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Pennant Group, Inc. (PNTG) stock analysis

PNTGNasdaqServices-Health ServicesFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 4, 2026Score 14/303% below fair value
$35.91−0.89 (-2.42%)

Close on Nov 12, 2026Market cap $1.25BP/E 36.3Yield –

StockData Score

Prices as of Nov 12, 2026How the score works

Value4Growth4Performance3Health3Dividend0

Mixed14 of 30 checks passed

Pennant passes 14 of the 30 checks behind our score; 11 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
4/6
Growth
4/6
Past performance
3/6
Financial health
3/6
Dividend
0/6

What stands out

  • Trading below fair value

    The share price of $35.91 is below our fair value estimate of $37.08.

  • Earnings grew over 5 years

    Net income grew 13.4% a year on average over the last five fiscal years.

  • Revenue growing 10%+ a year

    Revenue grew 26.0% a year over the last three fiscal years.

  • EPS growing 10%+ a year

    Diluted EPS grew 56.3% a year over the last three fiscal years.

What to watch

  • Margin of safety under 20%

    The price is 3.1% below fair value, less than the 20% cushion we look for.

  • Bankruptcy risk in the grey zone

    The Altman Z-score is 2.74; above 3 is the safe zone and below 1.8 the distress zone.

  • P/E above the industry

    Pennant's P/E of 36.3 is above the Health Services median of 23.9.

  • Gross margin slipping

    Gross margin was 18.3% over the last twelve months, against 19.3% a year earlier.

Valuation4/6

  • P/E below its 5-year median

    Pennant's P/E of 36.3 is below its own 5-year median of 43.6.

  • P/E above the industry

    Pennant's P/E of 36.3 is above the Health Services median of 23.9.

  • EV/EBITDA below its 5-year median

    Pennant's EV/EBITDA of 16.0 is below its 5-year median of 20.1.

  • P/S below the industry

    Pennant's price-to-sales of 1.07 is below the Health Services median of 1.30 (book value is negative, so we use sales).

  • Trading below fair value

    The share price of $35.91 is below our fair value estimate of $37.08.

  • Margin of safety under 20%

    The price is 3.1% below fair value, less than the 20% cushion we look for.

Growth4/6

  • Revenue growing 10%+ a year

    Revenue grew 26.0% a year over the last three fiscal years.

  • EPS growing 10%+ a year

    Diluted EPS grew 56.3% a year over the last three fiscal years.

  • Earnings growth accelerating

    Net income grew 34.4% over the last twelve months, against a 5-year average of 13.4% a year.

  • Growing faster than the industry

    Revenue grew 38.7% over the last twelve months; the Health Services median is 17.6%.

  • Guidance issued

    The latest outlook (2026 total revenue, Aug 5, 2026) was issued for the first time, so it neither adds nor takes away points.

  • Gross margin slipping

    Gross margin was 18.3% over the last twelve months, against 19.3% a year earlier.

Past performance3/6

  • Return on equity

    Needs positive equity and five years of results.

  • Return on invested capital

    Needs operating income and invested capital.

  • Return on equity against the industry

    Needs positive equity.

  • Earnings grew over 5 years

    Net income grew 13.4% a year on average over the last five fiscal years.

  • Net margin above its 5-year average

    Net margin was 3.1% over the last twelve months, against a 5-year average of 2.2%.

  • Net margin above the industry

    Pennant's net margin of 3.1% is above the Health Services median of -13.7%.

Financial health3/6

  • Debt level

    Needs debt and equity figures.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 1290% of total debt.

  • Interest well covered

    Operating income covers interest expense 5.2 times.

  • Short-term assets cover short-term debts

    Current assets are 1.18 times current liabilities.

  • Bankruptcy risk in the grey zone

    The Altman Z-score is 2.74; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Pennant has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$37.08

The share price is 3% below this estimate.

20%+ below
Near fair value
20%+ above
$35.91Price
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E33.8×43.6×23.9×$33.4453%
EV/EBITDA17.8×20.1×15.4×$41.2447%
Earnings powerleft out, too far from the others10.2% cost of equity––$9.41–
Fair value$37.08100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 43.6
  • Health Services median 23.9

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Medium risk

Average value traded per day
$16.32M
Value traded per 1% price move
$7.32M

Downside

Low risk

Typical loss in a bad month
11.5%
Volatility (annualized)
39%
Sharpe ratio, 1 year
0.95
Beta to the S&P 500 (5Y)
1.05

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2016 to 2025

Gross margin

18.9%−5.2 pts over 5 years

Operating margin

5.5%+0.6 pts over 5 years

Net margin

3.1%−0.9 pts over 5 years

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