Pennant GroupPNTG -1.23%89 3-Year ROIIC % is 5.73 as of Dec. 2025, which is 58% above its 10-year median of 3.62. 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 620 Healthcare Providers & Services companies, Pennant Group ranks better than 55.16% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Pennant Group's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 5.73%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Pennant Group's 3-Year ROIIC % or its related term are showing as below:
PNTG's 3-Year ROIIC % is ranked better than 55.16% of 620
companies
in the Healthcare Providers & Services industry
Industry Median: 3.28
vs PNTG: 5.73
Pennant Group (NAS:PNTG) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Pennant Group 3-Year ROIIC % Related Terms
Pennant Group 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Pennant Group's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Medical Care Facilities subindustry, Pennant Group's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Pennant Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Pennant Group's 3-Year ROIIC % falls into.
Pennant Group's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 37.65638 (Dec. 2025) - 16.0508784 (Dec. 2022) )
/
( 836.672 (Dec. 2025) - 459.497 (Dec. 2022) )
=
21.6055016
/
377.175
=
5.73%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Pennant Group (PNTG) has a 3-Year ROIIC % of 5.73 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Pennant Group and its competitors. This is 58% above median its historical median of 3.62. According to the industry distribution chart, Pennant Group ranks #278 out of 620 companies in the Healthcare Providers & Services industry, placing it in the top 44.8%.
Is Pennant Group's 3-Year ROIIC % too high?
Pennant Group's current 3-Year ROIIC % of 5.73 is 58% above median its 10-year median of 3.62. The Healthcare Providers & Services industry median 3-Year ROIIC % is 3.28. Pennant Group's value of 5.73 is 74.7% above this industry median. Based on the distribution chart, Pennant Group ranks #278 out of 620 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 3-Year ROIIC % compare to AMN and NUTX?
According to the Healthcare Providers & Services industry distribution chart, Pennant Group ranks #278 out of 620 companies for 3-Year ROIIC %. This puts Pennant Group in the upper half of its industry. The industry median 3-Year ROIIC % is 3.28. Pennant Group's value of 5.73 is 74.7% above this benchmark. While the company's 10-year median is 3.62 vs. the industry median of 3.28, 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 3-Year ROIIC % for a Healthcare Providers & Services company?
The median 3-Year ROIIC % among Healthcare Providers & Services companies is 3.28, based on 620 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pennant Group's current 3-Year ROIIC % of 5.73 is 74.7% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Pennant Group and its competitors. For the Healthcare Providers & Services industry, the median 3-Year ROIIC % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pennant Group's current 3-Year ROIIC % is 5.73, which is 58% above median its own 10-year median of 3.62. 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 $39.19 — trading 13.1% above its estimated fair value. The current 3-Year ROIIC % is 5.73, which is 58% above median its 10-year median of 3.62 and 74.7% above the Healthcare Providers & Services industry median of 3.28. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Pennant Group (PNTG), the current 3-Year ROIIC % is 5.73 as of Dec. 2025. 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 $39.19 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:
3-Year ROIIC %: 5.73 (58% above median its 10-year median of 3.62)
GF Value™: $34.66 vs. price of $39.19 (13.1% above fair value)
Industry Position: 74.7% above the Healthcare Providers & Services median (#278 of 620)
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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