The Pennant Group, Inc. (PNTG) AI Stock Analysis

The Pennant Group, Inc. operates as a healthcare services provider in the United States across two primary segments: Home Health and Hospice Services, and Senior Living Services. Its Home Health division provides clinical care such as nursing, speech therapy, occupational and physical therapy, medical social work, and home health aides. The Hospice segment delivers end-of-life care focusing on the physical, spiritual, and psychosocial needs of terminally ill patients and their families. The Senior Living Services segment offers residential accommodations, daily activities, meals, housekeeping, and daily living assistance. As of December 31, 2021, the company operated 88 home health and hospice agencies and 54 senior living communities with 4,127 units.

Annual revenue grew from $439.7M in FY2021 to $473.2M in FY2022, $544.9M in FY2023, $695.2M in FY2024, and $947.7M in FY2025, representing a 5-year revenue CAGR of 19.4%. Revenue growth accelerated to 36.3% in FY2025, while gross margin was 12.9% and operating margin was 5.4%. Net income increased from $2.7M in FY2021 to $29.6M in FY2025, with diluted EPS rising from $0.46 to $1.13. For the trailing twelve months ended June 30, 2026, revenue stood at $1.10B, with a profit margin of 2.9% and an operating margin of 6.2%. In the latest quarter, quarterly revenue grew 35.8% year-over-year, while quarterly earnings grew 25.0%.

As of June 30, 2026, The Pennant Group held $15.3M in cash and short-term investments against total debt of $493.9M, leaving net debt at $478.6M. Shareholders' equity was $359.2M against total assets of $1.04B, resulting in a debt-to-equity ratio of 1.38 and a current ratio of 1.20. In FY2025, operating cash flow was $48.3M and capital expenditures were $22.0M, generating free cash flow of $26.3M. Over the trailing 5-year period, the company's share count increased 26.0%.

At $41.87 per share, The Pennant Group has a market capitalization of $1.46B and an enterprise value of $1.86B. The stock trades at a trailing P/E of 46.0x and a forward P/E of 25.4x, higher than the median of its US-listed Healthcare peers of 24.6x and 17.3x, respectively. Its EV/EBITDA of 25.4x also stands above the peer median of 12.0x, though its price-to-sales of 1.3x is below the peer median of 4.1x. Over the past year, PNTG gained 75.1%, outperforming the S&P 500 return of 16.8%, though its 5-year return of 61.4% trailed the index return of 83.0%.

Wall Street coverage includes 6 Strong Buy ratings, 1 Buy rating, and no Hold or Sell ratings. The mean price target is $46.83, which is 11.9% above the last closing price of $41.87. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $1.40 on revenue of $1.18B. For the following fiscal year, 7 analysts project EPS of $1.59 on revenue of $1.28B. The company beat EPS estimates in each of the last 4 quarters, and its next earnings release is scheduled for November 4, 2026.

This page is an AI-written research summary of The Pennant Group, Inc. (PNTG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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