Pennant GroupPNTG +0.99%90 Net Margin % is 2.99% as of Mar. 2026, which is 6% below its 10-year median of 3.18. GuruFocus rates PNTG with a GF Score™ of 90/100 and a GF Value™ of $34.44 (Fairly Valued). The stock has 8 warning signs investors should review. Among 668 Healthcare Providers & Services companies, Pennant Group ranks better than 50.6% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Pennant Group's Net Income for the
three
months ended in Mar. 2026 was $9 Mil. Pennant Group's Revenue for the
three
months ended in Mar. 2026 was $285 Mil. Therefore, Pennant Group's net margin for the quarter that ended in Mar. 2026 was 2.99%.
The historical rank and industry rank for Pennant Group's Net Margin % or its related term are showing as below:
PNTG'
s Net Margin % Range Over the Past 10 Years
Min: 0.61 Med: 3.18 Max: 5.48
Current: 2.96
PNTG's Net Margin % is ranked better than 50.6% of 668
companies
in the Healthcare Providers & Services industry
Industry Median: 2.885
vs PNTG: 2.96
Pennant Group (NAS:PNTG) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Pennant Group Net Margin % Related Terms
Pennant Group Net Margin % Historical Data
* Premium members only.
The historical data trend for Pennant Group's Net 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.
For the Medical Care Facilities subindustry, Pennant Group's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Pennant Group's Net Margin % distribution charts can be found below:
* The bar in red indicates where Pennant Group's Net 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.
Pennant Group (PNTG) has a Net Margin % of 2.99% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Pennant Group and its competitors. This is near median its historical median of 3.18. Over the past decade, Pennant Group's Net Margin % has ranged from 0.61 to 5.48. According to the industry distribution chart, Pennant Group ranks #330 out of 668 companies in the Healthcare Providers & Services industry, placing it in the top 49.4%.
Is Pennant Group's Net Margin % too high?
Pennant Group's current Net Margin % of 2.99% is near median its 10-year median of 3.18. Over the past 10 years, this metric has ranged from a low of 0.61 to a high of 5.48. The Healthcare Providers & Services industry median Net Margin % is 2.89. Pennant Group's value of 2.99% is 3.6% above this industry median. Based on the distribution chart, Pennant Group ranks #330 out of 668 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, Pennant Group has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pennant Group's Net Margin % compare to AMN and ARDT?
According to the Healthcare Providers & Services industry distribution chart, Pennant Group ranks #330 out of 668 companies for Net Margin %. This puts Pennant Group in the upper half of its industry. The industry median Net Margin % is 2.89. Pennant Group's value of 2.99% is 3.6% above this benchmark. Historically, Pennant Group's own Net Margin % has ranged from 0.61 to 5.48 over the past decade. While the company's 10-year median is 3.18 vs. the industry median of 2.89, Pennant Group has consistently been above 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 Net Margin % for a Healthcare Providers & Services company?
The median Net Margin % among Healthcare Providers & Services companies is 2.89, based on 668 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pennant Group's current Net Margin % of 2.99% is 3.6% above 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Pennant Group and its competitors. For the Healthcare Providers & Services industry, the median Net Margin % is 2.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pennant Group's current Net Margin % is 2.99%, which is near median its own 10-year median of 3.18. 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 $34.44, compared to a current price of $34.57 — trading 0.4% above its estimated fair value. The current Net Margin % is 2.99%, which is near median its 10-year median of 3.18 and 3.6% above the Healthcare Providers & Services industry median of 2.89. Pennant Group's overall GF Score™ is 90/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Pennant Group (PNTG), the current Net Margin % is 2.99% 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 $34.57 is trading 0.4% above its estimated GF Value™ of $34.44.
GuruFocus considers Pennant Group to be Fairly Valued.
Key valuation signals for PNTG:
Net Margin %: 2.99% (near median its 10-year median of 3.18)
GF Value™: $34.44 vs. price of $34.57 (0.4% above fair value)
Industry Position: 3.6% above the Healthcare Providers & Services median (#330 of 668)
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.
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