PACS Group Inc. (PACS) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, PACS scores 74 out of 100, a B grade, labeled "Roarable Buy — Good Risk/Reward." The five pillars are:

• Fundamental Cash Engine (13 / 20): Per the Roarable RQD rating, the pillar cites ROIC of 24.6% and an FCF yield of 2.11%. High return on capital paired with a modest free-cash-flow yield suggests the business earns well on invested capital, but the cash return to a buyer at the current price is comparatively thin.
• Whale 13F Flow (17 / 20): Per the Roarable RQD rating, this pillar reflects institutional accumulation and options positioning. It is the highest-scoring pillar, indicating institutional demand as a supportive factor.
• Insider Conviction (15 / 20): Per the Roarable RQD rating, this pillar reflects SEC Form 4 and Congressional PTR cluster flow. The recent news wire also references a CEO stock sale (see Recent Catalysts), so insider signals should be read alongside that item rather than treated as uniformly positive.
• Macro Regime Fit (15 / 20): Per the Roarable RQD rating, beta is 0.95 per the market data section, and the pillar weighs sector sensitivity. A beta near 1.0 implies market-like sensitivity to broad moves rather than a defensive or aggressive profile.
• Forensic Balance Sheet (14 / 20): Per the Roarable RQD rating, this pillar cites Altman Z of 2.24, Piotroski F of 9/9, and Debt/Equity of 0.26. The strong Piotroski reading and moderate leverage support balance-sheet quality.

Investor implications: the valuation tradeoff is central. Per the market data section, trailing P/E is 41.1 and forward P/E is 34.5, so the stock prices in substantial earnings growth. The upside case rests on that growth materializing and on continued institutional demand; the downside risk is that a compressing multiple or softer growth reduces the stock's price even if the operating business remains sound. The rating is a composite of factors, not a forecast of price direction.

Per the SEC financials, revenue grew from $3110.1M in FY 2023 to $5287.9M in FY 2025, and net income rose to $191.5M in FY 2025 from $55.8M in FY 2024. Per the market data section, operating margin is 5.9%, net margin is 3.6%, and gross margin is 0%. ROIC is 24.6%. Per the Roarable RQD rating, Altman Z-Score is 2.24 and Piotroski F-Score is 9/9. Per the Roarable RQD rating, debt-to-equity is 0.26, and per the SEC financials, debt declined from $1012.4M in FY 2023 to $244.8M in FY 2025.

• What is the specific content and financial impact of the lease expansion referenced in the news wire?
• What drove the 6.2% share price surge, and was it tied to a company-specific event?
• What is the full scope of insider sales, including the CEO transaction and the co-founder sales, and how do they reconcile with the insider pillar score?
• What explains the gap between FY 2024 and FY 2025 operating income and net income, and how sustainable is FY 2025 earnings power?
• Why is gross margin reported as 0% and EPS reported as N/A for all periods, and how should the trailing P/E of 41.1 be interpreted given those gaps?