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Pennant Group Inc (PNTG)
NASDAQ:PNTG
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Pennant Group
(NASDAQ:PNTG)
64Neutral
Pennant Group (PNTG) vs. S&P 500 (SPY)
Market Cap
$798.43M
Dividend YieldN/A
Average Volume (3M)218.67K
Price to Earnings (P/E)32.8
Beta (1Y)1.34
Revenue Growth27.59%
EPS Growth61.97%
CountryUS
Employees5,791
SectorHealthcare
Sector Strength78
IndustryHealthcare Providers & Services
Share Statistics
EPS (TTM)0.71
Shares Outstanding34,429,990
10 Day Avg. Volume300,453
30 Day Avg. Volume218,668
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)N/A
Price to Sales (P/S)1.11
Price to Cash Flow (P/CF)9.40
P/FCF Ratio11.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$30.33Price Target Upside30.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Pennant Group Business Overview & Revenue Model
Company DescriptionThe Pennant Group, Inc. engages in the provision of healthcare services. It operates through the following segments: Home Health and Hospice Services, Senior Living Services, and All Other. The Home Health and Hospice Services segment provides combination of clinical care services such as nursing, speech, occupational and physical therapy, medical social work, and home health aide services. The Senior Living Services segment deals with assisted and independent living and memory care businesses. The All Other segment includes mobile diagnostic and laboratory services. The company was founded on January 24, 2019 and is headquartered in Eagle, ID.
How the Company Makes MoneyThe Pennant Group makes money through its three main service lines: home health, hospice, and senior living. Revenue in the home health and hospice sectors is generated primarily through reimbursements from Medicare, Medicaid, and private insurance for services rendered. The senior living segment earns revenue from private payers, which include residents and their families, who pay for room, board, and care services. The company's growth strategy often involves acquiring and integrating new agencies and facilities, which can expand its market reach and revenue base. Additionally, Pennant Group's focus on operational efficiency and quality care helps maintain its competitive edge and profitability.
Pennant Group Financial Statement Overview
Summary
Pennant Group demonstrates solid revenue growth and improved profitability, supported by efficient cash flow management and reduced financial leverage. However, the high liabilities and the peculiar gross profit reporting require careful monitoring. The overall financial health of the company appears stable with a positive growth trajectory.Income Statement
The company shows a strong revenue growth rate of approximately 27.6% from 2023 to 2024, indicating robust business expansion. However, the gross profit margin remains flat at 100% due to the reported gross profit equaling total revenue, which may suggest a reporting issue. EBIT and EBITDA margins have improved to 5.5% and 4.1% respectively, reflecting better operational efficiency. The net profit margin increased from 2.5% to 3.2%, demonstrating enhanced profitability.75
Positive
Balance Sheet
Pennant Group's debt-to-equity ratio decreased to 0.93 from 2.35, indicating improved financial leverage. The return on equity (ROE) increased to 7.7%, reflecting better profitability relative to shareholder equity. However, the equity ratio stands at 43.2%, indicating moderate reliance on equity financing. Overall, the balance sheet shows a positive trend in managing debts but still retains a relatively high level of liabilities.60
Neutral
Cash Flow
The operating cash flow to net income ratio increased to 1.7x, suggesting strong cash generation capability relative to net income. Free cash flow improved significantly, with a growth of approximately 21.3%, showcasing enhanced cash management and operational efficiency. The free cash flow to net income ratio stands at 1.34x, indicating good cash flow coverage. The company exhibits a strong cash flow position with improved liquidity.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 695.24M | 544.89M | 473.24M | 439.69M | 390.95M | Gross Profit |
| 93.76M | 67.04M | 58.59M | 45.74M | 54.89M | EBIT |
| 38.12M | 25.17M | 19.67M | 4.70M | 18.92M | EBITDA |
| 44.44M | 30.64M | 24.60M | 9.46M | 23.82M | Net Income Common Stockholders |
| 22.56M | 13.38M | 6.64M | 2.15M | 15.74M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 24.25M | 6.06M | 2.08M | 5.19M | 43.00K | Total Assets |
| 679.52M | 539.69M | 512.12M | 530.30M | 506.98M | Total Debt |
| 273.09M | 329.63M | 326.57M | 355.24M | 319.00M | Net Debt |
| 248.84M | 323.57M | 324.49M | 350.05M | 318.95M | Total Liabilities |
| 367.56M | 394.18M | 386.46M | 416.05M | 405.80M | Stockholders Equity |
| 293.28M | 140.34M | 121.01M | 110.20M | 96.58M |
| Cash Flow | Free Cash Flow | |||
| 30.31M | 24.98M | -5.13M | -24.53M | 42.95M | Operating Cash Flow |
| 39.30M | 33.09M | 9.04M | -18.22M | 50.20M | Investing Cash Flow |
| -70.68M | -30.22M | -24.24M | -20.12M | -41.62M | Financing Cash Flow |
| 49.57M | 1.11M | 12.08M | 43.49M | -8.95M |
Pennant Group Technical Analysis
Negative
23.19
Price Trends
25.95
Negative
28.67
Negative
28.89
Negative
Market Momentum
-1.13
Positive
37.10
Neutral
35.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNTG, the sentiment is Negative. The current price of 23.19 is below the 20-day moving average (MA) of 24.49, below the 50-day MA of 25.95, and below the 200-day MA of 28.89, indicating a bearish trend. The MACD of -1.13 indicates Positive momentum. The RSI at 37.10 is Neutral, neither overbought nor oversold. The STOCH value of 35.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PNTG.
Pennant Group Risk Analysis
Pennant Group disclosed 45 risk factors in its most recent earnings report. Pennant Group reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pennant Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $82.76B | 15.01 | -230.22% | 0.81% | 8.67% | 15.32% | |
70 Outperform | $8.76B | 30.01 | 27.12% | 0.32% | 7.37% | 11.17% | |
66 Neutral | $3.02B | 70.72 | 3.93% | ― | 5.01% | ― | |
64 Neutral | $798.43M | 32.80 | 10.40% | ― | 27.59% | 61.97% | |
61 Neutral | $1.72B | 22.37 | 8.78% | ― | 9.06% | 10.68% | |
56 Neutral | $426.56M | ― | -26.18% | ― | -1.10% | -92.56% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
PNTG
Pennant Group
22.72
3.76
19.83%
ADUS
Addus Homecare
93.09
-6.01
-6.06%
AMED
Amedisys
92.12
-1.13
-1.21%
CHE
Chemed
589.24
-55.18
-8.56%
HCA
HCA Healthcare
312.87
-6.53
-2.04%
EHAB
Enhabit, Inc
8.45
-2.39
-22.05%
Pennant Group Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -9.20% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call for The Pennant Group highlighted strong financial performance and growth across all segments, supported by successful acquisitions and partnerships. Despite minor challenges in hospice revenue, the company's outlook remains positive with planned expansions and robust financial health.Highlights
Record-Breaking Performance
Pennant Group concluded a year of record-breaking performance with Q4 adjusted earnings per share of $0.24 and a full year 2024 adjusted EPS of $0.94, exceeding guidance.
Significant Revenue and EBITDA Growth
Full year consolidated revenue increased by $150.3 million or 27.6% to $695.2 million. Adjusted EBITDA improved by $12.6 million or 30.9% over the prior year.
Successful Acquisitions and Partnerships
Major acquisitions include the $80 million purchase of Signature Healthcare at Home. Partnerships with John Muir Health and Hartford Healthcare are contributing positively.
Home Health and Hospice Segment Growth
Revenue increased by 31.7% to $519.5 million with a 34.1% rise in adjusted EBITDA. Home health admissions hit a new high, increasing by 40.9%.
Senior Living Segment Improvement
Revenue grew by 16.8% to $175.8 million, with full-year adjusted EBITDA rising by 31.9%. Occupancy increased by 30 basis points to 78.8%.
Strong Financial Position
The company maintains a healthy balance sheet with $245.8 million available on its credit line and $24.2 million in cash on hand.
Lowlights
Hospice Revenue Per Episode Decrease
Despite growth in hospice admissions, revenue per episode decreased by 1.6% over the prior year quarter.
Hospice Cap Expense Impact
An atypical hospice cap expense of $1.7 million in Q4 affected margins. The expense is a result of higher reimbursement rates in California not matched by hospice cap allowance increases.
Company Guidance
During the Pennant Group's fourth quarter 2024 earnings call, the company provided guidance for 2025, projecting full-year revenue between $800 million and $865 million, and an adjusted earnings per share in the range of $1.03 to $1.11. This guidance reflects an anticipated 13.8% growth over the 2024 adjusted earnings and 46.6% growth over 2023 results. The company expects a continuous ramp-up throughout the year, particularly as they transition newly acquired operations. Additionally, they forecast adjusted EBITDA between $63.1 million and $68.2 million. The guidance is based on the momentum of their home health and hospice segments, the readiness of local leaders to drive growth, and the potential to unlock value in existing operations. The company noted that their guidance excludes unannounced acquisitions and startup operations but assumes level interest rates and inflation consistent with 2024.Pennant Group Corporate Events
Financial Disclosures
Pennant Group Reports Strong 2024 Financial Results
Positive
Feb 27, 2025
The Pennant Group reported its financial results for the fiscal year and fourth quarter of 2024, highlighting a significant increase in revenue and net income compared to the previous year. The company achieved a total revenue of $695.2 million for the year, marking a 27.6% increase, and a net income of $22.6 million, a 68.6% rise over the prior year. The Home Health and Hospice Services segment saw substantial growth, with a 31.7% increase in revenue for the year. The company also provided guidance for 2025, anticipating continued growth with expected total revenue between $800 million and $865 million.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.