PENNANT GROUP INC/THE (PNTG) Stock Fundamental Analysis
USA - NASDAQ:PNTG - US70805E1091 - Common Stock
24.73 USD
+0.12 (+0.49%)
24.73 USD
0 (0%)
PNTG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 overvalued while it is showing excellent growth. This is an interesting combination. 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
PNTG has a Return On Assets of 3.57%. This is in the better half of the industry: PNTG outperforms 69.31% of its industry peers.
PNTG has a Return On Equity of 8.56%. This is in the better half of the industry: PNTG outperforms 68.32% of its industry peers.
PNTG has a Return On Invested Capital (4.75%) which is in line with 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 9.33%.
The 3 year average ROIC (3.91%) for PNTG is below the current ROIC(4.75%), indicating increased profibility in the last year.
| 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.
In the last couple of years the Profit Margin of PNTG has grown nicely.
PNTG has a Operating Margin (5.17%) which is comparable to the rest of the industry.
PNTG's Operating Margin has improved in the last couple of years.
The Gross Margin of PNTG (20.32%) is comparable to the rest of the 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PNTG is destroying value.
PNTG has more shares outstanding than it did 1 year ago.
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
An Altman-Z score of 2.58 indicates that PNTG is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.58, PNTG is in line with its industry, outperforming 53.47% of the companies in the same industry.
PNTG has a debt to FCF ratio of 1.53. This is a very positive value and a sign of high solvency as it would only need 1.53 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.53, PNTG belongs to the top of the industry, outperforming 86.14% of the companies in the same industry.
PNTG has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
PNTG has a better Debt to Equity ratio (0.12) than 74.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.49
WACC9.6%
2.3 Liquidity
PNTG has a Current 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.
PNTG's Current ratio of 1.21 is in line compared to the rest of the industry. PNTG outperforms 40.59% 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 45.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
PNTG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.93%, which is quite impressive.
PNTG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 50.93% yearly.
PNTG shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.58%.
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)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
The Earnings Per Share is expected to grow by 16.04% on average over the next years. This is quite good.
PNTG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.71% yearly.
EPS Next Y17.19%
EPS Next 2Y16.37%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue Next Year28.2%
Revenue Next 2Y21.34%
Revenue Next 3Y18.71%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.78, the valuation of PNTG can be described as rather expensive.
63.37% of the companies in the same industry are more expensive than PNTG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.10. PNTG is around the same levels.
Based on the Price/Forward Earnings ratio of 19.43, the valuation of PNTG can be described as rather expensive.
Based on the Price/Forward Earnings ratio, PNTG is valued a bit cheaper than 64.36% of the companies in the same industry.
PNTG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.78 | ||
| Fwd PE | 19.43 |
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.
PNTG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.36 | ||
| EV/EBITDA | 17.91 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as PNTG's earnings are expected to grow with 16.04% in the coming years.
PEG (NY)1.38
PEG (5Y)0.47
EPS Next 2Y16.37%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
No dividends for PNTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.73
+0.12 (+0.49%)
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 Change0.01%
Ins Owners4.64%
Ins Owner Change1.9%
Market Cap854.67M
Revenue(TTM)798.92M
Net Income(TTM)26.82M
Analysts81.82
Price Target34.27 (38.58%)
Short Float %2.81%
Short Ratio3.02
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)0%
PT rev (3m)2.44%
EPS NQ rev (1m)-3.42%
EPS NQ rev (3m)-0.7%
EPS NY rev (1m)-4.26%
EPS NY rev (3m)-3.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.42%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)3.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.78 | ||
| Fwd PE | 19.43 | ||
| P/S | 1.07 | ||
| P/FCF | 35.36 | ||
| P/OCF | 20.51 | ||
| P/B | 2.73 | ||
| P/tB | 21.63 | ||
| EV/EBITDA | 17.91 |
EPS(TTM)1.04
EY4.21%
EPS(NY)1.27
Fwd EY5.15%
FCF(TTM)0.7
FCFY2.83%
OCF(TTM)1.21
OCFY4.88%
SpS23.12
BVpS9.07
TBVpS1.14
PEG (NY)1.38
PEG (5Y)0.47
Graham Number14.56
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%
ROICexgc growth 3Y73.2%
ROICexgc 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 | 2.58 |
F-Score7
WACC9.6%
ROIC/WACC0.49
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 Y17.19%
EPS Next 2Y16.37%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue 1Y (TTM)30.58%
Revenue growth 3Y16.5%
Revenue growth 5Y15.48%
Sales Q2Q%30.08%
Revenue Next Year28.2%
Revenue Next 2Y21.34%
Revenue Next 3Y18.71%
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%
PENNANT GROUP INC/THE / PNTG FAQ
Can you provide the ChartMill fundamental rating for PENNANT GROUP INC/THE?
ChartMill assigns a fundamental rating of 5 / 10 to PNTG.
Can you provide the valuation status for PENNANT GROUP INC/THE?
ChartMill assigns a valuation rating of 4 / 10 to PENNANT GROUP INC/THE (PNTG). This can be considered as Fairly Valued.
What is the profitability of PNTG stock?
PENNANT GROUP INC/THE (PNTG) has a profitability rating of 6 / 10.
What are the PE and PB ratios of PENNANT GROUP INC/THE (PNTG) stock?
The Price/Earnings (PE) ratio for PENNANT GROUP INC/THE (PNTG) is 23.78 and the Price/Book (PB) ratio is 2.73.
Can you provide the financial health for PNTG stock?
The financial health rating of PENNANT GROUP INC/THE (PNTG) is 5 / 10.