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Pennant Group
(NASDAQ:PNTG)
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Rating:62Neutral
Price Target:
$41.00
▼(-0.39% Downside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by improving fundamentals and a constructive earnings narrative (strong revenue/EBITDA growth and same-store margin progress), offset by weaker cash flow quality and still-meaningful leverage. Technicals are supportive on longer-term moving averages but not strong in the near term, and valuation is a notable headwind due to the high P/E with no dividend support.
Positive Factors
Revenue & EBITDA Growth
Sustained double-digit revenue and EBITDA expansion reflects scalable demand for post-acute services and effective integration of acquisitions. Durable top-line and margin growth provide capacity to reinvest in operations, fund integrations and support deleveraging if sustained over multiple quarters.
Negative Factors
Meaningful Leverage
Material leverage increases sensitivity to interest rates and cash-flow swings in a sector exposed to reimbursement and occupancy volatility. Even with improvement versus earlier years, debt above equity and sizeable outstanding credit lines constrain strategic flexibility and raise refinancing risk during adverse cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & EBITDA Growth
Sustained double-digit revenue and EBITDA expansion reflects scalable demand for post-acute services and effective integration of acquisitions. Durable top-line and margin growth provide capacity to reinvest in operations, fund integrations and support deleveraging if sustained over multiple quarters.
Read all positive factors
Pennant Group (PNTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.33B
Dividend YieldN/A
Average Volume (3M)315.05K
Price to Earnings (P/E)40.8
Beta (1Y)0.77
Revenue Growth37.90%
EPS Growth15.84%
CountryUS
Employees9,700
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.94
Shares Outstanding34,929,073
10 Day Avg. Volume239,523
30 Day Avg. Volume315,048
Financial Highlights & Ratios
PEG Ratio1.68
Price to Book (P/B)2.93
Price to Sales (P/S)1.03
P/FCF Ratio37.00
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$47.00Price Target Upside14.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.39
Revenue Forecast (FY)$1.18B
Pennant Group Business Overview & Revenue Model
Company Description
The Pennant Group, Inc. is a U.S.-based healthcare provider, delivering a diverse range of services through two core divisions: Home Health and Hospice Services, and Senior Living Services. The company's Home Health segment offers in-home clinical...
How the Company Makes Money
Pennant generates revenue primarily by delivering post-acute and senior care services through its operating subsidiaries and being paid for those services. A significant portion of earnings comes from its Home Health and Hospice segment, which bil...
Pennant Group Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 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
78
Positive
Balance Sheet
61
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.10B | 947.71M | 695.24M | 544.89M | 473.24M | 439.69M |
| Gross Profit | 162.90M | 122.47M | 93.76M | 67.04M | 58.59M | 48.59M |
| EBITDA | 65.30M | 60.85M | 44.44M | 30.64M | 17.61M | 9.46M |
| Net Income | 32.32M | 29.58M | 22.56M | 13.38M | 6.64M | 2.70M |
Balance Sheet | ||||||
| Total Assets | 1.04B | 968.18M | 679.52M | 539.69M | 512.12M | 530.30M |
| Cash, Cash Equivalents and Short-Term Investments | 15.27M | 17.02M | 24.25M | 6.06M | 2.08M | 5.19M |
| Total Debt | 493.92M | 453.16M | 273.09M | 329.63M | 326.57M | 355.24M |
| Total Liabilities | 632.85M | 593.93M | 367.56M | 394.18M | 386.46M | 416.05M |
| Stockholders Equity | 359.20M | 332.60M | 293.28M | 140.34M | 121.01M | 110.20M |
Cash Flow | ||||||
| Free Cash Flow | 25.99M | 26.30M | 30.31M | 24.98M | -5.13M | -24.53M |
| Operating Cash Flow | 53.30M | 48.29M | 39.30M | 33.09M | 9.04M | -18.22M |
| Investing Cash Flow | -212.92M | -227.97M | -70.68M | -30.22M | -24.24M | -20.12M |
| Financing Cash Flow | 160.50M | 172.46M | 49.57M | 1.11M | 12.08M | 43.49M |
Pennant Group Technical Analysis
Neutral
41.16
Price Trends
37.37
Positive
34.71
Positive
31.98
Positive
Market Momentum
0.12
Positive
44.98
Neutral
29.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNTG, the sentiment is Neutral. The current price of 41.16 is above the 20-day moving average (MA) of 40.27, above the 50-day MA of 37.37, and above the 200-day MA of 31.98, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 44.98 is Neutral, neither overbought nor oversold. The STOCH value of 29.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PNTG.
Pennant Group Risk Analysis
Pennant Group disclosed 42 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.44B | 12.02 | 24.12% | ― | 5.22% | 1109.87% | |
65 Neutral | $1.22B | 482.06 | 0.48% | 2.44% | 11.32% | -92.59% | |
63 Neutral | $1.71B | 43.25 | 5.09% | ― | 58.91% | 58.36% | |
62 Neutral | $1.33B | 40.83 | 9.51% | ― | 37.90% | 15.84% | |
53 Neutral | $1.28B | 12.01 | 3.15% | ― | 23.99% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
PNTG
Pennant Group
38.38
12.30
47.16%
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32.44
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74.03%
HCSG
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20.80
5.53
36.21%
USPH
US Physical Therapy
81.95
-4.39
-5.09%
ASTH
Astrana Health
35.79
6.16
20.79%
Pennant Group Corporate Events
Business Operations and StrategyFinancial Disclosures
Pennant Group Posts Strong Q2 Results, Raises Guidance
Positive
Aug 5, 2026
On August 5, 2026, The Pennant Group reported second-quarter 2026 results showing broad-based strength across its home health, hospice and senior living segments. Total revenue rose 35.8% year on year to $298.0 million, GAAP diluted EPS reached $0...
Executive/Board ChangesShareholder Meetings
Pennant Group Shareholders Back Directors, Auditor and Pay
Positive
May 20, 2026
The Pennant Group, Inc. held its Annual Meeting of Stockholders on May 14, 2026, with 30,486,574 of 34,953,297 eligible shares represented in person or by proxy, reflecting strong shareholder participation. At the meeting, stockholders elected thr...
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...
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.