PENNANT GROUP INC/THE (PNTG) Stock Fundamental Analysis
NASDAQ:PNTG - Nasdaq - US70805E1091 - Common Stock - Currency: USD
Taking everything into account, PNTG scores 4 out of 10 in our fundamental rating. PNTG was compared to 108 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of PNTG while its profitability can be described as average. PNTG shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year PNTG was profitable.
PNTG had a positive operating cash flow in the past year.
PNTG had positive earnings in each of the past 5 years.
Of the past 5 years PNTG 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PNTG (3.27%) is better than 71.03% of its industry peers.
The Return On Equity of PNTG (12.49%) is better than 77.57% of its industry peers.
With a Return On Invested Capital value of 4.57%, PNTG perfoms like the industry average, outperforming 56.07% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PNTG is significantly below the industry average of 8.14%.
The 3 year average ROIC (2.85%) for PNTG is below the current ROIC(4.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 12.49% | ||
| ROIC | 4.57% |
ROA(3y)1.43%
ROA(5y)1.59%
ROE(3y)5.81%
ROE(5y)7.44%
ROIC(3y)2.85%
ROIC(5y)2.66%
1.3 Margins
PNTG's Profit Margin of 3.24% is fine compared to the rest of the industry. PNTG outperforms 71.96% of its industry peers.
In the last couple of years the Profit Margin of PNTG has declined.
Looking at the Operating Margin, with a value of 5.09%, PNTG is in the better half of the industry, outperforming 64.49% of the companies in the same industry.
In the last couple of years the Operating Margin of PNTG has declined.
The Gross Margin of PNTG (20.55%) is worse than 63.55% of its industry peers.
In the last couple of years the Gross Margin of PNTG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.09% | ||
| PM (TTM) | 3.24% | ||
| GM | 20.55% |
OM growth 3Y-6.14%
OM growth 5Y-10.01%
PM growth 3Y-15.12%
PM growth 5Y-14.86%
GM growth 3Y-5.83%
GM growth 5Y-4.82%
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.
PNTG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.42 indicates that PNTG is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.42, PNTG is in line with its industry, outperforming 53.27% of the companies in the same industry.
The Debt to FCF ratio of PNTG is 24.17, which is on the high side as it means it would take PNTG, 24.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PNTG (24.17) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.64 indicates that PNTG is somewhat dependend on debt financing.
PNTG has a Debt to Equity ratio (0.64) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 24.17 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.52
WACC8.85%
2.3 Liquidity
PNTG has a Current Ratio of 1.12. This is a normal value and indicates that PNTG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.12, PNTG is doing worse than 71.03% of the companies in the same industry.
PNTG has a Quick Ratio of 1.12. This is a normal value and indicates that PNTG is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.12, PNTG is not doing good in the industry: 64.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.33% over the past year.
Measured over the past years, PNTG shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.56% on average per year.
Looking at the last year, PNTG shows a very strong growth in Revenue. The Revenue has grown by 24.56%.
PNTG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.75% yearly.
EPS 1Y (TTM)33.33%
EPS 3Y-0.9%
EPS 5Y-5.56%
EPS Q2Q%30%
Revenue 1Y (TTM)24.56%
Revenue growth 3Y11.7%
Revenue growth 5Y13.75%
Sales Q2Q%28.89%
3.2 Future
PNTG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.85% yearly.
Based on estimates for the next years, PNTG will show a quite strong growth in Revenue. The Revenue will grow by 18.39% on average per year.
EPS Next Y30.78%
EPS Next 2Y22.73%
EPS Next 3Y19.85%
EPS Next 5YN/A
Revenue Next Year29.81%
Revenue Next 2Y23.98%
Revenue Next 3Y18.39%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
PNTG is valuated quite expensively with a Price/Earnings ratio of 27.23.
Compared to the rest of the industry, the Price/Earnings ratio of PNTG is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.63, PNTG is valued at the same level.
PNTG is valuated rather expensively with a Price/Forward Earnings ratio of 22.78.
PNTG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PNTG is cheaper than 62.62% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PNTG to the average of the S&P500 Index (22.68), we can say PNTG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.23 | ||
| Fwd PE | 22.78 |
4.2 Price Multiples
PNTG's Enterprise Value to EBITDA ratio is in line with the industry average.
PNTG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 191.04 | ||
| EV/EBITDA | 25.48 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PNTG's earnings are expected to grow with 19.85% in the coming years.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y22.73%
EPS Next 3Y19.85%
5. Dividend
5.1 Amount
No dividends for PNTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.05
-0.71 (-2.76%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners79.47%
Inst Owner Change18.86%
Ins Owners3.83%
Ins Owner Change1.52%
Market Cap860.47M
Analysts81.82
Price Target36.72 (46.59%)
Short Float %2.19%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.13%
Min EPS beat(2)9.44%
Max EPS beat(2)10.83%
EPS beat(4)3
Avg EPS beat(4)8.41%
Min EPS beat(4)-1.96%
Max EPS beat(4)15.34%
EPS beat(8)5
Avg EPS beat(8)3.41%
EPS beat(12)6
Avg EPS beat(12)0.45%
EPS beat(16)6
Avg EPS beat(16)-8.36%
Revenue beat(2)2
Avg Revenue beat(2)3.52%
Min Revenue beat(2)1.5%
Max Revenue beat(2)5.54%
Revenue beat(4)4
Avg Revenue beat(4)4.29%
Min Revenue beat(4)1.5%
Max Revenue beat(4)5.54%
Revenue beat(8)8
Avg Revenue beat(8)3.88%
Revenue beat(12)11
Avg Revenue beat(12)2.91%
Revenue beat(16)13
Avg Revenue beat(16)2.5%
PT rev (1m)-3.23%
PT rev (3m)4.35%
EPS NQ rev (1m)-2.04%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.23 | ||
| Fwd PE | 22.78 | ||
| P/S | 1.32 | ||
| P/FCF | 191.04 | ||
| P/OCF | 35.99 | ||
| P/B | 5.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.48 |
EPS(TTM)0.92
EY3.67%
EPS(NY)1.1
Fwd EY4.39%
FCF(TTM)0.13
FCFY0.52%
OCF(TTM)0.7
OCFY2.78%
SpS18.99
BVpS4.93
TBVpS-1.63
PEG (NY)0.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 12.49% | ||
| ROCE | 5.97% | ||
| ROIC | 4.57% | ||
| ROICexc | 4.61% | ||
| ROICexgc | 7.79% | ||
| OM | 5.09% | ||
| PM (TTM) | 3.24% | ||
| GM | 20.55% | ||
| FCFM | 0.69% |
ROA(3y)1.43%
ROA(5y)1.59%
ROE(3y)5.81%
ROE(5y)7.44%
ROIC(3y)2.85%
ROIC(5y)2.66%
ROICexc(3y)2.87%
ROICexc(5y)2.68%
ROICexgc(3y)4.25%
ROICexgc(5y)3.83%
ROCE(3y)3.72%
ROCE(5y)3.48%
ROICexcg growth 3Y4.93%
ROICexcg growth 5Y-45.82%
ROICexc growth 3Y1.39%
ROICexc growth 5Y-30.08%
OM growth 3Y-6.14%
OM growth 5Y-10.01%
PM growth 3Y-15.12%
PM growth 5Y-14.86%
GM growth 3Y-5.83%
GM growth 5Y-4.82%
F-Score6
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 24.17 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 346.39% | ||
| Cap/Sales | 2.97% | ||
| Interest Coverage | 4.18 | ||
| Cash Conversion | 61.57% | ||
| Profit Quality | 21.3% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.42 |
F-Score6
WACC8.85%
ROIC/WACC0.52
Cap/Depr(3y)192.99%
Cap/Depr(5y)182.11%
Cap/Sales(3y)1.97%
Cap/Sales(5y)1.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.33%
EPS 3Y-0.9%
EPS 5Y-5.56%
EPS Q2Q%30%
EPS Next Y30.78%
EPS Next 2Y22.73%
EPS Next 3Y19.85%
EPS Next 5YN/A
Revenue 1Y (TTM)24.56%
Revenue growth 3Y11.7%
Revenue growth 5Y13.75%
Sales Q2Q%28.89%
Revenue Next Year29.81%
Revenue Next 2Y23.98%
Revenue Next 3Y18.39%
Revenue Next 5YN/A
EBIT growth 1Y39.03%
EBIT growth 3Y4.84%
EBIT growth 5Y2.37%
EBIT Next Year50.6%
EBIT Next 3Y27.2%
EBIT Next 5YN/A
FCF growth 1Y194.42%
FCF growth 3Y-16.52%
FCF growth 5Y5.54%
OCF growth 1Y205.74%
OCF growth 3Y-12.97%
OCF growth 5Y7.29%