Pennant Group Inc (PNTG)
NASDAQ:PNTG
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Pennant Group
(NASDAQ:PNTG)
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Rating:72Outperform
Price Target:
$36.00
▲(17.11% Upside)
Action:UpgradedDate:05/07/26
The score is driven primarily by improving fundamentals (growth and stronger cash generation) and supportive technical uptrend signals. The main offsets are a premium valuation (P/E ~31) and execution/financial-risk considerations highlighted on the earnings call, especially integration-related costs and liquidity constraints.
Positive Factors
Sustained Revenue & Cash Flow Recovery
Sustained multi-year revenue growth and materially improved operating/free cash flow provide durable internal funding for capex, integrations and debt service. Reliable cash conversion improves resilience to cyclical pressures and supports continued M&A and reinvestment over the next several quarters.
Negative Factors
Elevated Leverage and Limited Liquidity
Debt has risen after prior deleveraging and cash on hand is modest, constraining financial flexibility. With net-debt/EBITDA near management's 1.9x disclosure and operating cash flow coverage weak, the company remains exposed to refinancing, covenant pressure or reduced investment capacity if operating performance softens.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue & Cash Flow Recovery
Sustained multi-year revenue growth and materially improved operating/free cash flow provide durable internal funding for capex, integrations and debt service. Reliable cash conversion improves resilience to cyclical pressures and supports continued M&A and reinvestment over the next several quarters.
Read all positive factors
Pennant Group (PNTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.14B
Dividend YieldN/A
Average Volume (3M)240.91K
Price to Earnings (P/E)31.1
Beta (1Y)0.71
Revenue Growth36.31%
EPS Growth18.03%
CountryUS
Employees7,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.87
Shares Outstanding34,953,297
10 Day Avg. Volume207,495
30 Day Avg. Volume240,909
Financial Highlights & Ratios
PEG Ratio1.69
Price to Book (P/B)2.93
Price to Sales (P/S)1.03
P/FCF Ratio37.00
Enterprise Value/Market Cap1.38
Enterprise Value/Revenue1.66
Enterprise Value/Gross Profit10.96
Enterprise Value/Ebitda25.81
Forecast
1Y Price Target
$38.67Price Target Upside25.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)1.32
Revenue Forecast (FY)$1.16B
Pennant Group Business Overview & Revenue Model
Company Description
The Pennant Group, Inc. provides healthcare services in the United States. It operates in two segments, Home Health and Hospice Services, and Senior Living Services. The company offers home health services, including clinical services, such as nur...
How the Company Makes Money
Pennant primarily generates revenue by delivering patient care and housing-related services through two major operating segments: home health and hospice, and senior living. (1) Home health: The company earns fees for providing in-home skilled nur...
Pennant Group Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call communicated strong top-line and margin progress driven by substantial acquisitional growth, robust Home Health & Hospice volume expansion, meaningful same-store margin improvements and active Senior Living M&A, backed by a strengthened leadership pipeline. At the same time, management emphasized near-term integration costs and operational disruption from EMR transitions, TSA expenses, labor and occupancy volatility tied to recent acquisitions, and modest liquidity constraints. Overall the positives (strong revenue and EBITDA growth, meaningful same-store improvement, admissions/census gains and disciplined M&A execution) outweigh the transitory integration and reimbursement headwinds, but the company remains cautious while completing large-scale integrations.Positive Updates
Strong Overall Revenue and Profit Growth
GAAP revenue of $285.4 million, up $75.5 million or 36% year-over-year; GAAP net income of $8.5 million, up 9.6%; adjusted net income of $11.5 million, up 19.8%; adjusted diluted EPS of $0.32, up $0.05 or 18.5%.
Negative Updates
Integration-Related Costs and Margin Pressure
Overall Home Health & Hospice segment adjusted EBITDA margin prior to NCI decreased to 15.5% (down 70 bps YoY) due to the expected impact of transitioning more than 50 new operations and temporary higher costs under the transition services agreement (TSA).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Overall Revenue and Profit Growth
GAAP revenue of $285.4 million, up $75.5 million or 36% year-over-year; GAAP net income of $8.5 million, up 9.6%; adjusted net income of $11.5 million, up 19.8%; adjusted diluted EPS of $0.32, up $0.05 or 18.5%.
Read all positive updates
Company Guidance
Management said it is not changing full‑year guidance today but is pointing to the upper end of the range and will reassess after Q2; that view is supported by strong Q1 results: consolidated revenue $285.4M (+36%), adjusted EBITDA $21.7M (+32.6%) and adjusted EBITDA prior to NCI $23.5M (+37.2%), adjusted diluted EPS $0.32 (+18.5%) (GAAP net income $8.5M; GAAP diluted EPS $0.24); Home Health & Hospice revenue $229.1M (+43.3%), segment adjusted EBITDA $33.6M (+33.7%) and prior to NCI $35.4M (+36.6%), total Home Health admissions 30,721 (+62.7%) and Medicare admissions 13,303 (+75.1%) with same‑store admissions +5.8% and same‑store Medicare +9.2%, same‑store HH&H adj. EBITDA margin prior to NCI 17.2% (+110 bps) (overall segment margin prior to NCI 15.5%, down 70 bps); Senior Living revenue $56.3M (+12.6%), adjusted EBITDA $6.4M (+30.6%) and margin 11.8% (+190 bps); CapEx guidance of ~$15–18M for 2026; balance sheet and cash flow metrics of $4.9M cash, $72M revolver, $98.8M term loan (total $170.8M outstanding), net debt/adjusted EBITDA 1.93x and cash used in operations $3.4M (improved $17.8M Y/Y); management also noted 2 of 5 Southeast transition waves are live, full integration expected by late Q3/into October, TSA costs should roll off, and a proposed 2026 hospice rule (+2.4% rate) is a potential Q4 tailwind.Pennant Group Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 947.71M | 695.24M | 544.89M | 473.24M | 439.69M |
| Gross Profit | 122.47M | 93.76M | 67.04M | 58.59M | 48.59M |
| EBITDA | 60.85M | 44.44M | 30.64M | 17.61M | 9.46M |
| Net Income | 29.58M | 22.56M | 13.38M | 6.64M | 2.70M |
Balance Sheet | |||||
| Total Assets | 968.18M | 679.52M | 539.69M | 512.12M | 530.30M |
| Cash, Cash Equivalents and Short-Term Investments | 17.02M | 24.25M | 6.06M | 2.08M | 5.19M |
| Total Debt | 453.16M | 273.09M | 329.63M | 326.57M | 355.24M |
| Total Liabilities | 593.93M | 367.56M | 394.18M | 386.46M | 416.05M |
| Stockholders Equity | 332.60M | 293.28M | 140.34M | 121.01M | 110.20M |
Cash Flow | |||||
| Free Cash Flow | 26.30M | 30.31M | 24.98M | -5.13M | -24.53M |
| Operating Cash Flow | 48.29M | 39.30M | 33.09M | 9.04M | -18.22M |
| Investing Cash Flow | -227.97M | -70.68M | -30.22M | -24.24M | -20.12M |
| Financing Cash Flow | 172.46M | 49.57M | 1.11M | 12.08M | 43.49M |
Pennant Group Technical Analysis
Positive
30.74
Price Trends
31.79
Negative
30.33
Positive
27.50
Positive
Market Momentum
-0.31
Negative
47.34
Neutral
44.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNTG, the sentiment is Positive. The current price of 30.74 is above the 20-day moving average (MA) of 30.65, below the 50-day MA of 31.79, and above the 200-day MA of 27.50, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 47.34 is Neutral, neither overbought nor oversold. The STOCH value of 44.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PNTG.
Pennant Group Risk Analysis
Pennant Group disclosed 41 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.51B | 12.43 | 13.60% | ― | 6.46% | 72.30% | |
72 Outperform | $1.14B | 31.06 | 9.23% | ― | 36.31% | 18.03% | |
63 Neutral | $1.75B | 50.90 | 2.93% | ― | 56.39% | -49.49% | |
62 Neutral | $2.04B | 11.43 | 8.62% | 1.69% | -10.76% | -20.86% | |
62 Neutral | $1.11B | 56.42 | 2.16% | 2.25% | 16.33% | -23.11% | |
60 Neutral | $810.62M | -19.83 | -14.67% | ― | -8.49% | 35.03% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
PNTG
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Pennant Group Corporate Events
Business Operations and StrategyFinancial Disclosures
Pennant Group Posts Strong First-Quarter 2026 Revenue Growth
Positive
May 6, 2026
The Pennant Group reported strong first-quarter 2026 results on May 6, 2026, with total revenue rising 36% year over year to $285.4 million and GAAP diluted earnings per share reaching $0.24, or $0.32 on an adjusted basis. Net income increased 9.6...
Business Operations and StrategyFinancial Disclosures
Pennant Group Posts Record 2025 Results, Eyes 2026 Growth
Positive
Feb 25, 2026
The Pennant Group reported record fourth-quarter and full-year 2025 results on February 25, 2026, with full-year GAAP diluted EPS of $0.84 and adjusted EPS of $1.18, driven by a 36.3% rise in total revenue to $947.7 million and strong growth in bo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.