PACS Group, Inc. (PACS)

Price$42.77Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look fair-priced because strong cash generation is offset by demanding growth expectations.

At the observed quote, PACS is valued at about 25 times the last four quarters’ diluted earnings of $1.71 per share. Its market value is roughly $6.8 billion. Trailing free cash flow—cash from operations minus capital spending—is about $456 million, implying roughly 15 times cash flow and a 6.7% cash yield. This simple measure excludes acquisition spending and separate real-estate purchases, so it is generous during expansion. The price is reasonable only if growth continues and investigations do not impair cash, which supports a fair-priced rather than bargain verdict.

Big picturePACS is growing quickly, but its cash record is newer and less proven than its revenue growth.

Revenue climbed from $2.40 billion in 2022 to $5.29 billion in 2025, but profits were uneven: net income fell from $150.5 million in 2022 to $55.8 million in 2024 before rebounding to $191.5 million in 2025. Cash improved later. Free cash flow was about $70 million in 2022, $18 million in 2023, $301 million in 2024, $299 million in 2025, and roughly $456 million over the latest four quarters. That pattern supports the growth story, but cash durability has only recently become convincing.

Business strengthHigh occupancy and improving profits support the model, while leases and dilution reduce balance-sheet comfort.

Operations look strong: second-quarter occupancy was 90.4%, versus a reported industry average of 79.5%, while mature facilities reached 93.8%. ir.pacs.com The balance sheet is more mixed. June cash was $164.5 million against $246.1 million of debt, but current liabilities exceeded current assets, and operating lease liabilities were about $3.0 billion. SEC Stock compensation was $46.2 million in the first half, shares rose about 1.1% year over year, and the $250 million repurchase authorization remained unused through June. SEC +1

What could change the storySuccessful acquisitions could justify today’s valuation, while regulatory findings or weaker cash conversion could break it.

Bull case: the Eduro deal adds 34 facilities and 3,633 beds, while management lifted 2026 revenue guidance to $5.75-$5.85 billion and its adjusted profit measure to $640-$660 million. ir.pacs.com If integration succeeds and free cash flow stays above roughly $400 million, today’s valuation can age well. Bear case: federal investigations remain open, accounting controls still have material weaknesses, and large lease commitments limit flexibility. SEC +1 A fall back toward $300 million of annual free cash flow would push the valuation above about 22 times cash flow, making the current price much harder to defend.

AI: News

Guidance raised after quarterSecond-quarter results improved sharply and management raised full-year guidance, strengthening near-term growth expectations.

On August 4, PACS reported second-quarter revenue of $1.43 billion, up 9.1%, and net income of $76.3 million, up 49.8%. It raised full-year revenue guidance to $5.75-$5.85 billion and adjusted earnings before interest, taxes, depreciation and amortization guidance to $640-$660 million. ir.pacs.com +1 The shares closed 1.8% higher on August 5 and another 3.0% higher on August 6; that timing is consistent with a positive earnings reaction, but does not prove earnings were the only driver. MarketBeat

Eduro expansion dealPACS agreed to add 34 nursing facilities, expanding its footprint while raising integration demands.

On June 29, PACS agreed to acquire operations of 34 skilled nursing facilities from Eduro Healthcare, adding 3,633 beds across six states and expanding into four new states. PACS By August 1, it had closed 20 of 22 Texas facilities, with 14 remaining facilities expected later in 2026. ir.pacs.com One market report said shares rose 3.4% after hours after the announcement. That reaction suggests investors welcomed the growth opportunity, although it does not prove the deal alone caused the move. Investing.com

Investigations remain unresolvedThe latest filing kept federal investigations unresolved, preserving a serious risk to cash and investor confidence.

On August 4, the quarterly filing said the Securities and Exchange Commission investigation into accounting, financial reporting, disclosures and controls remained open, alongside Justice Department investigations. It also said previously identified revenue-control weaknesses had not yet been remediated. SEC There was no new penalty or enforcement finding disclosed, so this was not an escalation. Still, unresolved investigations can reduce value through legal costs, repayments, fines, operating changes or reduced confidence in reported results, making the issue material without implying a specific stock-price reaction.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

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2025

Total cash / debt

CashTotal debt

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2025

Financial statements

	2025	2024	2023	2022
Revenue	$5.29B	$4.09B	$3.11B	$2.40B
Gross profit	$1.16B	$789.6M	$662.4M	$537.8M
Gross margin	21.90%	19.32%	21.30%	22.42%
Operating expenses	$4.98B	$3.97B	$2.90B	$308.5M
Operating income	$309.6M	$123.1M	$207.8M	$229.4M
Operating margin	5.85%	3.01%	6.68%	9.56%
EBITDA	$368.5M	$186.7M	$232.9M	$254.9M
EBITDA margin	6.97%	4.57%	7.49%	10.62%
Net income	$191.5M	$55.8M	$112.9M	$150.5M
Net profit margin	3.62%	1.36%	3.63%	6.27%
Basic EPSper basic share	$1.23	$0.38	$0.88	$1.17
Diluted EPSper diluted share	$1.22	$0.38	$0.88	$1.17

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈34.79%of listed shares

Murray Jason Hulse55.08M shares · Mar 24, 2026

View holders

Top 20 reported holders of PACS
Holder	% owned
Murray Jason Hulse	≈34.79%55.08M shares
Hancock Mark	≈34.17%54.1M shares
COHEN & STEERS, INC.	5.27%8.34M shares
FMR LLC	3.92%6.21M shares
BlackRock, Inc.	2.62%4.16M shares
Crewe Advisors LLC	2.09%3.31M shares
AMERICAN CENTURY COMPANIES INC	1.96%3.11M shares
Jergensen Joshua	≈1.65%2.62M shares
AMERIPRISE FINANCIAL INC	1.26%2M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	1.25%1.98M shares
VANGUARD CAPITAL MANAGEMENT LLC	1.16%1.84M shares
Alyeska Investment Group, L.P.	0.97%1.54M shares
Sanford Peter	≈0.81%1.28M shares
DIMENSIONAL FUND ADVISORS LP	0.78%1.23M shares
GEODE CAPITAL MANAGEMENT, LLC	0.76%1.21M shares
STATE STREET CORP	0.71%1.12M shares
Apt Derick G	≈0.70%1.11M shares
ROYCE & ASSOCIATES LP	0.58%912.49K shares
MITCHELL JOHN TODD	≈0.51%803.57K shares
MORGAN STANLEY	0.47%750.75K shares

Percentages use 158.34M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$500.0K disclosed value

Sells (SEC code S)18$617.82M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 26, 2026Form 4 · 10b5-1	Hancock MarkCo Fndr; Exec V Chair	SellCommon Stock	200	$41.01	$8.2K	54.10M
Jun 26, 2026Form 4 · 10b5-1	Hancock MarkCo Fndr; Exec V Chair	SellCommon Stock	61.7K	$40.50	$2.50M	54.10M
Jun 25, 2026Form 4 · 10b5-1	Hancock MarkCo Fndr; Exec V Chair	SellCommon Stock	138.1K	$40.33	$5.57M	54.16M
Jun 25, 2026Form 4 · 10b5-1	Lewis Michelle ReneeChief Accounting Officer	SellCommon Stock	15.0K	$40.01	$600.1K	370.3K
Jun 17, 2026Form 4 · 10b5-1	Hancock MarkCo Fndr; Exec V Chair	SellCommon Stock	3.3K	$35.75	$118.5K	54.30M

Review ownership filings at SEC.gov ↗

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PACS Group, Inc. (PACS)

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