PENNANT GROUP INC/THE (PNTG) Stock Fundamental Analysis
NASDAQ:PNTG - Nasdaq - US70805E1091 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to PNTG. PNTG was compared to 103 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of PNTG get a neutral evaluation. Nothing too spectacular is happening here. PNTG is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
PNTG had positive earnings in the past year.
PNTG had a positive operating cash flow in the past year.
PNTG had positive earnings in each of the past 5 years.
PNTG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.42%, PNTG is doing good in the industry, outperforming 68.93% of the companies in the same industry.
PNTG has a better Return On Equity (8.38%) than 69.90% of its industry peers.
With a Return On Invested Capital value of 4.48%, PNTG perfoms like the industry average, outperforming 51.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PNTG is significantly below the industry average of 9.71%.
The last Return On Invested Capital (4.48%) for PNTG is above the 3 year average (3.91%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.42% | ||
| ROE | 8.38% | ||
| ROIC | 4.48% |
ROA(3y)2.36%
ROA(5y)2.14%
ROE(3y)7.56%
ROE(5y)8.28%
ROIC(3y)3.91%
ROIC(5y)3.28%
1.3 Margins
Looking at the Profit Margin, with a value of 3.40%, PNTG is in the better half of the industry, outperforming 67.96% of the companies in the same industry.
In the last couple of years the Profit Margin of PNTG has grown nicely.
Looking at the Operating Margin, with a value of 5.28%, PNTG is in the better half of the industry, outperforming 62.14% of the companies in the same industry.
PNTG's Operating Margin has improved in the last couple of years.
PNTG has a Gross Margin of 20.38%. This is comparable to the rest of the industry: PNTG outperforms 40.78% of its industry peers.
In the last couple of years the Gross Margin of PNTG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.28% | ||
| PM (TTM) | 3.4% | ||
| GM | 20.38% |
OM growth 3Y49.09%
OM growth 5Y24.56%
PM growth 3Y74.18%
PM growth 5Y34.45%
GM growth 3Y1.25%
GM growth 5Y-2.76%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PNTG is destroying value.
Compared to 1 year ago, PNTG has more shares outstanding
The number of shares outstanding for PNTG has been increased compared to 5 years ago.
There is no outstanding debt for PNTG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
PNTG has an Altman-Z score of 2.60. This is not the best score and indicates that PNTG is in the grey zone with still only limited risk for bankruptcy at the moment.
PNTG has a Altman-Z score (2.60) which is comparable to the rest of the industry.
PNTG has a debt to FCF ratio of 6.02. This is a slightly negative value and a sign of low solvency as PNTG would need 6.02 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.02, PNTG is doing good in the industry, outperforming 60.19% of the companies in the same industry.
PNTG has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.17, PNTG is in the better half of the industry, outperforming 69.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.49
WACC9.2%
2.3 Liquidity
A Current Ratio of 1.41 indicates that PNTG should not have too much problems paying its short term obligations.
PNTG's Current ratio of 1.41 is in line compared to the rest of the industry. PNTG outperforms 46.60% of its industry peers.
A Quick Ratio of 1.41 indicates that PNTG should not have too much problems paying its short term obligations.
PNTG has a Quick ratio (1.41) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
PNTG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.25%, which is quite impressive.
PNTG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 50.93% yearly.
The Revenue has grown by 30.03% in the past year. This is a very strong growth!
PNTG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.48% yearly.
EPS 1Y (TTM)26.25%
EPS 3Y26.9%
EPS 5Y50.93%
EPS Q2Q%35%
Revenue 1Y (TTM)30.03%
Revenue growth 3Y16.5%
Revenue growth 5Y15.48%
Sales Q2Q%33.73%
3.2 Future
Based on estimates for the next years, PNTG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.30% on average per year.
The Revenue is expected to grow by 13.10% on average over the next years. This is quite good.
EPS Next Y21.53%
EPS Next 2Y15.81%
EPS Next 3Y12.3%
EPS Next 5YN/A
Revenue Next Year23.64%
Revenue Next 2Y15.65%
Revenue Next 3Y13.1%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.04 indicates a quite expensive valuation of PNTG.
PNTG's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PNTG to the average of the S&P500 Index (27.45), we can say PNTG is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.86, the valuation of PNTG can be described as rather expensive.
PNTG's Price/Forward Earnings ratio is in line with the industry average.
PNTG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.04 | ||
| Fwd PE | 20.86 |
4.2 Price Multiples
PNTG's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PNTG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 104.01 | ||
| EV/EBITDA | 20.64 |
4.3 Compensation for Growth
PNTG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PNTG has a very decent profitability rating, which may justify a higher PE ratio.
PNTG's earnings are expected to grow with 12.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)0.51
EPS Next 2Y15.81%
EPS Next 3Y12.3%
5. Dividend
5.1 Amount
No dividends for PNTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.3
+0.4 (+1.54%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.21%
Inst Owner Change5.27%
Ins Owners3.98%
Ins Owner Change1.81%
Market Cap906.56M
Analysts80
Price Target34.27 (30.3%)
Short Float %1.86%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.75%
Min EPS beat(2)-1.96%
Max EPS beat(2)11.46%
EPS beat(4)3
Avg EPS beat(4)7.44%
Min EPS beat(4)-1.96%
Max EPS beat(4)11.46%
EPS beat(8)6
Avg EPS beat(8)6.49%
EPS beat(12)6
Avg EPS beat(12)0.71%
EPS beat(16)7
Avg EPS beat(16)-3.87%
Revenue beat(2)1
Avg Revenue beat(2)0.88%
Min Revenue beat(2)-0.34%
Max Revenue beat(2)2.09%
Revenue beat(4)3
Avg Revenue beat(4)2.2%
Min Revenue beat(4)-0.34%
Max Revenue beat(4)5.54%
Revenue beat(8)7
Avg Revenue beat(8)3.31%
Revenue beat(12)11
Avg Revenue beat(12)2.93%
Revenue beat(16)13
Avg Revenue beat(16)2.33%
PT rev (1m)7.52%
PT rev (3m)-6.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.89%
EPS NY rev (1m)0%
EPS NY rev (3m)3.9%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)3.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.04 | ||
| Fwd PE | 20.86 | ||
| P/S | 1.21 | ||
| P/FCF | 104.01 | ||
| P/OCF | 51.73 | ||
| P/B | 2.99 | ||
| P/tB | 30.41 | ||
| EV/EBITDA | 20.64 |
EPS(TTM)1.01
EY3.84%
EPS(NY)1.26
Fwd EY4.79%
FCF(TTM)0.25
FCFY0.96%
OCF(TTM)0.51
OCFY1.93%
SpS21.7
BVpS8.81
TBVpS0.86
PEG (NY)1.21
PEG (5Y)0.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.42% | ||
| ROE | 8.38% | ||
| ROCE | 6.03% | ||
| ROIC | 4.48% | ||
| ROICexc | 4.52% | ||
| ROICexgc | 7.8% | ||
| OM | 5.28% | ||
| PM (TTM) | 3.4% | ||
| GM | 20.38% | ||
| FCFM | 1.16% |
ROA(3y)2.36%
ROA(5y)2.14%
ROE(3y)7.56%
ROE(5y)8.28%
ROIC(3y)3.91%
ROIC(5y)3.28%
ROICexc(3y)4%
ROICexc(5y)3.33%
ROICexgc(3y)6.26%
ROICexgc(5y)5.05%
ROCE(3y)5.26%
ROCE(5y)4.41%
ROICexcg growth 3Y73.2%
ROICexcg growth 5Y43.25%
ROICexc growth 3Y62.52%
ROICexc growth 5Y34.54%
OM growth 3Y49.09%
OM growth 5Y24.56%
PM growth 3Y74.18%
PM growth 5Y34.45%
GM growth 3Y1.25%
GM growth 5Y-2.76%
F-Score7
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 6.02 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 131.86% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 7.1 | ||
| Cash Conversion | 37.92% | ||
| Profit Quality | 34.28% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 2.6 |
F-Score7
WACC9.2%
ROIC/WACC0.49
Cap/Depr(3y)260.04%
Cap/Depr(5y)213.36%
Cap/Sales(3y)2.47%
Cap/Sales(5y)2.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.25%
EPS 3Y26.9%
EPS 5Y50.93%
EPS Q2Q%35%
EPS Next Y21.53%
EPS Next 2Y15.81%
EPS Next 3Y12.3%
EPS Next 5YN/A
Revenue 1Y (TTM)30.03%
Revenue growth 3Y16.5%
Revenue growth 5Y15.48%
Sales Q2Q%33.73%
Revenue Next Year23.64%
Revenue Next 2Y15.65%
Revenue Next 3Y13.1%
Revenue Next 5YN/A
EBIT growth 1Y47.43%
EBIT growth 3Y73.69%
EBIT growth 5Y43.85%
EBIT Next Year36.24%
EBIT Next 3Y17.95%
EBIT Next 5YN/A
FCF growth 1Y8.68%
FCF growth 3YN/A
FCF growth 5Y46.34%
OCF growth 1Y-20.74%
OCF growth 3YN/A
OCF growth 5Y32.7%