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PNTGThe Pennant Group, Inc.
$39.91$1.4B
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  4. Financial Ratios

The Pennant Group, Inc. (PNTG) Financial Ratios

Latest Ratios: P/E Ratio 47.5x · EV/EBITDA 30.4x · ROE 8.6%. (2017–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

PNTG Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Market Cap$1.4B$994M$849M$420M$331M$707M$1.8B$978M——
Enterprise Value$1.8B$1.4B$1.1B$744M$656M$1.1B$2.1B$1.3B——
P/E Ratio →47.5133.5137.3531.6449.91329.24111.65384.53——
P/S Ratio1.461.051.220.770.701.614.492.89——
P/B Ratio3.772.662.722.892.646.1917.3513.76——
P/FCF52.7737.8128.0016.82——40.86344.51——
P/OCF28.7320.5921.5912.7036.61—34.96102.41——

P/E links to full P/E history page with 30-year chart

PNTG EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
EV / Revenue—1.511.581.371.392.405.303.88——
EV / EBITDA30.4323.8724.8124.5537.17111.5487.91138.49——
EV / EBIT35.4927.3428.6429.1651.59226.35108.35231.55——
EV / FCF—54.3936.2129.77——48.29462.28——

PNTG Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Gross Margin12.9%12.9%13.5%12.3%12.4%11.1%14.0%13.2%14.8%12.9%
Operating Margin5.4%5.4%5.5%4.6%2.7%1.1%4.8%1.7%7.2%6.1%
Net Profit Margin3.1%3.1%3.2%2.5%1.4%0.6%4.0%0.8%5.5%3.9%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
ROE8.6%8.6%9.9%9.9%5.5%2.5%18.3%3.7%25.1%16.5%
ROA3.6%3.6%3.7%2.5%1.3%0.5%3.3%0.9%16.8%11.2%
ROIC5.6%5.6%5.6%4.1%2.1%0.8%3.4%1.8%24.7%19.3%
ROCE7.3%7.3%7.3%5.5%2.8%1.1%4.6%2.4%31.6%24.8%

PNTG Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Debt / Equity1.211.210.882.272.603.113.154.71——
Debt / EBITDA7.567.566.1710.8818.5137.4813.5235.32——
Net Debt / Equity—1.170.802.222.583.063.154.70-0.00-0.00
Net Debt / EBITDA7.287.285.6310.6818.4036.9313.5235.28-0.00-0.00
Debt / FCF—16.598.2112.95——7.43117.77-0.00-0.00
Interest Coverage7.837.835.514.313.332.4115.4513.83——

PNTG Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Current Ratio1.141.141.211.121.051.060.670.760.991.02
Quick Ratio1.141.141.211.121.051.060.670.760.991.02
Cash Ratio0.120.120.240.080.030.070.000.010.000.00
Asset Turnover—0.981.021.010.920.830.770.762.912.84
Inventory Turnover——————————
Days Sales Outstanding—47.4142.6840.9441.2044.7844.0934.7031.2232.35

PNTG Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Dividend Yield———————1.2%——
Payout Ratio———————455.6%——

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Earnings Yield2.1%3.0%2.7%3.2%2.0%0.3%0.9%0.3%——
FCF Yield1.9%2.6%3.6%5.9%——2.4%0.3%——
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.3%——
Total Shareholder Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%1.5%——
Shares Outstanding—$35M$32M$30M$30M$31M$30M$30M$28M$28M

Key Metrics

Growth RegimeAccelerating
ProfitabilityModerate
Balance SheetHealthy
Cash FlowMixed
Top Statement Risk

Regulatory reimbursement rate volatility

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Premium Valuation Reflects Growth Expectations

Based on current market data, PNTG trades at a TTM P/E of 42.75, which, when compared to the broader healthcare services sector, suggests investors are pricing in significant future earnings expansion rather than current profitability, as evidenced by the elevated PEG ratio of 4.25.

The current valuation appears to bake in a high degree of confidence in the company's decentralized acquisition model. Investors should monitor whether this premium is sustainable if the pace of inorganic growth slows or if the Senior Living segment fails to achieve the anticipated margin recovery.

Capital Efficiency Remains Under Pressure

As reported in recent financial statements, PNTG's ROIC has remained consistently low, fluctuating between 1.2% and 1.9% over the last ten quarters, which indicates that the company is currently struggling to generate meaningful returns on the capital deployed for its aggressive acquisition strategy.

The persistent gap between the cost of capital and these low returns suggests that the integration of acquired agencies is not yet yielding the expected synergies. This trend warrants further investigation into whether the decentralized model is creating operational friction that offsets the benefits of scale.

Working Capital Management Remains Erratic

According to quarterly filings, the company's DSO has hovered between 35 and 41 days, reflecting the inherent challenges of managing healthcare reimbursement cycles, while the lack of consistent CCC data suggests that operational efficiency is secondary to the company's primary focus on rapid inorganic expansion.

The variability in cash conversion cycles implies that the company's working capital position is highly sensitive to payer behavior and integration timing. Investors should be cautious, as any deterioration in collection efficiency could quickly strain the company's liquidity given its thin current ratio.

Deleveraging Trend Improves Financial Flexibility

Based on the company's reported figures, the debt-to-equity ratio has improved from a peak of 2.27 in 2023Q4 to 1.15 in 2026Q1, signaling that management is successfully prioritizing balance sheet health while continuing to fund its acquisition-heavy growth strategy through more disciplined capital allocation.

While the reduction in leverage is a positive development, the interest coverage ratio remains volatile, ranging from 3.77 to 14.23. This suggests that while the debt burden is becoming more manageable, the company remains vulnerable to interest rate fluctuations and potential shifts in operating cash flow.

Misapplication of Traditional P/E Multiples

The P/E ratio is frequently misapplied to PNTG, as it obscures the significant impact of non-cash charges and acquisition-related integration costs that temporarily depress net income, making the company appear more expensive than its underlying cash-generating potential might otherwise suggest to a fundamental analyst.

Investors should instead focus on EV/EBITDA or cash-flow-based metrics to better capture the operational performance of the decentralized business units. Relying solely on P/E ignores the 'embedded call option' nature of the Senior Living assets and the potential for margin expansion as these units mature.

Download Financial Ratios Data

Includes 30+ ratios · 9 years · Updated daily

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PNTG — Frequently Asked Questions

Quick answers to the most common questions about buying PNTG stock.

What is The Pennant Group, Inc.'s P/E ratio?

The Pennant Group, Inc.'s current P/E ratio is 47.5x. The historical average is 52.8x. This places it at the 60th percentile of its historical range.

What is The Pennant Group, Inc.'s EV/EBITDA?

The Pennant Group, Inc.'s current EV/EBITDA is 30.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 39.7x.

What is The Pennant Group, Inc.'s ROE?

The Pennant Group, Inc.'s return on equity (ROE) is 8.6%. The historical average is 11.1%.

Is PNTG stock overvalued?

Based on historical data, The Pennant Group, Inc. is trading at a P/E of 47.5x. This is at the 60th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What are The Pennant Group, Inc.'s profit margins?

The Pennant Group, Inc. has 12.9% gross margin and 5.4% operating margin.

How much debt does The Pennant Group, Inc. have?

The Pennant Group, Inc.'s Debt/EBITDA ratio is 7.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.