Recent News
On August 5, 2026 the company reported second-quarter 2026 results and raised guidance, posting $297.98M in revenue and beating estimates. On August 4, 2026 Pennant completed an acquisition of a senior living community in Tucson, Arizona. In early June the company announced an expanded collaboration with Hartford HealthCare to advance home-based care and disclosed additions to its senior living footprint on June 3rd.
Technical Analysis
ADX stands at 20.58, indicating emerging trend strength; that emerging strength suggests directional moves now carry some conviction but lack strong extension, which tempers expectations for sustained breakout relative to the current valuation.
DI+ shows a peak-and-reverse while DI- trends lower; the DI+ peak-and-reverse signals a bearish directional shift for near-term price momentum despite ADX suggesting only an emerging trend.
MACD registers 0.06 below its 0.25 signal line and shows a peak-and-reversal pattern; that combination points to contracting bullish momentum and confirms the bearish directional cue from the DI+ reversal.
MRO stands at 16.86 with a decreasing trajectory, indicating price sits above the model target and faces downward pressure; the positive MRO level implies a measurable room for mean reversion toward valuation-based targets.
RSI at 56.38 and declining places momentum in a neutral-to-cooling range, consistent with the MACD and DI+ signals and implying limited immediate upside without a clear bullish trigger.
Price closed at $38.89, trading marginally below the 12-day and 26-day EMAs (~$39.12–$39.14) while sitting near the 20-day average ($38.97) and above the 200-day average ($32.53); the 12-day EMA shows a peak-and-reversal, implying short-term resistance above the current price despite longer-term support from the 200-day average. Bollinger bands remain tight (upper ~$39.40, lower ~$38.53), reflecting low short-term volatility and a likelihood of a consolidation or modest pullback before a directional breakout.
Fundamental Analysis
Total revenue for the quarter reached $297,984,000 while operating income measured $17,195,000 and net income totaled $9,082,000. EPS came in at $0.36 versus an estimate of $0.33, producing an EPS surprise of 9.09%.
WMDST values the stock as over-valued. Trailing PE stands at 102.68 and forward PE near 81.60, both reflecting elevated multiples relative to historical expectations; forward EPS sits at $0.3968. Enterprise value equals $1,766,851,244 and EV/Revenue implies a stretched enterprise multiple consistent with the over-valued assessment.
Profitability shows EBIT margin at 6.10%, which sits below the industry peer mean of 16.66% and below the industry peer median of 15.29%, indicating margin compression versus peers. EBIT margin improved QoQ by 1.50% and improved YoY by 13.67%.
Revenue dynamics present mixed signals: reported revenue growth at 4.42% (LTM) contrasts with revenue growth year-over-year of -3.93%, signaling variability across reporting periods. Operating margin stands at 5.77% and improved YoY by 20.86% though fell QoQ by 4.83%.
Balance sheet and cash metrics show $15,273,000 in cash and short-term investments, total assets of $1,037,291,000, and total debt of $493,916,000. Debt-to-assets equals 47.62% and debt-to-EBITDA measures 23.20x; interest coverage reads 5.43x. Asset turnover at 0.2989 slightly exceeds the industry peer mean of 0.2764, implying relatively efficient revenue generation from assets despite elevated leverage.
Free cash flow reached $15,494,000 with a free cash conversion ratio of 170.60% of net income; free cash flow yield registers 1.20%, roughly in line with conservative cash-return profiles and below levels that typically signal compelling yield-based valuation support.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-06-30 |
| REPORT DATE: | 2026-08-05 |
| NEXT REPORT DATE: | 2026-11-04 |
| CASH FLOW | Begin Period Cash Flow | $ 4.9 M |
| Operating Cash Flow | $ 21.8 M | |
| Capital Expenditures | $ -6.34 M | |
| Change In Working Capital | $ 4.8 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 10.4 M | |
| End Period Cash Flow | $ 15.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 298.0 M | |
| Forward Revenue | $ 113.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 256.1 M | |
| Depreciation | $ 3.1 M | |
| Depreciation and Amortization | $ 3.1 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 280.8 M | |
| PROFITABILITY | ||
| Gross Profit | $ 41.9 M | |
| EBITDA | $ 21.3 M | |
| EBIT | $ 18.2 M | |
| Operating Income | $ 17.2 M | |
| Interest Income | — | |
| Interest Expense | $ 3.3 M | |
| Net Interest Income | $ -3.35 M | |
| Income Before Tax | $ 14.8 M | |
| Tax Provision | $ 3.9 M | |
| Tax Rate | 26.534 % | |
| Net Income | $ 9.1 M | |
| Net Income From Continuing Operations | $ 10.9 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.33 | |
| EPS Actual | $ 0.36 | |
| EPS Difference | $ 0.03 | |
| EPS Surprise | 9.091 % | |
| Forward EPS | $ 0.40 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.0 B | |
| Intangible Assets | $ 435.2 M | |
| Net Tangible Assets | $ -76.03 M | |
| Total Current Assets | $ 183.6 M | |
| Cash and Short-Term Investments | $ 15.3 M | |
| Cash | $ 15.3 M | |
| Net Receivables | $ 133.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 27.3 M | |
| LIABILITIES | ||
| Accounts Payable | $ 26.2 M | |
| Short-Term Debt | $ 5.0 M | |
| Total Current Liabilities | $ 152.4 M | |
| Net Debt | $ 182.2 M | |
| Total Debt | $ 493.9 M | |
| Total Liabilities | $ 632.8 M | |
| EQUITY | ||
| Total Equity | $ 359.2 M | |
| Retained Earnings | $ 104.4 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 10.31 | |
| Shares Outstanding | 34.848 M | |
| Revenue Per-Share | $ 8.55 | |
| VALUATION | Market Capitalization | $ 1.3 B |
| Enterprise Value | $ 1.8 B | |
| Enterprise Multiple | 82.974 | |
| Enterprise Multiple QoQ | 8.215 % | |
| Enterprise Multiple YoY | -0.586 % | |
| Enterprise Multiple IPRWA | PNTG: 82.974 high: 71.32 mean: 34.696 median: 34.394 low: 9.161 |
|
| EV/R | 5.929 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.888 | |
| Asset To Liability | 1.639 | |
| Debt To Capital | 0.579 | |
| Debt To Assets | 0.476 | |
| Debt To Assets QoQ | 0.587 % | |
| Debt To Assets YoY | 14.149 % | |
| Debt To Assets IPRWA | high: 0.838 median: 0.815 mean: 0.66 PNTG: 0.476 low: 0.02 |
|
| Debt To Equity | 1.375 | |
| Debt To Equity QoQ | 5.08 % | |
| Debt To Equity YoY | 37.438 % | |
| Debt To Equity IPRWA | high: 3.407 PNTG: 1.375 mean: -5.234 median: -7.762 low: -17.523 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.586 | |
| Price To Book QoQ | 16.18 % | |
| Price To Book YoY | 29.148 % | |
| Price To Book IPRWA | high: 7.269 PNTG: 3.586 mean: -7.638 median: -13.296 low: -17.699 |
|
| Price To Earnings (P/E) | 102.685 | |
| Price To Earnings QoQ | 6.894 % | |
| Price To Earnings YoY | 8.43 % | |
| Price To Earnings IPRWA | PNTG: 102.685 high: 89.218 mean: 53.943 median: 53.381 low: -16.66 |
|
| PE/G Ratio | 8.215 | |
| Price To Sales (P/S) | 4.323 | |
| Price To Sales QoQ | 15.501 % | |
| Price To Sales YoY | 9.07 % | |
| Price To Sales IPRWA | high: 15.055 mean: 4.679 median: 4.365 PNTG: 4.323 low: 0.158 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 81.596 | |
| Forward PE/G | 6.528 | |
| Forward P/S | 11.177 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.354 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.299 | |
| Asset Turnover Ratio QoQ | 0.803 % | |
| Asset Turnover Ratio YoY | 1.795 % | |
| Asset Turnover Ratio IPRWA | high: 0.324 median: 0.324 PNTG: 0.299 mean: 0.276 low: 0.098 |
|
| Receivables Turnover | 2.328 | |
| Receivables Turnover Ratio QoQ | 0.314 % | |
| Receivables Turnover Ratio YoY | 1.133 % | |
| Receivables Turnover Ratio IPRWA | high: 2.963 PNTG: 2.328 mean: 1.851 median: 1.714 low: 0.6 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 39.197 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 30.093 | |
| Cash Conversion Cycle Days QoQ | -1.552 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 133.289 PNTG: 30.093 median: 27.773 mean: -30.518 low: -410.097 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 9.555 | |
| CapEx To Revenue | -0.021 | |
| CapEx To Depreciation | -2.036 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 551.7 M | |
| Net Invested Capital | $ 556.7 M | |
| Invested Capital | $ 556.7 M | |
| Net Tangible Assets | $ -76.03 M | |
| Net Working Capital | $ 31.2 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.1 | |
| Current Ratio | 1.205 | |
| Current Ratio QoQ | 1.348 % | |
| Current Ratio YoY | -0.754 % | |
| Current Ratio IPRWA | high: 2.796 PNTG: 1.205 mean: 1.191 low: 0.993 median: 0.993 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 23.195 | |
| Cost Of Debt | 0.52 % | |
| Interest Coverage Ratio | 5.431 | |
| Interest Coverage Ratio QoQ | -2.877 % | |
| Interest Coverage Ratio YoY | -44.508 % | |
| Interest Coverage Ratio IPRWA | high: 70.154 mean: 10.216 PNTG: 5.431 median: 5.164 low: 1.576 |
|
| Operating Cash Flow Ratio | 0.035 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 9.104 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 8.448 % | |
| Revenue Growth | 4.422 % | |
| Revenue Growth QoQ | -423.246 % | |
| Revenue Growth YoY | -3.932 % | |
| Revenue Growth IPRWA | high: 14.758 % median: 5.866 % mean: 5.122 % PNTG: 4.422 % low: -4.722 % |
|
| Earnings Growth | 12.5 % | |
| Earnings Growth QoQ | -312.513 % | |
| Earnings Growth YoY | 12.501 % | |
| Earnings Growth IPRWA | high: 63.415 % PNTG: 12.5 % mean: 11.52 % median: 6.154 % low: -60.417 % |
|
| MARGINS | ||
| Gross Margin | 14.068 % | |
| Gross Margin QoQ | 1.369 % | |
| Gross Margin YoY | 1.912 % | |
| Gross Margin IPRWA | high: 96.512 % mean: 53.206 % median: 44.755 % low: 16.649 % PNTG: 14.068 % |
|
| EBIT Margin | 6.102 % | |
| EBIT Margin QoQ | 1.497 % | |
| EBIT Margin YoY | 13.674 % | |
| EBIT Margin IPRWA | high: 57.772 % mean: 16.659 % median: 15.289 % low: 6.951 % PNTG: 6.102 % |
|
| Return On Sales (ROS) | 5.77 % | |
| Return On Sales QoQ | -4.833 % | |
| Return On Sales YoY | 20.863 % | |
| Return On Sales IPRWA | high: 33.23 % mean: 15.988 % median: 15.161 % low: 7.681 % PNTG: 5.77 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 15.5 M | |
| Free Cash Flow Yield | 1.203 % | |
| Free Cash Flow Yield QoQ | -248.153 % | |
| Free Cash Flow Yield YoY | -66.86 % | |
| Free Cash Flow Yield IPRWA | high: 4.809 % mean: 1.552 % median: 1.25 % PNTG: 1.203 % low: 0.588 % |
|
| Free Cash Growth | -278.605 % | |
| Free Cash Growth QoQ | 85.911 % | |
| Free Cash Growth YoY | 17.962 % | |
| Free Cash Growth IPRWA | high: 84.175 % median: 23.352 % mean: 0.248 % PNTG: -278.605 % low: -351.306 % |
|
| Free Cash To Net Income | 1.706 | |
| Cash Flow Margin | 1.77 % | |
| Cash Flow To Earnings | 0.581 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.911 % | |
| Return On Assets QoQ | 2.938 % | |
| Return On Assets YoY | -3.903 % | |
| Return On Assets IPRWA | high: 2.725 % median: 2.725 % mean: 2.402 % PNTG: 0.911 % low: 0.197 % |
|
| Return On Capital Employed (ROCE) | 2.055 % | |
| Return On Equity (ROE) | 0.025 | |
| Return On Equity QoQ | 2.681 % | |
| Return On Equity YoY | 11.809 % | |
| Return On Equity IPRWA | high: 0.177 PNTG: 0.025 mean: -0.141 median: -0.256 low: -0.347 |
|
| DuPont ROE | 2.576 % | |
| Return On Invested Capital (ROIC) | 2.399 % | |
| Return On Invested Capital QoQ | -1.316 % | |
| Return On Invested Capital YoY | -5.477 % | |
| Return On Invested Capital IPRWA | high: 6.725 % median: 5.558 % mean: 5.061 % PNTG: 2.399 % low: 0.822 % |
|