PACS Group Inc (PACS) AI Stock Analysis

• Market Cap: $6.50B
• Dividend Yield: N/A
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 40.6
• Beta (1Y): -0.08
• 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: 0.77
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 4.94
• Enterprise Value/Ebitda: 14.70
• 1Y Price Target: $42.60
• Price Target Upside: 1.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $44.00 ▲(4.44% Upside)

The score is driven primarily by improving operating performance and cash flow, plus a constructive earnings-call outlook with raised-scale execution and firm guidance. Offsetting these positives are high balance-sheet leverage, overbought technical readings that raise near-term risk, and a premium valuation (P/E ~40).

Positive Factors

Revenue Growth

Sustained double-digit top-line growth reflects successful mix of organic demand and acquisitive expansion. Strong revenue momentum and explicit full-year guidance underpin recurring revenue capture across software, subscriptions and contracts, supporting scalable investments and long-term market share gains.

Cash Generation

Material improvement in free cash flow improves earnings quality and funds operations, M&A integration and debt servicing without relying solely on equity. Stronger cash conversion provides durable financial flexibility to invest in product development and service capacity over the coming months.

Scale and Quality via Acquisitions

Rapid, successful acquisitions have meaningfully expanded footprint and client capacity, enabling scale economies and cross-selling. Coupled with improved CMS quality ratings across the portfolio, the integration track record and higher quality mix support longer-term revenue stability and competitive positioning.

Negative Factors

High Leverage

Elevated debt-to-equity constrains financial flexibility and raises refinancing and interest-rate risk. With leverage still high despite improvement, the balance sheet limits room for cyclical setbacks or aggressive investment, making performance more sensitive to cash-flow volatility over the medium term.

Thin Profit Margins

Profitability has improved but remains narrow, leaving little buffer against cost shocks or occupancy swings. Thin margins reduce the company's ability to self-fund growth and expose earnings to operational variability, requiring sustained margin expansion to make gains durable.

Rising Service Costs

Substantial year-over-year service cost increases are structural in labor-intensive care and integration periods. Persistent higher staffing and service expenses can compress margins unless offset by pricing power or productivity gains, challenging long-term margin sustainability amid growth.

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

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

Strong top-line expansion (revenue up 113.39%) and sharply improved free cash flow (up 345.70%) support the score, but profitability is thin (net margin 1.36% and low EBIT margin) and leverage is elevated (debt-to-equity 4.35), increasing financial risk.

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 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	341.12M	186.70M	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	3.50B	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	472.20M	367.34M	63.70M	92.61M
Investing Cash Flow	-250.21M	-442.68M	-172.79M	-75.32M
Financing Cash Flow	75.05M	117.48M	129.59M	12.35M

PACS Group Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.13
• 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 42.13 is above the 20-day moving average (MA) of 38.46, above the 50-day MA of 28.97, and above the 200-day MA of 15.75, indicating a bullish trend. The MACD of 3.41 indicates Positive momentum. The RSI at 84.69 is Negative, neither overbought nor oversold. The STOCH value of 78.41 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
NCDL	67 Neutral	$665.74M	8.74	8.46%	14.71%	-8.32%	-33.94%
MSDL	64 Neutral	$1.42B	9.88	8.00%	12.60%	1.97%	-35.20%
PACS	60 Neutral	$6.50B	40.63	22.08%	―	35.37%	-37.58%
TREE	60 Neutral	$804.11M	61.95	12.49%	―	37.01%	―
PSBD	55 Neutral	$377.75M	27.67	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 stockholders endorse directors, auditor and pay

On December 19, 2025, PACS Group, Inc. held its 2025 Annual Meeting of Stockholders, with approximately 95.29% of outstanding common shares represented online or by proxy as of the November 10, 2025 record date. Stockholders elected Taylor Leavitt and Jacqueline Millard as Class I directors to serve until the 2028 annual meeting, ratified the appointment of Ernst & Young LLP as the company’s independent auditor for the fiscal year ending December 31, 2025, and approved on an advisory basis both the compensation of named executive officers and the decision to hold future advisory votes on executive pay every year; these outcomes reinforce the board’s slate, confirm the current audit relationship, and signal investor support for the company’s governance and executive compensation practices.

The most recent analyst rating on (PACS) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on PACS Group Inc stock, see the PACS Stock Forecast page.

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.

The most recent analyst rating on (PACS) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on PACS Group Inc stock, see the PACS Stock Forecast page.