PACS Group Inc (PACS) AI Stock Analysis

• Market Cap: $1.76B
• Dividend Yield: N/A
• Average Volume (3M): 493.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 32,433
• Sector: General
• Sector Strength: N/A
• Industry: Healthcare Providers & Services
• EPS (TTM): N/A
• Shares Outstanding: 155,177,500
• 10 Day Avg. Volume: 506,840
• 30 Day Avg. Volume: 493,289
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.92
• Price to Cash Flow (P/CF): 12.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $32.00
• Price Target Upside: 182.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

The overall score for PACS Group Inc is moderate due to strong revenue growth counterbalanced by high financial leverage and negative technical indicators. Regulatory risks from noncompliance with NYSE requirements further impact the score. Limited valuation data and lack of earnings call insights add to the uncertainty surrounding the stock.

Positive Factors

Business Model

PACS has an attractive business model focused on acquiring underperforming skilled nursing facilities and driving improvement in clinical, operational, and financial performance, fueling management’s long-term growth outlook.

Industry Positioning

PACS is well-positioned to continue gaining share in a highly fragmented market as the company’s scale and operational execution enable it to better navigate industry headwinds and expand its facility portfolio.

Negative Factors

Market Challenges

The SNF industry has faced challenges since the pandemic and is slowly recovering, however, there are only a few players in the space (including PACS) that have emerged and that can take advantage of ongoing challenges.

PACS Group Inc Business Overview & Revenue Model

Company Description

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How the Company Makes Money

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PACS Group Inc Financial Statement Overview

Summary

PACS Group Inc demonstrates robust revenue growth but faces challenges with profitability margins and high leverage. The balance sheet reveals significant debt, posing a potential risk to financial stability, while cash flow generation needs improvement to support long-term investments and reduce leverage.

Income Statement

PACS Group Inc shows a solid revenue growth of 28.46% year-over-year, indicating strong market demand and expansion. However, the net profit margin decreased from 6.21% to 3.63%, pointing to increased costs or operational inefficiencies. The gross profit margin remains relatively stable at 14.36%, suggesting consistent cost management at the gross level. The EBIT and EBITDA margins reflect a strong operational base, though slightly declining year-over-year.

Balance Sheet

The company's balance sheet indicates high leverage with a debt-to-equity ratio of 29.61, which introduces potential financial risk. The equity ratio of 2.74% is low, suggesting heavy reliance on debt financing. The return on equity stands at 117.43%, indicating high returns relative to the equity base, but this is primarily due to the minimal equity compared to liabilities.

Cash Flow

PACS's operating cash flow to net income ratio is 0.56, showing moderate cash generation relative to earnings. The free cash flow decreased significantly by 74.31%, which may impact future investments or debt repayments. However, the company maintains positive free cash flow, indicating some level of financial flexibility.

Breakdown
TTM	Dec 2023	Dec 2022
Income Statement		Total Revenue
934.72M	3.11B	2.42B
	Gross Profit
126.87M	447.07M	378.37M
	EBIT
80.17M	207.77M	229.36M
	EBITDA
87.86M	232.87M	251.67M
	Net Income Common Stockholders
49.14M	112.87M	150.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
58.27M	73.42M	66.12M
	Total Assets
0.00	3.51B	2.46B
	Total Debt
0.00	2.85B	1.93B
	Net Debt
58.27M	2.77B	1.86B
	Total Liabilities
0.00	3.41B	2.39B
	Stockholders Equity
68.65M	96.13M	63.65M
Cash Flow		Free Cash Flow
48.03M	17.91M	69.75M
	Operating Cash Flow
58.79M	63.70M	92.61M
	Investing Cash Flow
-118.67M	-172.79M	-72.08M
	Financing Cash Flow
34.45M	129.59M	9.10M

PACS Group Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PACS, the sentiment is Negative. The current price of 11.33 is below the 20-day moving average (MA) of 12.31, below the 50-day MA of 13.25, and below the 200-day MA of 25.83, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 33.12 is Neutral, neither overbought nor oversold. The STOCH value of 17.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PACS.

PACS Group Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITW	78 Outperform	$74.81B	21.83	110.24%	2.27%	-1.30%	20.26%
GE	74 Outperform	$225.64B	35.18	27.62%	0.53%	-32.60%	-28.55%
HON	71 Outperform	$138.27B	24.37	33.10%	2.08%	5.05%	2.73%
DHR	65 Neutral	$150.38B	40.16	7.57%	0.51%	-13.50%	-17.25%
MMM	64 Neutral	$82.89B	20.32	97.86%	1.84%	-18.72%	―
Sector *	55 Neutral	$4.29B	-18.57	-4.70%	5.69%	27.38%	-68.17%
PACS	51 Neutral	$1.76B	―	117.42%	―	―	―

PACS Group Inc Corporate Events

PACS Group Inc Faces NYSE Noncompliance Notice

PACS Group, a major player in post-acute healthcare, has received a noncompliance notice from the NYSE due to the delayed filing of its quarterly report, attributed to an ongoing investigation. The company aims to address this within six months, although uncertainties remain. This highlights the potential risks and challenges faced by companies in maintaining compliance with financial reporting standards.