Is the business good?
How good a business is PNTG?
The Pennant Group, Inc. earns 8.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
8.1%
Return on invested capital · cost of capital 9.0% · 0.87 points below what the capital costs: growth destroys value
- Operating margin
- 5.5%
Operating margin · Medical Care Facilities median 8.9% · 12 months to Q1 2026
- Cash conversion
- 1.67×
Cash conversion · 0.38× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +1.6%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 4.8% |
| FY2021 | 1.1% |
| FY2022 | 2.7% |
| FY2023 | 4.6% |
| FY2024 | 5.5% |
| FY2025 | 5.5% |
Details›
- Gross margin12 months to Q1 2026
- 19%
- Operating margin12 months to Q1 2026
- 5.5%
- Net margin12 months to Q1 2026
- 3.0%
- Free cash flow margin
- 5.0%
- Revenue, trailing twelve months
- $1.02B
- Free cash flow, trailing twelve months
- $51M
- Net income, trailing twelve months
- $30M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Medical Care Facilities
Ranks #27 of 28 by Smart Score