Latest Ratios: P/E Ratio 47.2x · EV/EBITDA 30.3x · ROE 8.6%. (2017–2025 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 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.4B | $994M | $849M | $420M | $331M | $707M | $1.8B | $978M | — | — |
| Enterprise Value | $1.8B | $1.4B | $1.1B | $744M | $656M | $1.1B | $2.1B | $1.3B | — | — |
| P/E Ratio → | 47.20 | 33.51 | 37.35 | 31.64 | 49.91 | 329.24 | 111.65 | 384.53 | — | — |
| P/S Ratio | 1.45 | 1.05 | 1.22 | 0.77 | 0.70 | 1.61 | 4.49 | 2.89 | — | — |
| P/B Ratio | 3.74 | 2.66 | 2.72 | 2.89 | 2.64 | 6.19 | 17.35 | 13.76 | — | — |
| P/FCF | 52.43 | 37.81 | 28.00 | 16.82 | — | — | 40.86 | 344.51 | — | — |
| P/OCF | 28.54 | 20.59 | 21.59 | 12.70 | 36.61 | — | 34.96 | 102.41 | — | — |
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 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.51 | 1.58 | 1.37 | 1.39 | 2.40 | 5.30 | 3.88 | — | — |
| EV / EBITDA | 30.28 | 23.87 | 24.81 | 24.55 | 37.17 | 111.54 | 87.91 | 138.49 | — | — |
| EV / EBIT | 35.31 | 27.34 | 28.64 | 29.16 | 51.59 | 226.35 | 108.35 | 231.55 | — | — |
| EV / FCF | — | 54.39 | 36.21 | 29.77 | — | — | 48.29 | 462.28 | — | — |
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 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 12.9% | 12.9% | 13.5% | 12.3% | 12.4% | 11.1% | 14.0% | 13.2% | 14.8% | 12.9% |
| Operating Margin | 5.4% | 5.4% | 5.5% | 4.6% | 2.7% | 1.1% | 4.8% | 1.7% | 7.2% | 6.1% |
| Net Profit Margin | 3.1% | 3.1% | 3.2% | 2.5% | 1.4% | 0.6% | 4.0% | 0.8% | 5.5% | 3.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.6% | 8.6% | 9.9% | 9.9% | 5.5% | 2.5% | 18.3% | 3.7% | 25.1% | 16.5% |
| ROA | 3.6% | 3.6% | 3.7% | 2.5% | 1.3% | 0.5% | 3.3% | 0.9% | 16.8% | 11.2% |
| ROIC | 5.6% | 5.6% | 5.6% | 4.1% | 2.1% | 0.8% | 3.4% | 1.8% | 24.7% | 19.3% |
| ROCE | 7.3% | 7.3% | 7.3% | 5.5% | 2.8% | 1.1% | 4.6% | 2.4% | 31.6% | 24.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.21 | 1.21 | 0.88 | 2.27 | 2.60 | 3.11 | 3.15 | 4.71 | — | — |
| Debt / EBITDA | 7.56 | 7.56 | 6.17 | 10.88 | 18.51 | 37.48 | 13.52 | 35.32 | — | — |
| Net Debt / Equity | — | 1.17 | 0.80 | 2.22 | 2.58 | 3.06 | 3.15 | 4.70 | -0.00 | -0.00 |
| Net Debt / EBITDA | 7.28 | 7.28 | 5.63 | 10.68 | 18.40 | 36.93 | 13.52 | 35.28 | -0.00 | -0.00 |
| Debt / FCF | — | 16.59 | 8.21 | 12.95 | — | — | 7.43 | 117.77 | -0.00 | -0.00 |
| Interest Coverage | 7.83 | 7.83 | 5.51 | 4.31 | 3.33 | 2.41 | 15.45 | 13.83 | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.14 | 1.14 | 1.21 | 1.12 | 1.05 | 1.06 | 0.67 | 0.76 | 0.99 | 1.02 |
| Quick Ratio | 1.14 | 1.14 | 1.21 | 1.12 | 1.05 | 1.06 | 0.67 | 0.76 | 0.99 | 1.02 |
| Cash Ratio | 0.12 | 0.12 | 0.24 | 0.08 | 0.03 | 0.07 | 0.00 | 0.01 | 0.00 | 0.00 |
| Asset Turnover | — | 0.98 | 1.02 | 1.01 | 0.92 | 0.83 | 0.77 | 0.76 | 2.91 | 2.84 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 47.41 | 42.68 | 40.94 | 41.20 | 44.78 | 44.09 | 34.70 | 31.22 | 32.35 |
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 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | 1.2% | — | — |
| Payout Ratio | — | — | — | — | — | — | — | 455.6% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.1% | 3.0% | 2.7% | 3.2% | 2.0% | 0.3% | 0.9% | 0.3% | — | — |
| FCF Yield | 1.9% | 2.6% | 3.6% | 5.9% | — | — | 2.4% | 0.3% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.3% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 1.5% | — | — |
| Shares Outstanding | — | $35M | $32M | $30M | $30M | $31M | $30M | $30M | $28M | $28M |
Includes 30+ ratios · 9 years · Updated daily
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Quick answers to the most common questions about buying PNTG stock.
The Pennant Group, Inc.'s current P/E ratio is 47.2x. The historical average is 52.8x. This places it at the 60th percentile of its historical range.
The Pennant Group, Inc.'s current EV/EBITDA is 30.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 39.7x.
The Pennant Group, Inc.'s return on equity (ROE) is 8.6%. The historical average is 11.1%.
Based on historical data, The Pennant Group, Inc. is trading at a P/E of 47.2x. This is at the 60th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Pennant Group, Inc. has 12.9% gross margin and 5.4% operating margin.
The Pennant Group, Inc.'s Debt/EBITDA ratio is 7.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Acquisition integration and leverage
Metrics are mathematically derived from official filings.
Premium Multiple on Acquisition Growth
PNTG trades at 46.4x trailing earnings and 29.9x EV/EBITDA, well above peers, implying the market prices in sustained acquisition-driven growth, per reported multiples.
The forward P/E of 28.7x suggests investors expect significant earnings acceleration, but the PEG of 4.61 indicates that the growth rate implied by the multiple is not supported by historical trends. Compared to Ensign's 30.8x P/E and 26.7x EV/EBITDA, PNTG's premium appears to reflect its faster revenue growth, yet the gap may narrow if integration costs persist. The EV/EBITDA premium is particularly notable given the company's thin EBITDA margins, suggesting the market is paying for future synergies rather than current profitability.
Margins Stall Despite Revenue Surge
Gross margin swung from 20.2% in 2025Q3 to 14.1% in 2026Q2, while operating margin hovered near 5-6%, indicating acquisition integration is pressuring cost structure, per financial statements.
The gross margin volatility, with a 600 basis point swing, suggests that acquired operations are not yet operating at the same efficiency as legacy facilities. Operating margin has remained range-bound between 4.5% and 6.3% over the past ten quarters, implying that revenue growth has not translated into operating leverage. Net margin has been stable around 3%, but this is low for a healthcare services company, and the gap between gross and operating margins indicates elevated SG&A costs that may be absorbing the benefits of scale.
Returns on Capital Remain Thin
ROIC has stayed below 2% for the last ten quarters, with ROE around 2-3%, indicating that acquisition-driven growth is not yet generating adequate returns, per reported figures.
Despite a 73% increase in total assets since 2024Q1, ROIC has not improved, suggesting that the capital deployed in acquisitions is earning a low return. The D/E ratio has declined from 2.10 to 1.22, but this is due to equity growth from retained earnings rather than debt reduction, and the absolute debt level has risen. The low ROIC relative to peers like Addus (8.8%) and Ensign (6.9%) indicates that PNTG's acquisition strategy has not yet achieved the operational efficiency needed to compound returns.
Working Capital Efficiency Masked by Timing
DSO has remained stable around 39 days, but cash conversion cycle is unavailable due to missing inventory data, and FCF margin swung from -11.1% to 10.6%, per reported figures.
The stable DSO suggests consistent receivables management, but the extreme swings in free cash flow margin indicate that working capital changes are causing significant cash flow volatility. The negative FCF margin in 2026Q1 and 2025Q1 suggests that the company is using cash to fund growth, possibly through acquisitions, which may not be fully reflected in the income statement. The lack of inventory data makes it difficult to assess the full cash conversion cycle, but the low DPO of 9 days indicates that PNTG pays suppliers quickly, which could be a strategic choice or a sign of limited negotiating power.
Leverage Elevated but Coverage Improving
D/EBITDA remains high at 24.3x in 2026Q2, though interest coverage improved to 4.8x from 3.6x in 2026Q1, indicating debt service is manageable but leverage is a concern, per balance sheet data.
The D/EBITDA ratio is extremely high, but this is partly due to low EBITDA margins; the absolute debt of $493.9M is substantial relative to equity. Interest coverage has improved from 3.6x to 4.8x, suggesting that earnings are sufficient to cover interest payments, but the margin of safety is thin. The increase in debt to fund acquisitions, combined with the high D/EBITDA, indicates that PNTG is relying on debt to finance growth, which could become problematic if cash flows do not improve.
Liquidity Thin Despite Current Ratio
Current ratio improved to 1.20 in 2026Q2, but cash of $15.3M is minimal relative to total debt of $493.9M, indicating tight liquidity, per balance sheet data.
The current ratio above 1.0 suggests that current assets cover current liabilities, but the quick ratio is identical, indicating that inventory is not a significant component. However, the low cash balance relative to debt highlights a reliance on operating cash flow and refinancing to meet obligations. Under a stress scenario, such as a disruption in cash collections or an inability to refinance, the liquidity position could become strained, given the high leverage and thin cash buffer.
Misapplied EV/EBITDA in Acquisition Model
EV/EBITDA is commonly used for PNTG, but its low EBITDA margins and acquisition-driven growth make this multiple misleading; ROIC and cash conversion are more relevant, per reported figures.
The EV/EBITDA multiple of 29.9x appears expensive, but it is distorted by the company's low EBITDA margins, which are a result of its cost structure and acquisition integration. A more appropriate metric is ROIC, which at 1.5% indicates that the company is not yet generating returns above its cost of capital. Additionally, the cash conversion cycle and FCF margin provide better insight into the sustainability of earnings, as they reveal the impact of working capital swings on cash generation. Investors should focus on the ability of acquired assets to generate cash flow and improve margins, rather than relying on EV/EBITDA alone.