PENNANT GROUP INC/THE (PNTG) Stock Fundamental Analysis
USA - NASDAQ:PNTG - US70805E1091 - Common Stock
24.12 USD
-0.64 (-2.58%)
24.12 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. PNTG has only an average score on both its financial health and profitability. PNTG is growing strongly while it is still valued neutral. This is a good combination! These ratings would make PNTG suitable for growth investing!
1. Profitability
1.1 Basic Checks
PNTG had positive earnings in the past year.
In the past year PNTG had a positive cash flow from operations.
Each year in the past 5 years PNTG has been profitable.
Of the past 5 years PNTG 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.57%, PNTG is doing good in the industry, outperforming 70.30% of the companies in the same industry.
PNTG's Return On Equity of 8.56% is fine compared to the rest of the industry. PNTG outperforms 69.31% of its industry peers.
The Return On Invested Capital of PNTG (4.75%) is comparable to the rest of the industry.
PNTG had an Average Return On Invested Capital over the past 3 years of 3.91%. This is significantly below the industry average of 9.19%.
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's Profit Margin of 3.36% is fine compared to the rest 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 has a Operating Margin of 5.17%. This is in the better half of the industry: PNTG outperforms 60.40% of its industry peers.
PNTG's Operating Margin has improved in the last couple of years.
PNTG's Gross Margin of 20.32% is in line compared to the rest of the industry. PNTG outperforms 43.56% 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.
PNTG has more shares outstanding than it did 1 year ago.
PNTG has more shares outstanding than it did 5 years ago.
PNTG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
PNTG has an Altman-Z score of 2.59. 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.
The Altman-Z score of PNTG (2.59) is comparable to the rest of the industry.
PNTG has a debt to FCF ratio of 1.53. This is a very positive value and a sign of high solvency as it would only need 1.53 years to pay back of all of its debts.
The Debt to FCF ratio of PNTG (1.53) is better than 86.14% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that PNTG is not too dependend on debt financing.
PNTG has a better Debt to Equity ratio (0.12) than 74.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.52
WACC9.05%
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.
The Current ratio of PNTG (1.21) is worse than 60.40% of 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.
The Quick ratio of PNTG (1.21) is comparable to the rest of the industry.
| 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.
Measured over the past years, PNTG shows a very strong growth in Earnings Per Share. The EPS has been growing by 50.93% on average per year.
The Revenue has grown by 30.58% 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)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
Based on estimates for the next years, PNTG will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.28% on average per year.
The Revenue is expected to grow by 17.04% on average over the next years. This is quite good.
EPS Next Y22.4%
EPS Next 2Y18.5%
EPS Next 3Y18.28%
EPS Next 5YN/A
Revenue Next Year26.87%
Revenue Next 2Y18.95%
Revenue Next 3Y17.04%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.19, PNTG is valued on the expensive side.
65.35% of the companies in the same industry are more expensive than PNTG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.38, PNTG is valued at the same level.
PNTG is valuated rather expensively with a Price/Forward Earnings ratio of 18.27.
64.36% of the companies in the same industry are more expensive than PNTG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, PNTG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 18.27 |
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 | 34.49 | ||
| EV/EBITDA | 18.01 |
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.
A more expensive valuation may be justified as PNTG's earnings are expected to grow with 18.28% in the coming years.
PEG (NY)1.04
PEG (5Y)0.46
EPS Next 2Y18.5%
EPS Next 3Y18.28%
5. Dividend
5.1 Amount
PNTG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.12
-0.64 (-2.58%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.21%
Inst Owner Change0.27%
Ins Owners4.66%
Ins Owner Change1.43%
Market Cap833.59M
Analysts81.82
Price Target34.27 (42.08%)
Short Float %1.66%
Short Ratio1.5
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)2.44%
PT rev (3m)1.82%
EPS NQ rev (1m)0.69%
EPS NQ rev (3m)3.36%
EPS NY rev (1m)1.08%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)7.9%
Revenue NY rev (1m)2.62%
Revenue NY rev (3m)3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 18.27 | ||
| P/S | 1.04 | ||
| P/FCF | 34.49 | ||
| P/OCF | 20 | ||
| P/B | 2.66 | ||
| P/tB | 21.09 | ||
| EV/EBITDA | 18.01 |
EPS(TTM)1.04
EY4.31%
EPS(NY)1.32
Fwd EY5.47%
FCF(TTM)0.7
FCFY2.9%
OCF(TTM)1.21
OCFY5%
SpS23.12
BVpS9.07
TBVpS1.14
PEG (NY)1.04
PEG (5Y)0.46
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%
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 Turnover1.06
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 | 2.59 |
F-Score7
WACC9.05%
ROIC/WACC0.52
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 Y22.4%
EPS Next 2Y18.5%
EPS Next 3Y18.28%
EPS Next 5YN/A
Revenue 1Y (TTM)30.58%
Revenue growth 3Y16.5%
Revenue growth 5Y15.48%
Sales Q2Q%30.08%
Revenue Next Year26.87%
Revenue Next 2Y18.95%
Revenue Next 3Y17.04%
Revenue Next 5YN/A
EBIT growth 1Y36.9%
EBIT growth 3Y73.69%
EBIT growth 5Y43.85%
EBIT Next Year36.58%
EBIT Next 3Y19.48%
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%