Quality Investor

Pattern Group Inc.

Rank #8Hypergrowth

PTRN · Nasdaq · Consumer Cyclical

Pattern Group Inc. (PTRN) — Rank #8 by gross profitability (GP/assets 1.02) · ROE 2.5% · Piotroski F-Score 5 / 9.

As-of 2026-09-15 · CIK 0001811935 · all metrics point-in-time as of the filing date.

About

Pattern Group Inc. operates as an e-commerce accelerator that combines proprietary technology and on-demand expertise to support consumer brands operating across e-commerce marketplaces in the United States and internationally.

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The company acquires inventory from brand partners to sell to consumers in various industries, including health and wellness; beauty and personal care; home and lifestyle; pet; sports and outdoors; and consumer electronics. The company was formerly known as Covalent Group, Inc. and changed its name to Pattern Group Inc. in November 2024. Pattern Group Inc.

was incorporated in 2018 and is headquartered in Lehi, Utah.

Industry
Internet Retail
Sector
Consumer Cyclical
State
DE
Filer Category
Non-accelerated filer
Fiscal Year End
December 31

Price History

PTRN+28.3% · +29.1% CAGRSPY+16.1% · +16.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$3.83B

P/E (annual)

P/S (annual)

1.5

P/B

5.9

P/OCF (annual)

38.5

Shareholder Yield

-26.7%

Employees

2,300

Industry

Internet Retail

Exchange

Nasdaq

Signal Flags

2 green1 yellow1 red
Revenue growth acceleratingGrowth rate increasing year over year
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

1/1 pass
GP / assets
1.02
Return on equity
2.5%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.66
Current ratio
2.35×
Net cash
$345.83M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
3.9%

Growth

1/2 pass
Revenue growth
39.3%
Piotroski F-Score
5 / 9
Share dilution
26.7%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

12.3%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 26.7% — per-share value needs a total required return of 39.0% once share-count change is priced in.

vs. own 6-year median revenue growth: 39.3%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

7.7%

r = 10% (base)

12.3%

r = 12%

16.3%

Net debt / market cap: -15.6%

Base FCF: $78.9M3Y mean FCF: $78.9M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

0.5xCheap
0.5xmed 0.5x0.7x

P / B

Price / book value per share

2.1xCheap
2.1xmed 9.0x23.1x

P / GP

Price / gross profit per share

1.1xCheap
1.1xmed 1.3x1.6x

P / FCF

Price / free cash flow per share

15.7xCheap
15.7xmed 19.6x36.3x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

1.02

Primary signal (Novy-Marx).

2nd of 7 SIC 5961 peers

Return on equity

2.5%

Gross margin

43.6%

4th of 7 SIC 5961 peers

Revenue growth (YoY)

39.3%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.66

Current ratio

2.35×

4th of 7 SIC 5961 peers

Quick ratio

1.46×

Net cash

$345.83M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$78.92M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

3.86

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

3.9%

Stock-based comp intensity.

Piotroski F-Score

F-Score

5 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20232025
Hypergrowth