Latest Ratios: P/E Ratio 29.3x · EV/EBITDA 22.4x · ROE 23.0%. (2022–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Market Cap | $7.9B | $6.0B | $1.9B | — | — |
| Enterprise Value | $11.1B | $9.3B | $5.3B | — | — |
| P/E Ratio → | 29.29 | 31.47 | 34.50 | — | — |
| P/S Ratio | 1.38 | 1.14 | 0.48 | — | — |
| P/B Ratio | 8.16 | 6.32 | 2.72 | — | — |
| P/FCF | 17.54 | 20.13 | 111.10 | — | — |
| P/OCF | 19.43 | 14.88 | 5.30 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| EV / Revenue | — | 1.77 | 1.31 | — | — |
| EV / EBITDA | 22.37 | 25.43 | 32.29 | — | — |
| EV / EBIT | 35.94 | 29.98 | 36.27 | — | — |
| EV / FCF | — | 31.09 | 301.80 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Gross Margin | 22.0% | 22.0% | 19.6% | 14.6% | 16.7% |
| Operating Margin | 5.9% | 5.9% | 3.0% | 6.8% | 9.6% |
| Net Profit Margin | 3.6% | 3.6% | 1.4% | 3.7% | 6.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| ROE | 23.0% | 23.0% | 13.6% | 132.5% | 219.2% |
| ROA | 3.5% | 3.5% | 1.3% | 3.8% | 6.1% |
| ROIC | 5.4% | 5.4% | 2.6% | 6.4% | 8.6% |
| ROCE | 7.0% | 7.0% | 3.4% | 8.3% | 11.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Debt / Equity | 3.64 | 3.64 | 4.89 | 27.57 | 28.05 |
| Debt / EBITDA | 9.50 | 9.50 | 21.36 | 12.02 | 7.65 |
| Net Debt / Equity | — | 3.44 | 4.67 | 26.85 | 27.20 |
| Net Debt / EBITDA | 8.96 | 8.96 | 20.40 | 11.70 | 7.42 |
| Debt / FCF | — | 10.96 | 190.70 | 152.47 | 26.77 |
| Interest Coverage | 10.93 | 10.93 | 3.29 | 4.15 | 9.11 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Current Ratio | 1.07 | 1.07 | 0.96 | 1.58 | 1.06 |
| Quick Ratio | 1.07 | 1.07 | 0.96 | 1.58 | 1.06 |
| Cash Ratio | 0.20 | 0.20 | 0.16 | 0.16 | 0.12 |
| Asset Turnover | — | 0.94 | 0.77 | 0.87 | 0.97 |
| Inventory Turnover | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Dividend Yield | — | — | 1.7% | — | — |
| Payout Ratio | — | — | 60.5% | 71.2% | 40.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Earnings Yield | 3.4% | 3.2% | 2.9% | — | — |
| FCF Yield | 5.7% | 5.0% | 0.9% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 1.7% | — | — |
| Shares Outstanding | — | $157M | $149M | $150M | $150M |
Includes 30+ ratios · 4 years · Updated daily
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying PACS stock.
PACS Group, Inc.'s current P/E ratio is 29.3x. The historical average is 33.0x.
PACS Group, Inc.'s current EV/EBITDA is 22.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 28.9x.
PACS Group, Inc.'s return on equity (ROE) is 23.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 97.1%.
Based on historical data, PACS Group, Inc. is trading at a P/E of 29.3x. Compare with industry peers and growth rates for a complete picture.
PACS Group, Inc. has 22.0% gross margin and 5.9% operating margin.
PACS Group, Inc.'s Debt/EBITDA ratio is 9.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Margin pressure from labor costs
Metrics are mathematically derived from official filings.
Premium Priced for Growth
PACS trades at 7.29x book and 36.3x trailing earnings, per recent filings, implying robust growth expectations despite thin margins and a recent EPS miss.
The market is pricing PACS as a premium franchise, with a P/B of 7.29x versus peers like ENSG at 4.78x and NHC at 3.32x. This premium appears to reflect expectations of continued acquisition-driven growth and margin expansion, but the recent EPS miss suggests that such expectations may be optimistic. The forward P/E of 18.75x indicates the market anticipates significant earnings growth, which may be challenged by labor cost pressures and integration risks.
Thin Margins, High Leverage
ROE of 7.1% in 2026Q2, as reported in financial statements, is driven by high leverage (equity/assets at 0.20) rather than strong margins, with net margin at 3.6%.
The DuPont decomposition reveals that PACS's ROE is primarily a function of leverage, given its thin net margin and low asset turnover. The equity-to-assets ratio improved from 0.03 in 2024Q1 to 0.20 by 2026Q2, but this still implies significant leverage. The negative NIM and reliance on fee income (99.8% of revenue) indicate that the bank's profitability is not driven by traditional interest income, but rather by operational efficiency in its healthcare services.
Fee-Based Model, Efficiency Gains
NIM is consistently negative at -0.1% to -0.2%, as per financial data, but the efficiency ratio improved to 16.0% in 2026Q2 from 15.9% in 2025Q2, indicating cost control.
The negative NIM suggests that PACS does not rely on interest income, which is atypical for a bank but consistent with its healthcare operations. The efficiency ratio, though volatile, has shown improvement in recent quarters, indicating better cost management. However, the thin operating margin of 5.85% leaves little room for error, and any increase in labor costs or regulatory compliance could quickly erode profitability.
Equity Buffer Strengthens
Equity-to-assets ratio improved to 0.20 by 2026Q2, as reported in balance sheet data, from 0.03 in 2024Q1, indicating a stronger capital position but still modest.
The improvement in equity-to-assets is a positive sign, but the ratio remains low compared to traditional banks, which typically maintain higher capital buffers. This suggests that PACS may have limited capacity for additional debt-financed acquisitions without further equity issuance. The lack of dividends or buybacks in 2026 indicates that management is prioritizing reinvestment, but investors should monitor whether this capital is being deployed effectively.
Provision Pressure on Earnings
Loan loss provisions averaged $1.0 billion quarterly, as per financial statements, significantly exceeding net income of $76.4 million in 2026Q2, signaling potential credit stress.
The high provision expenses relative to net income suggest that PACS is facing credit quality challenges, possibly from its acquisition-led growth strategy. The provision coverage appears thin, and if these provisions reflect actual loan losses, the bank may need to increase reserves, further pressuring earnings. Investors should closely monitor the trend in non-performing loans and charge-offs to assess the adequacy of current reserve levels.
P/E Misleads on Earnings Quality
The P/E ratio of 36.3x, as reported in valuation data, is distorted by high provisions and acquisition costs, obscuring the underlying earnings power of the business.
For a bank like PACS, the P/E ratio is often misapplied because it can be volatile due to one-time provisions and acquisition-related expenses. A more appropriate metric is P/TBV, which at 6.47x (2026Q2) still indicates a premium valuation but provides a clearer picture of the bank's tangible asset base. Additionally, investors should adjust for the impact of provider tax arrangements and lease obligations to get a true sense of the bank's leverage and profitability.