Company Overview
PACS Group, Inc. operates a network of skilled nursing facilities, assisted living facilities, senior care, and independent living facilities throughout the United States, while also engaging in the acquisition, ownership, and leasing of health care-related properties. The company functions within the Healthcare sector, specifically under the Medical Care Facilities industry, positioning it as a provider of essential long-term care services for the aging population. PACS Group, Inc. currently holds a market capitalization of $5.44B and generates annual revenue of $5.29B, employing a workforce of 47,455 individuals to support its extensive operations. These financial metrics indicate that the company represents a significant player in the medical care facilities landscape, with a substantial asset base that reflects a large-scale operational footprint and a major role in the provision of healthcare infrastructure and services.
Financial Health
The company reports a trailing twelve-month revenue of $5.29B, generating net income of $191.54M and an EBITDA of $365.26M, revealing a distinct gap between top-line revenue and bottom-line profit that highlights a significant cost structure encompassing operational expenses, taxes, and interest costs. This structure results in a net income that is approximately 3.6% of total revenue, demonstrating how heavily costs impact the final profitability of the business. PACS Group, Inc. produced free cash flow of $241.90M, which indicates a strong capacity to generate cash from operations that can be utilized for capital expenditures, debt repayment, or potential future acquisitions. The gross margin stands at 15.5%, suggesting that the cost of goods sold consumes a substantial portion of revenue, typical for service-heavy industries with high labor and supply chain costs. Operating margins are recorded at 7.0%, while the profit margin is 3.6%, showing that after all operating expenses are deducted, the company retains a modest fraction of revenue as net profit. The firm holds $197.02M in cash against total debt of $3.60B, resulting in a debt-to-equity ratio of 377.77, which characterizes the balance sheet as highly leveraged rather than conservative. The current ratio is 1.07, indicating that the company's current assets are only slightly higher than its current liabilities, suggesting tight short-term liquidity management. Return on Equity is 23.0% and Return on Assets is 3.6%, revealing that management is highly effective at generating returns for shareholders relative to equity invested, though the return on the total asset base is comparatively lower due to the high level of debt financing used to acquire these assets.
Valuation Assessment
The trailing twelve-month P/E ratio is 28.39, whereas the forward P/E is 14.67, implying that the market expects a significant increase in earnings over the coming year that would justify a lower multiple on future expectations. The price-to-book ratio is 5.73, indicating that the market values the company at a substantial premium over its book value, likely reflecting the intangible value of its facility portfolio and brand. Alternative valuation metrics such as the price-to-sales ratio of 1.03 and an EV/EBITDA of 24.23 suggest that the stock is priced relative to its sales and earnings power at levels that require strong execution to maintain. The 52-week high is $43.08 and the 52-week low is $7.50, providing a wide trading range that illustrates significant price volatility during the year. Without a specific beta value available to cite from the provided facts, the volatility relative to the broader market cannot be quantified using the standard beta metric, though the wide range between the high and low demonstrates substantial price movement independent of a calculated beta figure.
Growth & Income
Revenue growth year-over-year is 12.4%, while earnings growth year-over-year is 57.2%, indicating that earnings are growing significantly faster than revenue, which often implies improved operational efficiency, favorable mix changes, or leverage effects as fixed costs are spread over growing revenue. The company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning the firm reinvests all of its earnings back into the business rather than distributing cash to shareholders. This reinvestment strategy supports the company's expansion in skilled nursing and assisted living facilities, as well as its property leasing activities, prioritizing growth over income distribution. The overall growth and income profile is defined by aggressive earnings expansion driven by double-digit revenue increases and a complete reliance on internal capital generation for shareholder returns rather than dividend payouts.