The Pennant Group, Inc.
PNTG Healthcare Medical Care Facilities
The Pennant Group, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $947.7 million, up 36.3% from fiscal 2024. In the quarter to June 2026, revenue grew 35.8%, EPS grew 23.8%, free cash flow fell 50.9% and total debt rose 433.8%, each against the same quarter a year earlier. Revenue growth for five consecutive years, operating cash flow growth for three.
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The Pennant Group, Inc. (PNTG) Altman Z-score
The Pennant Group, Inc.'s Altman Z-score for fiscal 2025 is 2.29, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.29 | (0.42) |
| FY2024 | 2.71 | 0.81 |
| FY2023 | 1.91 | 0.34 |
| FY2022 | 1.57 | (0.28) |
| FY2021 | 1.85 | (1.41) |
| FY2020 | 3.26 | 1.04 |
| FY2019 | 2.22 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.02 | — | 0.02 | |
| Retained earnings / total assets | 0.09 | — | 0.13 | |
| EBIT / total assets | 0.05 | — | 0.18 | |
| Market value of equity / total liabilities | 1.64 | — | 0.98 | |
| Sales / total assets | 0.98 | — | 0.98 | |
| Altman Z-score | Grey zone | 2.29 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 1.45 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| HCSG Healthcare Services Group, Inc. compare | 6.6× |
| NUTX Nutex Health Inc. compare | 3.3× |
| PNTG The Pennant Group, Inc. | 2.3× |
| AMN AMN Healthcare Services Inc compare | 2.3× |
| USPH U.S. Physical Therapy, Inc. compare | 2.1× |
| ARDT Ardent Health, Inc. compare | 2.0× |
| AGL Agilon Health, Inc. compare | 1.5× |
| SNDA Sonida Senior Living, Inc. compare | −0.1× |
| CMPS COMPASS Pathways PLC Sponsored ADR compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets