PACSPACS Group, Inc.
Is the business good?
The checks split: earnings fully cash-backed (2.0×), but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 22% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PACS?
PACS Group, Inc. earns 27% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 18 points above what the capital costs: growth creates value
- Operating margin
- 7.4%
Operating margin · Medical Care Facilities median 9.3% · 12 months to Q2 2026
- Cash conversion
- 1.99×
Cash conversion · 3.50× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.1%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2022 | 9.5% |
| FY2023 | 6.7% |
| FY2024 | 3.0% |
| FY2025 | 5.9% |
Details›
- Gross margin12 months to Q2 2026
- 23%
- Operating margin12 months to Q2 2026
- 7.4%
- Net margin12 months to Q2 2026
- 4.9%
- Free cash flow margin
- 8.2%
- Revenue, trailing twelve months
- $5.55B
- Free cash flow, trailing twelve months
- $456M
- Net income, trailing twelve months
- $269M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 27%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.