PACS Group Inc (PACS) AI Stock Analysis

• Market Cap: $1.62B
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 32,433
• Sector: General
• Sector Strength: N/A
• Industry: Financial - Conglomerates
• EPS (TTM): 0.47
• Shares Outstanding: 155,177,500
• 10 Day Avg. Volume: 2,210,646
• 30 Day Avg. Volume: 1,011,516
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $32.00
• Price Target Upside: 194.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: ―

The overall score for PACS Group Inc is moderate due to strong revenue growth counterbalanced by high financial leverage and negative technical indicators. Regulatory risks from noncompliance with NYSE requirements further impact the score. Limited valuation data and lack of earnings call insights add to the uncertainty surrounding the stock.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust market demand and expansion, enhancing the company's competitive position and long-term prospects.

Operational Base

A strong operational base suggests effective management and operational efficiency, supporting sustainable business growth over time.

Cash Flow Flexibility

Positive free cash flow provides the company with the ability to invest in growth opportunities and manage debt, supporting long-term financial health.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting the company's ability to invest in growth and potentially impacting its long-term stability.

Regulatory Compliance Risk

Noncompliance with NYSE requirements introduces regulatory risks, which can affect investor confidence and the company's market standing.

Profitability Challenges

Declining profit margins suggest challenges in cost management and operational efficiency, which could hinder long-term profitability.

PACS Group Inc Business Overview & Revenue Model

Company Description

PACS Group, Inc. is a holding company, which engages in the provision of post-acute healthcare facilities, professionals, and ancillary services. It provides senior care, assisted living, and independent living options in some of the communities. The company was founded by Jason Murray and Mark Hancock in 2013 and is headquartered in Farmington, UT.

How the Company Makes Money

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PACS Group Inc Financial Statement Overview

Summary

PACS Group Inc demonstrates robust revenue growth but faces challenges with profitability margins and high leverage. The balance sheet reveals significant debt, posing a potential risk to financial stability, while cash flow generation needs improvement to support long-term investments and reduce leverage.

Income Statement

PACS Group Inc shows a solid revenue growth of 28.46% year-over-year, indicating strong market demand and expansion. However, the net profit margin decreased from 6.21% to 3.63%, pointing to increased costs or operational inefficiencies. The gross profit margin remains relatively stable at 14.36%, suggesting consistent cost management at the gross level. The EBIT and EBITDA margins reflect a strong operational base, though slightly declining year-over-year.

Balance Sheet

The company's balance sheet indicates high leverage with a debt-to-equity ratio of 29.61, which introduces potential financial risk. The equity ratio of 2.74% is low, suggesting heavy reliance on debt financing. The return on equity stands at 117.43%, indicating high returns relative to the equity base, but this is primarily due to the minimal equity compared to liabilities.

Cash Flow

PACS's operating cash flow to net income ratio is 0.56, showing moderate cash generation relative to earnings. The free cash flow decreased significantly by 74.31%, which may impact future investments or debt repayments. However, the company maintains positive free cash flow, indicating some level of financial flexibility.

Breakdown	TTM	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.92B	3.11B	2.42B
Gross Profit	280.73M	447.07M	378.37M
EBITDA	93.44M	232.87M	251.67M
Net Income	38.23M	112.87M	150.50M
Balance Sheet
Total Assets	3.90B	3.51B	2.46B
Cash, Cash Equivalents and Short-Term Investments	73.37M	73.42M	66.12M
Total Debt	2.71B	2.85B	1.93B
Total Liabilities	3.32B	3.41B	2.39B
Stockholders Equity	572.13M	96.13M	63.65M
Cash Flow
Free Cash Flow	67.51M	17.91M	69.75M
Operating Cash Flow	93.60M	63.70M	92.61M
Investing Cash Flow	-239.13M	-172.79M	-72.08M
Financing Cash Flow	104.68M	129.59M	9.10M

PACS Group Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PACS, the sentiment is Neutral. The current price of 10.87 is below the 20-day moving average (MA) of 10.94, below the 50-day MA of 11.41, and below the 200-day MA of 12.01, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 50.44 is Neutral, neither overbought nor oversold. The STOCH value of 69.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PACS.

PACS Group Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GE	82 Outperform	304.11B	40.03	40.54%	0.45%	-32.80%	69.39%
HON	74 Outperform	134.43B	24.07	35.52%	2.13%	7.16%	0.21%
ITW	73 Outperform	76.92B	23.16	104.83%	2.27%	-1.40%	11.65%
DHR	69 Neutral	135.00B	40.05	6.52%	0.63%	-3.24%	-16.60%
MMM	58 Neutral	83.44B	21.79	91.82%	1.84%	-19.56%	325.26%
PACS	51 Neutral	$1.62B	―	117.42%	―	―	―
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

PACS Group Inc Corporate Events

PACS Group Inc Faces NYSE Noncompliance Notice

PACS Group, a major player in post-acute healthcare, has received a noncompliance notice from the NYSE due to the delayed filing of its quarterly report, attributed to an ongoing investigation. The company aims to address this within six months, although uncertainties remain. This highlights the potential risks and challenges faced by companies in maintaining compliance with financial reporting standards.