Compound annual growth rate of 63%, professional nursing company PACS will go public tonight

Following the AI newcomers ALAB and Reddit, another US-listed company has emerged.

Professional nursing company PACS Group raised $450 million in its IPO, with a valuation exceeding $3.1 billion. The company priced its IPO at $21 per share, with the ticker symbol "PACS".

PACS is engaged in the post-acute care industry, typically providing care for patients who are discharged from the hospital but still require assistance and cannot care for themselves, hence they go to SNFs (skilled nursing facilities).

Most SNF patients are aged 65 and above. According to a MedPAC report, SNFs have the lowest facility-based acute post-acute healthcare costs, with an average cost of $550 per covered day, compared to $1,850 for inpatient rehabilitation facilities and $1,753 for long-term care facilities.

The company is in an active expansion phase, growing from 66 facilities in 2020 to 218 facilities in 2023:

Currently, the main facilities are all located in the United States:

In terms of revenue data, there has been a significant increase, with a 3-year compound growth rate of 63%. However, operating costs rose in 2023, leading to a decrease in net profit from $150 million in 2022 to $113 million in 2023:

In terms of valuation, the price-to-sales ratio is around 1x, and the price-to-earnings ratio is around 27.5x.

It is worth mentioning that new stocks are taking advantage of the high valuations in the US stock market and are rushing to go public, with cybersecurity stock ULS set to debut tomorrow