# Pennant Group (PNTG.US)

Canonical: https://gigainvestors.com/s/PNTG

Analysis as of: 2026-10-16T07:31:16.258Z. Financial observations: FY2016–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $42.27 per share; close as of 2026-10-15.

Estimated value: low $8.46 per share, central $9.63 per share, high $11.19 per share. Buy at or below the central value $9.63 per share. Valuation as of 2026-10-16T07:31:16.258Z; scenarios are not confidence intervals.

Expected annual return: 4.6% at the stated quote. About 4.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.43×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.06×

- FY2017: 0.06×

- FY2018: 0.07×

- FY2019: 0.02×

- FY2020: 0.05×

- FY2021: 0.01×

- FY2022: 0.03×

- FY2023: 0.05×

- FY2024: 0.05×

- FY2025: 0.05×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 4.8%

- ROIC, second-lowest year: 1.0%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 13.0%

- Recent gross margin (lower of latest and 3-year median): 12.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.5%

- ROIC including acquisitions, ten-year median: 3.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 37.1%

- FY2018: 65.3%

- FY2019: 1.0%

- FY2020: 4.7%

- FY2021: 1.0%

- FY2022: 2.8%

- FY2023: 4.8%

- FY2024: 7.2%

- FY2025: 7.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $75M

- Net income, five-year total: $75M

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, final three-year average: 9.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 1.00×

### management: pass

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- Per-share earnings: 0.35 to 0.70 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 3.2%

- Diluted shares, 5-year annual growth: 3.2%

- Per-share value growth: 10.3%

- Per-share value change: $0.35

- Per-share value, starting three-year median: $0.35

- Per-share value, ending three-year median: $0.70

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.1%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Cumulative net income, 10 years: $127M

- ROIC, last three-year median: 7.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.28

- FY2017: $0.35

- FY2018: $0.56

- FY2019: $0.09

- FY2020: $0.52

- FY2021: $0.09

- FY2022: $0.22

- FY2023: $0.44

- FY2024: $0.70

- FY2025: $0.84

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -1.9%

- Receivables to sales index (DSRI): 1.11×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 18.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.63×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.31×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -8.4%

- FY2018: -7.7%

- FY2019: -1.6%

- FY2020: -6.8%

- FY2021: 3.9%

- FY2022: -0.5%

- FY2023: -3.7%

- FY2024: -2.5%

- FY2025: -1.9%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 19.8% a year for ten years · "PNTG Q1 Earnings Call: Acquisition Momentum and Organic Growth Drive Outperformance" (finance.yahoo.com, May 2025) · sales +36.3%

Story as of 2026-10-16T09:59:25.445Z; price observation 2026-10-15.

Price needs cash profits to grow 19.8% a year for ten years

### Sales · FY2024–2025

sales +36.3%; source https://www.sec.gov/Archives/edgar/data/1766400/000176640026000014/pntg-20251231.htm; observed 2026-02-26.

- FY2016: $217M 

- FY2017: $251M 

- FY2018: $286M 

- FY2019: $339M 

- FY2020: $391M 

- FY2021: $440M 

- FY2022: $473M 

- FY2023: $545M 

- FY2024: $695M 

- FY2025: $948M 

### Gross margin · FY2025

gross margin 12.9%; source https://www.sec.gov/Archives/edgar/data/1766400/000176640026000014/pntg-20251231.htm; observed 2026-02-26.

- FY2016: 13.0% 

- FY2017: 12.9% 

- FY2018: 14.8% 

- FY2019: 13.2% 

- FY2020: 14.0% 

- FY2021: 11.1% 

- FY2022: 12.4% 

- FY2023: 12.3% 

- FY2024: 13.5% 

- FY2025: 12.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical care facilities; annual sales are USD 947.7 million.

- Source: https://www.sec.gov/Archives/edgar/data/1766400/000176640026000014/pntg-20251231.htm (filed 2026-02-26); FY2025: revenue 947705000; grossProfit 122467000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PNTG.US: The Pennant Group, Inc. provides healthcare services in the United States. It operates in two segments, Home Health and Hospice Services, and Senior Living Services. The company offers home health services, including clinical services, such as nursing, speech, occupational and physical therapy, medical social work, and home health aide services; and hospice services comprising clinical care, education, and counseling services for the physical, spiritual, and psychosocial needs of terminally ill patients and their families. It also provides senior living services, such as residential accommodations, activities, meals, housekeeping, and assistance in the activities of daily living to seniors who are independent or who require some support. The company operates home health, hospice, and home care agencies, as well as senior living communities in Alabama, Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Tennessee, Texas, Utah, Washington, Wisconsin, and Wyoming. The Company was incorporated in 2019 and is headquartered in Eagle, Idaho.

### Why customers stay

Margins ranged from 12.3% to 13.5% during 2023–25; it earns 4.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 12.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 13.5%.

- Source: https://www.sec.gov/Archives/edgar/data/1766400/000176640026000014/pntg-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 12.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2017,0.3714253963550155],[2018,0.6531717690486699],[2019,0.010115801290584661],[2020,0.04707639692438857],[2021,0.009570498260531864],[2022,0.02835108758237516],[2023,0.04794039810979518],[2024,0.07161150601185973],[2025,0.0715457226007602]]; median 0.04794039810979518. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 12% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1766400/000176640026000014/pntg-20251231.htm (filed 2026-02-26); Gross margin observations: [[2021,0.11052004348478715],[2022,0.1237952755572742],[2023,0.1230264401504154]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 2 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2016: growth capex 0; upkeep 3473000; owner earnings 7273000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 589000; upkeep 2544000; owner earnings 9867000. Growth capex / owner earnings = 0.05969392925914665.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 639000; upkeep 2964000; owner earnings 15684000. Growth capex / owner earnings = 0.040742157612853866.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 2904000; upkeep 3810000; owner earnings 2546000. Growth capex / owner earnings = 1.1406127258444618.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 2578000; upkeep 4675000; owner earnings 15744000. Growth capex / owner earnings = 0.163744918699187.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 1519000; upkeep 4784000; owner earnings 2696000. Growth capex / owner earnings = 0.5634272997032641.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 9270000; upkeep 4900000; cash acquisitions 10130000; owner earnings 6643000. Growth capex plus acquisitions / owner earnings = 2.920367303928948.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 2975000; upkeep 5130000; cash acquisitions 21376000; owner earnings 13379000. Growth capex plus acquisitions / owner earnings = 1.8200911876821886.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 2873000; upkeep 6119000; cash acquisitions 48416000; owner earnings 22559000. Growth capex plus acquisitions / owner earnings = 2.2735493594574225.

- Source: https://www.sec.gov/Archives/edgar/data/1766400/000176640026000014/pntg-20251231.htm (filed 2026-02-26); FY2025: growth capex 13461000; upkeep 8538000; cash acquisitions 204024000; owner earnings 29578000. Growth capex plus acquisitions / owner earnings = 7.352931232672932.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,11600000],[2020,1141000],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PNTG.US SharesStats.PercentInsiders = 5.049 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits grow 19.8% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate 0.274286885354209. Price 42.27; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2019-10: $17.99 per share

- 2019-11: $23.42 per share

- 2019-12: $33.07 per share

- 2020-01: $26.40 per share

- 2020-02: $27.17 per share

- 2020-03: $14.16 per share

- 2020-04: $19.79 per share

- 2020-05: $25.49 per share

- 2020-06: $22.60 per share

- 2020-07: $25.06 per share

- 2020-08: $37.04 per share

- 2020-09: $38.56 per share

- 2020-10: $41.66 per share

- 2020-11: $50.69 per share

- 2020-12: $58.06 per share

- 2021-01: $53.77 per share

- 2021-02: $52.78 per share

- 2021-03: $45.80 per share

- 2021-04: $40.42 per share

- 2021-05: $34.27 per share

- 2021-06: $40.90 per share

- 2021-07: $34.22 per share

- 2021-08: $30.57 per share

- 2021-09: $28.09 per share

- 2021-10: $25.57 per share

- 2021-11: $20.33 per share

- 2021-12: $23.08 per share

- 2022-01: $16.62 per share

- 2022-02: $16.25 per share

- 2022-03: $18.63 per share

- 2022-04: $16.39 per share

- 2022-05: $19.13 per share

- 2022-06: $12.81 per share

- 2022-07: $13.34 per share

- 2022-08: $15.67 per share

- 2022-09: $10.41 per share

- 2022-10: $12.31 per share

- 2022-11: $10.34 per share

- 2022-12: $10.98 per share

- 2023-01: $12.94 per share

- 2023-02: $15.02 per share

- 2023-03: $14.28 per share

- 2023-04: $13.87 per share

- 2023-05: $12.00 per share

- 2023-06: $12.28 per share

- 2023-07: $11.48 per share

- 2023-08: $11.98 per share

- 2023-09: $11.13 per share

- 2023-10: $10.87 per share

- 2023-11: $13.72 per share

- 2023-12: $13.92 per share

- 2024-01: $15.01 per share

- 2024-02: $18.65 per share

- 2024-03: $19.63 per share

- 2024-04: $20.91 per share

- 2024-05: $23.54 per share

- 2024-06: $23.19 per share

- 2024-07: $29.81 per share

- 2024-08: $34.26 per share

- 2024-09: $35.70 per share

- 2024-10: $31.97 per share

- 2024-11: $31.18 per share

- 2024-12: $26.52 per share

- 2025-01: $26.47 per share

- 2025-02: $22.77 per share

- 2025-03: $25.15 per share

- 2025-04: $25.62 per share

- 2025-05: $28.71 per share

- 2025-06: $29.85 per share

- 2025-07: $22.17 per share

- 2025-08: $24.01 per share

- 2025-09: $25.22 per share

- 2025-10: $24.73 per share

- 2025-11: $27.70 per share

- 2025-12: $28.15 per share

- 2026-01: $27.62 per share

- 2026-02: $33.71 per share

- 2026-03: $30.48 per share

- 2026-04: $31.32 per share

- 2026-05: $34.25 per share

- 2026-06: $36.95 per share

- 2026-07: $40.32 per share

- 2026-08: $36.76 per share

- 2026-09: $39.00 per share

- 2026-10: $42.27 per share

## Annual estimated value (USD per share)

- FY2020: low $5.56 per share, central $6.32 per share, high $7.34 per share

- FY2021: low $6.17 per share, central $7.02 per share, high $8.15 per share

- FY2022: low $2.41 per share, central $2.74 per share, high $3.18 per share

- FY2023: low $2.77 per share, central $3.15 per share, high $3.66 per share

- FY2024: low $6.15 per share, central $6.96 per share, high $8.03 per share

- FY2025: low $7.20 per share, central $8.19 per share, high $9.52 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1766400/000176640026000014/pntg-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.