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PACS Group Inc
(NYSE:PACS)
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Rating:68Neutral
Price Target:
$53.00
▲(20.62% Upside)
Action:Downgraded
Date:09/22/26
The score is driven primarily by improving financial performance and a strong, guidance-raising earnings call indicating continued operational momentum and EBITDA growth. Offsetting this, technical indicators point to near-term weakness and valuation is not especially cheap (P/E ~24.7) with no dividend support, while leverage remains a key financial constraint.
Positive Factors
Raised Growth Guidance
Higher full-year revenue and adjusted EBITDA guidance indicates management sees durable operating momentum rather than merely a one-quarter improvement. The outlook supports continued earnings growth, while the same-store contribution and limited acquisition assumptions suggest the business is generating meaningful internal progress.
Negative Factors
Elevated Balance-Sheet Leverage
Despite improving equity and profitability, leverage remains high relative to the company’s capital base and can constrain financial flexibility. Debt obligations may limit acquisition capacity, increase sensitivity to weaker operating conditions, and leave less room to absorb reimbursement, regulatory, or execution setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Raised Growth Guidance
Higher full-year revenue and adjusted EBITDA guidance indicates management sees durable operating momentum rather than merely a one-quarter improvement. The outlook supports continued earnings growth, while the same-store contribution and limited acquisition assumptions suggest the business is generating meaningful internal progress.
Read all positive factors
PACS Group Inc (PACS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.77B
Dividend YieldN/A
Average Volume (3M)830.65K
Price to Earnings (P/E)28.9
Beta (1Y)-0.29
Revenue Growth15.15%
EPS Growth101.51%
CountryUS
Employees47,455
SectorGeneral
Sector StrengthN/A
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.70
Shares Outstanding158,335,620
10 Day Avg. Volume916,162
30 Day Avg. Volume830,647
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)6.33
Price to Sales (P/S)1.13
P/FCF Ratio20.06
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue1.83
Enterprise Value/Gross Profit9.28
Enterprise Value/Ebitda21.12
Forecast
1Y Price Target
$58.00Price Target Upside32.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.44
Revenue Forecast (FY)$5.85B
PACS Group Inc Business Overview & Revenue Model
Company Description
PACS Group, Inc. operates as a holding company, primarily focused on delivering post-acute healthcare services. This encompasses operating various facilities, providing skilled professionals, and offering essential ancillary support. The company f...
How the Company Makes Money
PACS Group Inc primarily makes money by providing post-acute and long-term care services through the facilities it operates and/or manages, and receiving reimbursement for those services from third-party payors. Key revenue streams generally inclu...
PACS Group Inc Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial momentum: double‑digit revenue growth guidance increase, sizeable adjusted EBITDA growth and margin expansion, improving occupancy and skilled mix, strong quality ratings, healthy cash generation and low leverage. Key positives include successful turnarounds, disciplined acquisition activity (Eduro) and continued portfolio maturation driving organic growth. Primary negatives are ongoing government investigations, disclosed material weaknesses (remediation in progress), higher G&A and integration-related execution risk for recently acquired assets plus timing uncertainty around supplemental state payments. On balance, the favorable operating trends, liquidity and upgraded guidance materially outweigh the risks discussed.Positive Updates
Revenue Growth
Q2 revenue of $1.43 billion, up $118.8 million or 9.1% year-over-year; full-year revenue guidance raised to $5.75B–$5.85B (up $100M at each end) with a midpoint implying ~10% growth vs. 2025.
Negative Updates
Ongoing Government Investigations
Previously disclosed government investigations remain active; timing and outcome uncertain though company states it is fully cooperative. Management unable to estimate resolution timing.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Q2 revenue of $1.43 billion, up $118.8 million or 9.1% year-over-year; full-year revenue guidance raised to $5.75B–$5.85B (up $100M at each end) with a midpoint implying ~10% growth vs. 2025.
Read all positive updates
Company Guidance
Management raised full‑year 2026 guidance to revenue of $5.75–$5.85 billion (up $100 million at both ends from prior guidance; $5.8 billion midpoint ≈ 10% growth vs. 2025) and adjusted EBITDA of $640–$660 million (up $35 million at both ends; $650 million midpoint ≈ 29% growth vs. 2025); the outlook includes a modest contribution from the 20 Eduro Texas facilities closed Aug. 1 but excludes the remaining 14 Eduro facilities and other pending transactions, and it does not assume uncertain supplemental quality payments (e.g., Ohio/California WQIP) that have not been accrued; management said the range reflects continued same‑store momentum and normal integration assumptions while the company maintains strong liquidity ($756.6 million available, $164.5 million cash, $600 million revolver undrawn) and a conservative net leverage of 0.1x.PACS Group Inc Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.55B | 5.29B | 4.09B | 3.11B | 2.42B |
| Gross Profit | 1.09B | 1.16B | 792.64M | 447.07M | 400.68M |
| EBITDA | 480.11M | 365.57M | 186.70M | 232.87M | 254.89M |
| Net Income | 269.17M | 191.54M | 55.76M | 112.87M | 150.50M |
Balance Sheet | |||||
| Total Assets | 5.66B | 5.58B | 5.24B | 3.51B | 2.46B |
| Cash, Cash Equivalents and Short-Term Investments | 164.45M | 197.02M | 157.67M | 73.42M | 58.27M |
| Total Debt | 3.25B | 3.47B | 3.50B | 2.80B | 1.93B |
| Total Liabilities | 4.54B | 4.63B | 4.53B | 3.41B | 2.39B |
| Stockholders Equity | 1.11B | 946.77M | 709.55M | 96.13M | 63.65M |
Cash Flow | |||||
| Free Cash Flow | 455.78M | 298.82M | 17.53M | 17.91M | 69.75M |
| Operating Cash Flow | 573.25M | 404.22M | 367.34M | 63.70M | 92.61M |
| Investing Cash Flow | -497.90M | -264.02M | -442.68M | -172.79M | -75.32M |
| Financing Cash Flow | -196.07M | -68.99M | 117.48M | 129.59M | 12.35M |
PACS Group Inc Technical Analysis
Positive
43.94
Price Trends
43.99
Positive
43.39
Positive
39.63
Positive
Market Momentum
1.43
Negative
65.68
Neutral
72.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PACS, the sentiment is Positive. The current price of 43.94 is below the 20-day moving average (MA) of 45.45, below the 50-day MA of 43.99, and above the 200-day MA of 39.63, indicating a bullish trend. The MACD of 1.43 indicates Negative momentum. The RSI at 65.68 is Neutral, neither overbought nor oversold. The STOCH value of 72.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PACS.
PACS Group Inc Risk Analysis
PACS Group Inc disclosed 66 risk factors in its most recent earnings report. PACS Group Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PACS Group Inc Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $3.32B | 23.45 | 12.94% | 1.24% | 7.19% | 32.91% | |
82 Outperform | $2.28B | 21.51 | 9.57% | ― | 15.88% | 25.01% | |
75 Outperform | $10.74B | 26.64 | 16.63% | 0.14% | 17.49% | 19.82% | |
68 Neutral | $7.77B | 28.86 | 27.15% | ― | 15.15% | 101.51% | |
62 Neutral | $1.47B | 44.85 | 9.51% | ― | 37.90% | 15.84% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | $2.38B | -17.24 | 405.63% | ― | -4.42% | 44.67% |
* General Sector Average
PACS
PACS Group Inc
49.06
36.82
300.82%
ADUS
Addus Homecare
122.18
4.25
3.60%
BKD
Brookdale Senior Living
9.98
0.73
7.89%
NHC
National Healthcare
211.79
91.79
76.50%
ENSG
The Ensign Group
184.11
4.07
2.26%
PNTG
Pennant Group
42.16
17.55
71.31%
PACS Group Inc Corporate Events
Business Operations and StrategyExecutive/Board Changes
PACS Group Appoints Patrick Murphy as Chief Legal Officer
Positive
Sep 21, 2026
On September 18, 2026, PACS Group Inc. executed a transition agreement with John Mitchell in connection with his retirement as Chief Legal Officer and Corporate Secretary, effective that day. Mitchell’s executive role ended on the separation...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.