Pennant GroupPNTG -1.23%89 ROC (Joel Greenblatt) % is 17.98% as of Mar. 2026, which is 117% above its 10-year median of 8.27. GuruFocus rates PNTG with a GF Score™ of 89/100 and a GF Value™ of $34.66 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 668 Healthcare Providers & Services companies, Pennant Group ranks better than 55.24% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Pennant Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 17.98%.
The historical rank and industry rank for Pennant Group's ROC (Joel Greenblatt) % or its related term are showing as below:
PNTG'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.42 Med: 8.27 Max: 209.89
Current: 15.41
During the past 10 years, Pennant Group's highest ROC (Joel Greenblatt) % was 209.89%. The lowest was 1.42%. And the median was 8.27%.
PNTG's ROC (Joel Greenblatt) % is ranked better than 55.24% of 668
companies
in the Healthcare Providers & Services industry
Industry Median: 12.47
vs PNTG: 15.41
Pennant Group's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 40.20% per year.
Pennant Group (NAS:PNTG) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Pennant Group ROC (Joel Greenblatt) % Related Terms
Pennant Group ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Pennant Group's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Medical Care Facilities subindustry, Pennant Group's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Pennant Group's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Pennant Group's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 17.98% mean?
Pennant Group (PNTG) has a ROC (Joel Greenblatt) % of 17.98% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Pennant Group and its competitors. This is 117% above median its historical median of 8.27. Over the past decade, Pennant Group's ROC (Joel Greenblatt) % has ranged from 1.42 to 209.89. According to the industry distribution chart, Pennant Group ranks #299 out of 668 companies in the Healthcare Providers & Services industry, placing it in the top 44.8%.
Is Pennant Group's ROC (Joel Greenblatt) % too high?
Pennant Group's current ROC (Joel Greenblatt) % of 17.98% is 117% above median its 10-year median of 8.27. Over the past 10 years, this metric has ranged from a low of 1.42 to a high of 209.89. The Healthcare Providers & Services industry median ROC (Joel Greenblatt) % is 12.47. Pennant Group's value of 17.98% is 44.2% above this industry median. Based on the distribution chart, Pennant Group ranks #299 out of 668 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, Pennant Group has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pennant Group's ROC (Joel Greenblatt) % compare to AMN and NUTX?
According to the Healthcare Providers & Services industry distribution chart, Pennant Group ranks #299 out of 668 companies for ROC (Joel Greenblatt) %. This puts Pennant Group in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 12.47. Pennant Group's value of 17.98% is 44.2% above this benchmark. Historically, Pennant Group's own ROC (Joel Greenblatt) % has ranged from 1.42 to 209.89 over the past decade. While the company's 10-year median is 8.27 vs. the industry median of 12.47, 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 ROC (Joel Greenblatt) % for a Healthcare Providers & Services company?
The median ROC (Joel Greenblatt) % among Healthcare Providers & Services companies is 12.47, based on 668 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pennant Group's current ROC (Joel Greenblatt) % of 17.98% is 44.2% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Pennant Group and its competitors. For the Healthcare Providers & Services industry, the median ROC (Joel Greenblatt) % is 12.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pennant Group's current ROC (Joel Greenblatt) % is 17.98%, which is 117% above median its own 10-year median of 8.27. 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 Modestly Overvalued. The stock's GF Value™ is $34.66, compared to a current price of $39.20 — trading 13.1% above its estimated fair value. The current ROC (Joel Greenblatt) % is 17.98%, which is 117% above median its 10-year median of 8.27 and 44.2% above the Healthcare Providers & Services industry median of 12.47. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Pennant Group (PNTG), the current ROC (Joel Greenblatt) % is 17.98% 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 $39.20 is trading 13.1% above its estimated GF Value™ of $34.66.
GuruFocus considers Pennant Group to be Modestly Overvalued.
Key valuation signals for PNTG:
ROC (Joel Greenblatt) %: 17.98% (117% above median its 10-year median of 8.27)
GF Value™: $34.66 vs. price of $39.20 (13.1% above fair value)
Industry Position: 44.2% above the Healthcare Providers & Services median (#299 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.
89GF Score
Get the complete analysis for PNTG
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PNTG has been successfully added to your 
