GICS Sector : Healthcare
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 Pennant Group reported a robust third quarter 2025, with revenues reaching $229 million, a 26.8% increase from the prior year quarter. Adjusted EBITDA was $17.3 million, a 14.5% increase, and adjusted EPS was $0.30, a 15.4% increase. The actual EPS came in at $0.30, slightly beating estimates of $0.29. The company's financial performance was driven by its Home Health and Hospice segment, which saw revenue increase by 27.9% and adjusted EBITDA increase by 22.7%. As CFO Lynette Walbom noted, the company's strong balance sheet, with $30.2 million drawn on the revolving line of credit and $2.3 million in cash on hand at quarter end, provides a solid foundation for future growth.
Publication Date: Nov -19
The company's operational results were equally impressive, with Zion's Way, a key resource to communities across its geographic service area, achieving 5-star ratings for clinical quality and potentially preventable hospitalizations below 3.5%. Employee turnover decreased to 15%, and employee engagement was 93%, fueling 2025 financial performance with an 11% increase in revenue and a 34% increase in EBITDA. Lo-Har Senior Living also performed well, with consistent 100% occupancy and a 92% employee engagement score.
The company's recent acquisition of United Amedisys added 54 locations with combined trailing 12-month revenues of $189.3 million. The integration efforts are well underway, with a focus on identifying and elevating local leaders and implementing a shared services organization. EBITDA margin guidance for 2026 is expected to be between 9.5% and 11%, with an initial light contribution in the fourth quarter due to transition costs.
With a P/E Ratio of 33.59 and an EV/EBITDA of 23.13, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 24.0%, which is in line with the company's historical performance. The company's ROE is 9.94%, and ROIC is 5.1%, indicating a reasonable return on equity. The Net Debt / EBITDA ratio is 5.76, which may be a concern, but the company's strong cash flow generation should help mitigate this. Overall, the company's strong operational performance, coupled with its growth prospects, makes it an attractive investment opportunity.
The Pennant Group, Inc. $PNTG Stake Boosted by Creative Planning
Dec -02
Geode Capital Management LLC Boosts Stock Position in The Pennant Group, Inc. $PNTG
Nov -29
Gold (XAU/USD) Price Forecast: Bull Pennant Tightens – $4,245 Breakout Key
Nov -25
The Pennant Group, Inc. (NASDAQ:PNTG) Receives Average Rating of “Hold” from Analysts
Nov -17
Does The Pennant Group (PNTG) Have the Potential to Rally 30.69% as Wall Street Analysts Expect?
Nov -13
The Pennant Group, Inc. (PNTG) Q3 2025 Earnings Call Transcript
Nov -06
The Pennant Group (PNTG) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
Nov -06
The Pennant Group, Inc. (PNTG) Tops Q3 Earnings and Revenue Estimates
Nov -06
The Pennant Group's Home Health and Hospice segment growth is driven by an aging population, increasing preference for home-based care, and the shift towards value-based care. Additionally, the company's strategic acquisitions, expansion into new markets, and focus on quality care delivery are contributing to its 8% growth.
The Pennant Group's Senior Living segment growth is driven by increasing demand for age-friendly housing, rising healthcare expenditures, and an aging population. Additionally, the company's strategic acquisitions, operational efficiencies, and focus on high-quality care are contributing to its 10% growth rate.
The Pennant Group, Inc. provides home health services, including skilled nursing, physical therapy, occupational therapy, speech therapy, and medical social work, to patients in the comfort of their own homes.
The company offers hospice services, including medical, emotional, and spiritual care, to patients with terminal illnesses, focusing on comfort and quality of life.
The Pennant Group, Inc. provides home and community-based services, including personal care, adult day care, and case management, to support individuals with disabilities or chronic conditions.
The company operates inpatient facilities, providing 24/7 skilled nursing care, rehabilitation, and therapy services to patients who require intensive medical care.
The threat of substitutes for The Pennant Group, Inc. is medium due to the presence of alternative healthcare providers and services.
The bargaining power of customers for The Pennant Group, Inc. is low due to the lack of concentration of buyers and the high switching costs.
The bargaining power of suppliers for The Pennant Group, Inc. is medium due to the moderate concentration of suppliers and the availability of substitutes.
The threat of new entrants for The Pennant Group, Inc. is high due to the low barriers to entry and the attractiveness of the industry.
The intensity of rivalry for The Pennant Group, Inc. is high due to the high level of competition and the presence of many competitors in the industry.
| Value | |
|---|---|
| Debt Weight | 70.14% |
| Debt Cost | 3.95% |
| Equity Weight | 29.86% |
| Equity Cost | 13.95% |
| WACC | 6.93% |
| Leverage | 234.88% |
Value: 4.0
Growth: 2.9
Quality: 5.8
Yield: 2.0
Momentum: 9.5
Volatility: 4.7
1-Year Total Return ->
Value: 3.2
Growth: 3.3
Quality: 4.9
Yield: 4.0
Momentum: 6.0
Volatility: 6.7
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Value: 3.1
Growth: 8.2
Quality: 3.9
Yield: 0.0
Momentum: 2.0
Volatility: 5.3
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Value: 4.6
Growth: 4.8
Quality: 2.5
Yield: 1.0
Momentum: 8.0
Volatility: 1.3
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Value: 9.2
Growth: 4.7
Quality: 3.0
Yield: 0.0
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Volatility: 3.7
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Value: 3.3
Growth: 3.3
Quality: 4.9
Yield: 0.0
Momentum: 3.5
Volatility: 4.0
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