Pennant Return On Asset vs. Gross Profit

PNTG Stock  USD 30.31  0.30  1.00%   
Based on Pennant's profitability indicators, Pennant Group is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Pennant's ability to earn profits and add value for shareholders. The Pennant's current EV To Sales is estimated to increase to 2.64, while Price To Sales Ratio is projected to decrease to 0.72. At this time, Pennant's Income Quality is most likely to slightly decrease in the upcoming years.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.140.123
Fairly Up
Very volatile
Net Profit Margin0.03050.0246
Fairly Up
Slightly volatile
Operating Profit Margin0.04910.0462
Notably Up
Slightly volatile
Pretax Profit Margin0.04330.0359
Fairly Up
Slightly volatile
Return On Assets0.02360.0248
Notably Down
Slightly volatile
Return On Equity0.130.0953
Significantly Up
Slightly volatile
For Pennant profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Pennant to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Pennant Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Pennant's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Pennant Group over time as well as its relative position and ranking within its peers.
  

Pennant's Revenue Breakdown by Earning Segment

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Is Health Care Providers & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Pennant. If investors know Pennant will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Pennant listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.365
Earnings Share
0.68
Revenue Per Share
21.663
Quarterly Revenue Growth
0.289
Return On Assets
0.0383
The market value of Pennant Group is measured differently than its book value, which is the value of Pennant that is recorded on the company's balance sheet. Investors also form their own opinion of Pennant's value that differs from its market value or its book value, called intrinsic value, which is Pennant's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Pennant's market value can be influenced by many factors that don't directly affect Pennant's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Pennant's value and its price as these two are different measures arrived at by different means. Investors typically determine if Pennant is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pennant's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Pennant Group Gross Profit vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Pennant's current stock value. Our valuation model uses many indicators to compare Pennant value to that of its competitors to determine the firm's financial worth.
Pennant Group is rated below average in return on asset category among its peers. It is rated below average in gross profit category among its peers fabricating about  2,693,107,050  of Gross Profit per Return On Asset. At this time, Pennant's Gross Profit is most likely to increase significantly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Pennant by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Pennant Gross Profit vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Pennant

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0383
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Pennant

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
103.15 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Pennant Gross Profit Comparison

Pennant is currently under evaluation in gross profit category among its peers.

Pennant Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Pennant, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Pennant will eventually generate negative long term returns. The profitability progress is the general direction of Pennant's change in net profit over the period of time. It can combine multiple indicators of Pennant, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income25.2 M16.9 M
Net Income From Continuing Ops13.1 M7.5 M
Income Before Tax19.6 M10.3 M
Total Other Income Expense Net-5.6 M-5.3 M
Net Income Applicable To Common SharesMM
Net Income13.9 M7.6 M
Income Tax Expense5.7 MM
Net Interest Income-5.7 M-5.4 M
Interest Income369 K328 K
Change To Netincome6.8 M6.7 M
Net Income Per Share 0.45  0.36 
Income Quality 2.38  2.50 
Net Income Per E B T 0.68  0.56 

Pennant Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Pennant. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Pennant position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Pennant's important profitability drivers and their relationship over time.

Use Pennant in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Pennant position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pennant will appreciate offsetting losses from the drop in the long position's value.

Pennant Pair Trading

Pennant Group Pair Trading Analysis

The ability to find closely correlated positions to Pennant could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Pennant when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Pennant - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Pennant Group to buy it.
The correlation of Pennant is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Pennant moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Pennant Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Pennant can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Pennant position

In addition to having Pennant in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Pharmaceutical Products Thematic Idea Now

Pharmaceutical Products
Pharmaceutical Products Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Pharmaceutical Products theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Pharmaceutical Products Theme or any other thematic opportunities.
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When determining whether Pennant Group is a strong investment it is important to analyze Pennant's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Pennant's future performance. For an informed investment choice regarding Pennant Stock, refer to the following important reports:
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You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
To fully project Pennant's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Pennant Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Pennant's income statement, its balance sheet, and the statement of cash flows.
Potential Pennant investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Pennant investors may work on each financial statement separately, they are all related. The changes in Pennant's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Pennant's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.