Pennant Group, Inc.

Health Care
Medical/Nursing Services
www.pennantgroup.com

Earnings Score
Moat Score
Safety Score

Market Cap $902.30M
PE 43
Debt $108.88M
Cash $4.46M
EV $1.01B
FCF $15.88M

Earnings

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Sales & Net Margins

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Earnings	$21.15M
EBIT	$36.45M
ROE	11%
ROA	6%
FCF	$15.88M
Equity	$187.29M
Growth Stability	19%
PE	42.66
PEG	1.52
PB	4.82
P/FCF	56.82
P/S	1.38
Price/Cash	0
Debt/Equity	0.58
Debt/FCF	6.86
Net Margins	3%
Gross Margins	20%
Op. Margins	6%
Earnings CAGR	5%
Sales Growth YoY	29%
Sales Growth QoQ	7%
Sales CAGR	13%
FCF CAGR	0%
Equity CAGR	17%
Earnings Stability	-0.39
Earnings Growth YoY	42%
Earnings Growth QoQ	9%

Earnings CAGR 5Y	28%
Sales CAGR 5Y	13%
FCF CAGR 5Y	2%
Equity CAGR 5Y	19%
Earnings CAGR 3Y	15%
Sales CAGR 3Y	15%
FCF CAGR 3Y	41%
Equity CAGR 3Y	19%
Market Cap	$902.30M
Revenue	$652.30M
Assets	$646.76M
Total Debt	$108.88M
Cash	$4.46M
Shares Outstanding	30.16M
EV	1.01B
Earnings Score	6%
Moat Score	77%
Safety Score	52%
Final Score	45%
Working Capital	11.2M
Current Ratio	1.12
Gross Profit	$129.59M
Shares Growth 3y	2%
Equity Growth QoQ	8%
Equity Growth YoY	34%

Assets & ROA

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Stockholders Equity & ROE

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Pennant Group Inc is engaged in providing healthcare services to patients of all ages, including the growing senior population, in the United States. It operates in multiple lines of business including home health and hospice services which includes our home health, hospice, and home care businesses and Senior living which includes the company's assisted living, independent living, and memory care communities across Arizona, California, Colorado, Idaho, Iowa, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. The majority of the revenue is generated from the Home Health and Hospice Services segment.

SEC Filings

Direct access to Pennant Group, Inc. (PNTG) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Pennant Group, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Pennant Group, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 5%

Stability -39%

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Pennant Group, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Pennant Group, Inc..

Years

Calculation mode

= $164M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$16M	$16M	$16M	$16M	$16M	$16M	$16M	$16M	$17M	$17M	$17M	$167M
DCF		$15M	$13M	$12M	$11M	$10M	$9.2M	$8.4M	$7.7M	$7M	$6.4M	$64M
Value	$164M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	4%	5%	1%	4%	0%	1%	2%	3%
ROA	-	21%	1%	4%	1%	2%	5%	6%
ROE	-	24%	4%	15%	2%	5%	9%	11%

Bad Net Margins (3.32%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	0	6.52	0.19	-2.09	-12.27	2.56	6.86
Debt over Equity	-	0	0.26	0.08	0.45	0.5	0.44	0.58
Growth Stability	-	-	-	100%	19%	98%	100%	19%

Bad Debt/FCF ratio (6.86)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.58)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (19%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	14%	18%	15%	12%	8%	15%	13%
Earnings YoY growth	-	59%	-84%	511%	-86%	209%	101%	28%
Equity YoY growth	-	9%	9%	42%	13%	10%	16%	19%
FCF YoY growth	-	39%	-86%	1K%	-157%	-79%	-587%	2%