PACS Group, Inc.

PACS Group, Inc.

PACS·NYSE

$36.50

-1.8%
Financial ServicesFinancial - Conglomerates

PACS Group, Inc. is a holding company, which engages in the provision of post-acute healthcare facilities, professionals, and ancillary services. It provides senior care, assisted living, and independent living options in some of the communities. The company was founded by Jason Murray and Mark Hancock in 2013 and is headquartered in Farmington, UT.

At a Glance

Live Snapshot
Market Cap$5.78B
EPS1.2300
P/E Ratio29.67
Earnings Date08/10/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal · Driver · Risk

Signal

High confidence

Valuation multiple is elevated (P/E 29.7).

Valuation inputs: P/E 29.7, earnings yield +3.4%, momentum -1.8%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +20.2%, ROIC +4.4%).

Profitability stack: net margin +3.6%, ROE +20.2%, ROIC +4.4%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile is elevated and scenario stress-testing is essential.

Risk factors: liabilities/assets +82.9%, momentum -1.8%, net margin +3.6%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

pacs

PACS Group, Inc. Market vs Earnings Trajectory

PACS · NYSE

Loading price and EPS data...

PACS Group, Inc.

PACS Group, Inc. Fair Value Envelope

PACS · NYSE

Our analysis suggests that PACS has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $36.5, this represents a potential HIDDEN relative to our calculated worth for PACS Group, Inc..

Intrinsic Value
Current Price: $36.5
3Y+23.0%
5Y+284.0%
10Y+284.0%
3Y+118.0%
5Y+353.0%
10Y+353.0%
3Y+27.0%
5Y+299.0%
10Y+299.0%
3Y+336.0%
5Y+602.0%
10Y+602.0%
3Y+1978.0%
5Y-549.0%
10Y-549.0%
3Y+127.0%
5Y+127.0%
10Y+127.0%
PACS Group, Inc.

PACS Group, Inc. Profit Bridge

PACS · NYSE
Revenue5.29B
Cost of Goods Sold (4.13B)
Gross Profit1.16B
Operating Expenses (849.64M)
Operating Income309.60M
Interest Expense (28.36M)
Other Income/Expense-25.14M
Pretax Income284.45M
Income Tax (92.99M)
Net Income191.54M
Net Income
191.54M

Profitability Analysis

Gross Margin

21.9%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

5.9%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

3.6%

Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.

Effective Tax Rate

32.7%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

21.92%
Gross Profit Margin
13%
3Y+32.0%
5Y+36.0%
10Y+36.0%
5.85%
Operating Profit Margin
95%
3Y-38.0%
5Y-18.0%
10Y-18.0%
3.62%
Net Profit Margin
166%
3Y-42.0%
5Y-12.0%
10Y-12.0%
20.23%
Return on Equity
157%
3Y-91.0%
5Y-
10Y-
3.43%
Return on Assets
223%
3Y-44.0%
5Y-
10Y-
4.40%
Return on Invested Capital
200%
3Y-43.0%
5Y-
10Y-
PACS

PACS Group, Inc. Cash Conversion Engine

PACS · NYSE
Net Income0.00
Depreciation & Amortization0.00
Stock-Based Compensation0.00
Change in Working Capital72.71M
Others331.51M
Capital Expenditures-105.41M
Free Cash Flow298.82M

Cash Flow Quality Analysis

CapEx Intensity

26.1%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

-0.7%

Flat FCF growth. Stable but not expanding—monitor for signs of business maturity or temporary headwinds.

Working Capital Impact

+$72.71M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

pacs

PACS Group, Inc. Funding & Solvency Profile

PACS · NYSE
Cash & Cash Equivalents247.98M
Net Receivables733.22M
Inventory0.00
Other Current Assets86.90M
Total Current Assets1 B
Property, Plant & Equipment4.22B
Goodwill & Intangible Assets68.06M
Long-Term Investments107.32M
Other Non-Current Assets203.96M
Total Non-Current Assets5 B
Total Assets
5.66B

Financial Health Analysis

Current Ratio

0.99x

Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.

Debt-to-Equity Ratio

4.43x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

-5418000

Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.

Asset Composition

19% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

Financial Health Insight

Financial stress indicators: Both liquidity and leverage metrics raise concerns. The company may face challenges meeting obligations and should focus on strengthening its balance sheet.

pacs

PACS Group, Inc. Street Expectations Map

PACS · NYSE

Wall Street analysts project that PACS stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 48.50, with estimates ranging from a low of 42.00 to a high of 52.00.

Lowest Target
42.00
15.07%
Consensus Target
48.50
32.88%
Highest Target
52.00
42.47%

The consensus 1-year price target stands at 48.50, with estimates ranging from a low of 42.00 to a high of 52.00.

Analyst Consensus Analysis

Upside Potential

+32.9%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

20.6% spread

Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

pacs

PACS Group, Inc. Insider Positioning

PACS · NYSE

During the last 12 months, insiders have purchased $500K and sold $7.76M worth of PACS shares, resulting in $7.26M of net selling activity.

3 Months

Bought

0

0.00

Sold

82.3K

2.99M

Net Activity

-3.0M

-$2.99M

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

16.7K

500.00K

Sold

159.6K

4.77M

Net Activity

-4.3M

-$4.27M

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

1
DES

Dilsaver Evelyn S

Director

16.7K shares1 transactions

$500K

Top Sellers

1
MJT

Mitchell John Todd

Officer: Chief Legal Officer & Sec.

205.5K shares2 transactions

$6.51M

2
JJ

Jergensen Joshua

Officer: President & Coo

36.3K shares1 transactions

$1.25M

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $7.26M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.06:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$2.99M

Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.

Insider Participation

Moderate Selling

2 insider sellers vs. 1 buyers. More insiders selling than buying suggests cautious or negative sentiment.

Insider Activity Insight

Persistent selling pressure: Consistent insider selling with weak buy/sell ratio suggests insiders may be capitalizing on current valuation. Exercise caution and review recent earnings quality and management commentary.

0.00%
Dividend Yield
-100%
3Y-100.0%
5Y-100.0%
10Y-100.0%
 

pacs Dividend History

PACS
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%