PACS Group, Inc. (PACS)
Valuation Overview•Is PACS Group, Inc. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Moderate quality score of 46/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
PACS struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company maintains stable top-line performance paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 7.0%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.4B | +29.3% | — | — | — | |
| EBITDA | $138.1M | — | +13.2% | — | — | |
| Net Income | $80.7M | +243.5% | +8.4% | — | — | |
| EPS (Diluted) | $0.50 | +221.1% | +6.9% | — | — | |
| Free Cash Flow | $214.5M | -0.7% | +174.9% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 19.2% | 18.6% | 18.1% | 18.1% |
| Operating Margin | 7.0% | 5.2% | 6.3% | 6.3% |
| Net Margin | 4.5% | 2.9% | 3.7% | 3.7% |
| FCF Margin | 4.4% | 4.5% | 3.5% | 3.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.42 | $0.50 | +19.0% | ||
| Q1'26 | $0.48 | $0.43 | -10.4% | ||
| Q4'25 | $0.45 | $0.32 | -28.9% | ||
| Q3'24 | $0.35 | $-0.07 | -120.7% | ||
| Q2'24 | $0.29 | $0.33 | +13.7% | ||
| Q3'23 | — | $0.13 | — | ||
| Q2'23 | — | $0.14 | — | ||
| Q1'23 | — | $0.25 | — |
Total return is +207.1% (1Y), outperforming the benchmark by +186.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -1.7% | -9.0% | — |
| 1Y | +207.1% | +186.3% | — |
| 3YCAGR | +19.1% | -1.8% | — |
| 5YCAGR | +11.1% | -1.3% | — |
| 10YCAGR | +5.4% | -8.7% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about PACS Group, Inc. (PACS) valuation, health, and returns.
PACS Group, Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. overvalued (implying -60.4% downside from DCF intrinsic value of $16.57)
PACS Group, Inc. has multiple valuation anchors: DCF Intrinsic Value: $16.57 | Peer Relative Fair Value: $38.20 | Wall Street Analyst Target: $50.67 (implying +21.0% upside). A convergence of these signals offers higher conviction.
PACS Group, Inc. displays fair financial health with a composite quality score of 46/100, supported by a Altman Z-Score of 1.3 (distress zone), Piotroski F-Score of 8/9, Return on Invested Capital (ROIC) of 5.5%.
PACS Group, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
PACS Group, Inc.'s current growth trajectory is Accelerating. The company achieved +29.3% 1Y revenue growth and +221.1% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 8 analysts, beating EPS expectations in 40% of recent quarters with a 1-quarter streak. The consensus price target represents a +21.0% change from current levels.
Investment risks for PACS Group, Inc. include: -41.3% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 0.59x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.