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what it is
Pennant runs home health, hospice, and senior living operations across 13 states for patients and residents who usually need ongoing care.
how it gets paid
Last year The Pennant made $948M in revenue. Home health was the main engine at $370M, or 39% of sales.
why it's growing
Revenue grew 36.3% last year. The result was driven by scale and acquisitions.
what just happened
Pennant's Q4 was strong: revenue hit about $289M, up roughly 53% vs. prior year, while adjusted EPS came in near $0.34 (GAAP about $0.24).
At a glance
B balance sheet — gets the job done, barely
35/100 earnings predictability — expect surprises
40.7x trailing p/e — you're paying up for this one
6.6% return on capital — nothing to write home about
$0.84 fy2025 eps est
xvary composite: 55/100 — below average
What they do
Pennant runs home health, hospice, and senior living operations across 13 states for patients and residents who usually need ongoing care.
Pennant wins by being local at scale. It runs 172 home health and hospice agencies plus 63 senior living communities, so you get a wide referral net without building from scratch in every town. That matters because healthcare services is trust work, and 7,000 employees spread across 13 states gives Pennant more shots to fill beds, add patients, and buy nearby operators.
How they make money
$948M
annual revenue · their business grew +36.3% last year
Home health
$370M
Hospice
$250M
Assisted living
$185M
Independent living
$81M
Memory care
$62M
The products that matter
in-home medical care
Home Health & Hospice
~$620M · ~65% of revenue (home health + hospice in table)
This is the larger business by far: $370M home health plus $250M hospice from the segment rows. It operates through 172 locations and anchors the ~$948M annual total.
172 locations
residential care communities
Senior Living
~$328M · ~35% of revenue (senior living rows in table)
Assisted living $185M, independent $81M, and memory care $62M sum to this bucket. It is the second leg outside home visits; check filings for vs. prior year growth—do not assume one blended % without the comp.
~35% of revenue
local operator acquisitions
Acquisition Model
22% 2026 growth target
This is not a reporting segment. It is the strategy. Management is targeting 22% growth for 2026, and that target leans heavily on buying and integrating more local operators.
the growth engine
Key numbers
$948M
annual revenue
Pennant is no tiny rollout story anymore. You are looking at a care platform closing in on $1 billion of sales.
40.7x
trailing p/e
P/E → price-to-earnings → what investors pay for each $1 of profit. So what: you are already paying up for future growth.
6.4%
operating margin
Operating margin → profit after running the business → what is left before interest and taxes. So what: Pennant does not have much cushion if reimbursement tightens.
$169M
long-term debt
Debt is 13% of capital, which is not extreme, but it matters when your business depends on smooth integration and steady reimbursement.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 2 — safer than 80% of stocks
- price stability 15 / 100
- long-term debt $169M (13% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for PNTG right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Pennant's Q4 topped expectations: revenue hit ~$289M, up roughly 53% vs. prior year, with adjusted EPS near $0.34.
The result was driven by scale and acquisitions. FY revenue reached about $948M, up 36.3% vs. prior year, while this quarter beat revenue and adjusted EPS consensus—GAAP for the same quarter was closer to ~$0.24 in the basics card above.
~$289M
rev (q)
~$0.34
adj. eps (q)
6.4%
op margin (co.)
the number that mattered
The ~53% quarterly revenue jump mattered most because it shows Pennant is scaling much faster than a typical care operator, even if part of that came from acquisitions.
source: company earnings report, 2026
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What could go wrong
the #1 risk is medicare and medicaid reimbursement pressure on post-acute care margins.
med
Reimbursement rate cuts
Pennant runs a reimbursement-heavy care business with a ~6.4% operating margin on this page. When government payors tighten rates, there is not much cushion.
A 100-basis-point reimbursement cut could erase more than 15% of operating profit.
med
Acquisition integration risk
The 22% growth target depends on buying and integrating smaller operators without breaking culture, staffing, or margins. Roll-ups look smooth until one does not.
If acquired operations underperform, revenue can still rise while earnings quality gets worse.
med
Thin-margin valuation mismatch
The stock trades at 40.7x trailing earnings while return on capital is 6.6%. That gap is manageable when growth is hot. It gets awkward fast if growth cools.
This is the classic problem with premium multiples on operationally messy businesses: the downside can arrive before the income statement fully shows it.
Pennant does not need a collapse to disappoint you. It only needs slower deal flow, weaker reimbursement, or one integration miss at the wrong time.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the number that mattered
Can adjusted EBITDA close the $2.5M guidance gap
The midpoint came in 3% below the $91.3M analyst target. If Pennant narrows that gap next quarter, the market will forgive a lot.
next check-in
Q1 2026 earnings report
Watch whether revenue still tracks toward the 22% 2026 growth target and whether management sounds more or less aggressive on acquisitions.
risk watch
Any pressure on reimbursement commentary
With a ~6.4% operating margin here, even modest changes in payor language matter. This is not a business with a lot of extra padding.
trend
Whether growth stays organic-looking or deal-dependent
Pennant just posted 36.3% revenue growth. The next question is how much of that pace remains once acquisition comparisons get harder.
Analyst rankings
earnings predictability
35 / 100
Low predictability score. In human-speak, analysts do not see this as a smooth, easy-to-model earnings story.
risk rank
2
The balance sheet screens safer than most small caps. That does not remove reimbursement and execution risk from the business model.
price stability
15 / 100
The stock itself has not been especially stable. You are buying an operating story and a sentiment story at the same time.
source: institutional data
Institutional activity
institutional ownership data for PNTG is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$34
current price
n/a
target midpoint · n/a from current
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