Pennant Group Inc (PNTG)
NASDAQ:PNTG
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Pennant Group
(NASDAQ:PNTG)
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Rating:72Outperform
Price Target:
$33.00
▲(8.06% Upside)
Action:ReiteratedDate:02/27/26
The score is driven primarily by improving financial performance (strong revenue and cash flow trajectory) and a constructive earnings outlook with robust 2026 growth guidance. Technicals are supportive with clear upward trend signals, while the overall rating is held back by a high P/E valuation and noted integration/reimbursement execution risks.
Positive Factors
Strong Revenue Growth
Sustained, high single-digit to mid-30% revenue growth reflects both organic same-store strength and accretive M&A, expanding scale across home health, hospice and senior living. This durable top-line momentum supports operating leverage potential and longer-term service network expansion.
Negative Factors
Elevated Leverage
While leverage improved from earlier peaks, the 2025 uptick and notable total debt raise financial risk for a services business with variable cash flows. Debt loads increase sensitivity to reimbursement shifts or integration delays and limit optionality for opportunistic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Sustained, high single-digit to mid-30% revenue growth reflects both organic same-store strength and accretive M&A, expanding scale across home health, hospice and senior living. This durable top-line momentum supports operating leverage potential and longer-term service network expansion.
Read all positive factors
Pennant Group (PNTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.07B
Dividend YieldN/A
Average Volume (3M)256.32K
Price to Earnings (P/E)28.2
Beta (1Y)0.72
Revenue Growth29.89%
EPS Growth10.33%
CountryUS
Employees7,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.34
Shares Outstanding34,663,116
10 Day Avg. Volume230,564
30 Day Avg. Volume256,317
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 Cap1.40
Enterprise Value/Revenue1.58
Enterprise Value/Gross Profit10.43
Enterprise Value/Ebitda24.57
Forecast
1Y Price Target
$38.00Price Target Upside24.43% 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:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call emphasizes significant top-line and bottom-line growth in 2025, strong organic same-store improvements, high clinical quality, successful M&A activity and conservative but growth-oriented FY2026 guidance. Management is transparent about near-term integration risks, transition-service costs, and reimbursement headwinds related to the large October acquisitions that will cause some operational noise in early 2026. Given the scale of positive financial results, clinical outperformance, clear integration plan and a healthy balance sheet that leaves room for further investments, the positives materially outweigh the outlined short-term challenges.Positive Updates
Strong Full-Year Financial Performance
FY2025 consolidated revenue of $947.7M, up $252.5M or 36.3% year-over-year; adjusted EBITDA of $72.5M, up $19.2M or 36%; adjusted EBITDA prior to NCI $76.7M, up $21.6M or 39.2%; full-year adjusted EPS $1.18, exceeding the midpoint of updated guidance ($1.16).
Negative Updates
Integration Risk and Near-Term Choppiness
Transition of over 50 acquired Amedisys/UnitedHealth locations is being done in waves through Oct 2026; management expects initial choppiness and additional operational noise during the first 3 quarters as systems, branding and support are transitioned; guidance is conservative to reflect this risk.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Financial Performance
FY2025 consolidated revenue of $947.7M, up $252.5M or 36.3% year-over-year; adjusted EBITDA of $72.5M, up $19.2M or 36%; adjusted EBITDA prior to NCI $76.7M, up $21.6M or 39.2%; full-year adjusted EPS $1.18, exceeding the midpoint of updated guidance ($1.16).
Read all positive updates
Company Guidance
Pennant's 2026 guidance is annual (not quarterly) and assumes revenue of $1.13–$1.17 billion (midpoint up ~22.4%), adjusted EBITDA of $88.5–$94.1 million (midpoint up ~26%), adjusted EBITDA prior to NCI of $94.2–$100.0 million (midpoint up ~26.7%) and adjusted EPS of $1.26–$1.36 (midpoint $1.31), based on roughly 37 million diluted shares and a 26% effective tax rate with an expected quarter‑by‑quarter ramp (Q‑over‑Q EPS growth) as more than 50 recently acquired locations transition; the modeling embeds about 7% same‑store home health/hospice revenue growth, senior‑living assumptions of ~100 bps occupancy improvement and ~6% RevPOR growth, G&A around 6.4–6.5% of revenue, operating cash flow of $45–$55 million and CapEx of ~ $15 million, and excludes unannounced acquisitions, start‑ups, share‑based comp, acquisition‑related costs, certain TSA costs and other one‑time items.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
Negative
30.54
Price Trends
31.73
Negative
30.24
Positive
27.47
Positive
Market Momentum
-0.32
Negative
45.57
Neutral
60.45
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 30.54 is below the 20-day moving average (MA) of 30.86, below the 50-day MA of 31.73, and above the 200-day MA of 27.47, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 45.57 is Neutral, neither overbought nor oversold. The STOCH value of 60.45 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 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.07B | 28.23 | 9.31% | ― | 29.89% | 10.33% | |
69 Neutral | $1.35B | 23.43 | 11.83% | ― | 6.26% | -19.33% | |
64 Neutral | $1.16B | 78.68 | 3.12% | 2.25% | 17.50% | 154.28% | |
62 Neutral | $2.03B | 12.54 | 5.57% | 1.69% | -22.96% | -59.35% | |
62 Neutral | $1.47B | 54.15 | 2.93% | ― | 68.17% | -85.42% | |
52 Neutral | $748.77M | -6.34 | -14.67% | ― | -11.42% | -617.31% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
PNTG
Pennant Group
30.54
4.34
16.56%
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2.15%
USPH
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14.68%
ASTH
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29.23
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-10.61%
Pennant Group Corporate Events
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.