PNTGThe Pennant Group, Inc.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.2×).
Operating profit is fully backed by cash.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
A balanced mix of margins, efficiency, and leverage. ROE 8% = 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 PNTG?
The Pennant Group, Inc. earns 8.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.55 points below what the capital costs: growth destroys value
- Operating margin
- 5.7%
Operating margin · Medical Care Facilities median 9.3% · 12 months to Q2 2026
- Cash conversion
- 1.17×
Cash conversion · 1.23× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +1.7%
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 Q2 2026
- 19%
- Operating margin12 months to Q2 2026
- 5.7%
- Net margin12 months to Q2 2026
- 2.9%
- Free cash flow margin
- 3.1%
- Revenue, trailing twelve months
- $1.10B
- Free cash flow, trailing twelve months
- $35M
- Net income, trailing twelve months
- $32M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.