📊 PNTG Key Takeaways
Is Pennant Group, Inc. (PNTG) a Good Investment?
Pennant Group exhibits strong revenue growth of 36.3% YoY, but this growth masks deteriorating fundamentals: net income declined 12.4% YoY despite revenue expansion, indicating significant margin compression and operational challenges. Most critically, the company generated negative operating cash flow of -$3.4M and negative free cash flow of -$8.7M, which is unsustainable and suggests working capital deterioration or operational distress despite positive net income.
Why Buy Pennant Group, Inc. Stock? PNTG Key Strengths
- Strong revenue growth of 36.3% YoY demonstrates market demand and scale expansion
- Reasonable leverage profile with Debt/Equity ratio of 0.42x and strong interest coverage of 9.7x
- Positive net income of $8.5M shows the business is currently profitable on an accrual basis
PNTG Stock Risks: Pennant Group, Inc. Investment Risks
- Negative operating cash flow of -$3.4M and negative free cash flow of -$8.7M are unsustainable and indicate operational distress despite positive earnings
- Net income declining 12.4% YoY while revenue grows 36.3% reveals severe margin compression and loss of profitability quality
- Extremely low profitability margins (3.0% net margin, 6.1% operating margin) combined with poor returns (ROE 2.2%, ROA 0.9%) suggest structural operational challenges
- Critically low cash position of only $4.9M against $164.7M long-term debt makes the company vulnerable to cash flow disruptions
Key Metrics to Watch
- Operating cash flow trend - must return to positive to validate business sustainability
- Net profit margin expansion - need to reverse the declining profitability trend relative to revenue growth
- Days sales outstanding and working capital metrics - to diagnose if cash flow problem is collection/receivables related
Pennant Group, Inc. (PNTG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Pennant Group, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
PNTG Profit Margin, ROE & Profitability Analysis
PNTG vs Services Sector: How Pennant Group, Inc. Compares
How Pennant Group, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Pennant Group, Inc. Stock Overvalued? PNTG Valuation Analysis 2026
Based on fundamental analysis, Pennant Group, Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Pennant Group, Inc. Balance Sheet: PNTG Debt, Cash & Liquidity
PNTG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Pennant Group, Inc.'s revenue has grown significantly by 116% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.44 reflects profitable operations.
PNTG Revenue Growth, EPS Growth & YoY Performance
PNTG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $209.8M | $7.8M | $0.22 |
| Q3 2025 | $180.7M | $4.9M | $0.17 |
| Q2 2025 | $168.7M | $4.9M | $0.18 |
| Q1 2025 | $156.9M | $4.9M | $0.16 |
| Q3 2024 | $140.2M | $1.9M | $0.15 |
| Q2 2024 | $132.3M | $1.9M | $0.09 |
| Q1 2024 | $126.5M | $1.9M | $0.06 |
| Q3 2023 | $118.4M | $1.0M | $0.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Pennant Group, Inc. Dividends, Buybacks & Capital Allocation
PNTG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Pennant Group, Inc. (CIK: 0001766400)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PNTG
What is the AI rating for PNTG?
Pennant Group, Inc. (PNTG) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PNTG's key strengths?
Claude: Strong revenue growth of 36.3% YoY demonstrates market demand and scale expansion. Reasonable leverage profile with Debt/Equity ratio of 0.42x and strong interest coverage of 9.7x.
What are the risks of investing in PNTG?
Claude: Negative operating cash flow of -$3.4M and negative free cash flow of -$8.7M are unsustainable and indicate operational distress despite positive earnings. Net income declining 12.4% YoY while revenue grows 36.3% reveals severe margin compression and loss of profitability quality.
What is PNTG's revenue and growth?
Pennant Group, Inc. reported revenue of $285.4M.
Does PNTG pay dividends?
Pennant Group, Inc. does not currently pay dividends.
Where can I find PNTG SEC filings?
Official SEC filings for Pennant Group, Inc. (CIK: 0001766400) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PNTG's EPS?
Pennant Group, Inc. has a diluted EPS of $0.24.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is PNTG a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Pennant Group, Inc. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is PNTG stock overvalued or undervalued?
Valuation metrics for PNTG: ROE of 2.2% (sector avg: 16%), net margin of 3.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy PNTG stock in 2026?
Our dual AI analysis gives Pennant Group, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PNTG's free cash flow?
Pennant Group, Inc.'s operating cash flow is $-3.4M, with capital expenditures of $5.3M. FCF margin is -3.0%.
How does PNTG compare to other Services stocks?
Vs Services sector averages: Net margin 3.0% (avg: 10%), ROE 2.2% (avg: 16%), current ratio 1.19 (avg: 1.5).