Pennant Group (PNTG) AI Stock Analysis

• Market Cap: $873.73M
• Dividend Yield: N/A
• Average Volume (3M): 252.35K
• Price to Earnings (P/E): 32.3
• Beta (1Y): 0.83
• Revenue Growth: 29.89%
• EPS Growth: 10.33%
• Country: US
• Employees: 7,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.30
• Shares Outstanding: 34,561,985
• 10 Day Avg. Volume: 183,646
• 30 Day Avg. Volume: 252,348
• PEG Ratio: 0.61
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 27.29
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 16.60
• Enterprise Value/Ebitda: 27.95
• 1Y Price Target: $33.67
• Price Target Upside: 31.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $27.00 ▲(5.72% Upside)

The overall stock score of 69 reflects strong financial performance and positive earnings call sentiment, driven by revenue growth and successful acquisitions. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. The company's high leverage and integration challenges pose additional risks.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Cash Generation

Strong cash generation enhances financial flexibility, enabling strategic investments and debt management, crucial for sustained growth.

Strategic Acquisitions

Strategic acquisitions expand market presence and service offerings, strengthening competitive position and driving long-term growth.

Negative Factors

High Leverage

Significant leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth.

Integration Challenges

Integration challenges can create operational disruptions and cost overruns, affecting short-term performance and strategic execution.

Regulatory Uncertainty

Regulatory changes can alter reimbursement structures, impacting revenue streams and operational strategies, posing long-term risks.

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 nursing, speech, occupational and physical therapy, medical social work, and home health aide services; and hospice services comprising clinical care, education, and counseling services for the physical, spiritual, and psychosocial needs of terminally ill patients and their families. It also provides senior living services, such as residential accommodations, activities, meals, housekeeping, and assistance in the activities of daily living to seniors, who are independent or who require some support. As of December 31, 2021, the company operated 88 home health and hospice agencies, and 54 senior living communities with 4127 Senior Living units in Arizona, California, Colorado, Idaho, Iowa, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. The Pennant Group, Inc. was incorporated in 2019 and is headquartered in Eagle, Idaho.

How the Company Makes Money

Pennant Group generates revenue through multiple streams within the healthcare services industry. Primarily, it earns money by providing home health services, hospice care, and long-term care services to patients, which are reimbursed through government programs such as Medicare and Medicaid, as well as private insurance providers. The company also benefits from strategic partnerships and affiliations with local healthcare providers and hospitals, which help to drive patient referrals and enhance service offerings. Additionally, Pennant Group may engage in value-based care models that incentivize improved patient outcomes, further contributing to its revenue through performance-based reimbursements.

Pennant Group Financial Statement Overview

Summary

Pennant Group demonstrates strong revenue growth and improved cash flow generation, contributing to a positive financial outlook. However, the company faces challenges with relatively low profit margins and high leverage, which could pose risks if not managed carefully.

Income Statement

The income statement shows a solid revenue growth rate of 6.78% TTM, indicating a positive trend in sales. Gross profit margin is stable around 13.5%, and net profit margin has improved to 3.36% TTM. EBIT and EBITDA margins are also showing slight improvements, reflecting better operational efficiency. However, the margins are still relatively low, suggesting room for improvement in profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.00 TTM, indicating significant leverage, though it has improved from previous years. Return on equity is at 9.94% TTM, showing decent profitability relative to equity. The equity ratio is moderate, suggesting a balanced asset structure. While leverage is a concern, the company is managing to improve its equity position.

Cash Flow

Cash flow analysis shows a remarkable free cash flow growth rate of 271.98% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.40 TTM, and the free cash flow to net income ratio is 0.78 TTM, both reflecting healthy cash conversion. The company has significantly improved its cash flow position, enhancing financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	847.27M	695.24M	544.89M	473.24M	439.69M	390.95M
Gross Profit	82.86M	93.76M	67.04M	58.59M	45.74M	54.89M
EBITDA	49.20M	44.44M	30.64M	24.60M	9.46M	23.82M
Net Income	26.70M	22.56M	13.38M	6.64M	2.15M	15.74M
Balance Sheet
Total Assets	753.64M	679.52M	539.69M	512.12M	530.30M	506.98M
Cash, Cash Equivalents and Short-Term Investments	2.34M	24.25M	6.06M	2.08M	5.19M	43.00K
Total Debt	302.81M	273.09M	329.63M	326.57M	355.24M	319.00M
Total Liabilities	410.60M	367.56M	394.18M	386.46M	416.05M	405.80M
Stockholders Equity	321.91M	293.28M	140.34M	121.01M	110.20M	96.58M
Cash Flow
Free Cash Flow	36.10M	30.31M	24.98M	-5.13M	-24.53M	42.95M
Operating Cash Flow	47.91M	39.30M	33.09M	9.04M	-18.22M	50.20M
Investing Cash Flow	-79.35M	-70.68M	-30.22M	-24.24M	-20.12M	-41.62M
Financing Cash Flow	29.31M	49.57M	1.11M	12.08M	43.49M	-8.95M

Pennant Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 25.54 is above the 20-day moving average (MA) of 24.64, above the 50-day MA of 24.77, and below the 200-day MA of 25.62, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 55.12 is Neutral, neither overbought nor oversold. The STOCH value of 57.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PNTG.

Pennant Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HCSG	72 Outperform	$1.23B	31.94	8.07%	―	6.26%	-19.33%
PNTG	69 Neutral	$873.73M	32.33	10.87%	―	29.89%	10.33%
SEM	67 Neutral	$1.66B	15.35	5.57%	1.79%	-22.96%	-59.35%
USPH	61 Neutral	$1.34B	37.04	7.30%	2.03%	17.50%	154.28%
ASTH	61 Neutral	$1.67B	132.65	1.29%	―	68.17%	-85.23%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AMN	50 Neutral	$790.63M	―	-35.90%	―	-11.42%	-617.31%

Pennant Group Corporate Events

Pennant Group Reports Strong Q3 2025 Results

The Pennant Group, Inc. is a healthcare services holding company that operates home health, hospice, and senior living facilities across several U.S. states, focusing on providing comprehensive care through its independent subsidiaries.

Pennant Group Expands Credit Facility by $100 Million

On November 3, 2025, The Pennant Group, Inc. expanded its credit facility by $100 million, bringing the total to $350 million, through a First Amendment with Truist Bank and other lenders. This expansion, which retains the same interest rate and maturity date as the existing facility, aims to refinance part of the outstanding revolving loans and support future growth initiatives, enhancing the company’s financial flexibility and strategic opportunities.

The most recent analyst rating on (PNTG) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Pennant Group stock, see the PNTG Stock Forecast page.

Pennant Group Reports Q3 2025 Revenue Surge

On November 5, 2025, The Pennant Group announced its third-quarter 2025 financial results, highlighting a 26.8% increase in total revenue to $229 million compared to the previous year. The company reported a GAAP diluted earnings per share of $0.17 and an adjusted earnings per share of $0.30. Notably, the company completed a significant acquisition of 54 operations from UnitedHealth Group and Amedisys on October 1, 2025, marking its largest transaction to date. This expansion into the Southeast is expected to enhance Pennant’s market presence and operational capabilities.

The most recent analyst rating on (PNTG) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Pennant Group stock, see the PNTG Stock Forecast page.

Pennant Group Expands with Strategic Acquisition in Southeast

On October 1, 2025, The Pennant Group, Inc. completed the acquisition of certain home health, hospice, and personal care operations from UnitedHealth Group and Amedisys, Inc. for $146.5 million. This strategic acquisition, part of an antitrust settlement, expands Pennant’s presence into Tennessee, Georgia, and Alabama, marking a significant growth opportunity in the Southeast U.S. The transition is supported by a services agreement with UnitedHealth, and Pennant aims to leverage its operational excellence to integrate these new locations into its portfolio.

The most recent analyst rating on (PNTG) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Pennant Group stock, see the PNTG Stock Forecast page.

Pennant Group Amends Purchase Agreement with UnitedHealth

On October 1, 2025, The Pennant Group, Inc. and its subsidiaries amended a purchase agreement with UnitedHealth Group and Amedisys to acquire additional equity interests and assets related to home health, hospice, and palliative care services. The amendment increased the purchase price from $102,484,000 to $146,531,160 to reflect the acquisition of additional assets and entities, impacting the company’s operational scope and market positioning.

The most recent analyst rating on (PNTG) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Pennant Group stock, see the PNTG Stock Forecast page.

Pennant Group’s Earnings Call Highlights Robust Growth and Strategic Expansion

The recent earnings call for Pennant Group Inc. showcased a positive sentiment, driven by robust revenue growth and strategic expansion efforts through acquisitions. The company demonstrated significant progress across its various segments, although there were some concerns about potential regulatory changes that could impact the home health segment.

Pennant Group Reports Strong Q2 2025 Results

The Pennant Group, Inc. operates as a holding company for independent subsidiaries providing healthcare services through home health, hospice, and senior living facilities across several U.S. states. The company is known for its decentralized operational model, allowing each subsidiary to function independently.