PACS Group, Inc.
PACS Group, Inc. Fundamental Analysis
PACS Group, Inc. (PACS) shows weak financial fundamentals with a PE ratio of 31.10, profit margin of 3.62%, and ROE of 22.70%. The company generates $5.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PACS's fundamental strength across five key dimensions:
Efficiency Score
WeakPACS struggles to generate sufficient returns from assets.
Valuation Score
WeakPACS trades at a premium to fair value.
Growth Score
ModeratePACS shows steady but slowing expansion.
Financial Health Score
ModeratePACS shows balanced financial health with some risks.
Profitability Score
ModeratePACS maintains healthy but balanced margins.
Key Financial Metrics
Is PACS Expensive or Cheap?
P/E Ratio
PACS trades at 31.10 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PACS's PEG of 2.40 indicates potential overvaluation.
Price to Book
The market values PACS Group, Inc. at 6.29 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 52.44 times EBITDA. This signals the market has high growth expectations.
How Well Does PACS Make Money?
Net Profit Margin
For every $100 in sales, PACS Group, Inc. keeps $3.62 as profit after all expenses.
Operating Margin
Core operations generate 5.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.70 in profit for every $100 of shareholder equity.
ROA
PACS Group, Inc. generates $3.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PACS Group, Inc. generates limited operating cash flow of $181.79M, signaling weaker underlying cash strength.
Free Cash Flow
PACS Group, Inc. generates weak or negative free cash flow of $137.97M, restricting financial flexibility.
FCF Per Share
Each share generates $0.89 in free cash annually.
FCF Yield
PACS converts 2.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How PACS Stacks Against Its Sector Peers
| Metric | PACS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.10 | 19.28 | Worse (Expensive) |
| ROE | 22.70% | 792.00% | Weak |
| Net Margin | 3.62% | 2238.00% | Weak |
| Debt/Equity | 3.38 | 0.85 | Weak (High Leverage) |
| Current Ratio | 1.07 | 604.98 | Neutral |
| ROA | 3.43% | -20889.00% (disorted) | Weak |
PACS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PACS Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical