PACS Group, Inc. — Earnings Quality Grade F
PACS · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 43 days, change -14 days YoY
AR growth -2.1% vs revenue growth 29.3%
Revenue 29.3%, CFFO 10.0%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -28.8% vs revenue 29.3%. Normal
SG&A/Gross Profit = 53.2%. Normal
Gross margin 14.8%, change +2.3pp. Stable
Cash Flow Quality
CFFO/NI = 2.11. Profits backed by cash
FCF < 50% of Net Income for 2 years
Accruals ratio = -3.8%. Low accruals
Cash $0.2B covers only 6% of debt $3.5B
Balance Sheet Health
Goodwill+Intangibles $0.1B = 7% of equity. Manageable
Debt/EBITDA = 9.4x (>4x). Financial stress
Other assets 1.9% vs revenue 29.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change 1% YoY. Normal
Manipulation Score
M-Score = -2.72 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25