The Pennant Group, Inc. Fundamental Analysis
The Pennant Group, Inc. (PNTG) shows weak financial fundamentals with a PE ratio of 37.35, profit margin of 2.96%, and ROE of 9.23%. The company generates $1.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PNTG's fundamental strength across five key dimensions:
Efficiency Score
WeakPNTG struggles to generate sufficient returns from assets.
Valuation Score
WeakPNTG trades at a premium to fair value.
Growth Score
ModeratePNTG shows steady but slowing expansion.
Financial Health Score
ModeratePNTG shows balanced financial health with some risks.
Profitability Score
WeakPNTG struggles to sustain strong margins.
Key Financial Metrics
Is PNTG Expensive or Cheap?
P/E Ratio
PNTG trades at 37.35 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PNTG's PEG of 2.95 indicates potential overvaluation.
Price to Book
The market values The Pennant Group, Inc. at 3.27 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.32 times EBITDA. This signals the market has high growth expectations.
How Well Does PNTG Make Money?
Net Profit Margin
For every $100 in sales, The Pennant Group, Inc. keeps $2.96 as profit after all expenses.
Operating Margin
Core operations generate 5.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.23 in profit for every $100 of shareholder equity.
ROA
The Pennant Group, Inc. generates $3.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Pennant Group, Inc. generates limited operating cash flow of $66.20M, signaling weaker underlying cash strength.
Free Cash Flow
The Pennant Group, Inc. produces free cash flow of $47.40M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.36 in free cash annually.
FCF Yield
PNTG converts 4.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How PNTG Stacks Against Its Sector Peers
| Metric | PNTG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.35 | 29.03 | Worse (Expensive) |
| ROE | 9.23% | 773.00% | Weak |
| Net Margin | 2.96% | -53616.00% (disorted) | Weak |
| Debt/Equity | 1.29 | 0.50 | Weak (High Leverage) |
| Current Ratio | 1.19 | 4.44 | Neutral |
| ROA | 3.17% | -20231.00% (disorted) | Weak |
PNTG outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Pennant Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation