PACS Group Inc. Common Stock (PACS)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at PACS Group as a roll-up in skilled nursing and assisted living, a business with real demand but modest pricing power and heavy regulation. The reported numbers show scale: in fiscal 2025, the year ended 2025-12-31, revenue was $5.3B, net income $191.5M, and diluted EPS $1.22. That was a sharp rebound from fiscal 2024, when revenue was $4.1B, net income $55.8M, and diluted EPS $0.38, though fiscal 2023 had higher net income of $112.9M on $3.1B of revenue. More recently, in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.4B, net income $76.4M, and diluted EPS $0.47, following fiscal Q1 2026 revenue of $1.4B, net income $80.7M, and diluted EPS $0.50. So the profit trend is better than two years ago, but the latest quarter slipped versus the prior quarter. The balance sheet gives me pause. FairStock's calculated debt-to-equity ratio is 3.05, ROCE is only 4.60%, and its Altman Z-Score is 1.34, which is not a comfortable cushion. Return on equity is 27.92%, but that is flattered by leverage. Free cash flow is $121.5M, a 1.7% yield on the $7.0B market cap. At the 2026-10-13 close of $44.38, FairStock calculates a P/E of 25.95, P/B of 6.33, and a Graham Number of $16.42, leaving a margin of safety of -170.28%. The PEG ratio of 0.52 looks cheap only if growth persists. FairStock calls it a Stalwart based on three-year profit growth of 8.4% and revenue growth of 30.1%. I would want more durable cash generation and less balance-sheet risk before calling this a classic value opportunity.

In plain English: PACS Group runs skilled nursing and assisted living centers in the United States. The business has grown revenue and profit, but it carries a lot of debt and has thin margins. At the recent $44.38 close, the stock looks expensive compared with the company's current earnings and assets, while its cash flow is modest relative to its market value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer