Pennant GroupPNTG +1.45%89 Gross Margin % is 13.88% as of Mar. 2026, which is 6% above its 10-year median of 13.10. GuruFocus rates PNTG with a GF Score™ of 89/100 and a GF Value™ of $34.47 (Fairly Valued). The stock has 8 warning signs investors should review. Among 629 Healthcare Providers & Services companies, Pennant Group ranks worse than 92.37% on this metric.
The historical rank and industry rank for Pennant Group's Gross Margin % or its related term are showing as below:
PNTG'
s Gross Margin % Range Over the Past 10 Years
Min: 11.05 Med: 13.1 Max: 14.84
Current: 13.75
During the past 10 years, the highestGross Margin % of Pennant Group was 14.84%. The lowest was 11.05%. And the median was 13.10%.
PNTG's Gross Margin % is ranked worse than 92.37% of 629
companies
in the Healthcare Providers & Services industry
Industry Median: 40.09
vs PNTG: 13.75
Pennant Group had a gross margin of 13.88% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Pennant Group was 1.40% per year.
Pennant Group (NAS:PNTG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Pennant Group had a gross margin of 13.88% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Pennant Group Gross Margin % Related Terms
Pennant Group Gross Margin % Historical Data
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The historical data trend for Pennant Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PNTG vs AMN, NUTX, ARDT: Gross Margin % Comparison
For the Medical Care Facilities subindustry, Pennant Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Pennant Group Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Pennant Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pennant Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Pennant Group (PNTG) has a Gross Margin % of 13.88% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Pennant Group and its competitors. This is near median its historical median of 13.10. Over the past decade, Pennant Group's Gross Margin % has ranged from 11.05 to 14.84. According to the industry distribution chart, Pennant Group ranks #581 out of 629 companies in the Healthcare Providers & Services industry, placing it in the top 92.4%.
Is Pennant Group's Gross Margin % too high?
Pennant Group's current Gross Margin % of 13.88% is near median its 10-year median of 13.10. Over the past 10 years, this metric has ranged from a low of 11.05 to a high of 14.84. The Healthcare Providers & Services industry median Gross Margin % is 40.09. Pennant Group's value of 13.88% is 65.4% below this industry median. Based on the distribution chart, Pennant Group ranks #581 out of 629 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Pennant Group has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pennant Group's Gross Margin % compare to AMN and NUTX?
According to the Healthcare Providers & Services industry distribution chart, Pennant Group ranks #581 out of 629 companies for Gross Margin %. This places Pennant Group in the lower half of its industry. The industry median Gross Margin % is 40.09. Pennant Group's value of 13.88% is 65.4% below this benchmark. Historically, Pennant Group's own Gross Margin % has ranged from 11.05 to 14.84 over the past decade. While the company's 10-year median is 13.10 vs. the industry median of 40.09, Pennant Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.09, based on 629 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pennant Group's current Gross Margin % of 13.88% is 65.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Pennant Group and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pennant Group's current Gross Margin % is 13.88%, which is near median its own 10-year median of 13.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pennant Group stock overvalued right now?
Based on GuruFocus' analysis, Pennant Group (PNTG) is currently considered Fairly Valued. The stock's GF Value™ is $34.47, compared to a current price of $36.38 — trading 5.5% above its estimated fair value. The current Gross Margin % is 13.88%, which is near median its 10-year median of 13.10 and 65.4% below the Healthcare Providers & Services industry median of 40.09. Pennant Group's overall GF Score™ is 89/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Pennant Group (PNTG), the current Gross Margin % is 13.88% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Pennant Group (PNTG) Overvalued in 2026?
Based on GuruFocus' analysis, Pennant Group stock appears to be overvalued.
The current stock price of $36.38 is trading 5.5% above its estimated GF Value™ of $34.47.
GuruFocus considers Pennant Group to be Fairly Valued.
Key valuation signals for PNTG:
Gross Margin %: 13.88% (near median its 10-year median of 13.10)
GF Value™: $34.47 vs. price of $36.38 (5.5% above fair value)
Industry Position: 65.4% below the Healthcare Providers & Services median (#581 of 629)
No single metric tells the full story. See the PNTG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pennant Group Inc is engaged in providing healthcare services to patients of all ages, including the growing senior population, in the United States. It operates in multiple lines of business including home health, hospice, and senior living which includes the company's assisted living, independent living, and memory care communities across Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. It operates in two segments; home health and hospice services and senior living services. The company generates majority of its revenue from home health and hospice services segment, which includes its home health, hospice and home care businesses.
89GF Score
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