PACS Group Inc (PACS) AI Stock Analysis

• Market Cap: $4.82B
• Dividend Yield: N/A
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 29.7
• Beta (1Y): -0.06
• Revenue Growth: 35.37%
• EPS Growth: -37.58%
• Country: US
• Employees: 32,433
• Sector: Healthcare
• Sector Strength: 45
• Industry: Financial - Conglomerates
• EPS (TTM): 0.32
• Shares Outstanding: 156,615,140
• 10 Day Avg. Volume: 691,785
• 30 Day Avg. Volume: 1,427,658
• PEG Ratio: -0.70
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 6.39
• 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: $37.67
• Price Target Upside: 8.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $33.00 ▼(-5.15% Downside)

PACS Group Inc. demonstrates strong growth and positive momentum, supported by strategic acquisitions and operational improvements. However, high leverage, low profitability, and recent executive changes pose risks. The stock's high valuation and potential overbought technical indicators warrant cautious optimism.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates robust market demand and effective business strategies, supporting long-term expansion and stability.

Cash Generation

Improved cash generation enhances financial flexibility, enabling investment in growth opportunities and strengthening the company's financial position.

Strategic Acquisitions

Strategic acquisitions expand market presence and operational scale, providing potential for increased revenue and competitive advantage.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting long-term financial health and operational capacity.

Low Profit Margins

Persistently low profit margins may hinder the company's ability to reinvest in growth and maintain competitive positioning over time.

Increased Service Costs

Rising service costs could pressure margins and profitability, challenging the company's ability to sustain financial performance.

PACS Group Inc Business Overview & Revenue Model

Company Description

PACS Group Inc (PACS) is a technology-driven company that specializes in providing advanced solutions in data management and analytics across various sectors, including healthcare, finance, and logistics. The company focuses on developing innovative software applications and cloud-based services that enhance operational efficiency and decision-making for its clients. PACS's core products include data integration platforms, analytics tools, and customized enterprise solutions designed to streamline business processes and improve data accessibility.

How the Company Makes Money

PACS Group Inc generates revenue primarily through the sale of software licenses, subscription services, and consulting fees. The company offers tiered pricing models for its software products, allowing clients to select packages that suit their specific needs, which contributes to a steady stream of recurring revenue. Additionally, PACS engages in strategic partnerships with key players in the technology and service industries, enhancing its product offerings and expanding its market reach. Consulting services related to implementation, customization, and ongoing support further bolster its revenue streams. The company also benefits from long-term contracts with clients in various sectors, ensuring stable income from ongoing service agreements.

PACS Group Inc Financial Statement Overview

Summary

PACS Group Inc. shows strong revenue growth and improved cash flow generation, which are positive indicators of financial health. However, the company faces challenges with low profitability margins and high leverage, which could pose risks if not managed effectively.

Income Statement

PACS Group Inc. has demonstrated strong revenue growth with a 113.39% increase in the latest year, indicating robust expansion. However, the net profit margin remains low at 1.36%, suggesting challenges in converting revenue into profit. The gross profit margin improved to 19.38%, reflecting better cost management. Despite these improvements, the EBIT margin is notably low, indicating potential inefficiencies in operational management.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 4.35, indicating significant leverage and potential financial risk. The return on equity has improved to 7.86%, suggesting better utilization of shareholder funds. However, the equity ratio remains low, highlighting a reliance on debt financing over equity.

Cash Flow

Cash flow analysis reveals a substantial improvement in free cash flow growth at 345.70%, showcasing enhanced cash generation capabilities. The operating cash flow to net income ratio is 0.38, indicating reasonable cash flow relative to earnings. The free cash flow to net income ratio of 0.82 suggests efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	5.14B	―	4.09B	3.11B	2.42B
Gross Profit	1.01B	―	792.64M	447.07M	400.68M
EBITDA	123.70M	―	40.81M	232.87M	254.89M
Net Income	169.04M	―	55.76M	112.87M	150.50M
Balance Sheet
Total Assets	5.63B	―	5.24B	3.51B	2.46B
Cash, Cash Equivalents and Short-Term Investments	355.67M	―	157.67M	73.42M	66.12M
Total Debt	3.22B	―	3.09B	2.85B	1.93B
Total Liabilities	4.75B	―	4.53B	3.41B	2.39B
Stockholders Equity	871.32M	―	709.55M	96.13M	63.65M
Cash Flow
Free Cash Flow	546.80M	―	300.88M	17.91M	14.38M
Operating Cash Flow	696.85M	―	367.34M	63.70M	92.61M
Investing Cash Flow	44.15M	―	-442.68M	-172.79M	-75.32M
Financing Cash Flow	-121.12M	―	117.48M	129.59M	12.35M

PACS Group Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PACS, the sentiment is Positive. The current price of 34.79 is above the 20-day moving average (MA) of 27.91, above the 50-day MA of 18.68, and above the 200-day MA of 13.12, indicating a bullish trend. The MACD of 4.59 indicates Positive momentum. The RSI at 81.28 is Negative, neither overbought nor oversold. The STOCH value of 66.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PACS.

PACS Group Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSDL	82 Outperform	$1.54B	10.78	8.00%	12.11%	1.97%	-35.20%
NCDL	75 Outperform	$715.62M	9.43	8.46%	13.89%	-8.32%	-33.94%
PACS	66 Neutral	$4.82B	29.66	22.08%	―	35.37%	-37.58%
TREE	60 Neutral	$765.97M	55.52	12.49%	―	37.01%	―
PSBD	54 Neutral	$381.84M	27.92	2.72%	14.10%	-2.38%	-75.49%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

PACS Group Inc Corporate Events

PACS Group Extends Forbearance Agreement to November 2025

On August 13, 2025, PACS Group, Inc. entered into a Forbearance Agreement and Fifth Amendment to Credit Agreement with Truist Bank and other lenders, which was extended on October 30, 2025, to November 30, 2025. The company is also working to meet its SEC reporting obligations by November 19, 2025, to comply with NYSE requirements.

PACS Group Inc Receives NYSE Compliance Extension

On September 9, 2025, PACS Group Inc. received an extension from the NYSE Listing Operations Committee to regain compliance with reporting requirements by November 19, 2025. The company has faced delays in filing several financial reports due to an independent investigation by its Audit Committee, and it is working to restate prior financial statements and complete delinquent filings to meet NYSE standards.

PACS Group Inc Appoints Interim CFO Mark Hancock

On September 2, 2025, Derick Apt resigned as Chief Financial Officer of PACS Group Inc. following an investigation by the Audit Committee into allegations of policy violations related to accepting high-value items. In response to these findings, a separation agreement was reached, and the company has begun searching for a permanent CFO while enhancing its finance team. Mark Hancock, a co-founder and former CFO, was appointed as interim CFO on September 3, 2025. Hancock, who has extensive experience in finance and leadership roles within the company, will continue to serve as Executive Vice Chairman and a board director.