PENNANT GROUP INC/THE (PNTG) Stock Fundamental Analysis
USA - NASDAQ:PNTG - US70805E1091 - Common Stock
24.73 USD
+0.12 (+0.49%)
24.73 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PNTG. PNTG was compared to 101 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make PNTG a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year PNTG was profitable.
In the past year PNTG had a positive cash flow from operations.
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
PNTG's Return On Assets of 3.57% is fine compared to the rest of the industry. PNTG outperforms 69.31% of its industry peers.
Looking at the Return On Equity, with a value of 8.56%, PNTG is in the better half of the industry, outperforming 68.32% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.75%, PNTG is in line with its industry, outperforming 55.45% 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 9.33%.
The last Return On Invested Capital (4.75%) for PNTG is above the 3 year average (3.91%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 8.56% | ||
| ROIC | 4.75% |
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
PNTG has a Profit Margin of 3.36%. This is in the better half of the industry: PNTG outperforms 67.33% of its industry peers.
In the last couple of years the Profit Margin of PNTG has grown nicely.
PNTG's Operating Margin of 5.17% is in line compared to the rest of the industry. PNTG outperforms 59.41% of its industry peers.
PNTG's Operating Margin has improved in the last couple of years.
PNTG has a Gross Margin of 20.32%. This is comparable to the rest of the industry: PNTG outperforms 42.57% of its industry peers.
PNTG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.17% | ||
| PM (TTM) | 3.36% | ||
| GM | 20.32% |
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
PNTG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PNTG has been increased compared to 1 year ago.
PNTG has more shares outstanding than it did 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 2.58. 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 (2.58) which is in line with its industry peers.
The Debt to FCF ratio of PNTG is 1.53, which is an excellent value as it means it would take PNTG, only 1.53 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.53, PNTG belongs to the top of the industry, outperforming 86.14% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that PNTG is not too dependend on debt financing.
The Debt to Equity ratio of PNTG (0.12) is better than 74.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.49
WACC9.6%
2.3 Liquidity
PNTG has a Current Ratio of 1.21. This is a normal value and indicates that PNTG is financially healthy and should not expect problems in meeting its short term obligations.
PNTG has a Current ratio (1.21) which is in line with its industry peers.
PNTG has a Quick Ratio of 1.21. This is a normal value and indicates that PNTG is financially healthy and should not expect problems in meeting its short term obligations.
PNTG has a Quick ratio of 1.21. This is comparable to the rest of the industry: PNTG outperforms 45.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
PNTG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.93%, 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 30.58% in the past year. This is a very strong growth!
Measured over the past years, PNTG shows a quite strong growth in Revenue. The Revenue has been growing by 15.48% on average per year.
EPS 1Y (TTM)20.93%
EPS 3Y26.9%
EPS 5Y50.93%
EPS Q2Q%12.5%
Revenue 1Y (TTM)30.58%
Revenue growth 3Y16.5%
Revenue growth 5Y15.48%
Sales Q2Q%30.08%
3.2 Future
The Earnings Per Share is expected to grow by 16.04% on average over the next years. This is quite good.
Based on estimates for the next years, PNTG will show a quite strong growth in Revenue. The Revenue will grow by 18.71% on average per year.
EPS Next Y17.19%
EPS Next 2Y16.37%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue Next Year28.2%
Revenue Next 2Y21.34%
Revenue Next 3Y18.71%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.78, PNTG is valued on the expensive side.
Based on the Price/Earnings ratio, PNTG is valued a bit cheaper than the industry average as 63.37% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.10. PNTG is around the same levels.
PNTG is valuated rather expensively with a Price/Forward Earnings ratio of 19.43.
Based on the Price/Forward Earnings ratio, PNTG is valued a bit cheaper than the industry average as 64.36% of the companies are valued more expensively.
PNTG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.78 | ||
| Fwd PE | 19.43 |
4.2 Price Multiples
PNTG's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as PNTG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.36 | ||
| EV/EBITDA | 17.91 |
4.3 Compensation for Growth
PNTG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PNTG may justify a higher PE ratio.
PNTG's earnings are expected to grow with 16.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)0.47
EPS Next 2Y16.37%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
PNTG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.73
+0.12 (+0.49%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.11%
Inst Owner Change0.01%
Ins Owners4.64%
Ins Owner Change1.9%
Market Cap854.67M
Revenue(TTM)798.92M
Net Income(TTM)26.82M
Analysts81.82
Price Target34.27 (38.58%)
Short Float %2.81%
Short Ratio3.02
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)2
Avg EPS beat(4)4.59%
Min EPS beat(4)-1.96%
Max EPS beat(4)11.46%
EPS beat(8)5
Avg EPS beat(8)5.38%
EPS beat(12)6
Avg EPS beat(12)0.86%
EPS beat(16)7
Avg EPS beat(16)-2.83%
Revenue beat(2)2
Avg Revenue beat(2)2.14%
Min Revenue beat(2)2.09%
Max Revenue beat(2)2.19%
Revenue beat(4)3
Avg Revenue beat(4)1.36%
Min Revenue beat(4)-0.34%
Max Revenue beat(4)2.19%
Revenue beat(8)7
Avg Revenue beat(8)3.29%
Revenue beat(12)11
Avg Revenue beat(12)2.98%
Revenue beat(16)13
Avg Revenue beat(16)2.41%
PT rev (1m)0%
PT rev (3m)2.44%
EPS NQ rev (1m)-3.42%
EPS NQ rev (3m)-0.7%
EPS NY rev (1m)-4.26%
EPS NY rev (3m)-3.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.42%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)3.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.78 | ||
| Fwd PE | 19.43 | ||
| P/S | 1.07 | ||
| P/FCF | 35.36 | ||
| P/OCF | 20.51 | ||
| P/B | 2.73 | ||
| P/tB | 21.63 | ||
| EV/EBITDA | 17.91 |
EPS(TTM)1.04
EY4.21%
EPS(NY)1.27
Fwd EY5.15%
FCF(TTM)0.7
FCFY2.83%
OCF(TTM)1.21
OCFY4.88%
SpS23.12
BVpS9.07
TBVpS1.14
PEG (NY)1.38
PEG (5Y)0.47
Graham Number14.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 8.56% | ||
| ROCE | 6.39% | ||
| ROIC | 4.75% | ||
| ROICexc | 4.86% | ||
| ROICexgc | 8.57% | ||
| OM | 5.17% | ||
| PM (TTM) | 3.36% | ||
| GM | 20.32% | ||
| FCFM | 3.03% |
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%
ROICexgc growth 3Y73.2%
ROICexgc 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 Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.53 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 235.42% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 8.08 | ||
| Cash Conversion | 85.47% | ||
| Profit Quality | 90.11% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.58 |
F-Score7
WACC9.6%
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)20.93%
EPS 3Y26.9%
EPS 5Y50.93%
EPS Q2Q%12.5%
EPS Next Y17.19%
EPS Next 2Y16.37%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue 1Y (TTM)30.58%
Revenue growth 3Y16.5%
Revenue growth 5Y15.48%
Sales Q2Q%30.08%
Revenue Next Year28.2%
Revenue Next 2Y21.34%
Revenue Next 3Y18.71%
Revenue Next 5YN/A
EBIT growth 1Y36.9%
EBIT growth 3Y73.69%
EBIT growth 5Y43.85%
EBIT Next Year43.24%
EBIT Next 3Y25.26%
EBIT Next 5YN/A
FCF growth 1Y157.4%
FCF growth 3YN/A
FCF growth 5Y46.34%
OCF growth 1Y111.88%
OCF growth 3YN/A
OCF growth 5Y32.7%
PENNANT GROUP INC/THE / PNTG FAQ
Can you provide the ChartMill fundamental rating for PENNANT GROUP INC/THE?
ChartMill assigns a fundamental rating of 5 / 10 to PNTG.
Can you provide the valuation status for PENNANT GROUP INC/THE?
ChartMill assigns a valuation rating of 4 / 10 to PENNANT GROUP INC/THE (PNTG). This can be considered as Fairly Valued.
What is the profitability of PNTG stock?
PENNANT GROUP INC/THE (PNTG) has a profitability rating of 6 / 10.
What are the PE and PB ratios of PENNANT GROUP INC/THE (PNTG) stock?
The Price/Earnings (PE) ratio for PENNANT GROUP INC/THE (PNTG) is 23.78 and the Price/Book (PB) ratio is 2.73.
Can you provide the financial health for PNTG stock?
The financial health rating of PENNANT GROUP INC/THE (PNTG) is 5 / 10.