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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
PFHO's Price-to-Net-Net-Working-Capital is ranked better than 75% of 4
companies
in the Healthcare Plans industry
Industry Median: 5.92
vs PFHO: 0.83
Pacific Health Care Organization (OTCPK:PFHO) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Pacific Health Care Organization Net-Net Working Capital Related Terms
Pacific Health Care Organization Net-Net Working Capital Historical Data
* 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.
Pacific Health Care Organization Net-Net Working Capital Chart
PFHO vs UNH, CVS, ELV: Net-Net Working Capital Comparison
For the Healthcare Plans subindustry, Pacific Health Care Organization's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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.
Pacific Health Care Organization Price-to-Net-Net-Working-Capital vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Pacific Health Care Organization's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Pacific Health Care Organization's Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $1.00 mean?
Pacific Health Care Organization (PFHO) has a Net-Net Working Capital of $1.00 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Pacific Health Care Organization According to the industry distribution chart, Pacific Health Care Organization ranks #1 out of 4 companies in the Healthcare Plans industry, placing it in the top 25%.
Is Pacific Health Care Organization's Net-Net Working Capital too high?
Pacific Health Care Organization's current Net-Net Working Capital is $1.00. The Healthcare Plans industry median Net-Net Working Capital is 5.92. Pacific Health Care Organization's value of $1.00 is 83.1% below this industry median. Based on the distribution chart, Pacific Health Care Organization ranks #1 out of 4 companies in the Healthcare Plans industry, which is in the top quartile — a strong position relative to peers. Overall, Pacific Health Care Organization has a GF Score™ of 47/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pacific Health Care Organization's Net-Net Working Capital compare to UNH and CVS?
According to the Healthcare Plans industry distribution chart, Pacific Health Care Organization ranks #1 out of 4 companies for Net-Net Working Capital. This places Pacific Health Care Organization in the top 25% of its industry — outperforming the majority of peers. The industry median Net-Net Working Capital is 5.92. Pacific Health Care Organization's value of $1.00 is 83.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Healthcare Plans company?
The median Net-Net Working Capital among Healthcare Plans companies is 5.92, based on 4 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pacific Health Care Organization's current Net-Net Working Capital of $1.00 is 83.1% 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Pacific Health Care Organization For the Healthcare Plans industry, the median Net-Net Working Capital is 5.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pacific Health Care Organization's current Net-Net Working Capital is $1.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pacific Health Care Organization stock overvalued right now?
Based on GuruFocus' analysis, Pacific Health Care Organization (PFHO) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.94, compared to a current price of $0.83 — trading 11.7% below its estimated fair value. The current Net-Net Working Capital is $1.00 and 83.1% below the Healthcare Plans industry median of 5.92. Pacific Health Care Organization's overall GF Score™ is 47/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Pacific Health Care Organization (PFHO), the current Net-Net Working Capital is $1.00 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 Pacific Health Care Organization (PFHO) Overvalued in 2026?
Based on GuruFocus' analysis, Pacific Health Care Organization stock appears to be undervalued.
The current stock price of $0.83 is trading 11.7% below its estimated GF Value™ of $0.94.
GuruFocus considers Pacific Health Care Organization to be Modestly Undervalued.
Key valuation signals for PFHO:
Net-Net Working Capital: $1.00
GF Value™: $0.94 vs. price of $0.83 (11.7% below fair value)
Industry Position: 83.1% below the Healthcare Plans median (#1 of 4)
No single metric tells the full story. See the PFHO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pacific Health Care Organization Business Description
Pacific Health Care Organization Inc is a workers' compensation cost containment specialist providing a range of services principally to California employers and claims administrators. The company offers an integrated and layered array of complementary business solutions that enable its customers to manage their workers' compensation-related healthcare administration costs. Its services include two HCOs, MPNs, medical case management, utilization review, medical bill review, workers' compensation carve-outs and Medicare set-aside services. It also provides lien representation and witness testimony, ancillary to other services.
47GF Score
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