PACS GROUP INC (PACS)
US69380Q1076 - Common Stock
We assign a fundamental rating of 3 out of 10 to PACS. PACS was compared to 114 industry peers in the Health Care Providers & Services industry. Both the profitability and financial health of PACS have multiple concerns. While showing a medium growth rate, PACS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
PACS had positive earnings in the past year.
1.2 Ratios
PACS's Return On Assets of 2.90% is fine compared to the rest of the industry. PACS outperforms 70.18% of its industry peers.
PACS has a Return On Equity of 19.73%. This is amongst the best in the industry. PACS outperforms 92.98% of its industry peers.
The Return On Invested Capital of PACS (4.38%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 19.73% | ||
| ROIC | 4.38% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 3.63%, PACS is in the better half of the industry, outperforming 78.07% of the companies in the same industry.
PACS's Operating Margin of 6.68% is fine compared to the rest of the industry. PACS outperforms 72.81% of its industry peers.
The Gross Margin of PACS (21.33%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.68% | ||
| PM (TTM) | 3.63% | ||
| GM | 21.33% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PACS is destroying value.
PACS has about the same amout of shares outstanding than it did 1 year ago.
PACS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.24 indicates that PACS is not a great score, but indicates only limited risk for bankruptcy at the moment.
PACS has a Altman-Z score (2.24) which is in line with its industry peers.
A Debt/Equity ratio of 0.90 indicates that PACS is somewhat dependend on debt financing.
PACS has a worse Debt to Equity ratio (0.90) than 64.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.24 |
ROIC/WACC0.55
WACC8.03%
2.3 Liquidity
PACS has a Current Ratio of 1.71. This is a normal value and indicates that PACS is financially healthy and should not expect problems in meeting its short term obligations.
PACS has a better Current ratio (1.71) than 64.04% of its industry peers.
PACS has a Quick Ratio of 1.71. This is a normal value and indicates that PACS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of PACS (1.71) is better than 69.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
PACS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.00%.
PACS shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.47%.
EPS 1Y (TTM)-25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)28.47%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%N/A
3.2 Future
PACS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.74% yearly.
PACS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.16% yearly.
EPS Next Y32.2%
EPS Next 2Y54.28%
EPS Next 3Y40.74%
EPS Next 5YN/A
Revenue Next Year27.85%
Revenue Next 2Y21.93%
Revenue Next 3Y18.16%
Revenue Next 5YN/A
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 53.68, the valuation of PACS can be described as expensive.
PACS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PACS to the average of the S&P500 Index (30.45), we can say PACS is valued expensively.
With a Price/Forward Earnings ratio of 22.44, PACS is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PACS indicates a somewhat cheap valuation: PACS is cheaper than 64.04% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PACS to the average of the S&P500 Index (21.99), we can say PACS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.68 | ||
| Fwd PE | 22.44 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PACS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 28.61 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as PACS's earnings are expected to grow with 40.74% in the coming years.
PEG (NY)1.67
PEG (5Y)N/A
EPS Next 2Y54.28%
EPS Next 3Y40.74%
5. Dividend
5.1 Amount
No dividends for PACS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PACS GROUP INC
NYSE:PACS (9/18/2024, 8:20:40 PM)
After market: 40.8 0 (0%)40.8
+0.03 (+0.07%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.68 | ||
| Fwd PE | 22.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.67
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 19.73% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.68% | ||
| PM (TTM) | 3.63% | ||
| GM | 21.33% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-25%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y32.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)28.47%
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y