Acquisition-driven GrowthPACS's strategy of buying underperforming skilled nursing facilities allows the company to unlock embedded earnings through operational improvements and expand market share in a fragmented sector.
Industry TailwindsDemographic trends and shifts to lower-cost sites of care should increase demand for skilled nursing services and provide PACS with opportunities to grow its patient base.
Management Execution And Operational ImprovementManagement's track record of raising occupancy and improving skilled-mix relative to peers supports stronger cash flow generation and funding for continued expansion.