
ROE(5y)7.44%
ROIC(3y)2.85%
ROIC(5y)2.66%
1.3 Margins
PNTG has a Profit Margin of 2.47%. This is in the better half of the industry: PNTG outperforms 69.23% of its industry peers.
PNTG's Profit Margin has declined in the last couple of years.
PNTG has a Operating Margin of 4.26%. This is in the better half of the industry: PNTG outperforms 61.54% of its industry peers.
PNTG's Operating Margin has declined in the last couple of years.
The Gross Margin of PNTG (20.11%) is worse than 63.25% of its industry peers.
PNTG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.26% | ||
| PM (TTM) | 2.47% | ||
| GM | 20.11% |
OM growth 3Y-6.14%
OM growth 5Y-10.01%
PM growth 3Y-15.12%
PM growth 5Y-14.86%
GM growth 3Y-5.83%
GM growth 5Y-4.82%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PNTG is destroying value.
PNTG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PNTG has more shares outstanding
The debt/assets ratio for PNTG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.28 indicates that PNTG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.28, PNTG is doing good in the industry, outperforming 61.54% of the companies in the same industry.
PNTG has a debt to FCF ratio of 2.56. This is a good value and a sign of high solvency as PNTG would need 2.56 years to pay back of all of its debts.
PNTG has a Debt to FCF ratio of 2.56. This is amongst the best in the industry. PNTG outperforms 84.62% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that PNTG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, PNTG is in the better half of the industry, outperforming 62.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.56 | ||
| Altman-Z | 2.28 |
ROIC/WACC0.43
WACC8.77%
2.3 Liquidity
PNTG has a Current Ratio of 1.12. This is a normal value and indicates that PNTG is financially healthy and should not expect problems in meeting its short term obligations.
PNTG's Current ratio of 1.12 is on the low side compared to the rest of the industry. PNTG is outperformed by 66.67% of its industry peers.
PNTG has a Quick Ratio of 1.12. This is a normal value and indicates that PNTG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.12, PNTG is in line with its industry, outperforming 43.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
PNTG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.59%, which is quite impressive.
Measured over the past years, PNTG shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.56% on average per year.
PNTG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.15%.
The Revenue has been growing by 13.75% on average over the past years. This is quite good.
EPS 1Y (TTM)35.59%
EPS 3Y-0.9%
EPS 5Y-5.56%
EPS growth Q2Q53.85%
Revenue 1Y (TTM)15.15%
Revenue growth 3Y11.7%
Revenue growth 5Y13.75%
Revenue growth Q2Q24.08%
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 16.62% yearly.
The Revenue is expected to grow by 10.04% on average over the next years. This is quite good.
EPS Next Y22.26%
EPS Next 2Y19.82%
EPS Next 3Y16.62%
EPS Next 5YN/A
Revenue Next Year15.02%
Revenue Next 2Y11.48%
Revenue Next 3Y10.04%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.77, PNTG can be considered very expensive at the moment.
PNTG's Price/Earnings ratio is a bit cheaper when compared to the industry. PNTG is cheaper than 63.25% of the companies in the same industry.
PNTG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
PNTG is valuated rather expensively with a Price/Forward Earnings ratio of 21.96.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PNTG indicates a somewhat cheap valuation: PNTG is cheaper than 61.54% of the companies listed in the same industry.
PNTG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.78 | ||
| Fwd PE | 21.96 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PNTG.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PNTG indicates a somewhat cheap valuation: PNTG is cheaper than 68.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28 | ||
| EV/EBITDA | 26.06 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as PNTG's earnings are expected to grow with 16.62% in the coming years.
PEG (NY)1.29
PEG (5Y)N/A
EPS Next 2Y19.82%
EPS Next 3Y16.62%
5. Dividend
5.1 Amount
PNTG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PENNANT GROUP INC/THE
NASDAQ:PNTG (5/17/2024, 7:20:40 PM)
After market: 23.02 0 (0%)23.02
+0.61 (+2.72%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap699.58M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.78 | ||
| Fwd PE | 21.96 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 9.58% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.26% | ||
| PM (TTM) | 2.47% | ||
| GM | 20.11% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)35.59%
EPS 3Y-0.9%
EPS 5Y
EPS growth Q2Q
EPS Next Y22.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.15%
Revenue growth 3Y11.7%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y